Foreign Subsidies and Public Procurement

The EU has helped shape an international economic system based on openness and fair com-petition. Over the past few years, the benefits of this approach have come under pressure from foreign trade practices which undermine the principle of reciprocal treatment. In particular, this is the case with subsidies granted by non-EU governments and protected public procurement markets. This in-depth analysis reviews the state of play of EU policy action on foreign subsidies and in public procurement markets and identifies gaps in existing EU instruments. The analysis shows that the EU took the initiative with: First, the completed FDI screening and trade defence reforms; second, the proposal for an International Procurement Instrument; and third, the pro-posal for a Regulation targeting the distortive effects of foreign subsidies. In addition, the EU is taking the lead at the multilateral level, promoting coordinated action in the WTO, G7, G20, OECD, and GAMS fora.