Trade Wars in the World Economy

The purpose of this work is to study trade wars and the role of WTO in its solving. As part of the theoretical review and analysis of the literature of domestic and foreign sources, the concept of trade wars and the reasons for their origin are defined. The analysis of the Sino-US trade war using the "case-study" method formed the basis of the second chapter of the work. Based on its results, we identified the causes and prerequisites of the conflict between the two powers, analyzed the chronology of events and assessed the possible consequences for the participating countries. The third part of research focusing specifically on the role of WTO in solving trade wars. The analysis of the 595 cases associated with the WTO (World Trade Organization) explored that the WTO dispute settlement system is currently not effective in resolving trade disputes and wars. Slowness in decision-making, inequality among developed and other countries, the "glass house syndrome", the recommendatory nature of decisions and other problem areas do not allow the WTO to fully resolve trade conflicts and satisfy both sides. The crisis of the Appellate body in December 2019 showed the failure of the current system and the need in reforming the WTO.