Abstract
AbstractIn a 2020 anti-subsidy investigation concerning glass fibre fabric (GFF) products from Egypt, the European Commission (EC) attributed the Chinese government's conduct to the government of Egypt in a way that raised a systemic question about the boundary between trade and investment. This article argues that despite some overlap between the boundaries of these legal disciplines, the notions of trade and investment remain conceptually distinct. Customary rules of interpretation dictate that World Trade Organization (WTO) covered agreements are construed as facilitating trade relations and no further. Hence, an extension of WTO subsidy rules to cover outward investment promotion measures using the principles of state responsibility is untenable. Such a unilateral approach disproportionately affects the interests of developing countries, harming their efforts to draw green investments. This article recommends that new, balanced rules be designed to promote outward investments while limiting adverse trade impacts.
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