Bringing together international trade and investment perspectives on state enterprises

Przemyslaw Kowalski () and Daniel Rabaioli
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Daniel Rabaioli: OECD

No 201, OECD Trade Policy Papers from OECD Publishing

Abstract: State enterprises (SEs) have been increasingly competing with private firms in international markets, in terms of both cross-border trade and FDI. Given both the potentially positive contribution internationally trading and investing SEs can make, as well as the concerns raised about their competitive behaviour, there is an interest in elaborating policy approaches that minimise any potentially distortionary effects and at the same time restrain protectionist policies that may be directed at SEs. The growing interdependency between trade and FDI, the increased contestability and complexity of markets and the varied nature of state intervention in the economy today mean that policy approaches need to consistently cover issues which transcend the traditional boundaries between trade, investment and competition. This paper investigates how international trade and investment perspectives on SEs are being brought together in international trade and investment agreements and how they could be integrated further. It does so by examining both the ability of existing provisions to ensure a level playing field between private firms and SEs and the disparity in approaches to regulating international activities of SEs between international trade and investment treaties. The paper first reviews the work documenting international activities of SEs and the associated concerns, highlighting the example of the steel sector. Next, it discusses some of the non-binding approaches that can be used to level the playing field, before reviewing relevant provisions in multilateral and preferential trade and investment agreements and identifying potential gaps. The concluding section summarises the results and identifies key issues for policy consideration.

Keywords: investment agreements; regulation; SOEs; state enterprises; state-owned enterprises; trade agreements (search for similar items in EconPapers)
JEL-codes: F02 F13 F15 F21 F23 F5 F6 G34 G38 H1 H2 H4 H8 K2 K33 L3 L44 L5 (search for similar items in EconPapers)
Date: 2017-05-18
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:oec:traaab:201-en

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