The Concept Design of International Rules on State Intervention in the Economy

Regulating subsidies and state enterprises is a challenging exercise since, arguably, no other area touches more directly on the state intervention in the economy and on the various ideas and interests surrounding it. Taking stock of the acquis in regulating subsidies and state enterprises in the World Trade Organization (WTO) and in preferential trade agreements (PTAs), this chapter aims to develop a conceptual framework to help think about new rules, using the notions of principles, standards, and rules, as well as those of institutions, procedures and remedies. The chapter also delves into the process necessary to produce such rules. Using this conceptual framework, the gist of the analysis is that, to a large extent, there is no need to reinvent the wheel but to build upon the status quo under the WTO and many PTAs – which, importantly, already reflects the common agreement of many governments. In terms of process to follow to generate new rules, the importance of transparency, knowledge-generating activities and epistemic communities is duly underlined.