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The European People's Party (EPP), bringing together 11 European leaders, including Angela Merkel, called on 30/03/2020 for the UK Government to extend the transitional period after Brexit due to the coronavirus pandemic. The timetable for negotiations on the EU-UK Agreement is now suspended. The UK should make an official request to extend the transitional period, but the UK has so far refused this option. The transitional period is valid until the end of this year, and its possible extension must be decided by the end of June 2020.
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On 30/03/2020, the Council of the European Union adopted a decision approving a free trade agreement with Vietnam, allowing to enter into force on the EU side. The agreement is now awaiting ratification by Vietnam, which could then enter into force in the middle of this year. The agreement will eliminate 99% of EU-Vietnam tariffs, with tariffs being phased out over the next ten years. In the first year of application of the Treaty, customs duties will be abolished on 65% of goods exported from the EU to Vietnam.
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On 25/03/2020, the Ministers of Agriculture discussed the current situation through a videoconference. Agriculture ministers called on the European Commission to introduce coordinated and targeted measures to mitigate the impact of coronavirus outbreak on agriculture and fisheries sector, stressing the need to maintain the supply of high-quality food to the EU market. Ministers IE, FR, PT, CY, LT, RO and PL called for a wide range of security measures under the CMO Regulation to be used. According to the Irish Minister, a working group of experts should be set up to consider in this context all available options. The Italian Minister Teresa Bellanova called for the introduction of a common intervention strategy, which should include short, medium and long-term scenarios. She also mentioned the need for an extraordinary agricultural programme to be implemented through extraordinary resources outside the CAP and an extraordinary single fund to assist with private storage. The Luxembourg Minister supported the speeding up of border controls, in particular in the case of transport of live animals, and rejected full border closures. According to the Dutch Minister, border checks should be accelerated for all agri-food supplies. Sweden stressed the need to ensure the movement of workers in order to provide sufficient seasonal workforce. The Netherlands and Belgium also requested support for the flower and potato sectors that were most affected by the current crisis. The Austrian Minister called for measures to stabilize the market situation, while the Ministers of CZ, FR, FI, CY, BE and PL called for strengthening the flexibility of Member States in the payment of state aid. Ministers CZ, RO, BE, IE, PT, PL, FI and LU also called for simplification/abandonment of on-the-spot checks. According to the Czech Minister of Agriculture, the number of such controls should be limited to the absolute minimum necessary, and exceptions to certain rules under greening measures and production-linked payments should also be allowed to ensure maximum support for the sector and production of sufficient food. The representatives of RO, CZ and PT also supported flexibility in setting national rules for the implementation of rural development programs. Ministers from the Czech Republic and Sweden also supported a two-year transition period for the CAP. The next Council of Ministers should take place 27-28/04/2020.
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On 24/03/2020, the European Commission approved the German State aid scheme for farms affected by coronavirus to ensure their viability. The aid takes the form of direct grants, repayable advance or tax and payment advantages. In particular, aid does not exceed €120,000 per company active in the fishery and aquaculture sector and €100,000 per company active in the primary production of agricultural products. For all other companies affected by the coronavirus outbreak aid does not exceed €800,000 per company. According to the European Commission, the German scheme will contribute to managing the economic impact of the coronavirus in Germany, while at the same time complying with the Treaty on the Functioning of the European Union and the conditions set out in the Temporary Framework developed by the Commission in the context of the Coronavirus outbreak in the EU. The Temporary Framework provides for five types of aid which can be granted by Member States: 1. Direct grants, tax and payment benefits (maximum grant amount to EUR 800.000 per company); 2. State guarantees for loans taken by companies from banks (Member States will be able to provide State guarantees to ensure banks keep providing loans to the customers who need them); 3. Subsidized public loans to companies; 4. Safeguards for banks that channel State aid to the real economy; and 5. Short-term export credit insurance. The Temporary Framework will be in place until the end of December 2020, it may be extended if necessary.
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On 23/03/2020, the Commission issued new practical advice on how to implement its Guidelines for border management, in order to keep freight moving across the EU during the current pandemic. New recommendations should ensure the smoothness of freight transport and the functioning of the food supply chains in the EU. Member States are requested to designate, without delay, all the relevant internal border-crossing points on the trans-European transport network (TEN-T) as ‘green lane' border crossings. The green lane border crossings should be open to all freight vehicles, whatever goods they are carrying. Crossing the border, including any checks and health screening, should not take more than 15 minutes.
More information is available here.