WTO assistance to cotton producers touches almost $400mn

However, he described as positive, ministers’ agreement to include a section on cotton in the “Elements for political guidance” issued at the Geneva Ministerial Conference in December 2011, the only agricultural product to be highlighted in it.

Also positive were announcements by some ministers on additional development assistance for cotton and by one member on giving duty-free, quota-free access to their markets to upland cotton imports from least developed countries, he said.

African and other countries pushing for reform said they were disappointed at the lack of progress in the talks. These included the Cotton-4 proponents of cotton trade reform (Benin, Burkina Faso, Chad and Mali — Burkina Faso speaking), the least developed countries (Haiti speaking), the African Group (Nigeria speaking) and the G-20 alliance of developing countries in the agriculture negotiations (Brazil speaking for the group and on its own behalf).

Concern about US Farm Bill

The Cotton-4 reported on their ministers’ visit to Washington just over a week ago, to meet members of the US Congress and administration, and express their concerns about proposed cotton subsidies in the US Farm Bill, which passed the Senate on 21 June 2012 and is now being discussed by House of Representatives.

Some others shared the concern, particularly as cotton prices are falling, raising the prospect of subsidies rising again. One was Brazil, which referred to its continuing consultations with the US within their “Framework Agreement” for an agreed solution to the legal dispute on cotton subsidies (case DS267), which concluded that the US had violated WTO agreements and its commitments by subsidizing cotton. The consultations are part of a package that includes US development assistance to Brazil, part of which Brazil uses to provide assistance to African producing countries.

Background

Cotton has been a key issue in the agriculture negotiations and in development issues related to the WTO since 10 June 2003 when it was raised by Burkina Faso President Blaise Compaoré on behalf of the Cotton-4 (Benin, Burkina Faso, Chad and Mali) in a meeting of the Trade Negotiations Committee, which oversees the Doha Round negotiations.

The dual tracks of development (aid) and trade (negotiations) are mandated under the 1 August 2004 General Council decision in the Doha Round — and the 2005 Hong Kong Ministerial conference.

The first meeting on development assistance for cotton was in October 2004.

Meanwhile, successive chairs of the agriculture negotiations have said repeatedly that there will be no deal in agriculture if there is no deal in cotton.

The Cotton-4 (C-4) are supported by other African producers and the G-20 alliance of developing countries in the agriculture negotiations.

World Trade Organization (WTO)