Brussels, 10/03/2004 (Agence Europe) - On Wednesday in Strasbourg, the European Parliament confirmed the critical position of its parliamentary committee on the subject of proposals for reform of the market organisations for Mediterranean products (tobacco, olive oil, cotton). The report by Joseph Daul (EPP-ED, France) on these sectors, adopted by 271 votes to 216 and 36 abstentions, recommends in substance decoupling of very partial direct aid of 20% for cotton and 30% for tobacco but at least 60% for olive oil (with the possibility for Member States to take it up to 100%). The EP also adopted a complementary report by Vincenzo Lavarra (PES, Italy) on the olive oil sector.
Tobacco: Fearing that tobacco may cease to be grown in Europe, the EP is firmly opposed to the Commission's proposals. Although the latter foresees total decoupling of aid (in three stages and according to different phases of production), MEPs consider that 70% of premiums must remain linked to the volume of production. Also, they call for at least 10% of such aid (which depends on production) to be allocated to measures intended specifically for the safeguard of jobs and for restructuring measures in the tobacco sector in tobacco producing regions. UNITAB (the international union of tobacco growers) welcomed MEPs' "wisdom" in a press release.
Olive oil: The Commission proposes the introduction of aid to production with a single farm payment up to 60% (100% for olive oil farmers with a surface area below 0.3 ha). The EP recommends that decoupled aid should amount to a minimum of 60% of current payments. Adopting the Lavarra report, the EP trusts that the quality of production and information will be improved with: - prohibition on producing and marketing mixtures of any type of oils or fats with olive oil; - prohibition of use of the wording "olive oil" on labels (including references and pictures depicting the product) when the product is obtained from a mixture of vegetable oils (including spreading fats) whose composition includes oils other than those obtained from the fruit of the olive tree; - the obligation to indicate on the label the origin of "virgin and extra virgin" olive oils (the EP specifies that the origin is determined by the country where the olives used for extraction are harvested).
Cotton: The EP recommends keeping the link between the level of aid and the volume of production at 80% (as opposed to 40% according to the Commission proposal). It also calls for reform in this sector to take effect in 2007 and not in 2005 as the Commission recommends.