COUNCIL DECISION (EU) 2021/1

of 17 December 2020

on the position to be taken on behalf of the European Union within the Joint Committee established by 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 as regards agricultural subsidies

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European Union, and in particular Article 50(2) thereof,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 218(9) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(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 means of Council Decision (EU) 2020/135 (1) on 30 January 2020 and entered into force on 1 February 2020.

(2) Article 166 of the Withdrawal Agreement empowers the Joint Committee established by Article 164 of the Withdrawal Agreement (‘the Joint Committee’) to adopt decisions in respect of all matters for which the Withdrawal Agreement so provides. The Protocol on Ireland/Northern Ireland (‘the Protocol’) forms an integral part of the Withdrawal Agreement.

(3) Article 10(1) of the Protocol 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) of the Protocol 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 purpose 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) as part of the current multiannual financial framework (‘MFF 2014–2020’).

(6) For the purpose of setting the minimum percentage, account has been taken of the average rate of Union support which is compliant with the provisions of Annex 2 to the WTO Agreement on Agriculture, as per the Union’s total support notifications to the WTO during the past five years, which is the period during which notifications have been made to the WTO within the MFF 2014–2020.

(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 MFF 2014–2020, 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 situations in which the exempted support is 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 appropriate to establish the position to be taken on the Union’s behalf in the Joint Committee,

HAS ADOPTED THIS DECISION:

Article 1 The position to be taken on the Union’s behalf within the Joint Committee established by Article 164 of the Withdrawal Agreement as regards agricultural subsidies shall be based on the draft Decision of the Joint Committee attached to this Decision.

Article 2 The Decision of the Joint Committee shall be published in the Official Journal of the European Union.

Article 3 This Decision shall enter into force on the date of its adoption.

Done at Brussels, 17 December 2020. For the Council The President S. SCHULZE

(1) Council Decision (EU) 2020/135 of 30 January 2020 on the conclusion of 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 (OJ L 29, 31.1.2020, p. 1).