The UK will follow WTO subsidy rules after the end of the transition period …
The WTO rules are an internationally recognised common standard covering financial assistance granted by governments and public authorities to companies. Unlike EU member states, most advanced economies do not have substantive rules regulating subsidies beyond those set by the WTO …
The government confirmed it does not intend to return to the 1970s approach of trying to run the economy or bailing out unsustainable companies, maintaining that no government of a modern, competitive market economy should stand in the way or prevent adjustment to underlying market conditions.
The WTO rules, which apply to goods and not services, have ensured an effective international trading system for over 25 years. The rules ban subsidies that are dependent on either how much a company exports, or the use of domestic goods over imports. For all other subsidies, they provide a mechanism to resolve disputes between countries. These rules are designed to facilitate an effective international trading system and are followed by the vast majority of countries.
