Is the rules-based multilateral trade order in decline? Current practices, trends and their impact

Abstract

Since its establishment, the World Trade Organization has suffered numerous blows. Today, however, it is going through a perfect storm: from a paralysis in its lawmaking function to the demise of the Appellate Body. Powerful economies such as the United States, China and the European Union are moving away from multilateralism, in different ways, in order to shape novel approaches. Non-transparent practices like informal trade instruments, geoeconomics, and the domestication of international trade rules are appearing as new tools of global economic governance. How to make sense of these practices and approaches from a legal perspective? The common thread in all these factors is the relative decline of the rule of law. This article explores and critically assesses these developments and calls for urgent action in order to remedy and strengthen the multilateral rules-based trade order.