EU SUBSIDY REFORM
September 1st, 2003
BY KEITH NUTHALLTHE EUROPEAN Commission has formally proposed the plan announced at the inconclusive World Trade Organisation summit in Cancun, Mexico, to decouple cotton grower aid payments from production rates, converting them into direct payments. Although Brussels has shied from complete decoupling, its stated aim is to remove incentives for growers to over-produce cotton. Said a Commission statement: "The reform is expected to bring better market orientation, environmental benefits, enhanced competitiveness and more stable income for farmers, due to the ...
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