It is also unclear what dispute settlement measures – now there is an indication there might be some – would look like, or how they would be enforced.
Mr Pope argues that the UK having its own system of subsidy control would be better than the EU’s, which is administratively cumbersome. “A subsidy doesn’t have to be big before it has to jump through hoops to qualify,” he says. “It doesn’t normally mean a subsidy is prevented but you have to get a lawyer in to help with the design.”
It would also be better than relying on the World Trade Organization, whose remedy for subsidy violations is tariffs, he says: “If you have to impose a tariff on another country, that harms you too because your consumers have to pay higher prices. The idea of the aid being repaid (as under the EU system) reverses the subsidy so it’s