WORLD TRADE
TN/AG/SCC/W/14
WT/CFMC/32
14 July 2011
ORGANIZATION
(11-3501)
Sub-Committee on Cotton
IMPLEMENTATION OF THE DEVELOPMENT ASSISTANCE ASPECTS OF THE
COTTON-RELATED DECISIONS IN THE 2004 JULY PACKAGE AND
PARAGRAPH 12 OF THE HONG KONG MINISTERIAL
DECLARATION
Item 2C - Coherence Between Trade and Development Aspects:
Update on the Development Aspects of Cotton
Secretariat Progress Report
This document has been prepared under the Secretariat's own
responsibility and without prejudice to the positions of Members
and to their rights and obligations under the WTO.
I.
INTRODUCTION
1.
Pursuant to paragraph 12 of the Hong Kong Ministerial Declaration,1 this is the Tenth
Secretariat Progress Report to the Sub-Committee on Cotton (SCC) on the Development Assistance
Aspects of Cotton. Since the last Progress Report, there have been several developments. First, on
5 November 2010, the Director-General circulated the 10th version (WT/CFMC/6/Rev.9) of the
Evolving Table on Cotton Development Assistance (ET) under cover of his letter addressed to
Ambassadors and Permanent Representatives. Second, the 14th Round of the Director-General's
Consultative Framework Mechanism on Cotton (DGCFMC), took place on 9 December 2010. Third,
on 12 February 2011, at the Centre William Rappard, the C4 organized a workshop: "Atelier de
réflexion sur le règlement des différends: un atout ou une contrainte pour la négociation? Le cas du
coton à l'OMC". The workshop was a follow-up to a decision by the Ministers of the West African
Economic and Monetary Union (WAEMU), which took place in Cotonou on 25 November 2010.
Finally, WTO Members have maintained an active interest on all aspects of the cotton dossier, as
mandated in the 1 August 2004 General Council Decision – "the July Framework Package" and, in the
2005 Hong Kong Ministerial Declaration.
II.
14TH ROUND OF THE DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK
MECHANISM ON COTTON
2.
The Chairman (DDG H.V. Singh) welcomed all participants to the 14th Round of the
Director-General's Consultative Framework Mechanism on Cotton (DGCFMC). He welcomed, in
particular, H.E. Mr. Léonce Koné, Minister for Commerce, Enterprise Promotion and Handicrafts
1
"We invite the Director-General to furnish a third Periodic Report to our next Session, with updates at
appropriate intervals in the meantime, to the General Council, while keeping the Sub-Committee on Cotton fully
informed of progress" (WT/MIN(05)/DEC: paragraph 12).
TN/AG/SCC/W/14
WT/CFMC/32
Page 2
from Burkina Faso. After participating at the 13th Round of the DGCFMC in June 2010, the WTO
was pleased to have Minister Koné's return, at a moment when new impetus had been received
following the November 2010 Seoul G-20 Summit and the APEC Ministerial to rapidly advance the
Doha Round in 2011. The Chairman also welcomed H.E. Ambassador David Walker of New
Zealand, Chairman of the Committee on Agriculture Special Session and its Sub-Committee on
Cotton; representatives of the C4; and, acknowledged the presence of Mr. Terry Townsend, the
Executive Director of the International Cotton Advisory Committee (ICAC).
3.
Members and participants took note of the provisional agenda. The Chairman indicated that
no issues had been signalled under Any Other Business.
A.
STATEMENT BY THE C4 COORDINATOR
4.
The representative of the C4 (H.E. Mr. Léonce Koné, Burkina Faso Minister for Commerce,
Enterprise Promotion and Handicrafts), on behalf of the C4, expressed appreciation for the invitation
from the WTO Director-General to the 14th Round of the DGCFMC.
5.
He stated that he was back to the WTO because cotton remained the vital mainstay and the
bedrock of several African economies, including the C4, who were the co-authors of the Sectorial
Initiative on Cotton (SIC) and who were amongst the poorest countries in the world. Despite the
establishment of the cotton mandate in the 1 August 2004 General Council Decision, the
reinforcement of that mandate at the 2005 Hong Kong Ministerial Declaration, the distinction
between the trade policy aspects and the development assistance aspects of the dossier, the creation of
the Sub-Committee on Cotton (SCC) within the Committee of Agriculture Special Session (CoA/SS),
which had focused on the mandate for an ambitious, expeditious and specific treatment of the cotton
dossier, and the several efforts undertaken by the authors, the dossier had not advanced in a
satisfactory manner.
6.
He recalled the C4 observation at the 13th Round that the trend was towards more support
from development partners for the African cotton sector, improvements in domestic cotton sector
reforms by African companies to enhance the performance of the African cotton sector and make it
friendlier for business. He thanked development partners for their constant support to help address
the productivity and capacity challenges of the African cotton sector. He highlighted the different
projects and programmes by multilateral and bilateral donors. In order to improve the situation in the
field and to better understand the specific needs for the development of the cotton sector in the C4
countries, the C4 would focus on drawing-up common programmes and joint projects grouped
together in "a basket of projects or programmes". This collective approach to project formulation
would be presented to the DGCFMC as soon as possible.
7.
The C4 believed that the development of their economies based on the cotton sector was
possible, as long as the trade-distorting policies in the sector were correctly addressed and eliminated.
In the face of legitimate and fair claims by the C4 for the elimination of trade-distorting subsidies,
developed countries have advanced the argument that liberalization of the cotton sector was
necessary. Diversification would also be necessary. The C4 restated its support for all the cotton
provisions in the draft modalities revised on 6 December 2008. The basis for the negotiations on
cotton needed to fulfil the criteria set out in the Hong Kong Ministerial Declaration for cotton to be
addressed ambitiously, specifically and expeditiously. Resolving the cotton dossier required a
systematic approach with clear and precise statistics. An ambitious result in accordance with the
Hong Kong Ministerial Declaration must address and resolve the harmful effect of trade-distorting
domestic support in the global cotton market.
TN/AG/SCC/W/14
WT/CFMC/32
Page 3
8.
In the absence of an ambitious result for cotton, the C4 will use every means at its recourse to
change the situation because those were defensive interests for millions of producers of cotton in
Africa and at the heart of their very survival.
9.
He noted that Ministers of the West African Economic and Monetary Union (WAEMU) met
in Cotonou, on the cotton dossier, on 26 November 2010. At that meeting, the Ministers adopted a
Declaration on the Sectorial Initiative on Cotton (SIC). The Declaration had been forwarded to the
WTO Director-General, with the request that it be circulated as an official document of the WTO. A
more extensive Ministerial Declaration had also been adopted, which centred on the main issues
linked to the participation and negotiations of the WAEMU countries in the EU/Africa Partnership
Agreement and the Doha Round. In that Declaration, WAEMU Ministers expressed their concerns
about the slow pace of the negotiations. They encouraged WTO Members to find the appropriate
balance and solutions on specific issues in the negotiations. In agriculture, solutions were required on
the outstanding issues of special tropical products, erosion of tariff preferences, sensitive products,
tariff simplification and quota expansion. In terms of market access for non-agricultural products,
there was encouragement to follow the Swiss model of sectoral negotiations. Sectoral initiatives were
also encouraged with regard to services.
10.
He recalled that the development aspects of the cotton dossier were an integral part of the
Doha mandate. That was why the C4 wanted to re-iterate its satisfaction with the creation and
sustained functioning of the Director-General's CFMC. The exercise to encourage support and
transparency remained relevant in allowing aid flows aimed at the development of the cotton sector in
Africa. However, difficulties remained with regard to disbursements and project implementation.
The C4 expressed its gratitude to all donors - bilateral, regional, sub-regional, and multi-lateral - for
their aid and support which came in different forms. The C4 also wanted to underscore the link
between the development aspects of the cotton dossier and the Aid for Trade initiative. In recognition
of this link, the C4 would submit to donors in the near future, a joint multi-dimensional project.
11.
In terms of domestic reforms of the cotton sector and related reforms in African countries, the
Minister confirmed that the requirement for those reforms was generally understood across the
Continent. Every country involved was working on this question of reform, with conviction, based on
its national situation and with varying degrees of success. It was necessary to underline that the
nature of these reforms were often costly and painful and not always compensated for by the
corresponding or resulting gain, because of the slow nature and the continuing distortions in the
global market.
12.
The C4 would have liked to see the Doha negotiations accelerate so that the Round could be
concluded in 2011. The leaders of the G-20 met at the beginning of November 2010 in Seoul. When
they met, they called on their respective trade negotiators to accelerate the rhythm of negotiations in
order to bring the Doha Round to a successful, ambitious and balanced conclusion in 2011. In order
to achieve that, from the C4 point of view, the best test of success would be to see the cotton dossier
dealt with in an early manner and given priority for negotiation in 2011 and not back-loaded in the
discussions. Back-loading the discussions would entail serious risks for the cotton dossier in
particular, for the negotiations as a whole and seriously undermine them.
13.
The C4 congratulated and conveyed its gratitude to WTO Director-General Pascal Lamy and
Secretariat staff for their availability, support and commitment to find a fair and balanced resolution
for the cotton dossier. The C4 also wished to express its appreciation to the Chairman of the
Committee on Agriculture Special Session and of its Sub-Committee on Cotton for his efforts at
designing modalities that would be acceptable for all Members. The C4 also thanked WTO Deputy
Director-General Harsha V. Singh for his able leadership of the cotton dossier and the manner in
TN/AG/SCC/W/14
WT/CFMC/32
Page 4
which he had directed the work of the Director's General Consultative Framework Mechanism on
Cotton.
14.
To conclude, on behalf of the C4, the Minister requested that his statement be circulated to all
Members as an official document of the WTO.
15.
The Chairman thanked Minister Koné and invited Ambassador David Walker, Chairman of
the Committee on Agriculture Special Session (CoA/SS) and of its Sub-Committee on Cotton (SCC)
to brief Members and participants on Item 3: Trade Policy Aspects of Cotton, within the framework of
the agriculture negotiations.
B.
TRADE POLICY ASPECTS OF COTTON
16.
The Chairman of the Committee on Agriculture Special Session and of its Sub-Committee on
Cotton thanked Minister Koné and Members/participants of the DGCFMC. He recalled that the G-20
meeting in Seoul, the APEC Summit in Yokohama and other high-level fora had declared that they
had the objective of concluding the Doha Round in what had been identified as a critical window of
opportunity in 2011. To that end, therefore, the negotiation process was intensifying. Clear targets
and objectives had been set out through the Trade Negotiations Committee (TNC) that had been held
the previous week, as a follow-up to the political declarations. In terms of agriculture, including
cotton, an intensive process of negotiations had been planned from 17 January 2011. That would be
part of the intensification of negotiations right across the board in all areas of the Doha Round. The
intensified process would continue for as long as required to build the basis for revised texts.
Ambassador Walker explained that the emphasis was being placed on texts in order to strive to
achieve the goal of concluding the Round before the end of December 2011. The package deal, in
which all of the legal texts and schedules were to be formulated, had to be decided, according to the
TNC Chairman, by a minimum of six to seven months in advance. The estimate for the most
optimistic scenario meant the package deal had to be decided, including on cotton, by June.
Therefore, the task between 17 January 2011 and whenever those decisions were made in June, was to
set the basis for those decisions through the development of draft texts, and/or clearly identify the
options.
17.
He noted that Members were not waiting until 17 January 2011 to start the negotiations, but
were in fact meeting in the negotiating group in the week of 6 December. Work was underway across
all aspects of the negotiations in preparation for the resumed meetings from 17 January. It was
expected that Members would also be working amongst themselves before that date.
18.
Specifically, on cotton, Ambassador Walker informed the DGCFM that he had met a number
of Ambassadors and Capital-based officials the day before to review the provisions in the draft
modalities on cotton. All of the Participants at that meeting were united in the view that the cotton
issue needed to be resolved, pursuant to the Hong Kong Ministerial Declaration as part of the process
of bringing the negotiations on agriculture to a successful conclusion. In sum, a process had been set
up from 17 January 2011, where all issues, including cotton, would have to be resolved to the
satisfaction of all. It had also been understood that the cotton issue needed to be addressed as a matter
of urgency.
19.
The representative of Brazil intervened with two statements on behalf of the G-20 and on
behalf of Brazil.
20.
On behalf of the G-20, he reiterated full support for the demands and positions of the C4 in
both its trade and development dimensions. Cotton remained a vital component of the Doha Round
Agriculture Negotiations. The legitimacy of the mandate was revealed by the fact that developing
TN/AG/SCC/W/14
WT/CFMC/32
Page 5
country producers and exporters of cotton, particularly the poorest among them, continued to face the
unfair competition from developed countries subsidies. Recent domestic support notifications to the
Committee on Agriculture had underscored once again that, even in the context of high international
commodity prices, cotton producers of developed countries continued to benefit from unacceptably
high levels of transfers from national treasuries. The G-20 expressed its solidarity with the C4 and
would continue to work closely with them in favour of an agreement on modalities that addressed
cotton ambitiously, specifically, expeditiously in accordance with the mandate agreed by all WTO
Members at the 2005 Hong Kong Ministerial Conference.
21.
On behalf of Brazil, he emphasised that cotton, both in its trade and development aspects, was
a vital component of the Doha Development Agenda. One of the innovative features of the work of
the Director-General's Consultative Framework Mechanism was that it assigned due importance to
South-South Cooperation to cotton producers in Africa. He noted that the previous day, consultations
on cotton had been held in the CoA/SS. Unfortunately, in that case, no news was bad news. Brazil
fully associated itself with the concern expressed by Minister Koné about the lack of progress in the
ongoing negotiations on cotton in the DDA. For that progress to take place, major subsidizers had to
display the necessary political will.
22.
Another aspect related to market developments was that, due to exceptional circumstances in
connection with crop failures and measures taken by certain producers, cotton prices had reached the
highest level since 1995. Market prices and future prices were far beyond the levels that would
trigger US domestic support payments. The wrong lessons should not be drawn from that unusual
scenario. While producers in developed countries continued to count on programmes in place that
allowed them to insure their crops against price volatility, they still maintained production levels far
beyond market requirements. That was no time for complacency. He stressed that it was necessary to
seize that moment of exception to move forward with necessary reforms of trade-distorting
programmes.
23.
He recalled for participants of the DGCFMC that, as communicated at the last meeting, as a
result of the ruling of the arbitrators in the cotton dispute with the United States, Brazil had started a
bilateral process with that country with a view to implementing real reform of trade-distorting US
programmes. Those negotiations continued and since the last meeting of the DGCFMC, a Round of
bilateral consultations had taken place in October and the C4 had been kept informed every step of the
way.
24.
On South-South Cooperation, recent experience showed its effectiveness and its positive
impact on the development dimension of the trading system. Bilaterally, as the latest version of the
Evolving Table of cotton showed, Brazil continued to implement an ambitious programme of
cooperation, technical assistance, technology transfer and capacity building with Benin, Burkina Faso,
Chad and Mali on cotton. Later, Dr. Di Steffano, from the Brazilian Enterprise for Agriculture
Research (Embrapa), Head of Brazil's Cooperation Unit in Sotuba, Mali, would be presenting the
latest developments in the cooperation programme involving the Brazilian Agency for Cooperation
(ABC)/Embrapa and the C4 countries. At a second stage, Brazil intended to extend this initiative to
the other cotton-producing countries in Africa. Brazil was confident that the said cooperation would
provide a major contribution to addressing structural challenges in those countries.
25.
The representative of Zambia, on behalf of the LDCs' Consultative Group, thanked the
Director-General for convening the Consultative Framework Mechanism on Cotton. The DGCFMC
was unquestionably a useful mechanism for focusing the discussions on cotton. On behalf of the
LDCs' Consultative Group, he welcomed the C4 coordinator, H.E. Minister Koné. The LDCs'
Consultative Group appreciated his leadership in advancing the concerns relating to cotton in order to
ensure that a lasting solution was found. The LDCs' Consultative Group associated itself with the
TN/AG/SCC/W/14
WT/CFMC/32
Page 6
statement made by the coordinator of the C4. The Group welcomed the political signals emanating
from the APEC and G-20 meetings to conclude the Round in 2011. The Group also thanked the
Chairman of the CoA/SS and of its SCC for his status reports on the negotiations on Agriculture,
which called for intensified work. The LDCs' Consultative Group believed that the conclusion of the
Round would bring development benefits to developing countries.
26.
The LDCs' Consultative Group welcomed the call made by the TNC Chairman for intensified
work. The Group re-expressed its standing and frequently repeated position that cotton should be
addressed as a matter of priority. Cotton was a litmus test for development in the Doha Round.
Successful outcomes on the trade and development aspects of cotton would no doubt have immediate
impact on the millions of people dependent on cotton for their livelihood. The LDCs' Consultative
Group reiterated the importance of adhering to the mandate for cotton as set out in the 1 August 2004
General Council Decision and re-affirmed and extended in the 2005 Hong Kong Ministerial
Declaration, for cotton to be addressed ambitiously, specifically, and expeditiously.
27.
The LDCs' Consultative Group also took note of the statement made by Brazil and welcomed
the gesture by Brazil in support of the C4 and African cotton producers.
28.
The representative of Argentina agreed that there was a pressing need to effectively work
very hard to find solutions to the outstanding issues in Agriculture in order to achieve a successful and
balanced conclusion of the Doha Round in 2011.
29.
On the outstanding issues in Agriculture, the critical question to address was the tradedistorting subsidies affecting cotton trade. Even with the reduction formula for cotton subsidies
proposed by the C4, a proposal Argentina supported, it remained doubtful that that would have
concrete results for development because at the same time the draft modalities also provided for
greater flexibility in the green box disciplines. Cuts in trade-distorting subsidies for cotton would
probably be compensated for by an increase in green box direct payments, which would have a similar
distorting effect.
30.
Argentina supported the statement made by the representative of Brazil, on behalf of the G20. Argentina re-affirmed its willingness to work within the framework of the agreed mandates for
the Doha Round so that an ambitious and balanced outcome could be achieved. That would be
consistent with the development objectives which Argentina had always defended.
31.
The representative of Colombia reiterated his country's concern at the lack of progress in the
cotton negotiations. That was a priority for his country and other developing countries that had
experienced a significant loss in production and in employment as a result of the distortions that were
prevalent in the world cotton market.
32.
The results from the cotton negotiations would demonstrate the most concrete and effective
development dividends in the Doha Development Round negotiations and in favour of free and fair
trade. The developing countries wanted to see production conditions and comparative advantage to be
the determining factors for production and trade. Colombia hoped that the main parties involved
would show a political commitment that had been expressed at recent G-20 and APEC Summit
meetings by making concrete proposals as soon as possible on the basis on what had been agreed in
Hong Kong so as to give cotton the ambitious, expeditious and specific treatment that had been
mandated and was required. Colombia reiterated its commitment to the African Group and the C4
proposal.
33.
The representative of Australia acknowledged that global protectionist measures in relation to
cotton production were major concerns for cotton-producing and trading developing countries,
TN/AG/SCC/W/14
WT/CFMC/32
Page 7
particularly in Africa. Australia shared these concerns. Australia remained firmly committed to
securing reform in agricultural markets through the Doha Round and continued to support efforts to
reform the global cotton market. Australia was committed, in particular, to finding a solution that
addressed the issue of cotton ambitiously, expeditiously and specifically as mandated in the July 2004
framework and consistent with the commitments made at the Hong Kong Ministerial in 2005.
Australia signalled that in the past year it had developed an A$ 100 million programme on African
Food Security, which focused on lifting agricultural productivity through international agricultural
research and development and supporting marketing development by linking small-scale farmers to
markets in Southern and Eastern Africa. Australia anticipated that those programmes would provide
broader benefits to the agricultural sectors in a number of African countries, including the cottonproducing and trading countries. Once those programmes were specifically finalized, Australia would
seek to include them in the Director-General's Evolving Table on Cotton Development Assistance
(ET).
34.
The representative of India noted that hard work was under way to conclude the Doha Round
in 2011. For that to happen, however, there was a need to bring a large number of elements together
on which there was lack of resolution. Of all the issues still unresolved in the agriculture negotiations,
the widest gaps were on cotton, because there had been no meaningful discussions at all on the cotton
issue in the Doha Round negotiating group since 2006. That was a very dismaying and disquieting
feature.
35.
He said that India fully supported the statement by the G-20. The cotton dossier must not be
left for resolution only at the last moment. There were a large number of developing country
producers, including India, which would have to have full knowledge of what was being contemplated
or offered by the major subsidizers. Those who bear responsibility for reducing the use of tradedistorting subsidies needed to come forward and let the whole membership of the WTO, developing
countries and the C4 know in particular what they had in mind to resolve the problem.
36.
His delegation had noted the very abnormal spike in the prices and understood that the
International Advisory Committee (ICAC) would be making a short presentation on the issue of
cotton price patterns. India had been a Member of the ICAC for very long and was aware of their
analysis, which indicated two main reasons for abnormal spike in prices. First was the acute
mismatch between demand and supply. That mismatch could not be resolved by increasing
production in just one country. India also knew that, if the level of subsidies continued to be at the
same level as in the past years, there would be an asymmetric production, leaving many of the
developing country producers out in the cold, or completely left out of the benefits to be gained from
increased production.
37.
In the context of developing countries, especially the C4, and the poorer producers it needed
to be noted that they did not have the flexibility to substitute and switch from cotton to corn, or to
Soya, for example. That was the privilege of farmers in developed countries that were heavily
subsidizing their crops. Farmers in developing countries, who were mainly small farmers, needed a
predictable and certain environment. They needed to know that the subsidies would be reduced and
would not continue to distort global prices. Thereafter, they could tentatively plan to increase
production. There had to be clarity on the cotton package before the conclusion of the Doha Round.
That was an imperative.
38.
He said that as far as market access for the cotton-producing LDCs was concerned, India had
already mentioned that in accordance with the cotton mandate in the Hong Kong Declaration, it had
already provided duty-free access to LDC producers of cotton. There was also a scheme to provide
technical and financial assistance and capacity building for the LDCs in West and East Africa. India
had also taken an initiative in Chad and would continue to support this collective effort to transfer
TN/AG/SCC/W/14
WT/CFMC/32
Page 8
technology and build capacity so that the hardship faced by the small farmers of the C4 and other
poorer developing countries could be addressed.
39.
The representative of Pakistan associated her delegation with the statements made by Brazil
on behalf of the G-20 and the C4. Pakistan, as one of the major cotton-producing countries, was
keenly watching the conclusion of the cotton issue in the Doha Round. Recently, Pakistan had almost
20 per cent of its cotton crop destroyed because of a national calamity. The plight of poor, small
farmers was serious and unimaginable. In Pakistan, cotton remained one of the areas of focus for
poverty elimination. Therefore, enhanced production under competitive trading conditions was
extremely important for Pakistan.
40.
The representative of Egypt associated his delegation with the statements by the G-20 and the
C4. The cotton dossier was vital to the development and survival of the C4 economies and other
cotton-producing developing countries. It was time for the markets involved to show real engagement
and leadership to resolve this unfair situation.
41.
The representative of Ecuador underscored its concern at the lack of progress in the
negotiations on cotton. He hoped that the major stakeholders on the cotton question would work to
advance the negotiations. He associated himself with the statements by Brazil on behalf of G-20 and
the C4. It was also the position of his delegation that negotiations to resolve the cotton issue should
not be back-loaded and left to the last minute.
42.
The representative of China supported the G-20 statement by Brazil. China reiterated that the
cotton question was a significant and central component in the Doha Round agriculture negotiations
and should be addressed ambitiously, specifically and expeditiously, pursuant to the Mandate agreed
by all Members at the Hong Kong Ministerial Meeting. China shared the common assessment that
there would be no solution to the Doha Round without a satisfactory resolution of the cotton issue.
China strongly supported the position of the C4 in the negotiations on cotton. China would continue
to work closely with the C4 for an ambitious and balanced solution to the cotton issue. China
appreciated the efforts made by Director-General, manifested in the Director-General's Consultative
Framework Mechanism for Cotton, which provided a positive platform for South-South Cooperation.
43.
He referred to several recent developments and contributions by China.

First, the Agricultural Technical and Demonstration Centres. Since 2008, the Chinese
Government had been constructing 14 Agricultural Technology Demonstration Centres in 14
African countries, including Tanzania, Zambia, Cameron, Benin and Mali. That was in
keeping with the commitment made by the Chinese Government during the China-Africa
Cooperation Forum Summit. Those centres would be used to train agricultural technicians and
farmers, to demonstrate and extend agricultural technologies, including for cotton farming.
All the construction work for the 14 centres in those African countries was due for completion
by the end of 2010. As the 14 Agricultural centres were being completed, the Chinese
Government had also declared at the 4th Ministerial Meeting of the China-Africa Forum a new
commitment to build six agricultural technical and demonstration centres in six African
countries. With the completion of those new centres, China would have constructed a total of
20 such centres in African countries. That would assist African farmers, particularly cotton
farmers, with technology transfer. To reinforce that objective, the Chinese Government
would deploy more than 50 Chinese agricultural specialists to work in those centres, focusing
on technical extension and training.
TN/AG/SCC/W/14
WT/CFMC/32
Page 9

Second, South-South Cooperation. Under the framework for South-South Cooperation,
China, in conjunction with the United Nations Food and Agricultural Organization (FAO),
had dispatched more than 800 agricultural technicians and specialists to seven African
countries. They were working to support African cotton-producing countries. China had also
donated US$30 million to the FAO, to establish a Trust Fund to help African countries to
strengthen and enhance their agricultural productivity.

Third, the China-Africa Agriculture Cooperation Forum. On 12 August 2010, the ChinaAfrica Agriculture Cooperation Forum was held in Beijing. Fourteen Ministers of
Agriculture and ambassadors from 18 African countries, including Zambia, Mali, Kenya and
Zimbabwe attended the forum. The forum agreed to the “Beijing Declaration”, which
strengthened the cooperation between China and African countries in agriculture, in particular
in agricultural technology transfer, agricultural product processing, marketing and trading,
and agricultural production, capacity and training. Cotton production and trade promotion in
African countries were exhaustively addressed at the forum.

Fourth, cotton-related assistance and aid. China continued to provide assistance for African
cotton development through various forms of assistance and aid, such as investments, loans
with preferential rates, etc. Those investment and loan projects encompassed the areas of
cotton production, technology transfer, research and development and shared China’s
experiences in such areas. Those projects were generating economic benefits for cotton
farmers in African cotton-producing countries.

Fifth, training. Since 2008, China had hosted a large number of training courses focused on
new cotton breeds (varieties), new cultivation methods, technology transfer, research and
development in cotton and capacity-building. About 400 trainees from African countries had
been trained in those courses. Within the next three years, China would send another 500
agricultural technicians and specialists, including on cotton, to African countries to train more
than 2,000 local technicians and extension workers.

Six, trade. In 2010, China significantly increased its cotton imports. The import volume,
between January and October 2010 attained 2.25 million tons; an increase of 88 per cent,
compared to the level of imports in the previous year. China was increasing the share of its
import from the C4 and other African countries. For instance, the share of cotton imports
from African countries increased by 17 per cent in the period between January and October
2010. Imports from African countries in 2009 experienced an increase of 30 per cent in
volume. Burkina Faso, Cameroun, Benin and Mali were the top four exporters to China in
2010.
44.
In conclusion, he noted that China was the world's biggest producer and importer of cotton.
He emphasised that China would continuously keep its cotton trade policy stable and would provide
equal and fair market opportunity for all cotton producers, especially for African producers. China
would work cooperatively with the C4 and other African countries for improved cotton development
and trade.
45.
The representative of the United States noted that the item under discussion on the agenda
was specifically focused on trade. As such, his delegation would limit its comments to the trade
policy aspects. The US welcomed the characterization by the Chairman of the CoA/SS regarding the
intensification of the process and the clear direction in which Members were headed. Relative to the
statements that had already been made, he stressed that the long-standing position of the United States
on the Doha agriculture negotiations with respect to cotton had not changed. To re-iterate, that
TN/AG/SCC/W/14
WT/CFMC/32
Page 10
position was that it would be necessary to first determine the general commitment and modalities of
the three pillars in the agricultural negotiations, and thereafter, the commitments on cotton could be
made, pursuant to the Hong Kong mandate. His delegation looked forward to the intensive period of
negotiations over the following weeks and months. In that period, the United States would be
available for engagement on those and all other topics.
46.
The representative of the European Union thanked H.E. Minister Koné for his opening
statement and noted that he had given a very interesting oversight of the situation. The EU had
always played an active role on the issue of cotton in the framework of the Doha Round and had been
particularity supportive of the trade interests of developing countries. The high level of ambition for
the negotiating position within the DDA reflected the magnitude of the cotton policy reform that the
EU had already undertaken on all three pillars of the agriculture negotiations.
47.
On market access, the EU market was already duty-free and quota-free. There were no export
subsidies for cotton. On domestic support, the most trade-distorting subsidies for cotton production
had been fully eliminated. Concessions made by the EU on cotton were specific. They were more
ambitious than for other commodities. The concessions made by the EU could be qualified as
expeditious, in keeping with the mandate for cotton. The EU had gone further than the Hong Kong
Mandate in the area of cotton. In fact, the far-reaching cotton reform by the EU dated back to 2006.
Some other Members may not be able to fully implement the DDA mandate on cotton, before 2012, at
best. The EU was well ahead of schedule. The EU remained committed to achieve an ambitious and
balanced outcome for the DDA with a specific and ambitious deal for cotton. The EU welcomed with
satisfaction the challenging schedule that the Chairman of the CoA/SS and of its SCC had shared with
Members.
48.
To provide a necessary perspective, although the EU was a marginal producer of cotton it was
still the largest provider of development assistance in this area; approximating about 52 per cent of all
assistance delivered.
49.
The Chairman concluded Item 3 by noting that it was self-evident from the exchange of views
that cotton remained an issue to which Members attached high priority. He invited the DGCFMC to
take note of all the statements made.
50.
The DGCFMC took note of all the statements made.
C.
DOMESTIC COTTON SECTOR AND OTHER REFORMS / NATIONAL FOCAL POINTS
51.
The Chairman invited participants to take up Item 4 of the Agenda: "Domestic Cotton Sector
and Other Reforms / National Focal Points".
52.
He noted that domestic cotton sector and wider reforms had been on the agenda of the
DGCFMC consultations from the very beginning in 2004. At the 11th Round of Consultations, the
Secretariat had produced the First Version of the "Table on Domestic Cotton Sector Reforms for
Cotton Sector Development" (WT/CFMC/21). That version had been circulated, based on inputs
from cotton proponents. The Third Version of the "Table on Domestic Cotton Sector Reforms for
Cotton Sector Development" (WT/CFMC/21/Rev.2), had been circulated on 5 November 2010, based
on inputs from Benin, Burkina Faso and Mali.
53.
He conveyed appreciation to Benin, Burkina Faso and Mali for investing time and effort in
domestic coordination to provide the inputs for the preparation of the Third Version of the Table. He
noted that Chad had submitted a document entitled "Roadmap for Cotton Sector Reform in Chad",
which was available to participants. Also before the DGCFMC was the document prepared by the
TN/AG/SCC/W/14
WT/CFMC/32
Page 11
International Cotton Advisory Committee (ICAC). That document, which provided factual
information on the "Evolution of Domestic Cotton Sector Reforms in the C4 Countries", had been
circulated as WT/CFMC/30.
54.
Over time, the constructive donor / recipient dialogue, under that item, had underlined the
relationship between resources provided by the development community, on the one hand, and the
more efficient resource use by recipients of assistance, on the other hand. He invited Members and
participants, to comment on the Table entries in document WT/CFMC/21/Rev.2.
55.
The representative of Chad expressed appreciation to development partners who had
continued to provide support to the African cotton sector. He endorsed the statement made by the
coordinator of the C4 and highlighted the specific needs of each Member of the C4 in the cotton
sector.
56.
The aim of the reforms in Chad was to make the sector more competitive, increase yields in
order to achieve the desired results. Chad planned to achieve that objective by the adoption of a
roadmap of the cotton sector, which it was currently implementing. Via that roadmap, Chad had laid
out the steps that would be taken to improve the cotton sector and liberalize it.
57.
Chad had been involved in a number of key activities to that end. A technical team had been
set up to implement change in the sector. They had drawn up the necessary steps that needed to be
taken. The committee that was responsible for the reform of the cotton sector had run into several
difficulties in its work. Activities in the roadmap had, in some cases, been delayed in implementation.
58.
Finally, the resignation of the head of the Coordinating Technical Team and the fact that no
replacement had been appointed had led to stagnation. When a replacement was appointed, then work
would be continued. Updates would be provided to the DGCFMC.
59.
The representative of Mali said his country had updated the Table on Domestic Cotton Sector
Reforms in preparation for the 14th session of the DGCFMC. Mali only needed to update its inputs
with additional information on privatization. Mali had been engaged in a privatization process since
20 February 2010 when it launched a request for "tenders" for the privatization of the CMDT. The
opening of this bidding process allowed for the selection of necessary investors. A meeting with
those investors had taken place in October. As a result of that meeting, a time table had been drawn
up with a deadline for the receipt of bids by 20 December 2010. A final decision on privatization was
scheduled for May 2011.
60.
On cotton production, the data for the 2009-2010 season indicated a slight increase in
production. Mali hoped that there would be further improvements in the following season.
61.
The representative of the United States stressed that Item 4 was an important agenda item in
the DGCFMC in terms of the overall structure and balance of achieving the objectives under this
rubric of cotton and trade and development. Certainly, while the C4 and other West African countries
had been receiving cotton-specific and other development assistance for progress in the cotton sector
and privatization, there was still much room for improvement. The reports that had been received
were welcome. He stated that his delegation wanted see more frequent reports by the recipient
countries on their domestic cotton sector projects and on the mechanisms and reform process that they
were undertaking.
62.
He said that his delegation had taken note of the activities contained in the documents
presented in outlining the implementation of domestic priorities and action plans. Certainly, there
was a degree of progress, although there were areas of disappointment as well in the development of
TN/AG/SCC/W/14
WT/CFMC/32
Page 12
the plans. His delegation also had concerns with the differences in the rate of implementation. The
effort by Chad was welcomed, but his delegation noted that there had been a severe lack of
information in the past.
63.
The representative of Zambia thanked the C4 for their inputs that made it possible for the
secretariat to update its reports and also thanked the institutions that have provided information on the
reform of the domestic cotton sector. His delegation had noted a number of initiatives that had been
taken by the individual countries. Those countries were making serious efforts to make sure that their
cotton sectors were revived, secured and survived. His delegation had also taken note of the progress
that had been made from the time that those reports had been presented. It was obvious that indeed
there was a challenge for the cotton sector. As highlighted in one of the reports, in WT/CFMC/30,
what was evident was a significant increase in cotton production and then a decrease of more than 50
per cent, which demonstrated the challenges faced by the sector. For instance, the report also
indicated that in the period between 2004 and 2005, the C4 were able to record a very high production
level of about 759,000 tons. But, that level had fallen to 303,000 tons in 2010. That variability, and
the decrease in particular, were linked to the extent of effects of the trade components being discussed
in the DGCFMC. Reforms were taking place at the domestic level. To ensure that the benefits of
those reforms were reaped, it was important to ensure that production was taking place within a
competitive environment for such reforms to be meaningful.
64.
The Chairman concluded the item by expressing particular appreciation to Benin, Burkina
Faso and Mali, for their inputs, which made possible the update of the Table on Domestic Cotton
Sector Reforms, reflected in Version 3 of the Table. He thanked Chad for the submission of its input
entitled "Roadmap for Cotton Sector Reform in Chad". He also thanked the ICAC for the useful
information provided on the Evolution of Cotton Sector Reforms in the C4 countries.
65.
He expressed his appreciation to Members and participants for their comments on the Table
contained in WT/CFMC/21/Rev.2. He stated his belief that the exchanges would continue to
encourage and deepen that process of engagement. He encouraged others who had not yet done so to
consider submitting their inputs to the Secretariat, as early as possible for the Fourth Version of the
Table. Finally, he proposed that the 14th Round of the DGCFMC take note of the reports, updates
provided and statements made.
66.
The DGCFMC took note of all the reports, updates provided and statements made.
67.
Still under Item 4, the Chairman invited Members and participants at the DGCFMC to
consider the sub-item "Submission of the coordinates for designated National Cotton Focal Points".
He repeated earlier announcements that, so far, the Secretariat had only received and registered
returns from seven proponent countries. That was the same number as in October 2009. Those were
contained in Part IV of the Table on Cotton Development Assistance (WT/CFMC/6/Rev.9). He urged
cotton proponent countries to take action, as quickly as possible, to designate their National Cotton
Sector Focal Points because they were useful in the process.
D.
COTTON PRODUCTION AND TRADE TRENDS
68.
The Chairman invited the 14th Round of the DGCFMC to consider Item 5: Cotton Production
and Trade Trends.
69.
Under that item, he noted that in 2008 and 2009, the cotton sector had been subjected to
significant adversity resulting from a succession of crises, which reflected the global financial and
economic crisis during that period. Many cotton-producing and exporting countries had been
negatively affected, particularly the African countries, of which several depended on the cotton sector
TN/AG/SCC/W/14
WT/CFMC/32
Page 13
for their growth and poverty-reduction strategies as well as for rural well-being and livelihood
concerns. Over the last few months, cotton prices appeared to be registering historically high levels.
70.
He invited Mr. Townsend, the Executive Director of the International Cotton Advisory
Committee (ICAC), to make a factual presentation on the state of the global cotton sector in 2010 and
the near to future-term prospects for cotton price, production and trade trends.
71.
The representative of the International Cotton Advisory Committee (ICAC) thanked WTO
Members and participants at the DGCFMC for allowing the ICAC Secretariat to make a presentation.
72.
As introduction, he noted that the cotton industry collaborated with natural fibre industries,
including wool, silk, jute and others to promote consumption of natural fibres. He urged WTO
Member governments to be aware of the importance of natural fibre industries in promoting economic
growth and employment in developing countries.
73.
He recalled the introductory statement by the Chairman to underline the fact that those were
indeed exciting times in the cotton industry. The ICAC representative made a chart-based
presentation of price (from the Cotlook A-index) and futures (New York Futures) trends and patterns
from 2005 to the present. In doing so, he stressed that cash and futures prices were highly correlated,
over 90 per cent of the time.
74.
Early in the decade of the 2000's and continuing to 2005/2006, prices were relatively low
between US¢50 - US¢60 per pound of cotton lint. Those prices were also relatively stable. Market
participants became accustomed to a situation in which that price trend appeared to be normal.
75.
In March 2008 there had been a spike in prices. In hindsight, this seemed to be rather modest.
At the time, it provoked a crisis. It resulted in the collapse or bankruptcy of a number of important
firms. With the recession beginning in 2008, continuing through early 2009, cotton prices had fallen
again to "normal levels", at around US¢50 per pound of cotton lint. At the beginning of 2009, prices
had risen again almost uninterruptedly to a record of more than US¢170 per pound of cotton lint.
That was an extraordinary price peak, even when deflated.
76.
There were two periods of crisis: the one in 2008, had resulted in basically a dysfunction in
the world cotton market. Merchants went bankrupt. Farmers could not sell. Textile mills could not
buy for a short period of time. A major difference in the current period of high prices was that the
market continued to function. He noted that at that period, even with very high prices and volatility,
there were no reports of merchants going out of business. Textile mills were buying. Farmers and
producer groups were engaged in "forward selling". Markets were functioning. The major reason for
the market dysfunction in 2008 was because the spike in prices was caused by speculation in the
cotton market. By contrast, in the current situation, however, the level of high prices was caused by
unexpected strong demand. With strong demand affecting the fundamentals for the market, the
market continued to operate.
77.
There had been comparable periods in the past to the current period of high prices and
volatility. In a normal year, cotton prices were usually about 20 per cent above or below the average
at some point in the season, for a common spread of about 40 percentage points. However, there were
years when that spread widened to about 60 or 70 percentage points. In the current year, so far, cotton
prices had been as much as 45 per cent above the average and as much as 25 per cent below the
average, for a spread of 70 per cent. In the past, a degree of comparable volatility had been registered
in 1986/87. However, there had been other years when the volatility had been in the range of 50-60
per cent. So, 2010 was a very unusual year, but comparable to some seasons in the past.
TN/AG/SCC/W/14
WT/CFMC/32
Page 14
78.
It was essential to stress that the current spike in price was caused by fundamental factors of
demand and supply rather than speculation. The representative of ICAC described the patterns and
principal trends from June 2006. In March 2008, the speculative activity peaked. Open interest
exceeded more than a million contracts and speculative open interest grew faster than cotton prices.
In contrast, in 2010, prices rose faster than speculative open interest. In the 2008 period, price
increases, were followed by speculative buying, whereas in the 2006 period, increased speculation
was followed by increased purchases. The current 2010 situation of high prices were being driven by
fundamental factors, not by speculative activity in the cotton market.
79.
The pattern in different years was that sometimes production was above consumption, or vice
versa - in years when consumption was greater than production. In 2004/05, there was an
extraordinary rise in cotton yields and production with a registered record of 27 million tons. The
economy was expanding rapidly. Consumption was strong. Nevertheless, production increased to the
extent that a gap emerged of more than 3 million tons. That gap persisted for four seasons. In
2004/05, a build-up in stocks occurred and persisted up until 2008/09. Finally, in the 2009/10 season,
world production dropped with the expectation of lower prices in the recession and consumption rose.
Consumption had not been expected to rise in light of the analysis in the period (late 2009 early 2010
period) by economists concerned with the strength of the world recovery. Some had projected either a
double-dip recession, or a very slow recovery. As a consequence, retailers, manufacturers of clothing,
fabric and yarn, including producers were reluctant to invest in increased production. The effect was
that stocks were drawn down throughout the textile value chain. With the rise in consumption, stocks
were not available to supply the stronger demand. There was a reduction in world ending stocks. In
the current 2010/11 season, even though production and consumption were relatively in balance,
significant increases in price were being registered.
80.
In addition to those fundamental factors, there were three additional factors that contributed to
the rise in prices. One was the fear of defaults. When textile mills bought cotton, they normally did so
six to 12 months in advance. Many textile mills bought cotton in 2009 or early 2010 for delivery in
2010/2011, when prices were lower. As cotton prices increased, many textile mills feared that they
would not receive the cotton they had contracted. They felt compelled to buy the same cotton twice,
at a higher price. That market behaviour led to a doubling in the demand for cotton and the rise in
prices. The second factor was that a number of exporters, in order to cushion the impacts of the rise
of prices on their domestic textile industries, withhold cotton from the world market by banning
exports. That resulted in uneven shortages across the world market, forcing textile mills and
importing countries to pay higher prices for the cotton available on the global market. The third
factor related to countries that maintained state reserves or national buffer stocks for their cotton
industries. Participants in the world cotton market were not sure if those governments would
intervene in the world market to buy cotton at the prevalent high prices to maintain their state reserves
so as to buffer their domestic industries.
81.
In sum, the fear of default, uncertainty about the availability of exports as a consequence of
export restrictions, and the uncertainty of the strength of import demand contributed to, and
compounded, a tight situation with stocks to push already high prices to record high levels.
82.
A number of factors were expected to alleviate that situation. Prices could not stay as high as
they were. The first factor would be the cotton harvest in the Southern Hemisphere beginning March
2011. That cotton was planted in October and November 2010. Harvest would be in March, April
and May of 2011. Ginning would occur at that time. Harvest in the Southern Hemisphere would
enter the market to relieve the supply shortage. Because of the high prices, producers in the Southern
Hemisphere had responded. Production was expected to climb from 2 million tons to more than 3
million tons. The Southern Hemisphere normally accounted for about 9 per cent of the world cotton
supply. That year the Southern Hemisphere was expected to account for 13 per cent. In addition to
TN/AG/SCC/W/14
WT/CFMC/32
Page 15
the Southern Hemisphere harvest in 2011, there would be the harvest from the rest of the world in late
2011. So, for the 2011/12 season, production was expected to exceed consumption by approximately
2 million tons. That production increase would be the result of the current high prices; leading to
increased cotton area and production in the following season. Furthermore, with the continued
recovery in the world economy and continued growth in consumption, ICAC estimated that the
tightness in supply would be alleviated. The result should be softened demand and the alleviation of
current high prices.
83.
In the late 70's and early 80's and in the mid 90's, the average price of cotton had been about
US¢90 per pound of cotton lint. Each time that average price exceeded US¢90 per pound of cotton
lint, it had fallen the following season. In the current year, ICAC estimated that the season average
would turn out to between US¢90 per pound of cotton lint with a point estimate at about US¢98. It
had to be admitted that current prices were well above current forecast. The current price was about
US$1.20. However, ICAC estimated that over the course of the entire season, the average would be
between US¢90 and US$1.10. ICAC estimated and expected that, based on the pattern of plantings in
the Southern Hemisphere, the expectation of planting in the Northern Hemisphere and the pattern of
past seasons, prices would likely moderate in the 2011/12 season. Prices were not expected to revert
to US¢50 or US¢60 per pound of cotton lint, as was the case in the 2000's. That price situation in the
decade of the 2000's was an unusual experience caused by record yields linked to the adoption of
biotechnology in global agriculture. Most major producing countries had already adopted
biotechnology. The gains and high yields of biotechnology had already been reflected into the global
cotton farming system. The long-term average of the Cotlook A Index was approximately US¢74 per
pound of cotton lint. ICAC expected that over the decade of 2010, the Cotlook A Index would revert
to that average rather than falling back to the US¢50 - US¢60 range, as had been the case in the
decade of the 2000's.
84.
World cotton trade was increasing. The record level of trade was in the 2005/06 season when
world exports and imports had attained 9 million tons, of which China accounted for 4 million tons.
During the recession, trade had fallen below 7 million tons. Last season, trade had increased to about
8 million tons and in the current season, trade had slightly increased by about 8.5 million tons, of
which China was expected to account for 3 million, with all other exporters taken together accounting
for a little over 5 million tons. Trade was expanding. Prices were high. While prices would soften in
the future, it was likely that they would remain much higher than in the past decade. Strong
opportunities existed for economic development and employment in the world cotton sector.
85.
ICAC wanted to make governments aware of certain improvements in the efficiency of the
world cotton market. One initiative being undertaken by ICAC was to harmonize phytosanitary
certificates. Around the world many countries had different requirements for the phytosanitary
certificates for allowing imports of cotton. Some countries specified the chemicals to be used; others
specified different intervals of time between issuance of certificates and arrival at port. ICAC was
working to harmonize all phytosanitary certificates, using the model phyto-certificate developed by
the FAO, so as to simplify cotton trade. World cotton market was evolving towards instrument
testing. Instrument testing now accounted for half of world production. Many countries were
developing instrument testing systems. That allowed cotton to be tested objectively rather than
subjectively by hand. Instrument testing had certainly improved the efficiency of world trade. Trade
rules were also being harmonized around the world, such as the number of days allowable for free
storage, and similar terms for contract. Harmonized trade rules for cotton trade enhanced efficiency.
86.
Finally, the representative of ICAC highlighted that the world cotton market/world cotton
industries were working for improved environmental sustainability. Many governments were
encouraging improvements in Integrated Pest Management (IPM) and Integrated Crop Management
(ICM). He noted that in the statements by Brazil, Australia, China and India at the 14th Round of the
TN/AG/SCC/W/14
WT/CFMC/32
Page 16
DGCFMC, there had been several references to research in the food and cotton sectors. Much of that
research was aimed at reducing any negative environmental impact, lowering the cost of production,
and improving the level of consumer acceptance for cotton and other natural fibres.
87.
The representative of Chinese Taipei thanked Mr. Townsend for his comprehensive and
insightful review. His Government commended Mr. Terry Townsend and the ICAC Secretariat for
their hard work and contributions to the global cotton community, not only in the field of cottonrelated studies and statistics, but also for their role as catalysts for cotton-related cooperative actions
in the international community.
88.
His delegation was of the view that the assistance and research programmes on cotton could
be further strengthened. In that regard, he would share some information on the recent International
Seminar in Taipei, held jointly by the ICAC and the Chinese Taipei Textile Federation (TTF) in
October 2010. The Seminar on the theme "Challenges for Sustainable Textile Industry" had focused
on several issues of international significance, such as the environmentally responsible production of
fibres and textiles, innovation, the effective use of national resources, management of the supply
chain, and the incorporation of sustainability into a company's strategy. Discussions and exchange of
views among participants on those issues had been intensive, in particular on possible solutions and
strategies for dealing with the challenges of environmental and social responsibility, from the
perspective of the cotton society.
89.
He said that his Government considered that, in addition to continuing with the assistance and
cooperation programmes for the cotton producers in Africa, more attention was needed to address the
future challenges facing the cotton sector. Having noted the value of dialogue and discussion, his
government would continue to give its support to similar activities in the future, in collaboration with
the ICAC and other cotton-related organizations. He underscored his Government's commitment to
cooperating with the WTO Secretariat and Members, in the context of the DGCFMC, in the vital
work that lay ahead.
90.
The Chairman, in the absence of any other requests to intervene, informed Members that the
Secretariat would distribute by e-mail the presentation by the representative of ICAC. He invited the
14th Round of the DGCFMC to take note of the presentation by Mr. Terry Townsend, the Executive
Director of ICAC, and all the statements made.
91.
The DGCFMC took note of the presentation by the Executive Director of the ICAC and the
statements made.
E.
DIRECTOR-GENERAL'S
ASSISTANCE
EVOLVING
TABLE
ON
COTTON
DEVELOPMENT
92.
The Chairman invited the 14th Round of the DGCFMC to take up Item 6: "The DirectorGeneral's Evolving Table on Cotton Development Assistance".
93.
He noted that the Evolving Table had emerged as the common transparency tool for tracking
and monitoring the commitments and disbursements by the development community in the
implementation of the mandate on cotton development assistance. It had also become the common
platform for a development dialogue between the donor community and recipients of assistance for
cotton sector development. On 5 November 2010, the Director-General had circulated to Members
the 10th version of the Evolving Table, contained in document WT/CFMC/6/Rev.9. On the basis of
the Director-General's letter and the updated Evolving Table, he invited the representative of the
Secretariat to highlight briefly the key points.
TN/AG/SCC/W/14
WT/CFMC/32
Page 17
94.
The representative of the Secretariat2 thanked Members - developed and developing - for their
contributions that had made possible the update of the Evolving Table. The current version had been
updated on the basis of inputs from Brazil, the EU and several of its Member states: France, Germany
and the Netherlands, whose inputs had been received the day before and, as a consequence, had not
been reflected in the current version of the Table, but would be reflected in the subsequent one.
Multilateral institutions had also contributed to the update of the ET. Those included, the Common
Fund for Commodities, the International Cotton Advisory Committee, the FAO, the ITC and the
World Bank.
95.
In Part I of the 10th version, on cotton-specific development assistance, the number of
beneficiaries had remained stable at 41; that was a significant increase from the starting baseline of
the C4 and Senegal. The universe of beneficiaries had been enlarged beyond the C4. Between the 9th
and 10th version, commitments had increased by 3.7 per cent (from 161 to 167). The value of the
commitments had increased to US$567 million from US$551 million. Improvements had also been
made with regard to disbursements. The EU remained at the top in respect of disbursement flows,
which had increased, in Part I, by 14.9 per cent, from US$266 million in the 9th version to US$306
million in the 10th version.
96.
The Secretariat had observed from the two previous versions that the main contributors
reflected a trend of shifting assistance provided from cotton-specific assistance to assistance for cotton
within the overall framework of support for agricultural and infrastructure-related.
97.
In Part II, "Agriculture and Infrastructure-Related Development Assistance", the number of
beneficiaries remained relatively stable at 35. The number of commitments had increased by 7 from
the previous version and stood at 101. The value of commitments increased from US$3.86 billion to
US$4.24 billion. Disbursements had also increased significantly from US$229 million in the 9th
version to US$542 million in the 10th version.
98.
The Secretariat representative underlined several overall features of the ET. First, the ET
monitored implementation by Members of the Doha Mandate on Cotton Development Assistance.
Second, it was a consolidation of what Members and multilateral institutions had been contributing
and provided for transparency. Third, it assisted in avoiding duplication. In areas where duplication
was noted, the Secretariat had privately pointed such areas out to contributors to the ET, and urged for
diversification in areas of identified priorities by cotton beneficiaries, such as increasing productivity
and improved quality. Fourth, the numbers were cumulative. Fifth, over a 5-year period, entries in
the ET had been subject to commentary and verification by participants at the DGCFMC. A critical
mass had emerged and stabilized from 2005. Sixth, the 10th version of the ET provided evidence of
improvements in disbursement flows, which still required regular monitoring. Seventh, the problem
of the low quality level of operational reports remained. Eighth, the number of cotton focal points
notified by LDCs' beneficiaries remained very low. This low level of notified cotton focal points
contributed to explaining the low levels of interactivity between the cotton focal points and the
providers of cotton development assistance. Finally, the Secretariat stressed that the figures in the ET
had not been analysed. They were simply programme and project entries and their corresponding
values that had been contributed by Members and cooperating multilateral institutions.
99.
The Chairman expressed appreciation to the representative of the Secretariat for his
introduction to the 10th Version of the ET. He invited Members to intervene.
100.
The representative of the United States provided an update on its development programmes
for cotton. He highlighted the activities by several of its Government Departments and Agencies,
2
Mr. Chiedu Osakwe, Director, Accessions Division.
TN/AG/SCC/W/14
WT/CFMC/32
Page 18
including the Department of Agriculture (USDA); the United States Agency for International
Development (USAID); and, the Millennium Challenge Corporation (MCC). He reported on several
activities such as the West African Cotton Improvement Programme (WACIP), operating in the C4
countries and Senegal.
101.
He noted that the WACIP was at the centre of its cotton programme. It had been announced
in 2005 with a broad mandate to address the lack of competitiveness in West African Cotton, as
compared to cotton produced in other regions. Progress was being made in supporting key national
and regional cotton-producing groups and other important private sector initiatives that were involved
in the cotton value chain. The WACIP programme had been extended. Originally, it was due for
completion in October 2010, but had now been extended to 2012. The WACIP operated in three main
areas of intervention to: create momentum for longer-term policy and institutional changes that
would encourage investment and value addition; improve value addition by exploiting niche
processing and marketing opportunities of cotton-based products; and, increase productivity, the
quality of cotton lint and farmers income from cotton and other crops in the cotton rotation.
102.
Since the 13th Round of the DGCFMC, the WACIP programme had carried out a variety of
activities. A few examples were illustrative. Under the rubric of increasing incomes for cotton
farmers, the National Bio-Safety Agency of Burkina Faso had organized a bio-safety information
workshop for government officials, farmers and the NGO community. USAID, in partnership with
WACIP partners for agricultural extension activities in Mali, held an Integrated Pest Management
(IPM) and integrated soil fertility management workshop in Bamako. With respect to the area of
cotton ginners, in collaboration with the Coton et Industrie du Monde and the Industrie Cotonnière
Associée - Groupe d'Intérêt Economique in Benin, USDA and WACIP conducted the second of the
WACIP study tours. Another study tour was held in Senegal.
103.
The Millennium Challenge Corporation (MCC) continued its engagement in programmes
with partners in the C4 and Senegal. These totalled approximately US$2 billion over five years of
activity that were ongoing. The USDA also continued its work with the C4 countries and Senegal to
improve cotton productivity. In 2010, it provided capacity-building for cotton producers and
processors through the Food for Progress Programme and other programmes and activities that
encouraged agricultural development through vocational training, market development and provision
of micro credit, as well as the strengthening of farming organizations. That was a short overview of
some by the United States since the 13th Round of the DGCFMC.
104.
The representative of the European Union (EU) thanked the WTO Secretariat for the updated
ET on cotton development assistance, which provided a useful overview of ongoing development
assistance and therefore assisted with donor coordination. As mentioned on previous occasions, the
EU had mobilised significant levels of support for the implementation of the EU-African Cotton
Partnership. The current update of the Evolving Table showed again higher levels of commitments
and disbursements from the European Union. The total level of funds managed by the EC on behalf
of the EU now stood at €179 million, in terms of allocations, while over €121 million had been
disbursed. The disbursement rate represented more than 67 per cent. The EU remained the largest
disburser of development assistance for cotton. The representative of the EU noted that WTO
Director-General Pascal Lamy, in his letter of 5 November 2010, indicated that total disbursements in
Part I of the Table currently stood at US$306 million. Using an exchange rate of €1 to US$1.33 this
implied that the European Union alone accounted for 52 per cent of the reported assistance delivered
to date.
105.
EU Member states, in particular France, Germany and the Netherlands, had also provided
significant support to cotton. As a whole, the EU had allocated over €319 million to cotton
programmes and projects since 2004, of which €207 million had been disbursed at a rate of 65 per
TN/AG/SCC/W/14
WT/CFMC/32
Page 19
cent. The representative of the EU reiterated that the EU did not report for inclusion in Part II of the
ET any assistance that was indirectly related to Cotton, such as for roads, bridges, trade facilitation,
port handling, and private sector development. The EU also did not report for counting in the ET
macroeconomic assistance, which was considerable in some of the main cotton-producing countries.
106.
As in the past, the EU only reported entries for Part I of the ET. Looking ahead in terms of
upcoming support, the EU had already indicated in previous reporting that the EU/Africa Partnership
on Cotton had been reviewed and evaluated. The reviewed action framework would form the basis of
a new support programme for cotton in Africa to be funded from the 10th European Development
Fund (EDF) for a value of €11 million. The specific formulation of the programme was currently
ongoing in close consultation with the EU's African partners.
107.
The representative of Brazil provided a brief description of its programme. Brazil's
programme and bilateral cooperation with the C4 was progressing positively. Brazil's goal had not
been to transfer financial resources or to transfer a Brazilian model per se. Rather, the goal was to
establish a partnership with the C4 to construct a model that really worked for the benefit of the C4
countries. Brazil was drawing from its experience in Embrapa. The results, so far, were very
positive. Brazil was very encouraged and intended to extend the programme to other countries.
Brazil was very pleased with the work of the Secretariat and the output as reflected in the ET.
108.
The representative of the World Bank3 stressed that the World Bank remained committed to
assisting countries, particularly those in Africa, expand their domestic production and exports on
cotton. It was pleased to contribute to the Evolving Table. That year, the Bank had added several
projects. Those included, for example, the East African Agricultural Productivity Programme, the
Kenyan Agricultural Productivity and Agribusiness Project, and the Ugandan Agricultural
Technology and Agribusiness Advisory Services project. Each of those projects varied depending
upon the local needs, but in general, they had provided for greater collaboration in agriculture;
training and technology dissemination; and, facilitation of increased transfer of agricultural
technology, information, and knowledge across national boundaries. The goal was to increase
agricultural productivity and incomes of participating smallholder farmers by improving performance
in agricultural technology systems, empowering stakeholders, and promoting the development of
agribusiness.
109.
According to recent project evaluations, those projects were having a substantial impact. One
example was the Cotton Subsector Development Project in Uganda, which was delivered between
1994 and 2001. The project had revived cotton production and exports through increased competition
in cotton processing and improving supporting services to farmers. As a result of those efforts,
production had increased dramatically, state-owned gins had been restored to credit-worthiness, and
effective competition in cotton processing had resulted in prompt payments to farmers. The project
had also rehabilitated the Agricultural Research Institute, and farmers had successfully integrated new
pest management technologies.
110.
As already widely known, the World Bank was preparing a comprehensive Trade Strategy.
Preparatory consultations had highlighted the importance of agriculture and trade in agricultural
products. These would undoubtedly figure prominently in the final version. The Bank would
continue to emphasize the opportunities for expanded trade in agriculture.
111.
The World Bank commended the Secretariat for its work on the Evolving Table.
3
Ms. Selina Jackson, Representative of the World Bank to the WTO.
TN/AG/SCC/W/14
WT/CFMC/32
Page 20
112.
The Chairman thanked the representative of the World Bank for her presentation and
acknowledged that the presentation was very much appreciated as it was her first meeting in the
DGCFMC as the new World Bank Representative. He underlined the excellent contributions by her
predecessor Mr. Richard Newfarmer, and requested that the appreciation of the Members and
participants of the DGCFMC be conveyed to him. The DGCFMC looked forward to working very
closely with the new representative of the World Bank.
113.
The representative of the Common Fund for Commodities (CFC) affirmed that the CFC
remained a dedicated partner of the international cotton community. It played that role by providing
targeted support to cotton-producing developing countries, and by focusing on addressing common
problems of the cotton sectors in those countries. The CFC worked in close collaboration with the
International Cotton Advisory Committee (ICAC). There were joint CFC/ICAC activities, entered in
under Part I of the Director-General's Evolving Table.
114.
Two projects had come on stream in 2010 and were now fully operational. The first
addressed the problem of low level smallholder productivity in Eastern Africa (with a specific focus
on Kenya and Mozambique). The implementation of the project had been contracted out to CABI in
Nairobi, which worked in close collaboration with the Kenyan Agricultural Research Institute and the
country's Cotton Development Authority and, with the Cotton Institute in Mozambique. As a result, it
was foreseen that the project would increase yields by up to 1,500 kilograms of seed cotton per
hectare for about 6,000 participating farmers through the introduction of improved cultivation
practices. Ultimately, increased yield generates increased net incomes for farmers.
115.
The second project was located in West Africa; "Prevention of Seed Cotton Contamination in
West Africa". The pilot project was being implemented by IFDC and had initial focus on the cotton
production areas in Burkina Faso, Côte d'Ivoire and Mali. It involved a total of about 27,000 farmers.
It aimed to develop the conditions under which producers and ginners were able to deliver
uncontaminated, clean seed cotton and subsequently clean lint to the market. It would mobilize
market partners to pay appropriate premiums for clean cotton, thus making commercially worthwhile
the extra efforts undertaken by producers and ginners. In that project, activities would focus on all
parties handling seed cotton, including production, harvest, storage, transportation and ginning. To
ensure the positive outcome and benefits from the project, links to the market would have to be
secured, through organizations like the ITMF, national and regional institutional structures, producer
organizations like APROCA, cotton companies, representatives of regional organizations like the
African Cotton Association (ACA), regulatory government agencies, etc. The International Trade
Centre (ITC) and the World Bank would specifically address the latter issues, focusing on market
linkages and the national and regional arrangements which were required to ensure sustainability at
institutional level.
116.
The CFC was pleased to confirm that both projects could be developed at a scale, largely than
initially foreseen, thanks to co-financing contribution from the European Union through its All ACP
Agricultural Commodities Programme. That programme also provided substantive co-financing
contribution to the ongoing CFC/ICAC project on the Commercial Standardization of Instrument
Testing of Cotton. Apart from the "global" components, the project had a specific Africa-focused
component which, inter alia, had resulted in the establishment of two Regional Technical Centres:
one in Dar es Salaam (Tanzania); and, the other in Ségou, Mali. Those Regional Centres would be
able to provide effective quality control and certification services to cotton-testing laboratories in their
respective regions.
117.
Although the Common Fund for Commodities was consistently faced with more requests for
support than it had, nevertheless it remained committed to the expansion of its cotton project
portfolio. The CFC would, therefore, continue to work with the ICAC and relevant regional and
TN/AG/SCC/W/14
WT/CFMC/32
Page 21
national organizations for the further development of new projects addressing joint priorities in the
field of cotton development. The objective was for those projects to benefit smallholder producers
who depended on cotton production for their livelihood.
118.
The representative of Zambia (on behalf of the LDCs' Consultative Group) said that her
delegation had taken note of the total number of commitments as highlighted in the Secretariat
presentation. On Agriculture and Infrastructure-Related Development Assistance, the LDC Group
reiterated the importance of infrastructure development in contributing to export growth. LDCs
recognized that under-capitalization and use of rudimentary farming equipment had inhibited growth
in the agriculture sector, including the cotton sector. It was for that reason that LDCs had continued
to direct resources to infrastructure development. However, due to competing needs the resources
allocated were insufficient to upgrade infrastructure to a level that effectively facilitated private sector
development and trade. It was for that reason that the Group welcomed the 9.7 per cent increase in
commitments from US$3.86 billion to US$4.24 billion and the disbursement flows which had
recorded a significant increase of 13.7 per cent. The LDCs reiterated the importance of the Evolving
Table on Cotton Development Assistance. It was a useful tool for monitoring the direction of support
in the cotton sector and assessing the resource gaps and identifying areas where most support could be
directed.
119.
The representative of Burkina Faso (on behalf of the C4) made several closing remarks on
Item 6, on behalf of the C4. First, he thanked the donors who had striven and were striving to
implement the programmes and for the support which they had given to the African cotton sector.
Second, the C4 applauded the quality of the presentation by the Secretariat, in particular, the summary
which had been given. Third, there were concerns to be noted on issues related to operational matters
with the projects, improving the visibility of the focal points, and their interaction with donors in
countries which had already been designated for project implementation. The C4 appreciated the
healthy and the rich exchange between providers and beneficiaries of cotton development assistance.
120.
The Chairman concluded the discussions under Item 6 with several remarks. He expressed
appreciation to the entire development community for their continuing contributions. He emphasized
the necessity of sustaining implementation so as to bridge the commitment/disbursement gap. He
noted that quick calculations showed that disbursements were at about 20 per cent compared to
commitments, although they had gone up and more so in that period when the Doha Round was being
re-energized with real prospects of conclusion in 2011. Implementation of the development
assistance aspects of cotton continued to be a required component of the two-track treatment of the
cotton issue in the DDA. The exchange had made evident the value of the continuing exercise in the
DGCFMC, as noted by participants who had intervened. The relationship of the cotton development
assistance implementation exercise to broader issues of trade capacity building, aid for trade and
poverty reduction was also extremely important. That relationship merited continued emphasis.
121.
He signalled that the Director-General of the WTO would continue to place full spotlight on
cotton and related issues. Finally, he acknowledged that bridging gaps also involved building
partnerships, support and pro-activity from domestic cotton sector focal points. The Secretariat
looked forward to continued interaction and progress in that regard.
122.
The 14th Round of the DGCFMC took note of the presentations and statements made.
F.
SOUTH-SOUTH COTTON COOPERATION
123.
The Chairman invited Members and Participants of the DGCFMC to take up Item 7: "SouthSouth Cotton Cooperation".
TN/AG/SCC/W/14
WT/CFMC/32
Page 22
124.
He recalled the background to that item. The mandate was reflected in paragraph 12 of the
Hong Kong Ministerial Declaration. On 22 November 2007, a seminar had been organized by the
Secretariat on: "South-South Cooperation for Cotton Sector Development". Contributions on the
platform of South-South Cooperation were voluntary. That was an area where strong and effective
leadership was being provided by Brazil, China and India. Pakistan had also designed an important
contribution. The International Trade Centre (ITC) was also making important contributions in this
area, which had been noted in previous meetings. He invited Members and participants to intervene.
125.
The representative of Brazil said that his presentation built on the last presentation by his
delegation at the 13th Round of the DGCFMC. At the outset, Brazil wanted to say that what inspired
it to move forward with the South-South Cooperation, was the obvious fact that two tracks were at
play on cotton. One track was the Doha Round negotiation. The second was to find a way that would
enable developing countries, with similar positions and problems, to work together and try to explore
ways to develop, including in the cotton sector, so as to take advantage of the varying opportunities
that Brazil hoped would be accomplished via the Doha Round. Those opportunities should emerge
from the reduction of subsidies, new market access opportunities and the elimination of export
subsidies. The Brazilian programme with the C4 was being developed by the Brazilian Cooperation
Agency, with the technical support of Embrapa. Embrapa was at the heart of Brazil's success in
agriculture. It had been a driving force of research and recent developments in Brazil, particularly in
the field of cotton but also in other areas of agriculture, like soy, etc. The role of Embrapa had been
and continued to be immense and important.
126.
Brazil's programme of cooperation with the C4 had the support of the highest level of
Government. President Lula was the driving force with his C4 counterparts. The main objectives of
Brazil's programme with the C4 were to: i) contribute to the development of the cotton sector; ii)
transfer Brazilian technology to develop solutions to challenges in the cotton sector of those countries;
iii) increase income generation; and, iv) contribute to addressing improving food security
programmes through rotation of food crops, within the framework of the principal focus of developing
the cotton sector.
127.
The expected outcomes were improvements in genetic farming, fertilization techniques, and
agricultural management. The Brazilian project was also keen to have implemented a technological
showcase unit. That unit could serve as a starting point for cooperation, not only with the C4
countries but also with other African countries which had a special interest in cotton. There were
several objectives: achieving a demonstrative agricultural model for the programme with its own
pillars for organization. Agricultural research would be adapted to local conditions, through a
validation and demonstrative model unit as established in Sotuba, Mali. The development of research
in the field would focus, inter alia, on genetic improvements, soil nutrition and integrated pest
management. Those would be validated and adapted.
128.
Capacity building was another important pillar. It reinforced the existing capacity of
researchers, specialists and leading producers. That was expected to have an impact in the field.
There had been exchanges of researchers between Brazilian and C4 agricultural technicians.
129.
The fourth pillar was the development of tools for the diffusion of that knowledge. It was
expected from the project that there would be positive spill-over effects in the region for the benefit of
all the countries in the African Region. The Brazilian project was reflected in the Evolving Table and
implementation was satisfactory and underway.
130.
He informed Members and participants that his presentation would be circulated by the
Secretariat, providing detailed descriptions of the activities undertaken of the Brazilian project. The
TN/AG/SCC/W/14
WT/CFMC/32
Page 23
results, so far, had been positive. In conclusion, he said that more information on the operational
implementation would be provided at the 15th Round of the DGCFMC.
131.
The Chairman expressed appreciation to Brazil. He underlined in particular the high value in
the linkage between the Brazilian cotton project for the C4 and food security through crop rotation.
The Brazilian project exhibited a best practice. He hoped that other Members at future consultations
would identify their own best practices so that those could be collected and distributed for wider use.
He informed Members and participants that the Brazilian presentation would be distributed.
132.
The representative of Burkina Faso informed Members and participants that the C4, had had
the opportunity of visiting Brazil within the framework of the Brazilian C4 project. The Brazilian
project was hugely important for the C4 and the latter thanked Brazil for the initiative. The C4 was
pleased that Brazil was considering extending the project beyond the C4 to other African countries.
That was an excellent idea. Indeed, Brazil was exploring the extension of the project to other cultures
beyond cotton, for example rice. The research facilities that the C4 observed on Brazilian cotton
farms were very reassuring. The C4 hoped that they could set up such cooperation with other partners
such as India, Pakistan and Bangladesh. The value of the cooperation with Brazil was that it was
concrete.
133.
The representative of Zambia (on behalf of the LDCs' Consultative Group) thanked Brazil for
its presentation and the insightful, multifaceted approach it had taken to the improvement of
productivity of the cotton sector. He also thanked India, Pakistan and China for providing leadership
in South-South Cooperation regarding cotton. The LDCs Group stated that the importance of the
relationship of cotton development assistance could not be overemphasized and therefore called up
other partners in the south that were in the position to do so, to provide support to the sector. The
LDCs remained committed to ensuring the growth of the sector.
134.
The representative of the International Trade Centre (ITC) informed Members and
participants that most of its activities were in the area of South-South Cooperation. He provided an
update of his Organization's activities in that area since the 13th Round of the DGCFMC. In
cooperation with the Centre of International Cooperation Services of the Ministry of Agriculture of
the Government of China, the ITC had organized a training programme on new varieties and
technologies on cotton for 23 African countries from all regions from 1 September to 26 October
2010.
135.
A programme in India on cotton value chains had been undertaken, from 14 to 26 November
2010. The ITC had organized that activity with the Ministry of Textiles of the Government of India.
In the context of the programme, a visit had been undertaken to Mumbai. There had been engagement
with the Confederation of Indian Textile Industry, the Cotton Association of India, the Cotton
Corporation of India, the Cotton/Textile Export Council of India as well as the Indian Cotton
Research Council. There were thirty-five participants from Eastern and South Africa. In October,
there had been a one week capacity building event in Turkey, in cooperation with the Eastern
Exchange and the Agricultural and Textile Association as well as several cooperatives in Turkey
working in the cotton sector. The participants had been drawn from farmer representatives in Eastern
and Southern Africa. He informed Members and participants that the following week, the ITC would
be organizing an inter-African South-South Cooperation event in Senegal, with representatives of
farmers, geneticists and government representatives from Zambia, Tanzania and Uganda. They would
seek to learn from Senegal on how Senegal and its cotton companies had reduced the contamination
level in its cotton.
136.
In the future, ITC would expand its activities in the area of South-South Cooperation to
facilitate exchange amongst African countries, particularly from east to west. The ITC would also be
TN/AG/SCC/W/14
WT/CFMC/32
Page 24
working together with the Secretariat of the West African Economic and Monetary Union (WAEMU)
in the area of cotton and textiles - "Agenda Cotton Textiles". It would also be organizing a visit of 20
to 30 ginning factories from Vietnam and Bangladesh to visit Mali and Burkina Faso in January 2011.
The objective would be to build confidence in the cotton ginned from those two C4 countries. There
were premium prices for clean uncontaminated cotton. Mali and Burkina Faso would benefit. The
ITC was grateful to the European Commission for the funding of those activities.
137.
The representative Burkina Faso expressed appreciation to the development partners that had
contributed with the presentation of their activities on the platform of South-South Cooperation. The
C4 was in particular grateful to Brazil. All the reported projects and activities were very pragmatic
and beneficial.
138.
The Chairman, in conclusion, noted that that was an item that had started from a very small
beginning and now demonstrated richness, range and benefits. Initial leadership had been provided
by Brazil, China and India. Pakistan, Egypt and the ITC had joined. Wide-ranging benefits were now
evident. That was a very welcome development and trend. Further information would be welcome
under that standing item on the agenda.
139.
He thanked all those who had intervened under Item 7. They all had made important
contributions. Those updates enhanced implementation and further strengthened South-South
Cooperation. South-South Cooperation constituted a critical element of development cooperation and
it had emerged as a substantive component of the development aspects of the DDA. Developing
countries were encouraged to deepen that cooperation and their voluntary contributions in that regard.
The contributions made would be accorded due recognition in the periodic reports by the DirectorGeneral on cotton to the Membership and the contributions would be reflected in the notes of the
meeting.
140.
The 14th Round of the DGCFMC took note of the presentations and statements made.
G.
ANY OTHER BUSINESS
141.
There were no items or issues raised under Item 8: Any Other Business.
H.
CONCLUDING REMARKS
142.
The Chairman made several concluding remarks. He said that the consultations at the 14th
Round had been very useful. The work of Members and other invited participants to those
consultations continued to register notable progress. He reiterated the position of Director-General
Pascal Lamy, contained in his letter to Members on 12 May 2010, in which he repeated "the
inseparability of the provision of cotton development assistance from the actual trade policy
negotiations that are currently taking place in the DDA". The Director-General stressed that that was
why the WTO must continue to aim for a successful conclusion of the DDA. He noted that all the
signals received from leaders at various Summits, including the G-20, indicated that 2011 would
provide yet another window of opportunity to conclude the Doha Round.
143.
Continued work in the Director-General's Consultative Framework Mechanism was part of
the contributions to the overall efforts to successfully conclude the Doha Round and create a more
positive momentum. The Secretariat would continue to work to assist that process. It would continue
to monitor and report progress to Members on any new contribution, disbursement of current
commitments and, operational status relating to the commitments undertaken by the development
community. Of equal importance, based on inputs from the recipients of development assistance, the
TN/AG/SCC/W/14
WT/CFMC/32
Page 25
Secretariat would continue to monitor progress in the implementation of domestic cotton sector
reforms.
144.
South-South Cooperation had emerged as a key aspect of the implementation of the mandate
on the development assistance aspects of cotton and work in the DGCFMC. There was considerable
interest in that dimension of the work of the WTO. In part, the reason was that, following the 2008
and 2009 global financial and economic crises, current analysis clearly showed that the high-income
developing countries had become the engines of recovery and growth in the global economy. The
significant contributions of those countries were acknowledged with appreciation.
145.
As Members had noted, the development assistance aspects of cotton was on the provisional
agenda for the 14-15 December 2010 General Council, under item 4. Under that item, as had been the
case since the 2005 Hong Kong Ministerial Declaration, the Director-General would make a short
statement, reporting on Members' work on cotton in 2010. The short statement by the DirectorGeneral would update his report from the one he had submitted to Members in December 2009. In
doing so, the Director-General's report would refer to the Secretariat Progress Reports to Members in
the Sub-Committee on Cotton; the updated version of Evolving Table on Cotton Development
Assistance; and, the substance of the Rounds of the Director-General's Consultative Framework
Mechanism on Cotton.
146.
Regarding the next meeting, the Chairman suggested to convene the 15th Round of the
DGCFMC in the first half of 2011. The Secretariat would consult with regard to the specific dates.
The Chairman thanked all Members and participants for their contributions.
147.
The 14th Round of the DGCFMC adjourned.
TN/AG/SCC/W/14
WT/CFMC/32
Page 26
DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK MECHANISM ON COTTON
14TH ROUND OF CONSULTATIONS ON COTTON DEVELOPMENT ASSISTANCE
9 December 2010 (9.00 a.m.)
PROVISIONAL AGENDA
1.
Introductory Remarks - Chairman4
2.
Statement by C4 Coordinator - H.E. Mr. Léonce Koné, Minister for Commerce, Enterprise
Promotion and Handicrafts, Burkina Faso
3.
Trade Policy Aspects:
4.
5.
6.
7.
-
Briefing by Chairman CoA Special Session/Chairman SCC
-
Exchange of Views
Domestic Cotton Sector and Other Reforms/National Cotton Focal Points:
-
Update by Cotton Proponents
-
Exchange of Views
Cotton Production and Trade Trends:
-
Presentation by the International Cotton Advisory Committee (ICAC)
-
Exchange of Views
Director-General's Evolving Table on Cotton Development Assistance - Updated Table
(WT/CFMC/6/Rev.9)
-
Secretariat Remarks
-
Updates by the Development Community
South-South Cotton Cooperation
-
8.
Update by South-South partners
Any Other Business
__________
4
DDG H.V. Singh is chairperson pro tem for the Director-General.