Written answers

Tuesday, 7 February 2017

Department of Jobs, Enterprise and Innovation

State Aid

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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674. To ask the Minister for Jobs, Enterprise and Innovation the current WTO subsidy rules for undertakings, including the current level of State aid thresholds allowed for each undertaking; and if she will make a statement on the matter. [5431/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Until the UK leaves the EU, all types of subsidies, both within the UK and across the other 27 EU Member States are subject to the discipline imposed by EU State Aid law.

Provisions on state aid (subsidies) and competition are a common feature of EU Free Trade Agreements to ensure any aid granted by authorities to private entities does not distort competition. I understand that the UK will be seeking some form of Free Trade Agreement with the European Union and to secure the closest possible future relationship for Britain with the EU, a goal that Ireland shares. The terms of any future free trade agreement, including state aid rules, would be a matter for the EU 27 and the UK to agree as part of any negotiation.

Notwithstanding what the EU and UK agree to bilaterally, both remain bound by their obligations under the WTO, which has its own set of subsidy rules contained in the Agreement on Subsidies and Countervailing Measures.

Unlike the EU State Aid rules, the WTO has no advance preclearance or approval process in respect of subsidies and other forms of state support.

In making a complaint within the WTO System regarding subsidies, a complaint can be raised either on behalf of an individual government, or by  the EU. Under this system, a country can use the WTO’s mechanisms to seek the withdrawal of the subsidy or the removal of its adverse effects.

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