IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Oct 2017 | Removal date: 31 Dec 2020
Still in force

Financial grant

According to France, "The notified scheme seeks to compensate for the additional production costs of sugar factories in the French overseas departments in relation to the metropolitan sugar sector for the production of sugar for refining. [...]" The scheme will be in force from 1 October 2017 until 31 December 2020. "[...] The overall budget amounts to EUR 114 million ( an annual budget of EUR 38 million)". (translation of para. 5, 7 and 8 letter from the EC to France, Brussels 02.03.2017)

Based on the findings of the European Commission, "The beneficiaries of the aid are active on the sugar market where intra-EU trade takes place. The sector concerned is open to competition at EU level and is therefore sensitive to any measure taken in favor of production in one or more Member States. The scheme in question is therefore liable to distort competition and to affect trade between Member States." (translation of para. 24 letter from the EC to the France, Brussels 02.03.2017)

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
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AFFECTED SECTORS AND PRODUCTS

232 Starches & starch products; sugars & sugar syrups n.e.c.
1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel.
170211 Containing by weight 99 % or more lactose, expressed as anhydrous lactose, calculated on the dry matter
170219 Other
170230 Glucose and glucose syrup, not containing fructose or containing in the dry state less than 20 % by weight of fructose
170240 Glucose and glucose syrup, containing in the dry state at least 20 % but less than 50 % by weight of fructose, excluding invert sugar
170250 Chemically pure fructose
170260 Other fructose and fructose syrup, containing in the dry state more than 50 % by weight of fructose, excluding invert sugar
170290 Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50 % by weight of fructose
235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170112 Beet sugar
170113 Cane sugar specified in Subheading Note 2 to this Chapter
170114 Other cane sugar
170191 Containing added flavouring or colouring matter
170199 Other
1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel.
170220 Maple sugar and maple syrup
1703 Molasses resulting from the extraction or refining of sugar.
170310 Cane molasses
170390 Other

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