Foreign Subsidies, Distortions and Acquisitions

The world trade system’s bedrock was laid more than seventy years ago and its architecture structural principles were shaped by the societal paradigm of western democracies. last two decades have seen admission various government-dominated economies to WTO. This raised serious paradigmatic challenges. system tailored needs characteristics democracies proved be inadequately equipped frame economies. paper addresses one these new challenges: government subsidies. First, it gives an overview status treatment product service subsidies in WTO law gaps shortcomings that result failure address trade-distortive state aids. Second, examines European Commission’s White Paper on Levelling Playing Field as Regards Foreign Subsidies (“White Paper”), which ushers a comprehensive response problems subsidization international trade. Third, analyzes framework governs confines unilateral actions targeting foreign Fourth, makes proposal for complementary way “subsidies problem”.