IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 30 Dec 2010 | Removal date: 28 Apr 2016
Still in force

Financial grant

 On 30 December 2010, the Icelandic government signed an investment agreement with a number of subsidiaries belonging to the Italian-owned aluminium foil producer Becromal with manufacturing locations in Iceland.
The agreement covered the building of an aluminium foil anodizing plant in Akureyri, with projected costs of 117.25 million EUR. The company would receive a 20% reduction in social security charges, exemption from excise duties and a reduction of stamp duties. However, the exact amount of state aid was not provided by the authorities.
The state aid is part of the Investment Incentive Scheme launched by the Icelandic government in 2010 (cf. Related Measures). It encompasses direct grants, tax concessions and land sales under market prices to incentivise investment projects.
On 10 March 2016, the EFTA Surveillance Authority published its decision arguing the state aid offered to Becromal was incompatible with EU law and ordered Iceland to recover the full amount of aid including compound interest within two months after the decision. Hence, this measure is no longer classified as implemented.
Based on the usually applied computation of affected trading partners, Italy should have been added (together with Germany) to the list. However, as the company receiving state support belonged to an Italian corporation, Italy was not added to the list.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

415 Unfinished products of copper, nickel, aluminium, lead, zinc or tin
7607 Aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm.
760719 Other
760720 Backed

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