Philippines, Australia Host Dialogue on Governance of State-Owned Enterprises

(L-R) Bocconi University Professor Leonardo Borlini, OECD Head of the State-Owned Enterprise Unit Ms. Sara Sultan, University of New South Wales Professor Deborah Healey, and, Executive Director of the Governance Commission for Government-Owned or Controlled Corporations Mr. Johann Barcena

GENEVA 02 May 2025 — On 29 April 2025, the Permanent Missions of the Philippines and Australia to the World Trade Organization (WTO) co-hosted a session on the governance of State-Owned Enterprises (SOEs) as part of the WTO Members’ conversations on current economic issues. Taking advantage of the presence of capital-based officials, the event was held alongside the formal meetings of the Committees on Safeguards (SG), Subsidies and Countervailing Measures (SCM), and Anti-Dumping Practices (ADP).

Moderated by Ms. Sara Sultan, Head of the State-Owned Enterprise Unit at the OECD, the session drew strong participation from delegations interested in advancing discussions on promoting fair competition and effective SOE governance.

In her opening remarks, Ms. Sultan emphasized the core principles of the revised OECD Guidelines on Corporate Governance of SOEs, including professional state ownership, the maintenance of a level playing field, and the integration of sustainability into SOE governance. She noted that SOEs are expanding their global market share, particularly in critical industries, and the updated Guidelines aim to ensure that state ownership does not distort competition.

Mr. Johann Barcena, Executive Director of the Governance Commission for Government- Owned or Controlled Corporations (GCG), highlighted the Philippines’ progressive reforms aligned with the OECD Guidelines. Mr. Barcena shared the country’s experience in strengthening ownership policy, implementing competitive neutrality, conducting subsidiarity analysis, and enhancing transparency between the commercial and non-commercial activities of government corporations.

Professor Deborah Healey of the University of New South Wales shared Australia's extensive experience in embedding competitive neutrality into national law, beginning with the Hilmer Review reforms of the 1990s. She explained how Australia's competitive neutrality frameworks and complaint mechanisms have contributed to sustained economic growth, underscoring the importance of separating regulatory and commercial functions within SOEs.

Meanwhile, Professor Leonardo Borlini of Bocconi University discussed the emergence of SOE disciplines in free trade agreements (FTAs) and WTO accession protocols. He highlighted the commitments in relevant SOE chapters in various bilateral and regional FTAs, existing gaps in the WTO framework and proposed potential reforms to enhance market competition.

Throughout the discussion, speakers and participants recognized the dual challenge of maintaining competitive markets while preserving governments’ ability to use SOEs for legitimate public purposes. Issues such as transparency mechanisms, market distortions, and future prospects for multilateral cooperation on SOE governance were also discussed.

The event provided an important platform for WTO Members to exchange experiences and explore pathways for deeper international cooperation on the governance of SOEs in a rapidly changing global economy. END

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