IMPLEMENTATION LEVEL

Supranational

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: 29 Sep 2014 | Removal date: 28 Jun 2017
Still in force

Production subsidy

On 29 September 2014, the European Commission announced a new compensation scheme for perishable fruits and vegetables in the wake of the Russian import ban. The package replaces an older scheme (cf. Related Measures), where the financial ceilings had been reached earlier that month.
 
The new package worth EUR 165 million contains, in contrast to the previous one, eligible financing amounts for each country in the specific sector (cf. detailed list in the appendix of the official regulation). Also, the scheme was extended to cover oranges, mandarins and clementines.
 
Member States can use the budget either for fully EU-funded withdrawals for free distribution or for partially EU-funded withdrawals for non-food use such as composting. However, only the 13 Member States that had the highest fruits and vegetables exports to Russia may obtain funds.
 
This measure nonetheless impacts all Member States, as mentioned in paragraph 7 of the official regulation. 'Therefore, and in order to further stabilise the market, Union financial assistance should also be available for producers in all Member States in respect of one or more of the products covered by this Regulation, but the quantity involved should not exceed 3 000 tonnes per Member State.' (para. 8, EC regulation 1031/2014)
 
This aid package was available until the end of 2014. Afterwards, it was renewed by regulation 1371/2014 for another six months (cf. Related Measures).
 
Update 1:
On 8 August 2015, the EC announced in regulation 1369/2015 it would prolong the scheme for another year until June 2016.
 
Update 2: 
On 10 June 2016, the EC announced in a press release as well as in regulation 2016/921 the prolongation of the scheme until June 2017.
 
Update 3:
On 18 July 2016, the EC announced in a press release that it would update this compensation scheme to allow for withdrawals by producer organizations (cf. Related Measures).
 
 
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. The subsidy recipient produces internationally tradable goods. 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.
0704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled.
070410 Cauliflowers and headed broccoli
070420 Brussels sprouts
070490 Other
0707 Cucumbers and gherkins, fresh or chilled.
070700 Cucumbers and gherkins, fresh or chilled.
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
070970 Spinach, New Zealand spinach and orache spinach (garden spinach)
070991 Globe artichokes
070993 Pumpkins, squash and gourds (Cucurbita spp.)
070999 Other
013 Fruits & nuts
0806 Grapes, fresh or dried.
080610 Fresh
0808 Apples, pears and quinces, fresh.
080810 Apples
080830 Pears
080840 Quinces
0810 Other fruit, fresh.
081010 Strawberries
081020 Raspberries, blackberries, mulberries and loganberries
081030 Black, white or red currants and gooseberries
081040 Cranberries, bilberries and other fruits of the genus Vaccinium
081050 Kiwifruit
081070 Persimmons
081090 Other
014 Oilseeds & oleaginous fruits
0709 Other vegetables, fresh or chilled.
070992 Olives
019 Forage; natural rubber; living plants; raw vegetable materials
0602 Other live plants (including their roots), cuttings and slips; mushroom spawn.
060210 Unrooted cuttings and slips
060220 Trees, shrubs and bushes, grafted or not, of kinds which bear edible fruit or nuts
060230 Rhododendrons and azaleas, grafted or not
060240 Roses, grafted or not
060290 Other
214 Prepared & preserved fruits & nuts
0805 Citrus fruit, fresh or dried.
080510 Oranges
080520 Mandarins (including tangerines and satsumas); clementines, wilkings and similar citrus hybrids
080540 Grapefruit, including pomelos
080550 Lemons (Citrus limon, Citrus limonum) and limes (Citrus aurantifolia, Citrus latifolia)
080590 Other
0806 Grapes, fresh or dried.
080620 Dried

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