The Changing Power Dynamics and Emerging Multipolarity in WTO

Abstract This paper examines the evolving power dynamics within the WTO since its creation and provides an in-depth analysis of how the changing power dynamics has impacted the multilateral institutions within the WTO. The analysis is divided into three sessions, each talking about a phase of power dynamics.The first phase explores how power imbalances between developed and developing countries have prompted the latter to form coalitions to counterbalance developed country dominance. The second phase stresses the growing multipolarity and multilateralism driven by the rising influence of developing countries, which is reflected by divergent trade interests within developing countries and the inability of the traditional developed-developing country framework to fully capture the WTO system. The third phase shows the growing protectionism in the U.S. and reluctance to participate in multilateral institutions, exemplified by its blockade of Appellate Body.This action, influenced by domestic trade interests and geopolitical factors, has disrupted the WTO’s two-tier dispute settlement system and undermined trade multilateralism. The paper answers the research questions with the analysis of three phases of power dynamics within the WTO. The paper concludes that addressing the WTO’s challenges requires open-minded, multilateral negotiations among all member states.