There is no doubt that cotton has become a litmus
test for the development dimension of WTO Doha Development Agenda (DDA),
launched in 2001. It was in 2003 that the issue of cotton tariffs, domestic and
export subsidies was brought to the fore by the Cotton-4 (Benin, Burkina Faso,
Chad and Mali) with the support of the African Union, the least developed
countries, and the African, Caribbean and Pacific countries.
In 2004, WTOMembers agreed to establish a
two-track process for the treatment of cotton: a trade track and a development
track. The trade track, which forms part of the Doha Round, is aimed at
negotiating the level of reduction of trade-distorting subsidies, export
subsidies and tariffs on cotton. Agreement was reached to tackle cotton
ambitiously, expeditiously, and specifically within the agriculture
negotiations. The most notable progress made on this particular track since the
launch of the negotiations took place at the Hong Kong Ministerial Conference in
December 2005, where WTO Members agreed on the complete elimination of export
subsidies for cotton, and on the granting of duty-free quota-free (DFQF) access
for cotton to all exports from least developed countries. The development track
is aimed at better targeting development assistance to cotton producing
developing countries, and in particular the poorest among them. In March 2007, I
convened a High-Level Session on Cotton to take stock of all action taken so far
along both tracks. A conclusion unanimously reached by WTO Members at the
High-Level Session was that there would be no outcome to the Doha Round without
an outcome on cotton.
Since 2004, the International Trade Centre (ITC)
has made a valuable contribution on the development aspects of cotton, notably
by putting forward the idea of a Cotton Exporter’s Guide. This guide is intended
to serve as a reference on the global cotton market for the business community,
at very level of the cotton value chain. It identifies niche areas, such as the
demand for organic and other cotton varieties, and sets out in simple terms the
market requirements for cotton exporters. In so doing, it draws attention to new
export opportunities iin many dynamic cotton markets, in particular in Asia. I
believe that this is extremely valuable. The information contained in the guide
will, no doubt, be of value for policy-makers as they design policies for cotton
sector export development.
As progress continues to be made in the Doha
Round on the trade policy aspects of cotton, I commend Patricia Francis and her
team at ITC for their important contribution to the implementation of the WTO
mandate on the development aspects of cotton. This is a vital complement to the
outcome of the DDA.
Pascal Lamy
Director-General
World Trade
Organization
The Cotton Exporter’s Guide is a reference book
that contains pragmatic and operational information on the international cotton
market. The objective is to provide all those engaged in producing and exporting
cotton with a thorough and down-to-earth understanding of all aspects of the
international cotton trade.
This guide is primarily targeted at cotton
producers, ginners, exporters and traders in cotton producing developing
countries, mainly, but not exclusively, in Africa. As the guide provides a
comprehensive view of all aspects of the cotton value chain from a market
perspective, it will also help government officials to gain a deeper
understanding of the crucial aspects that need to be addressed in cotton export
development.
The Guide covers all the essential components of
the cotton trade. Its ambition is to meet the needs of today’s exporters who
face many challenges – commercial, technical, logistical, environmental and
social – in an increasingly sophisticated and competitive trading
environment.
ITC’s view is that for exporters to become
internationally competitive, they need to have a comprehensive overview of the
entire value chain they are operating in. The guide reflects this view
entirely.
The Guide provides an important element of what
is required to increase competitiveness in a global sector that is influenced by
market adjustments after the quota phase-out in the textile and clothing
sector.
ITC Cotton Programme, developed following the
market adjustments, seeks to build capacity among cotton growers, ginners and
exporters through a comprehensive 5-step market-oriented programme:
1. Delivery of an awareness building programme to
African cotton growers and traders through the dissemination of and training on
the Guide.
2. The design and implementation of a capacity
building strategy to strengthen cotton-specific Trade Support Institutions, such
as the African Cotton Association, to reach out to all of the 37 African cotton
producing countries.
3. Implementation of a Cotton Training Programme
together with developing countries that have successfully developed their own
cotton sector, such as India, China and Brazil, etc. African cotton producers
will, thus, learn from best practice around the world and will benefit from
South-South knowledge transfer in areas such as cotton production management,
processing, value addition as well as international cotton trade, etc.
4. Implementation of a textile and clothing
awareness programme for cotton producers so that the latter better understand
the immediate market for cotton and its requirements. Such a programme will be
organized in textile producing (and thus cotton consuming) markets. It will also
provide insights into value-addition possibilities and best practices mainly
from Asia.
5. The promotion of African cotton to the booming
textile industry in Asia. This includes business networking events, a series of
South-South round tables and technical workshops in partnership with the African
Cotton Associations and Textile Manufacturer Associations in the respective
markets to facilitate networking and share experiences and best practices.
In all its activities, ITC will involve the
cotton industry, including international traders and draw upon their expertise.
The market is always the starting point of ITC’s operations.
Patricia Francis
Executive
Director
International Trade Centre