What are state aids? Why does the Chapter on Competition Policy deal with the issues related to state aids?
• State aids are essentially government subsidies • It has been proposed that state aids can have a negative effect on competition and that the Chapter on Competition Policy should, therefore, include a mechanism for countries to get information on and consult about state aids that they believe are adversely affecting them. • However, in Canada, the issue of state aids is not typically a matter addressed under competition policy. In Canada’s view, issues relating to state aids are more properly addressed by the Negotiating Group on Subsidies, Antidumping and Countervailing Duties (NGADCV). The San José Declaration expressly states, as an objective of the NGADCV, that it is to “examine ways to deepen, if appropriate, existing disciplines provided in the WTO Agreement on Subsidies and Countervailing Duties and enhance compliance with the terms of the WTO Agreement on Subsidies and Countervailing Duties”. • As such, Canada does not support the inclusion of provisions relating to state aid
