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EU: New Cotton Subsidies Proposedqrcode

Nov. 26, 2007

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Nov. 26, 2007
The European Commission (EC) has introduced revised proposals for a new cotton subsidy system after initial proposals were overruled by the European Court of Justice due to insufficient assessment of the changes' impact on cotton production in Europe and elsewhere.

The revised system provides more support to regions where cotton is a more economically important crop. National areas eligible for subsidies are 370,000 hectares (Ha) in Greece, 70,000 Ha in Spain, and 360 Ha in Portugal.

The new system aims to separate subsidies from production levels and to encourage producers to maintain strict environmental standards.

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