This presentation by Anabel González (WTO’s Deputy Director-General) was made during a discussion on Subsidies, competition and trade at the 21st meeting of the OECD Global Forum on Competition on 1 December 2022. More papers and presentations on the topic can be found out at https://oe.cd/sctr. This presentation was uploaded with the author’s consent.

1. Subsidies, Competition and
Trade
Anabel González
WTO Deputy Director-General
OECD Global Forum on Competition 2022
1 December 2022

2. 1
Three main questions
Why do trade policymakers care about subsidies? How have
they managed some of the longstanding challenges posed by
subsidies?
Are existing global disciplines to regulate subsidies fit for
purpose in today's crisis-prone and uncertain world?
How can we improve and deepen cooperation on subsidies,
and what should be the role of the trade and competition policy
communities?

3. Why do trade policymakers
care about subsidies?
2
There are sound rationales for some subsidies…
Examples: basic R&D; green products
… but subsidies can have harmful international effects, including
on:
Trade and investment flows
Value of trade commitments
Perceptions about international level playing field
Subsidies can also trigger a lose-lose race to the bottom

4. Subsidies:
A frequently-used policy tool
3
Intervention by type of policy measure, 2009-2021 (in %)

5. Several tools to manage
the harmful effects of subsidies
4
WTO subsidy disciplines
Agreement on Subsidies and Countervailing Measures
Agreement on Agriculture
Fisheries Subsidies Agreement (concluded last June)
Free trade agreements
OECD Export Credit Provisions
OECD recommendation on competitive neutrality
Competition enforcement?

6. 5
Are these tools fit for purpose?
New challenges, new debates
•What new challenges make the issue of
subsidies more challenging today?
• Climate change
• Digitalization
• Changing role of state
• Emergency support
• Supply chain resilience
• Others

7. 6
Strengthening international cooperation
More and better
intergovernmental
consultations to
improve subsidy design
More transparency,
analysis and dialogue,
including between trade
and competition policy
authorities to strengthen
available tools

8. Conclusion
7
System of global trade rules and competition policy
frameworks has underpinned decades of trade-led growth
and development
This is not the time to turn our backs on competition and
market openness, which are essential to tackle global
challenges
Need to safeguard and nurture global trading system,
including by strengthening existing tools to address the
negative impacts of subsidies
Trade and competition policy authorities have key role to
play