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you [Music] [Music] only a few years ago European companies could be sure that no competitors from other EU members would enjoy state aid inside the border of European Union but to run the risk of facing an unfair competition of subsidised European or local companies when operating abroad and the problem was even more important in the service sectors industries the problem was that European rules are valid on inside European Union and all things related to the World Trade Organization including the enforcement of the discipline on subsidies after the failure of the door around were in shambles not to mention the fact that the WTO discipline has never covered services our in-depth analysis of more than 50 preferential trade agreements shows that the European Union succeeded in regulating state intervention using bilateral treaties the you as indeed effectively used bilateral trade agreements as a tool to export trade and trade related policies including competition regulation and control public aid the most advanced of this agreement go behind the WTO disciplines of subsidies because they include rules that covert services sector and also because they define categories of admissible subsidies along the line of the greenlight subsidies which were included in the original text of the WTO agreement on such lists and countervailing measures however they were wash away by the round shipwreck how the subsidy policy is dealt with in European Union's trade agreements largely depends on the status of the partner indeed a parameter can be drawn with agreements containing used similar disciplines at the top these include agreements will the candidate member such as third and some of the Western Bantle countries or countries with a strategic interest in developing strong interest ties with European Union such as Ukraine Moldova and certain neuro Mediterranean countries including other countries such as South Africa at the other end of the spectrum are agreements that virtually ignore the issue such as those with Caribbean countries some other agreements contain only limited chapters on competition subsidies by reproducing merely WTO rules such as those with the Canada and Mexico or by reinforcing transparency provisions as it happens in the agreement with Colombia and Georgia the most thought-provoking position is occupied by advanced partners like Korean seeing the poor and developing countries especially Vietnam the negative detailed and ambitious regime some subsidies with the European Union these agreements are to be considered a beauty of plus treaties because they defended abotu provisions on subsidies in debt they define more categories of tribute subsidies they seek to remove distortions to competition due to specific subsidies and in the cases of Singapore and Vietnam they also include rules on services our analysis brings us to the very heart of the subsidy issues that is their genetic ambivalence even if problematic from a competition viewpoint and the trade perspective subsidies are not an absolute evil they are to all of industrial policy everywhere they can target market imperfections by rewarding companies for positive externalities and public goods and they can also be used in order to pursue social and distributive doors the different ideological approach of the different countries for the European Union to design tailor-made exceptions to the general prohibition of subsidies the European negotiators have done a very good job mainly regard to state companies in country is much different as Singapore and Vietnam it is of highly importance to highlight that the new agreements with advanced trading partners which had no need to conform to European rules are likely to be a blueprint for important agreements currently in the negotiation phase including China India and Russia and the recently concluded agreement with Japan you