IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 03 May 2016 | Removal date: 31 Dec 2020
Still in force

Financial grant

According to Italy, "With the present notification the Italian authorities wish to enhance the competitiveness of the agricultural sector in the Province concerned, by supporting investments in large enterprises in connection with the processing and marketing of agricultural products. [...]" The measure will be in force "From the date of the Commission decision until 31 December 2020. [and the] overall budget is EUR 50 000 000." The aid will be awarded in the form of direct grants. (para. 4, 6, 7 and 12 letter from the EC to Italy, Brussels 31.05.2016)

Based on the findings of the European Commission, "Pursuant to the case law of the Court of Justice, aid to an undertaking appears to affect trade between Member States where that undertaking operates in a market open to intra-EU trade. The aid beneficiaries operate in the market of agricultural products where trade between Member States takes place. The sector concerned is open to competition at EU level and therefore sensitive to any measure in favour of the production in one or more Member States. Therefore, the present scheme is liable to distort competition and to affect trade between Member States." (para. 27 letter from the EC to Italy, Brussels 31.05.2016)

In the GTA database, the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
012 Vegetables
013 Fruits & nuts
014 Oilseeds & oleaginous fruits
015 Edible roots & tubers with high starch or inulin content
016 Stimulant, spice & aromatic crops
017 Pulses (dried leguminous vegetables)
018 Sugar crops
019 Forage; natural rubber; living plants; raw vegetable materials

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