European Union to adopt new subsidy regulation
The European Commission is working on a bill to regulate foreign subsidies. According to her, any foreign company wishing to sign a large-scale M&A agreement in the European Union or to export to the European Union on the basis of a public contract must declare the subsidies it has received in its country of origin. ‘origin for three years and obtain approval from the European Union.
Submission or non-submission of false data may be punishable by a fine of 1-10% of sales. In addition, the European Union can initiate an investigation into any possibility of distortion of competition based on subsidies.
“The application of the new regulations should be limited to countries lacking transparency in terms of the operation of subsidies,” said the American Chamber of Commerce of the European Union, adding: “The financial burden and delays attributable to preparation data will hamper the market, innovation in the European Union ultimately.
“What is important is a smooth data exchange using existing invoices, not a new invoice,” commented the Chinese Chamber of Commerce and Industry of the European Union, continuing: “This new regulation will result in a decrease in business investment in the European Union. “
“South Korea maintains transparency in accordance with its FTA with the European Union and yet South Korean companies can become innocent victims,” Korea Business Association Europe said, adding: “This is because the proposed law leaves too much room for arbitrary interpretation and candidacy.