New developments and significant changes are under way in the world trading system. We are witnessing a revival of trading nations' interest in international trade agenda and trade talks, which have taken a backseat since the economic downturn following the global crisis. The improved outlook for global trade growth, but also the acute need for adjusting the world trading system to the ongoing structural changes in the spheres of international trade and industrial organization are, essentially,

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... behind this policy shift. This paper takes stock of recent developments in the world trading system and highlights the prospects for global trade governance. It focuses on three issues: (1) the significance of the Ninth WTO Ministerial Conference in December 2013 for resuming global trade cooperation; (2) the recent drive towards plurilateral sector-specific trade deals; and (3) the outstanding pace and scale of negotiations on new preferential trade agreements (PTAs). The paper concludes with a discussion of the future direction of the world trading system. It argues that despite improved prospects for multilateral trade liberalization, the world trading system is becoming more fragmented and less coherent, and also more uncertain, being increasingly driven by PTAs and a variable geometry approach to WTO trade agreements. † The term preferential trade agreement (PTA) is used throughout this paper to refer to customs unions, free trade agreements, and interim arrangements leading to one of them, as stipulated by GATT Article XXIV and GATS Article V. The author has deliberately opted for the term PTA instead of RTA (regional trade agreement) used by the WTO, but it has the same connotation.