EU reforms cotton subsidies


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 Euro780 million (£487m) a year, compared with last years Euro900m.

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 Euro1063/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.

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