Considerations on COM(2020)835 - EU position in the Joint Committee by Art. 218(9) of the Agreement on the withdrawal of the UK from the EU as regards agricultural subsidies

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(1) The Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (‘the Withdrawal Agreement’) was concluded by the Union by Council Decision (EU) 2020/135 1  of 30 January 2020 and entered into force on 1 February 2020.

(2) Article 166 of the Withdrawal Agreement empowers the Joint Committee to adopt decisions in respect of all matters for which the Agreement so provides. The Protocol on Ireland and Northern Ireland to the Withdrawal Agreement (‘the Protocol’) forms an integral part of that Agreement.

(3) Article 10 (1) of the Protocol on Ireland/Northern Ireland subjects measures taken by the United Kingdom supporting the production of and trade in agricultural products, including support for fisheries and aquaculture products, in Northern Ireland to the Union’s State aid rules listed in Annex 5 to the Protocol where those measures affect that trade between Northern Ireland and the Union. At the same time Article 10(2), provides for an exemption from the application of Union law up to a determined maximum overall annual level of support, provided that a determined minimum percentage of the exempted support complies with the provisions of Annex 2 to the WTO Agreement on Agriculture.

(4) The maximum overall annual level of support and the minimum percentage should be determined taking into account the considerations set out in Annex 6 to the Protocol.

(5) For the purposes of calculating the maximum overall annual level of support for agricultural products other than fisheries and aquaculture products, account has been taken of the average expenditure incurred and foreseen in Northern Ireland under the Common Agricultural Policy (CAP) under the current MFF 2014-2020.

(6) For the purposes of setting the minimum percentage, account has been taken of the average rate of EU support which is compliant with the Provisions of Annex 2 to the WTO Agreement on Agriculture, as per the EU’s total support notifications to the WTO of the past five years, the period for which notifications have been made to the WTO within the current MFFF.

(7) The maximum overall annual level of support should therefore be set at EUR 429 million for subsidies in the agricultural sector.

(8) For fisheries and aquaculture products, the maximum level of support, informed by the average spending under the European Multiannual Financial Framework (2014 – 202019), should be set at EUR 19,5 million over a period of five years, with a cap of EUR 4,5 million in any given year.

(9) In order to avoid the exempted support from being used to finance operations which are otherwise ineligible for support in the fisheries sector, the Joint Committee Decision should reflect the ineligibility of certain operations as provided for in Union law.

(10) It is therefore appropriate to establish the position to be taken on the Union's behalf in the Joint Committee.