WRITTEN QUESTION E-2921/03 by Glyn Ford (PSE) to the Commission. Cotton subsidies.
Date: 2003-10-02
Institutions: European Parliament, Provisional data
Subjects: EU Member State, United States, agricultural statistics, aid system, cotton, support policy

C 78 E/188

Official Journal of the European Union

EN

27.3.2004

Is the Commission aware of the radical change in the position of the Tibetan leadership which is implied
by the unambiguous statement that it will be necessary to find a solution very soon (within two or three
years)? Ought not the European Union to do everything it can to induce the Chinese authorities and the
Tibetan government in exile to reach agreement quickly on defining a fully autonomous status for Tibet in
all fields except defence and foreign policy? Is the Commission aware that, after the period of two or three
years mentioned by the Dalai Lama, Tibet is liable to become a fresh source of tension or even the scene of
violence and bloody repression? Could not the Commission help to bring about the opening of such
negotiations by proposing that the EU Member States recognise the Tibetan government in exile?

Answer given by Mr Patten on behalf of the Commission

(15 October 2003)

In its regular dialogue with China, particularly on human rights, the Commission has unfailingly expressed
its opinion that establishing direct dialogue with the Dalai Lama is the only realistic way of seeking a
practical and lasting solution to the Tibetan question based on granting the region full autonomy.

In this connection, it followed with interest the visit by the special envoys of the Dalai Lama to China
between 25 May and 8 June 2003 and considers that everything should be done to avoid compromising
the contacts made recently between the parties concerned.

(2004/C 78 E/0195)

WRITTEN QUESTION E-2921/03

by Glyn Ford (PSE) to the Commission

(2 October 2003)

Subject: Cotton subsidies

Could the Commission detail subsidies paid to cotton producers by country within the EU each year for
the past five years and give the comparison between EU subsidies paid per tonne and those paid in the US?

Answer given by Mr Fischler on behalf of the Commission

(5 November 2003)

In line with a commitment made at Luxembourg on 26 June this year, the Commission on 23 September
adopted a Communication on reform of the common market organisations for olive oil, tobacco and
cotton. This is geared to the same purposes and adopts the same approach as this year’s earlier common
agricultural policy (CAP) reform package.

In support of
(available at
this Communication a working document entitled ‘The cotton sector’
europa.eu.int/comm/agriculture/markets/cotton) was drawn up by the Agriculture Directorate-General to
provide a documentary basis for the proposal.

It gives the reader a picture of the Community cotton sector’s place in the world market during the last
few years. It also describes how the Community aid scheme has operated since it was set up when Greece
joined the Community. Statistical information (areas, production, budget) is given for the scheme.

It should be remembered that the Community cotton sector aid is paid to the processor on the basis of the
quantity of unginned cotton delivered by the grower, who must have received a minimum price per tonne
of unginned cotton. There are no export support measures such as refunds.

27.3.2004

EN

Official Journal of the European Union

C 78 E/189

The aid per tonne of unginned cotton paid to the processor is the difference between a guide price set by
the Council and the world market price determined by the Commission from quotations on the
international fibre market. If production exceeds reference levels a stabilising mechanism reduces the guide
price and the minimum price by the same amount and so lowers the aid rate.

For the last five marketing years the aid per tonne of unginned cotton has been:

Campaign

1998/1999

1999/2000

2000/2001

2001/2002

2002/2003

Greece

561

474

427

461

562

(EUR/tonne)

Spain

664

523

633

696

670

According to the International Cotton Advisory Committee American aid per pound of ginned cotton was:

Campaign

1998/1999

1999/2000

2000/2001

2001/2002

(US cents/lb)

United States
Internal support

22

25

12

24

Under the new Farm Bill from 2002/03 an additional aid, the ‘counter-cyclical payment’, is to be granted
when the grower’s overall income (market price + normal subsidies) is less than a guide price of US 72,4
cents/lb.

Other forms of American export aid for cotton should also be mentioned, notably the subsidised export
credit programmes. There is no comparable Community support.

Other facts to be borne in mind are that there is free access to the European market (no customs duty or
import quotas), that the Union is the leading world importer of ginned cotton and that European
production at (about 2,5 % of the world total)
importance compared with American
production (about 20 %). This situation is reflected in the overall budgets:

is of marginal

Campaign

1998/1999

1999/2000

2000/2001

2001/2002

2002/2003

European Union
(EUR million)

United States (1)
(USD million)

903

855

733

804

871

1 132

1 882

3 809

1 868

3 307

(1) USDA (United States Department of Agriculture).