THE EXISTENTIAL CRISIS OF THE WTO AS A FACTOR IN ITS INSTITUTIONAL REFORMING

Abstract

Relevance of the topic. According to the latest report by the World Trade Organization (WTO), «World Trade Prospects and Statistics,» global trade in goods is expected to decrease by 0.2 % in 2025, compared to the initial forecast of a 2.7 % increase. According to the organization's economists, if trade tensions continue to escalate, the decline could reach — 1.5 %. This decline in global trade reflects the WTO's existential crisis as an organization dedicated to promoting trade liberalization. Goal. The purpose of the scientific work is a systematic theoretical study of the problems of multilateral regulation of global trade within the framework of the World Trade Organization. Methodology. The research methodology is based on a systematic and process-oriented approach. The study uses general scientific and special methods of cognition, including systemic, institutional, and statistical analysis, synthesis, induction, deduction, formal logic, and interpretation. Results and conclusions. The authors carried out a systematic analysis of the problems hindering the development of global trade and concluded that the WTO is currently experiencing an existential crisis. This crisis manifests itself in the existence of irreconcilable contradictions between the North and the South, which are blocking the negotiation process in the WTO. As a result, trade negotiations are taking place outside the WTO through dozens of bilateral and regional free trade agreements, and the number of these agreements is steadily increasing. Since 2019 The WTO's appellate body, consisting of experts in the field of law and international trade, is inactive, paralyzed by the refusal of the United States to appoint new judges. At the same time, it is the Appellate Body that must guarantee the binding nature of the WTO agreements.