Dáil Éireann Debate, Thursday - 26 January 2017
215. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation her views on the prospect of a free trade agreement between the EU and the UK and the application of state aid rules in the EU and the UK; and if she will make a statement on the matter. [3741/17]
Amharc ar fhreagraThe UK’s exit negotiations from the EU will not commence until Article 50 has been triggered, which the UK Government have indicated they intend to do no later than the end of March 2017. These negotiations could take the maximum allowed period of two years to complete. Ultimately any deal on Article 50 will require the agreement of the EU Commission, Council and Parliament.
I note from a recent speech by Prime Minister May that the UK are seeking a 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.
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. 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. WTO subsidy rules are similar in principle to EU State aid rules in many respects.
