The European Commission proposed a revised reform of the support scheme for Cotton. The new proposal maintains the support arrangements from the current regime, which was annulled by the European Court of Justice because of shortcomings in the impact assessment carried out by the Commission.
The proposal foresees that 65 % of the aid should be "decoupled" (i.e. no longer linked to production) and 35 % remain linked to cotton production, in the form of area payments.
The Court judgment did not question the reform's approach (i.e. the change of support system) but found that the Commission had failed to carry out an impact study that included labour costs in the calculation of production costs, and failed to assess the effect of the reform on the local ginning industry.
The new proposal follows the completion of an in-depth impact assessment and a wide-ranging consultation of stakeholders.
"This proposal maintains the current split between decoupled and coupled payments, which was working well in the cotton sector," said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development.
"This mix is consistent with the aims of the CAP reforms, giving producers more stable incomes, allowing them to react to future market developments and ensuring environmental protection. It also respects the undertaking in the Greek, Spanish and Portuguese Accession Treaties that the EU should support cotton production in regions where it is important for the agricultural economy."
The proposal foresees that 65 % of the aid should be "decoupled" (i.e. no longer linked to production) and 35 % remain linked to cotton production, in the form of area payments.
The Court judgment did not question the reform's approach (i.e. the change of support system) but found that the Commission had failed to carry out an impact study that included labour costs in the calculation of production costs, and failed to assess the effect of the reform on the local ginning industry.
The new proposal follows the completion of an in-depth impact assessment and a wide-ranging consultation of stakeholders.
"This proposal maintains the current split between decoupled and coupled payments, which was working well in the cotton sector," said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development.
"This mix is consistent with the aims of the CAP reforms, giving producers more stable incomes, allowing them to react to future market developments and ensuring environmental protection. It also respects the undertaking in the Greek, Spanish and Portuguese Accession Treaties that the EU should support cotton production in regions where it is important for the agricultural economy."
