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SYNTHESIS
Jacques Buhart moderated the discussion. The panel focused on the new EU FSR, its substantive content and its scope. It covered a wide range of topics such as the definition for “financial contributions”, the implementing regulation, the timeline and relevant procedures, the articulation with other EU regulations (FDI and EUMR), and concerns raised about Article 21. 5).
Sean HEATHER
Subsidy concerns
- They are the result of trade policy not being able to effectively deal with the issue.
- Trade policy has thought about market distortions due to State involvement through SOEs and National Champions.
- Subsidies are just one problem, especially in the context of concerns emanating from China and SOEs, but there are two other categories.
- Financial - the government can give the company a check.
- Regulatory - government can provide regulatory favoritism.
- Government Directed Decisions - government can dictate who a company buys from and sells to.