Trade wars reflect the failure of global financial institutions such as the WTO and the IMF in addressing mounting global trade and financial imbalances, a new EPW article argues The US-China trade war has returned to the fore with the US threatening new tariffs on China for its alleged role in the coronavirus outbreak.
The underlying trade tensions, however, have deeper roots. Global trade and financial imbalances have been building up over time with trade deficits heavily concentrated among a few economies including the US, a new Economic and Political Weekly (EPW) article by Biju Paul Abraham and Partha Ray of the Indian Institute of Management, Calcutta argues.