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Since Greece has been a part of the EC, the structure of the Greek cotton industry has not changed. However, the way subsidies are paid has changed. The merchants now have a major role in channeling EC subsidy payments which has eliminated many smaller agents that negotiated for farmers in the past. Thus, fewer transactions are required by EC representatives. Even though Greek cotton production will barely meet consumption this marketing year, increased EC subsidy payments over traditional Greek subsidies have had a positive impact on cotton production. EC policy has not had a significant impact on the use of new technology in cotton harvesting and textile production. Greece still needs to import cotton as the textile industry strives to improve the quality of yarn produced. Future prospects for the importation of U.S. cotton are not expected to decline as high quality U.S. cotton will be used to improve the overall quality of Greek yarn produced. The elimination of the 3 percent customs duty and favorable U.S. prices will determine U.S. competitiveness in this market. The impact of accession on Spanish cotton production is a possible increase due to increased subsidies provided by the EC. There should also be improved quality as a result of research funded by the EC Agri-Med program. The marketing of cotton will not change significantly except for changes in the roles of Forppa and Senpa in the Ministry of Agriculture. Imports in the short run will remain steady but have the potential to decline as textile output declines in face of Asian competition. U.S. cotton exported to Spain in the short run will remain steady. However, in the long run because of anticipated Spanish production increases, U.S. exports may suffer a slight decline. Nonetheless, the most important factor affecting the U.S. ability to export cotton to Spain is the price competitiveness of U.S. cotton. |
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©National Cotton Council, Memphis TN |
Document last modified Sunday, Dec 6 1998
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