ANNOUNCED AS TEMPORARYYes
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.
⚑ Please report this page in case you detect an inaccuracy in its content.