The government of UK plans to implement new approach towards subsidy control, media reports said. The country will adhere to WTO subsidy rules and other international commitments instead of EU state aid laws from next year.
Alok Sharma, secretary of state for business development, told the media, “We want a competitive, dynamic market economy in which we can back British industries to create more jobs in this country, while also making the UK the best possible place to start and grow a business. While our guiding philosophy remains that we do not want a return to the 1970s approach of picking winners and bailing out unsustainable companies with taxpayers’ money, the UK must have flexibility as an independent, sovereign nation to intervene to protect jobs and to support new and emerging industries now and into the future.”
It is reported that the country is ready to follow any international obligations on subsidies agreed in accordance with the future free trade agreements.
Global companies receive internationally recognised and public authority’s government approved common standard covering financial assistance as part of the WTO rules and regulation. Other economies unlike the EU nations follow only rules set by the WTO.
Public authorities will get guidelines explaining WTO rules and regulations by the end of 2020 through the country’s free trade agreements. Furthermore, the government will set legislation to omit redundant EU state aid rules from the statute book at the end of the transition period.
The government will publish a consultation on whether the UK should go further than its international commitments later this year.