IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 Aug 2009 | Removal date: open ended
Still in force

Tax or social insurance relief

The French fruits and vegetables sector is said to face problems of overproduction and international competition. According to Reuters (4 August 2009), prices decreased 17.6 % between June 2008 and June 2009. A vegetable farmer was quoted as saying that the relevant workforce in France is twice as expensive as in Germany. Mr. Le Maire, the French Minister of Agriculture, has claimed thatlabour costs are as much as 50-60 % of final costs in the fruit and vegetable sector. France is, behind Italy and Spain, the third biggest European producer of fruits and vegetables.
 
Responding to the producers' anger at the possibility of repaying previous subsidies (that the European Commission had found illegal), Mr. Le Maire announced in the press conference on 6 August 2009 immediate financial support for the sector amounting to EUR 15 million. The Minister of Agriculture argued that it is indispensable that France produces fruits and vegetables, and that the sector's workforce has to be remunerated appropriately.
 
The financial assistance is targeted towards those farmers whose half or more of whose output is in fruit or vegetables that were heavily hit by the crisis (notably producers of tomatoes, peaches, nectarines, and apricots). There are two principal forms of assistance:
(i) The state will bear part of interest payments on loans in 2009 (10% of annuities in general; and 20% for young farmers or farmers that have invested for less than five years).
(ii) The state will pay the social insurance contributions for the farmers, if the contributions are still outstanding.
 
Moreover, Mr. Le Maire recalled that further measures to improve the competitiveness of the sector would be announced around 22 September 2009.
Several representatives of the fruits and vegetables industry were cited in a Reuters article on 6 August 2009 to be unhappy about the level of financial support, EUR 15 million.
In our assessment the new measures provide selected support to producers in a sector where international trade is possible. The measures financially favour one group of producers over others not eligible for financial assistance, including foreign farmers of fruit and vegetables.
 
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

012 Vegetables
0702 Tomatoes, fresh or chilled.
070200 Tomatoes, fresh or chilled.
0703 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled.
070310 Onions and shallots
070320 Garlic
070390 Leeks and other alliaceous vegetables
0704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled.
070410 Cauliflowers and headed broccoli
070420 Brussels sprouts
070490 Other
0705 Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled.
070511 Cabbage lettuce (head lettuce)
070519 Other
070521 Witloof chicory (Cichorium intybus var. foliosum)
070529 Other
0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled.
070610 Carrots and turnips
070690 Other
0707 Cucumbers and gherkins, fresh or chilled.
070700 Cucumbers and gherkins, fresh or chilled.
0708 Leguminous vegetables, shelled or unshelled, fresh or chilled.
070810 Peas (Pisum sativum)
070820 Beans (Vigna spp., Phaseolus spp.)
070890 Other leguminous vegetables
0709 Other vegetables, fresh or chilled.
070920 Asparagus
070930 Aubergines (eggplants)
070940 Celery other than celeriac
070951 Mushrooms of the genus Agaricus
070959 Other
070960 Fruits of the genus Capsicum or of the genus Pimenta
070991 Globe artichokes
070993 Pumpkins, squash and gourds (Cucurbita spp.)
070999 Other
0807 Melons (including watermelons) and papaws (papayas), fresh.
080711 Watermelons
080719 Other
013 Fruits & nuts
0806 Grapes, fresh or dried.
080610 Fresh
0807 Melons (including watermelons) and papaws (papayas), fresh.
080720 Papaws (papayas)
0808 Apples, pears and quinces, fresh.
080810 Apples
080830 Pears
0809 Apricots, cherries, peaches (including nectarines), plums and sloes, fresh.
080910 Apricots
080929 Other
080930 Peaches, including nectarines
080940 Plums and sloes
014 Oilseeds & oleaginous fruits
0709 Other vegetables, fresh or chilled.
070992 Olives
015 Edible roots & tubers with high starch or inulin content
0701 Potatoes, fresh or chilled.
070190 Other
017 Pulses (dried leguminous vegetables)
0713 Dried leguminous vegetables, shelled, whether or not skinned or split.
071310 Peas (Pisum sativum)
071320 Chickpeas (garbanzos)
071331 Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek
071333 Kidney beans, including white pea beans (Phaseolus vulgaris)
071335 Cow peas (Vigna unguiculata)
071339 Other
071340 Lentils
071350 Broad beans (Vicia faba var. major) and horse beans (Vicia faba var. equina, Vicia faba var. minor)
213 Prepared & preserved vegetables, pulses & potatoes
0710 Vegetables (uncooked or cooked by steaming or boiling in water), frozen.
071010 Potatoes
071021 Peas (Pisum sativum)
071022 Beans (Vigna spp., Phaseolus spp.)
071029 Other
071030 Spinach, New Zealand spinach and orache spinach (garden spinach)
071040 Sweet corn
071080 Other vegetables
071090 Mixtures of vegetables
0711 Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
071120 Olives
071140 Cucumbers and gherkins
071151 Mushrooms of the genus Agaricus
071159 Other
071190 Other vegetables; mixtures of vegetables
0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared.
071220 Onions
071232 Wood ears (Auricularia spp.)
071239 Other
071290 Other vegetables; mixtures of vegetables
214 Prepared & preserved fruits & nuts
0806 Grapes, fresh or dried.
080620 Dried

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