This article seeks to explain the conditions for the emergence and institutionalization of the cultural paradiplomacy of the city of Barcelona and its local effects. The recognition of the city as an active participant on the international stage is based on its evolution from an industrial to a service economy. Against this backdrop, Barcelona's city council, in common with many other city authorities operating in the world's metropolises during the 1980s, initiated its own cultural paradiplomacy as a strategy for attracting capital and promoting local development. This policy became established as part of a new multilevel system of governance. This article analyzes the causes of the institutionalization of this activity from an intergovernmental perspective. It concludes that in the context of economic globalization, the emergence of cities' cultural paradiplomacy is strongly related to the restructuring of the State and its external administration and to the intensification of the 'cultural branding' of cities as a tool for global competition.