IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

Yes

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 05 May 2017 | Removal date: 31 Dec 2023
Still in force

Financial grant

According to the UK, "The scheme [implemented by the Welsh government] aims to support the development of new products, practices, processes and technologies in the agriculture, forestry and food sectors, including: small businesses working together to share production facilities and resources; short supply chains and local markets including promotion activities in a local context; pilot projects where the information is made publicly available and widely disseminated. [The programme will be in effect] From the date of the approval by the Commission until 31 December 2023. [...] The estimated annual budget is GBP 20 million and the overall amount earmarked for the whole duration of the scheme is GBP 140 million." The aid will be given in the form of direct grants. (para. 6, 9, 12 and 18 letter from the EC to the UK, Brussels 07.06.2017)

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. In the case at hand, the beneficiaries of aid effectively operate in markets where intra-EU trade takes place." (para. 56 letter from the EC to the UK, Brussels 07.06.2017)

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
021 Live animals
022 Raw milk
023 Eggs of hens or other birds in shell, fresh
024 Reproductive materials of animals
029 Other animal products
031 Wood in the rough
032 Non-wood forest products
041 Fish, live, not for human consumption
042 Fish live, fresh or chilled for human consumption
043 Crustaceans, live, fresh or chilled
044 Molluscs live, fresh or chilled
045 Other aquatic invertebrates, live, fresh or chilled
049 Other aquatic plants & animals

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