16 December 1999
EU reforms cotton subsidies
THE EU is to reform its cotton subsidy regime in an effort to cut spending and improve environmental protection.
The plans aim to curb spending on cotton production to less than 780 million (£487m) a year, compared with last years 900m.
Cotton is the latest part of the common agricultural policy to be reformed. Subsidies will continue to be allocated through the same guide or guaranteed price of 1063/t.
But there are increased penalties for over-production.
The reforms also provide for member states to draw up environmental criteria and restrict eligibility for aid to certain areas.
- EU ministers throw out cotton dumping ban, FWi, 06 October, 1998
- Flax back in fashion, FWi, 06 November, 1997
- Financial Times 16/12/99 page 40