European Commission proposes new strategy for outermost regions

The European Commission has introduced a new strategic vision for outermost regions (ORs), including a legislative package that proposes extending the ‘octroi de mer’ tax regime until December 31, 2030. The proposal aims to expand taxation differentials by adding 22 new tariff codes, which would allow local productions such as wood, glass, and animal products in Martinique to benefit from reduced rates or exemptions.

In addition to tax adjustments, the proposal seeks to grant the Commission delegated powers to update the list of eligible products annually. Regarding French Guiana, the package suggests excluding the territory from the scope of the EU Deforestation Regulation (EUDR), treating it as a third country for products manufactured and consumed locally.

While many regional leaders welcome these developments, some critics, such as Cyril Comte of Groupe Citadelle, argue that the move reinforces a system in need of fundamental reform rather than addressing its core issues. In the Canary Islands, the strategy is viewed as an opportunity to more systematically apply Article 349 of the Treaty on the Functioning of the European Union to prevent continental regulations from imposing disproportionate structural costs on island economies.