Policy Recommendations

  • Complete decoupling of EU subsidies to cotton farmers.
  • Within the WTO's Doha Round, European Union and African leaders should urge the United States to start reducing their subsidies.

Case: Cotton

28-11-2011 MEP Stihler questions EU cotton subsidies

In a written question to the Commission, MEP Catherine Stihler (S&D) points out that the EU cotton subsidies contribute to the artificially high price of cotton. The EU subsidies are worth more per pound of cotton than the price of which it is traded on global markets. This is disadvantageous for developing countries in West and Central Africa, where cotton production plays a major role for the economy.
MEP Stihler asks the Commission why it excluded cotton subsidies from the CAP reform proposals and if the EU should not be leading the way for the US and China by revising its position on cotton subsidies.

Fair Politics would like to thank MEP Stihler for pointing out the incoherence. Supporting European cotton farmers causes disadvantages for the economies of developing countries and undermining the EUs development objective of eridacating poverty. For posing this question, Catherine Stihler receives one point in our monitoring system towards the Fair Politician of the Year.

Monitor fair: S&D


Parliamentary questions
3 August 2011 E-007669/2011

Question for written answer
to the Commission
Rule 117
Catherine Stihler (S&D)

Subject: EU cotton subsidies

Under the common agricultural policy the EU has provided farmers across Member States with over EUR 5 billion in production subsidies. EU subsidies are thus worth more per pound of cotton to farmers than the price at which cotton is traded on global markets. This is contributing to the artificially high price of cotton.
Although cotton farming is a minor economic activity in Europe, cotton production plays a major role in some Least Developed Countries in west and central Africa. While the US and China are the largest exporters of cotton, should the EU not be leading the way by revising its position on cotton subsidies?
Against this background, can the Commission also explain why it excluded cotton subsidies from its CAP reform proposals?