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State Aid Law of the European Union edited by Hofmann, Herwig C H; Micheau, Claire (11th August 2016)

Part VI Global Approach of State Aid Law—WTO Law and EU Trade Defence Instruments, Preliminary Material

Edited By: Herwig C. H. Hofmann, Claire Micheau

From: State Aid Law of the European Union

Edited By: Herwig C. H. Hofmann, Claire Micheau

From: Oxford Competition Law (http://oxcat.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved. Subscriber: null; date: 16 December 2019

Part VI of this book looks at the global dimension of State aid and subsidies control. Two sets of instruments are the focus of Part VI: one is WTO law on subsidies established in the context of the General Agreement on Tariffs and Trade (GATT) and the Agreement on Subsidies and Countervailing Measures (SCM) of the WTO; the other is EU trade defence instruments. Part VI sheds light both on the legal basis of subsidy control under WTO law (Chapter 1) as well as the anti-subsidy law and practice of the EU, which is designed to ensure that obligations of non-EU countries under WTO law are complied with (Chapter 2). Chapter 1 develops the concepts of subsidy control under WTO, prohibiting certain types of subsidies that might have a harmful effect on economic activity in other WTO members. Chapter 1 compares the WTO to the notions of State aid in EU law; the comparison takes into account the international law approach of state-to-state enforcement and contrasts this with EU State aid control taking place in the context of a more ambitious context of economic and political integration. This comparative approach also allows a more in-depth understanding to be gained of the EU State aid regime by contrasting it with WTO law. The comparative approach is also helpful to make visible reasons and potential solutions for conflicts of laws. Chapter 2 of Part VI then looks at the EU’s anti-subsidy instruments, which are designed to address subsidization by other WTO members. Section 2 discusses the methods and implications of the EU’s approach to enforcing other WTO members’ obligations.(p. 468)