BP 58 – TCA dispute resolution mechanisms and subsidy control commitments
Download Briefing Paper 58 Briefing Paper 58 – June 2021 Dr Totis Kotsonis, Pinsent Masons LLP Key Points Introduction Consultations Remedial measures Rebalancing measures The TCA taxonomy of harm Concluding Remarks Key points The TCA is unprecedented amongst bilateral trade agreements in attempting to manage the delicate balance of maintaining regulatory convergence in certain policy areas without constraining future regulatory divergence. It does so by introducing the possibility of ‘rebalancing’ measures in the event of regulatory divergence leading to material impacts on trade and investment. Even in the absence of regulatory divergence, and even if both parties conform with the subsidy principles, there may be scope for ‘remedial measures’ where subsidies have or risk having a significant negative effect on trade and investment. The dispute resolution mechanisms underlying rebalancing and remedial measures are different with the possibility of introducing rebalancing measures more quickly, and with what appears to be a lower threshold with regard to impact on trade and investment, as well as arguably the possibility of justifying more significant trade defence measures. The resolution of disputes with regard to remedial measures, may be complicated by the difficulties of the subsidy granting authority in recovering the subsidy or [...]
