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Commission proposals for tobacco

30 November 2001

A proposal for premiums and quotas for tobacco production in the EU to 2004 have been finalized. Modifications seek to reduce thresholds for varieties least in demand by 10%, to encourage growers to switch to other varieties or out of tobacco production altogether. The proposal seeks to set the scene for a phasing out of subsidies in the tobacco sector in line with EU commitments to reduce risks to public health. The proposal seeks to support the development of alternative sources of income and economic activity in tobacco growing areas. The Community's Tobacco Fund is to be expanded by increasing the levy, with the funds generated being used for public awareness on the harmful effects of tobacco and to encourage growers to switch to other crops.
The European Commission has launched a study to evaluate the common organization of the market in raw tobacco, which should be available by the end of 2002. It is hoped this will provide a systematic evaluation of the effects of EU rules in the sector and provide the basis of a Commission communication on sustainability of tobacco farming in the first half of 2003.

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