Cotton becomes 'litmus test' for Doha Development Round - Mr Lamy
03 Dec '08
6 min read
Since then, I have consulted widely on this issue with both sides, that is with the cotton producers impacted by the current subsidies programmes and with the US and EC in particular, about the need to bring this issue to closure. These consultations have been taking place at all levels, from the technical level here in Geneva to the highest possible political level in the capitals, including recently with the President of Burkina Faso.
In all these consultations, there is unanimity that without a deal on cotton there can be no modalities on agriculture and industry, and without modalities we will not be able to open the road which leads to the conclusion of the Round.
Now, the good news is that this view is shared by both the US and the EC. Both of them have consistently reaffirmed its commitment to a cotton deal that will substantively address the concerns of cotton producers. As evidence of this and in the past few weeks, we have seen significant technical consultations which in my view could bring us closer to an acceptable deal to both sides.
Of course, this is not to suggest that all work has been done, that we should now fold our arms and wait for modalities. These consultations have to continue until we have a deal in our hands.
This past weekend I participated at the UN Conference on Financing for Development in Qatar, Doha. My message to the conference was a simple one. The developmental benefits of this Round will not automatically materialise with the conclusion of the Round. For the full developmental gains to be made, developed countries and multilateral donors have to follow through on their aid commitments. And developing countries have to ensure that trade is properly mainstreamed in their development strategies.
Members of the WTO share this belief and this is why, since 2004, we have focused on tracking the flow of development assistance to the cotton sector.
We have seen a positive trend in this regard. Commitments have now reached US$ 551 million. The actual disbursement of these commitments has also risen, and now stands at US$ 109 million, an increase of 186 per cent from the US$ 38 million in 2007, even if more has to be done to improve this trend.
On the infrastructure-related development cotton assistance side, the total value of commitments has now reached over US$ 2 billion.
These commitments, as you all know, include support for strengthening the competitiveness of cotton products, capacity-building for cotton farmers, integrated pest management systems and diversification programmes to name just a few.
It is important for me to underscore that the above development assistance commitments I have just highlighted will only achieve their intended objectives if supported by a comprehensive policy reform process aimed at improving the efficiency of this sector's productivity.
Let me conclude by stressing that the time has come to deliver on the promise of a fairer global trading system for cotton. An agreement on modalities in agriculture and industry could send a positive signal of the commitment of the world trade family to address this issue which affects the poorest and weakest of our members. Donors for their part have to deliver on their commitments to provide development assistance. One without the other will not deliver the results we seek.
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