Trade: Orgalim comments on the Commission White Paper on foreign subsidies in the Internal Market

Published: 9 November 2020

Policies & Issues: Trade

In June 2020, the European Commission published a White Paper on “levelling the playing field as regards foreign subsidies” in the Internal Market. The White Paper foresees three possible building blocks, including (1) a general instrument to address the distortive effects of foreign subsidies, (2) an instrument to tackle foreign subsidies facilitating the acquisition of the EU companies and (3) an instrument to tackle foreign subsidies in public procurement procedures, both at EU and Member State level.

As the Commission is planning to put forward a proposal on the topic in 2021, Orgalim would like to share its views on the White Paper on foreign subsidies.

Orgalim advocates for open and rules-based trade, and we are concerned about the increasingly protectionist policies of some third countries. In this context, Orgalim supports the aim of the White Paper on foreign subsidies to create a level playing field at international level, specifically by tackling illegal state subsidies by third countries in the Internal Market. Our position paper puts forward six specific recommendations:

  • need to tackle illegal foreign subsidies through international cooperation and bilateral trade agreements;

  • need for one uniform legislation to tackle all foreign subsidies in the EU;

  • need for a clear definition of what constitutes an illegal foreign subsidy;

  • no to creating red tape for our companies;

  • need for clarity on ‘ex officio’ procedures;

  • need to clarify the link between the instrument on foreign subsidies and other instruments.

To read the recommendations in detail, please download the position above.

Authors

Selandari
Silvia Selandari
Senior Adviser - Trade and Legal

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