Brussels, 09/11/2007 (Agence Europe) - As reported yesterday (see EUROPE 9539), the European Commission adopted new EU cotton aid reform plans on Friday 9 November. The Court of Justice annulled the Commission's 2004 reform due to shortcomings in the Commission's consideration of the economic and social impact of the planned changes to the cotton aid scheme. The new proposal plans for 65% of EU aid to be 'decoupled' (no longer linked to production) with 35% remaining linked to cotton production in the form of area payments.
'This proposal maintains the current split between coupled and decoupled payments, which was working well in the cotton sector,' explained Mariann Fischer Boel, EU Agriculture Commissioner, adding that the mix gave farmers 'more stable incomes, allowing them to react to future market developments and ensuring environmental protection.' The Commission will now examine the option of introducing an EU label of origin to promote EU cotton.
The Commission explains that to be eligible for coupled aid, cotton can only be grown on land authorised for such purposes by the member state in question, using authorised varieties of seed. Cotton is an arable crop used both for its seeds (from which oil and oilseed cakes are made) and mainly for its fibre. The cotton industry has strong regional importance in the two main cotton-growing member states (Greece and Spain). (L.C.)