The Life and Death of a Non-Recurring Subsidy: the Role of Change in Ownership of Subsidy Recipient
Journal of World Trade. 2019. Vol. 53. No. 2. P. 211-227.
This article is yet another attempt to tackle the issue of subsidy extinguishment, the enduring
conundrum of WTO law. This article argues that privatization – or, in fact, any sale of a
subsidy recipient – may extinguish a government subsidy if the buyer converts it into a
private investment by paying for the subsidized asset the full amount of the government’s
financial contribution less depreciation. However, effecting the transaction at arm’s length
and for fair market value is not a sufficient condition for this to happen.
