Journal of World Trade
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After Brexit, European
Union (EU) state aid no longer applies in the UK to funding and other forms of
support measures granted to businesses by public authorities. The EU-UK Trade
and Cooperation Agreement (TCA) envisages new subsidy rules under Chapter 3,
Title XI. In particular, Chapter 3 sets out some general principles that apply
to the EU and UK but allows each side to retain regulatory autonomy on subsidy
control. Consequently, the UK was able to introduce its new domestic regime,
the Subsidy Control Act 2022 (SCA). The EU, on the other hand, already had its
own framework in place under EU state aid. This article offers a comparative
analysis between the TCA’s enforcement mechanisms, World Trade Organization
(WTO), and EU state aid. In doing so, it examines the tools introduced by the
SCA to implement the TCA’s requirements. In conclusion, this article suggests
that if there is going to be effective control of subsidies between the EU and
UK after Brexit, it will be due to the UK domestic subsidy system.