Are transnational subsidies regulated by EU and WTO law? : the General Court has spoken (Case T-480/20 and Case T-540/20)

Abstract

This note reflects on two recent decisions rendered by the General Court of the European Union (“General Court”). The General Court was called to review two decisions by the European Commission to impose countervailing duties on imports from Egypt. The goods had benefited from subsidies which found their origin in Chinese financial contributions. According to the Commission, these transnational financial contributions amounted to a subsidy under EU countervailing duty law. Among other things, the General Court was called to determine whether transnational financial contributions were covered by the definition of subsidy embodied in the WTO. To the dismay of many observers, the General Court disposed of the issue on a literal reading of the WTO text, and with no significant supporting argumentation or evidence. This approach is in stark contrast to the importance of the issue decided. This note criticizes these two judgments and calls on the Court of Justice, which is hearing the appeals, to change course of action.