TRANSFORMING THE PROCESS OF CREATING GLOBAL VALUE CHAINS UNDER THE CURRENT CONDITIONS

The urgency of the paper is caused by the fact that 90% of world trade, according to UNCTAD, is under restrictions resulted from the closure of borders between countries in the context of the pandemic. The study deals with the formation of global value chains (GVCs) mainly within one region: product transportation leverage reduces as formerly the GVCs represented vertical cooperation initiated by international transnational companies (TNC). The authors researched the transformation of the GVCs creation process and identified that more active application of advantages of horizontal cooperation between economic entities of various territorially close countries would result in the reformatting of the geography of the GVCs formation. At the same time, the impact of the pandemic on economic globalization as a whole determines the strengthening of interstate coordinated regulation, including on a regional scale. At the same time, the impact of the pandemic on economic globalization as a whole determines the strengthening of interstate coordinated regulation, including on a regional scale. Under the current conditions, a sufficiently large number of countries ignore the WTO rules, which is accompanied by the protectionism and sanctions policy, which is practically illegal from the point of view of international law. The study identifies that the signing of the Comprehensive Regional Economic Partnership by the ASEAN countries is evidence of regionalization of international interaction, indicated the development of a trend in the formation of a regional legal framework for the development of economic cooperation agreed by the participants, relying on the WTO basic legal norms. Economic cooperation includes the problems of regulation of electronic trade, competition policy, intellectual property protection, and other matters formerly not mentioned in agreements. The authors conclude that actual economic regionalization, including the transformation of the GVC formation process towards the increase of the share of their regional component, is an immanent feature of the world economy transformation in the context of real polycentrism towards the use of advantages of horizontal cooperation between the economic entities of different territorially close countries.

Global Value Chains, GVCs, vertical cooperation, horizontal cooperation, globalization, government regulation, transformation of the world economy, RCEP (Comprehensive Regional Economic Partnership)