Maritime Transport and State Aid

The competition policies regarding Maritime Transport must always be incorporated with the state aid. While they had proposed to engage the subject on a dual front, it must be done in different ways rather than connected with company practices.

The different variables involved in the latter case are the intra and extra Community markets. These two variables have successfully scored in dual competition policy. With regards to the state aid, the Member States is the only one who has provided an aid, which is now the variable present.  In result, only a single policy is needed that is based on an application of the derogation that is even-handed.

This derogation is based on the Community’s need to maintain development in employment and economic terms. It is also based on the international competition’s special nature in the maritime sector. This, therefore, made the commission amend the ground rules in the maritime sector on its state aids. This choice was made to reduce the types of troubles that the Community shippers that are registered compared to the ones registered with other flags. This link between the flag and state aid is a lead to gain support to have the registers maintained at an international level, having problems dealt internally.

To carry out a policy as such, the Community has to take in consideration the different kinds of national approaches. This though may have different priorities as it depends on the various merchant fleet characters. The priorities include flag fleet maintenance, fitting-out, or a particular market segment. Nonetheless, maintenance of certain fundamental principles should be implemented and the common interests, admissibility of competition distortions, and transparency should still be in link through the state aid.

The internationally agreed measures and aid have this link, which is intended to be implemented by the Community so that they can liberalize world level transport. The progresses made should have a distinct effect on the derogations involved, though a recent collapse in the maritime transport discussions depicts a sign that liberalization is unlikely to make a noteworthy headway any time soon. Therefore, they must always anticipate an increase in protecting measures.

We should not forget that despite the emphasis placed on the state aid roles in the ad effects of international competition distortions, it also provides training support, research, and employment. The maritime transport aid is also connected to maritime industries, therefore, investments on the different sects are affected directly.

Leave A Response

* Denotes Required Field