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In the context of the complex trade dynamics characterizing the Canary Islands, the Specific Supply Regime (REA) emerges as a strategic tool for companies and industries operating in this ultra-peripheral region of the European Union. More than just a regulatory framework, the REA represents a set of policies designed to ensure the supply of essential products in a particularly challenging geographical and economic environment.
The allocation of this assistance is based on various variables, including transportation surcharges, export prices to third countries, as well as additional expenses associated with the ultra-peripheral and insular location. Under this scheme, European products imported into the Canary Islands will be classified as REA, while products not belonging to the European Community will be categorized as MEA.
What goods can benefit from the REA in the Canary Islands?
Not all products can avail themselves of these financial aids. Only merchandise originating from a country belonging to the European Customs Union and that is also considered essential can be included in this regime. The beneficiaries include:
- Agricultural products listed in Annex I of the Treaty establishing the European Union, which are vital for human consumption, the manufacture of other products, or as agricultural raw materials (e.g., meat, milk, cheese, rice, oil, among others).
- Each year, a list is drawn up specifying the quantities of each eligible product for exemption from customs duties, as well as the maximum amounts of community financial assistance.
- Non-community origin products are exempt from external tariffs, while products of community origin receive financial assistance.
Advantages of opting for the REA in the Canary Islands:
The Specific Supply Regime offers a series of advantages that can make a difference for your company. Here are the specific benefits your company can obtain by opting for the REA:
1. Access to a key market
The REA allows for the importation of European products into the Canary Islands at a much more competitive cost. This enables the introduction of your products into a market with 2 million inhabitants and nearly 10 million tourists per year.
2. Access to economic assistance
Companies opting for the REA can benefit from economic assistance designed to offset the additional costs associated with transporting goods to the Canary Islands. These aids can improve your company’s profitability and strengthen its position in the market.
3. Simplified regulatory compliance
By operating under the umbrella of the REA, your company complies with the regulations and standards established to ensure adequate supply of products in the Canary Islands. This simplifies regulatory compliance and reduces the risk of potential sanctions.
4. Improved competitiveness
Your company can enhance its competitiveness in the Canary Islands market and expand its presence in the region.
In summary, opting for the REA can provide your company with a range of tangible benefits that can drive its growth and success in the Canary Islands market.
And in the case of being a company outside the Customs Union? Advantages of opting for the MEA in the Canary Islands:
For non-Community companies, the Mechanism for Entry into the Area (MEA) is fundamentally a way to facilitate access for non-Community products to the Canary Islands market, providing a series of benefits and favorable conditions for non-Community companies.
One of the main advantages of the MEA is that products imported from countries outside the Union are exempt from paying external tariffs when entering the territory of the Canary Islands. This exemption helps reduce import costs and makes non-Community products more competitive in the Canary Islands market.
Additionally, the MEA opens up market opportunities for non-Community companies by allowing them to access the Canary Islands market, which can be very strategically attractive as a bridge between Europe, Africa, and America. Furthermore, by opting for the MEA, non-Community companies can benefit from local demand for specific products and the opportunity to diversify their customer base.
