Cotton remains at the heart of trade talks in the World Trade Organization (WTO) It is one of the issues in the agricultural sector expected to be discussed at the WTO’s ministerial conference scheduled to take place in Nour-Soultan, Kazakhstan in June 2020, writes Mass Mboup.
Trade in cotton was initially brought to the WTO’s table by a group of four West African producer countries: Benin, Burkina Faso, Mali and Chad – known as the ‘C4’.
Agreement on liberalizing world trade in agriculture has been the most difficult sector of the WTO work since the creation of the world trade body in 1994.
The agreement on agriculture was one of the major outcomes of the Uruguay Round (1986-1994), making trade in agricultural products subject to multilateral rules. Binding commitments were agreed to reduce measures to support and protect agricultural trade. Implementation was initially spread over a period of six years, from 1995 to 2000, for developed countries, and ten years, until 2004, for developing countries.
But despite progress made under the Doha Development Agenda, notably at the Bali and Nairobi ministerial conferences, trade in cotton and domestic support to the sector are still issues.
Since September 26, 2019, WTO members have been analyzing the agricultural sector, including cotton on the basis of a report distributed at the end of July 2019 by the Chairman of the negotiations on agriculture, Ambassador John Deep Ford. The report summarizes ideas made by negotiators and calls on WTO member countries to identify “possible elements for meaningful results” as soon as possible.
Several members shared a “growing sense of urgency” with the president. For them, “staying focused on a narrow range of specific issues” would be the “key to the success of agriculture” at upcoming conference in Nour-Soultan.
Members were urged to focus their efforts on reducing the most trade distorting supports and improved transparency across the agricultural sector. During the discussions, a member cautioned against rushing into negotiations and insisted that the first step should be to carry out a more in depth analysis with detailed data.
According to the Chair for negotiations in agriculture, it is desirable to define the “level of ambition” for cotton and to provide “concrete guidelines” for a result in Nour Soultan.
Compensatory gains in terms of development aid and support for cotton production obtained by the C4 countries (Côte d’Ivoire as an observer) have aroused the appetite of other key members.
The central role of cotton in developing countries is recognized by the WTO’s Director General, Roberto Azevêdo, who has expressed his full support for cotton-producing countries.
World Cotton Day
An initiative of the C-4 countries, World Cotton Day, launched on 7 October 2019, brought together cotton traders and communities from farm to fabric. This annual event takes place at WTO headquarters in collaboration with FAO, the UN Conference on Trade and Development, as well as other organizations involved in development issues.
It recognizes the contribution of the cotton sector to the economies of many developing countries and peoples’ livelihoods worldwide, notably the Least Developed Countries (LDCs). This event takes place at WTO headquarters in collaboration with FAO, the UN Conference on Trade and Development, as well as other organizations involved in development issues .
The ambition is to foster greater added value for the sector in developing countries. The director of the WTO addressed the gathering with WTO General Council President Sunanta Kangvalkulkij, the Beninese Minister of Commerce Shadiya Alimatou Assouman, Burkinabé Minister of Commerce Harouna Kabore , Chadian Minister of Commerce Achta Djibrine and Malian Minister of Agriculture Moulaye Ahmed Boubacar.
Beyond the world market…
Cotton is much more than a “simple product”, read an FAO press statement of the United Nations’ Food and Agriculture Organization of the United Nations released on October 8, 2019.
“Managing trade policies and climate risks is essential to support the millions of farmers who grow cotton.”
For the head of the Rome-based organization, cotton is also representative of a culture, a way of life and a tradition which has its roots at the heart of human civilization. ”
The FAO emphasized that cotton is an essential commodity for jobs, income and for some of the populations living in the poorest and most isolated rural areas in the world. It is therefore important, he insisted, to ensure that “the cotton sector meets the highest standards of sustainability, at all stages of the value chain”