This Week in the Single Market — Brussels (#29, 2026)
EU-Mexico trade agreement enters into force; Anti-dumping duties set on Chinese chemical imports; VAT fraud rules revised; Commission authorises State aid for storage, fuels, agriculture.
July 26, 2026 to August 01, 2026
EU-Mexico trade agreement enters into force; Anti-dumping duties set on Chinese chemical imports; VAT fraud rules revised; Commission authorises State aid for storage, fuels, agriculture.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
European Commission
Commission approves €59 million Slovenian State aid scheme to promote battery energy storage systems
The European Commission approved a €59 million Slovenian State aid scheme for battery energy storage systems, under the Clean Industrial Deal State Aid Framework (CISAF) adopted on 25 June 2025. The scheme targets at least 370 MWh of new storage capacity to support the integration of renewables into the electricity grid, financed via the Just Transition Fund and ETS Modernisation Fund. Grants will cover investment costs, with aid granted before 31 December 2030 and subject to the investment-specific costs of each project. The Commission found the measure necessary, appropriate, and proportionate according to Article 107(3)(c) TFEU and the CISAF requirements. The measure aims to bolster security of electricity supply in Slovenia.
Commission approves €290 million Dutch State aid to support sustainable aviation fuels
The Commission authorised €290 million in Dutch State aid for sustainable aviation fuel (SAF) projects, under the Clean Industrial Deal State Aid Framework (CISAF) and the 2022 Climate, Environmental Protection and Energy Guidelines (CEEAG). The two approved schemes cover investment grants and preparatory project costs, and support bio-based and synthetic SAF production to foster market readiness. Projects producing approximately 285 kilotonnes of SAF yearly are envisioned, contributing to the decarbonisation of aviation as per the ReFuelEU Aviation Regulation and amended Renewable Energy Directive. The schemes will operate between 2027 and 2031.
Commission sends Statement of Grounds to Temu over possible obstruction of inspection under the Foreign Subsidies Regulation
Following an unannounced inspection under the Foreign Subsidies Regulation (FSR) between 2 and 5 December 2025, the Commission sent a Statement of Grounds to Temu’s parent, PDD Holdings Inc. and its Ireland-based subsidiary WhaleCo Technology Limited. The document details concerns that Temu failed to comply with requests for information regarding its EU operations and IT systems. Such cooperation is mandatory under Article 14 of the FSR. Temu now has the opportunity to respond to the Commission’s concerns before any potential decision imposing fines of up to 1% of annual turnover.
Commission approves €149 million Swedish State aid for agriculture, fishing and aquaculture firms facing higher fuel and fertiliser prices
The Commission approved Sweden's €149 million State aid scheme for the agricultural, fishing and aquaculture sectors. The Temporary State Aid Framework for the Middle East Crisis (METSAF)—adopted 29 April 2026—allows targeted support to sectors most exposed to recent price shocks. Aid will be granted as direct grants, covering up to 85% of the increase in fuel and fertiliser costs, capped at €50,000 per company, and available through 31 December 2026. The scheme was found compatible with Article 107(3)(c) TFEU and METSAF provisions.
Commission opens consultation on amendments to regional State aid guidelines
The Commission launched a public consultation on proposed amendments to the Guidelines on regional State aid, inviting feedback until 30 September 2026. The revised guidelines, to apply from 2028–2034, incorporate updated socio-economic data and address the needs of EU regions bordering Russia, Belarus, and Ukraine, as referenced in the Eastern regions communication. Member States must update their regional aid maps, with adoption of amendments expected by the end of 2026 to ensure timely implementation.
EU State aid rules enable social support and investments, new Commission guidance shows
New guidance from the Commission clarifies how State aid frameworks can be used to support social and public investments under the Clean Industrial Deal. The document consolidates existing information on aid for services of general economic interest, employment of disadvantaged workers, support for energy efficiency measures, and aid for SMEs. The guidance will be updated to reflect future regulatory changes.
EU Legislation (Official Journal)
Interim Agreement on Trade between the European Union and the United Mexican States enters into force
The Interim Agreement on Trade between the European Union and the United Mexican States, published in OJ L 2026/1528 of 31 July 2026, establishes a free trade area consistent with Article XXIV GATT 1994 and Article V GATS. The agreement provides for the reduction or elimination of tariffs on goods, regulatory cooperation, rules of origin, customs and trade facilitation, liberalisation of services and procurement, and strong provisions on sustainable development. It replaces elements of the earlier Economic Partnership and will cease to apply upon entry into force of the Political, Economic and Cooperation Strategic Partnership Agreement.
Council Decision (EU) 2026/1742 concludes the Interim Agreement on Trade with Mexico
Council Decision (EU) 2026/1742 of 14 July 2026 formally approves entry into force of the Interim Agreement on Trade between the EU and Mexico (OJ L 2026/1742). The decision also grants the Commission authority to approve certain updates to annexes regarding regulated product definitions and procurement schedules.
Political, Economic and Cooperation Strategic Partnership Agreement between the EU and Mexico: Council signs and applies agreement
Council Decision (EU) 2026/1510 of 11 May 2026 authorises signing and provisional application of the Political, Economic and Cooperation Strategic Partnership Agreement between the EU, its Member States and the United Mexican States (OJ L 2026/1510, OJ L 2026/1509). The agreement, replacing the 1997 predecessor, provides a comprehensive framework for strategic partnership, political dialogue, trade liberalisation, investment protection, sustainable development and sectoral cooperation.
eur-lex.europa.eu | eur-lex.europa.eu
Commission Implementing Regulation (EU) 2026/1854: Provisional anti-dumping duty on sodium benzoate from China
On 27 July 2026, the Commission imposed a provisional anti-dumping duty on sodium benzoate imports from China (Reg. (EU) 2026/1854, OJ L 2026/1854). The measure follows findings of significant market distortions and material injury to the sole cooperating Union producer. The duties range up to 116.4% for non-cooperating exporters.
Commission Implementing Regulation (EU) 2026/1857: Provisional anti-dumping duty on benzyl alcohol from China
A provisional anti-dumping duty was imposed on benzyl alcohol imports from China by the Commission (Reg. (EU) 2026/1857, OJ L 2026/1857), with duties reaching as high as 71.2% for non-sampled exporters. The investigation cited injury to the Union industry from dumped imports and established China-wide significant distortions.
Commission Implementing Regulation (EU) 2026/1823: Definitive anti-dumping duty on polyamide yarns from China
Definitive anti-dumping duties were set on imports of synthetic polyamide yarns from China (Reg. (EU) 2026/1823, OJ L 2026/1823), up to 67.6%. The decision reflects the Commission’s finding of persistent dumping and injury to EU producers, with post-initiation import volumes not sufficient for retroactive collection.
Commission Implementing Regulation (EU) 2026/1794: Expiry review extends definitive anti-dumping duty on ferro-silicon from China and Russia
Regulation (EU) 2026/1794 re-imposes definitive anti-dumping duties on ferro-silicon imports from the Russian Federation and China, following an Article 11(2) expiry review. The Commission found that, despite current low import volumes due to trade sanctions, the risk of recurrence of dumping and injury persists in the absence of measures. The rate remains at up to 31.2% for Chinese, and 22.7% for Russian, origin goods.
Commission Implementing Regulation (EU) 2026/1869: Technical standards for third-country branches reporting adopted
Commission Implementing Regulation (EU) 2026/1757 of 20 July 2026 (OJ L 2026/1757) lays down implementing technical standards for reporting by EU branches of third-country credit institutions under Directive 2013/36/EU as amended by Directive (EU) 2024/1619. The regulation, specifying reporting dates and templates for class 1 and 2 branches, applies from 28 March 2027.
Council Regulation (EU) 2026/1743: OLAF and EPPO access to VAT data at Union level
Council Regulation (EU) 2026/1743 of 10 July 2026 amends Regulation (EU) No 904/2010, granting the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) access to VAT information at Union level, including centralised VIES, CESOP and Eurofisc analysis reports, to strengthen the fight against cross-border VAT fraud.
