Press Release: CAP Reform: Commission proposes new cotton reform taking account of Court of Justice ruling

The European Commission has 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.