The EU’s Emerging Regime on Extraterritorial Subsidies: Extending the Scope of EU State Aid Law

Nagy, Csongor István (2023) The EU’s Emerging Regime on Extraterritorial Subsidies: Extending the Scope of EU State Aid Law. 月旦法學雜誌 = The Taiwan Law Review, 333 (333). pp. 182-200. ISSN 1025-5931

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Abstract

WTO law and WTO members’ commercial policy on subsidies were shaped by the western societal paradigm of the post-war period and have grown increasingly outdated and deficient. They are heavily product-centered and tend to be oblivious of service subsidies, they address domestic subsidies and disregard extraterritorial subsidies, and rest on a societal paradigm based on the autonomy of economic operators and a clear separation between the private and the public sector. This paper presents the EU’s endeavor to react to the foregoing challenges by introducing a regime on extraterritorial subsidies. First, it presents the system error featuring WTO law and EU commercial policy. Second, it demonstrates that, in fact, the EU simply extends its already existing state aid law to extraterritorial subsidies. Third, it presents the key features of the emerging EU regime on extraterritorial subsidies. Fourth, it provides a general assessment of the EU approach.

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