Industrial Policy and International Competition: Trade and Investment Perspectives

There is disagreement among countries on how international rules should address the cross-border spillover effects of increased government intervention in national economies. As a result, trade tensions have arisen.

This paper outlines the state of play and issues of concern in the areas of subsidies, state ownership and control, public procurement, investment screening and controls, and the use of trade remedies. It emphasizes the need for intergovernmental discussions to update existing rules and improve transparency, covering instruments and sectors of interest to a broad set of countries. The paper also calls for more research and analysis on the effects of policy instruments to inform these discussions.