WORLD TRADE  
ORGANIZATION  WT/GC/83 
3 December 2004 
 (04-5307) 
  
  
 
IMPLEMENTATION OF THE DEVELOPMENT ASSISTANCE ASPECTS OF THE 
COTTON-RELATED DECISIONS IN THE JULY PACKAGE  
 
First Periodic Report by the Director-General
 
 
 
 
 
 
 
 
 
 
 
  
TABLE OF CONTENTS
 
 
Page   
I.
 EXECUTIVE SUMMARY ......................................................................................................2  
II. MANDATE........................................................................................................................ ........2  
III. BACKGROUND ..................................................................................................................... ..3 
IV. IMPLEMENTATION ACTION .............................................................................................4  
A. ACTION  BY THE  DIRECTOR-GENERAL/THE  CONSULTATIVE  PROCESS....................4  
B. COTTON  PROPONENTS..........................................................................................................5  
C. RESPONSE  FROM  BILATERAL  DEVELOPMENT  PARTNERS..........................................7  
D. MULTILATERAL/REGIONAL  DEVELOPMENT  PARTNER  AGENCIES  AND  
INSTITUTIONS ................................................................................................................... ....11  
E. POVERTY  REDUCTION  STRATEGY  PAPERS  (PRSP S).....................................................14  
F. THE  INTEGRATED  FRAMEWORK  FOR  LEAST-DEVELOPED  COUNTRIES  (IF) .........14  
G. JOINT  INTEGRATED  TECHNICAL  ASSISTANCE  PROGRAMME  (JITAP).....................15  
V. CONCLUSION ..................................................................................................................... ..16 
 
   This document has been prepa red under the Secretariat's own 
responsibility and without prejudice to the positions of Members and to their rights and obligations under the WTO WT/GC/83 
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I. EXECUTIVE SUMMARY  
1. A structured consultative frame work has been established in which the cotton proponents, 
bilateral donor Members, and the relevant multila teral and regional agencies are constructively 
engaged in a complementary trilateral partnership.   The agreed purpose is to implement the July 
Decision on the Development Assistance Aspects of  Cotton.  This consultative framework is 
coordinated by the WTO Secretariat.   
2. Bilateral donor Members have m oved rapidly to reflect cotton-sector priorities in their 
bilateral donor programmes.  They have underlined the sector as priority in the support they provide 
to agencies and institutions.  From information they  have provided to the WTO Secretariat, although 
resources are finite, substantial a nd additional financial resources are available for the sector.  It has 
been indicated that resources earmarked for the cotton sector will  increase, as part of the total 
package. Resources, however, need to be rationa lly accessed, based on the understanding reached at 
the WTO Secretariat organized African Regiona l Cotton Workshop and elsewhere, that cotton-
specific financial and technical assistance would be  provided within existing mechanisms, such as 
PRSPs, national strategy papers, through the process of domestic reform, and well prepared project 
proposals.  The European Union and the United St ates have stepped up their efforts to lead and 
coordinate the donor response.   
3. Relevant multilateral and regional agencies have also responded expeditiously .  The African 
Development Bank (AfDB) is in the process of d esigning a project with broad scope, based on the 
private sector which, when implementation begins, will assist African cotton producers and exporters 
to respond better to the challenges and risks of ma rket competition.  The World Bank and the IMF are 
tailoring existing mechanisms in ways that are sen sitive to the concerns and priorities of cotton 
proponents and others faced with commodity pr ice shocks.  They and other institutions are 
considering new facilities and instruments.  The Development Assistance Committee of the OECD is 
actively engaged.     
4. The proponents have welcomed the implementation process and the results so far.  They have 
also accepted the need for appropriate action on their part to enhance competition of this sector in 
their own countries.  However, they have underlin ed the urgency of their economic circumstances 
because of the continuing long-term downward tre nd in cotton prices.  They have stressed the 
necessity for complementary action on the trad e and development aspects.  The Agricultural 
Framework reached in July, and the subsequent  establishment of the Cotton Sub-Committee on 19 
November, have provided impetus to treatment of the trade aspects.   
5. Overall, good progress has been made so far but  much more remains to be done. I intend to 
pursue the various strands vigorously, and am al so hopeful that next year will provide new 
opportunities to advance the development assistance  aspects (and the trade aspects) of this highly 
important Initiative.   
II. MANDATE 
6. In its July Decision, the General Council reaffirms the importance it attaches to the Sectoral 
Initiative on Cotton and the importance of the development aspects.  The complementarity of the trade 
and development aspects is stress ed.  The Council, inter alia:  
• "instructs" the Secretariat to continue to work with the development community and to 
provide the Council with periodic reports  on relevant developments; and,  
 
• 
"instructs" the Director-General to consult with  relevant organizations, including the Bretton 
Woods Institutions, FAO and ITC.   
 WT/GC/83 
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7. Under the terms of the Decision, Members shoul d work on development issues multilaterally 
with international financial institu tions and continue their bilatera l donor programmes.  All developed 
countries are urged to participate.   
8. The July Decision also took note of the WT O Secretariat-organized African Regional 
Workshop on Cotton in Cotonou, from 23 to 24 March 2004. The full report from the Workshop has 
been circulated in document WT/L/587.  The resu lts from the Cotonou Workshop, in particular the 
"Areas of Focus "1 discussed and noted in the Workshop, are in tegral to the Secretariat mandate.  They 
also provide guidance in the consultative frame work established by the Director-General for 
implementation action on the development assistance aspects of cotton.   
9. This is my first periodic report to th e General Council under the above Decision. 
III. BACKGROUND 
10. The cotton sector remains of vital economic importance for several developing countries, 
more so for several low-income countries, in partic ular those in Africa.  The sector is of critical 
systemic importance in these countries because of it s share in economic activities and its linkage to 
macroeconomic performance.     
11. Thirty African countries produce and export cotton.2  Four of these countries (Benin, Burkina 
Faso, Chad and Mali) raised the challenges th ey faced in the cotton sector in the WTO.3   
12. The cotton sector presents a challenge for trade and development.  All data show that  real 
cotton prices (as for most commodities)4 have been in a long-term dow nward trend.  Recent studies 
and forecasts confirm this long-term downward pr ice trend and suggest that it will continue:  
"The price of cotton, adjusted for inflati on, is tending downward over the long run.  
This is a phenomenon common to many pr imary commodity industries and results 
naturally  and inevitably from market forces in a competitive world economy.  If inflation is considered, cotton prices have been falling since the 1950s.  Estimate of 
average prices were more than US$3 per pound of lint in today's prices in the early 1950s.  In nominal prices the Cotlook A I ndex averaged 70 cents per pound during 
the thirty-year period from 1973/74 through 2002/2003.  However, while there is 
always substantial year-to-year end variati on, average cotton prices are forecast to be 
10 to 20 cents per pound lower than the aver age of the last thirty years during the 
current decade".
5   
13. Broadly, the 25 to 30-year downward trend in commodity, including cotton prices, is linked in 
different degrees to a complex of factors, including, but not limited to, changes in technology 
resulting in lower costs and increased productive efficiency in different countries.  These factors 
include the emergence of high and quick yield transg enic (cotton) seed varieties, the competition from 
synthetic fibre (particularly polyester) substitutes for natural fibres; exchange rate and currency 
fluctuations; market risks such as through stock arbitrage in different markets; conditions of 
                                                      
1 WT/L/587, paragraph 84 (pages 20-21).   
2 Angola, Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Congo (Dem. Rep. of), 
Côte d'Ivoire, Egypt, Ethiopia, Ghana, Guinea, Kenya, Madagascar, Malawi, Mali, Morocco, Mozambique, 
Niger, Nigeria, Senegal, Somalia, South Africa, Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia and Zimbabwe.   
3 WT/MIN(03)/W/2; WT/MIN(03)/W/2/Add.1; and TN/AG/GEN/4 (16 May 2003) and TN/AG/GEN/6 
(4 August 2003).   
4 Although there is a long-term downward pr ice trend, there are annual variations.   
5 International Cotton Advisory Committee (ICAC), COTTON: Review of the World Situation, "ICAC 
Cotton Price Forecasts",  Volume 58 – Number 1, September – October 2004, page 5.   WT/GC/83 
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competition and efficiency in domestic markets; and,  consumer preferences.  Trade distortions also 
account for depressed prices.   
14. WTO Members have found it useful to distinguish between the trade aspects and the 
development assistance aspects of the Sectoral Initiati ve on Cotton.  The Secretariat is proceeding on 
this basis of a dual, but coordinated and compleme ntary track in accordance w ith the July decision.  
The trade aspects are being addressed within the ag riculture negotiations.  As agreed by Members, 
they are to be addressed "ambitiously, expeditiously and specifically on the basis of the three pillars 
of domestic support, market access and export compe tition".  On 19 November, the Special Session of 
the Committee on Agriculture established the Sub-Committee on Cotton (SCC), pursuant to 
paragraph 4 of Annex A of the July Decision.   
IV. IMPLEMENTATION ACTION  
A. ACTION
 BY THE  DIRECTOR-GENERAL/THE  CONSULTATIVE  PROCESS   
15. I have taken specific steps to implement th e Development Aspects of the cotton-related 
decisions in the July package and the results of th e Cotonou Cotton Workshop, in the following areas:  
• DAC/OECD : In accordance with a specific "Outcome " at the Cotonou Cotton Workshop on 
"Enhanced Coordination and Follo w-up Arrangements", the WTO Secretariat addressed a letter6 
to the Chairman of the DAC/OECD, requesting s upport in the follow-up process to the Workshop.  
The Secretariat asked the DAC/OEC D to involve development agencies in the implementation of 
the Workshop Outcomes, as agreed at Cotonou.  The DAC responded that there were two avenues 
through which it could support the broader internati onal effort to treat the development aspects of 
African cotton.  First, it would expand and deep en the information on cotton-related assistance in 
the Joint WTO/OECD Trade Capacity Building Da tabase (TCBDB).  This would require close 
co-operation with the bilateral and multilateral donors involved with follow through and tracking 
progress on the Cotonou Workshop Outcomes.  Second, the DAC/OECD would organize a comprehensive Briefing for DAC Members with th e participation of the relevant development 
agencies and African representatives to address the development aspects.
7  This Briefing has now 
been set for 28 January 2005.   The Secretariat welcomes the strong and positive support from the 
DAC.     
 
• General Council Coherence Item : I raised the issue of the implementation of the development 
assistance aspects of the cotton issue on 22 Octo ber, in the General Council, under the item: 
"Coherence in Global Economic Policy-Making and Co-operation between the WTO, IMF and 
World Bank".8  The three Heads of Agency participated at that meeting.  I asked my colleagues 
"... to redouble their efforts to see how exis ting programmes – as well as additional resources – 
can be directed towards development in those economies where cotton is vitally important, as was 
agreed at Cotonou".9  The responses were concrete and favour able.  The Heads of the IMF and the 
World Bank expressed support.  IMF Managing Director, Mr. Rodrigo de Rato, affirmed 
willingness to join the consultative framework established by the Director-General.  The 
Managing Director noted that the Fund had traditionally played a major role in assisting 
developing countries in dealing with macroeconomic  implications of commodities price or other 
shocks, including in the cotton sector.  Should such  shocks have an adverse impact on the balance 
of payments, Fund assistance could be delivered  through regular instruments and policies – 
                                                      
6 Letter of 2 April 2004 from WTO DDG Dr. Rana, addressed to Mr. Richard Manning, Chairman, 
DAC/OECD.   
7 Letter of 7 July 2004 from Mr. Richard Mann ing, DAC/OECD Chairman to DDG Dr. Rana.   
8 WT/GC/M/89, Minutes of Meeting, "Coherence in Global Economic Policy-Making and Co-
operation between the WTO, IMF and World Bank".   
9 WT/GC/M/89, page 32, paragraph 6.   WT/GC/83 
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notable the Poverty Reduction and Growth Facility.10  The World Bank would work to provide 
assistance within its Doha Development Agenda Initiative.  It also joined the consultative 
framework established by the Director-General and would seek to provide all possible assistance 
on a case by case basis.  The Bank has indicated and elaborated areas of support.11   
 
• Heads of Agency Bilateral Contacts : I have followed up with private bilateral contacts with 
several Agency Heads to press for further action as appropriate.   
 
• Commission for Africa : The Commission for Africa is an initiative of the Prime Minister of 
the United Kingdom to provide policies to accelerat e development in Africa.  Its report could 
provide an excellent platform for reflecting Africa's priorities and for moving ahead with 
implementation of those priorities.  The staff of the Commission for Africa Secretariat and the 
staff of the WTO Secretariat are in contact .  WTO Secretariat staff have underlined, inter alia , 
the vital importance and of implementation of the development aspects of the cotton decisions 
in the July Decision.     
 
The Consultative Process   
 
16. Two informal consultations have been held so far under the consultative framework I have 
established.12  The primary purpose is information exchange  on action already taken and envisaged 
by the cotton proponent countries, the bilatera l donor Members and the relevant multilateral and 
regional agencies to give effect to the "Outcomes"  from the Cotonou Workshop and to implement the 
relevant decisions in the July p ackage.  The information furnished provides the Secretariat with the 
basis for encouraging implementation and follow-up. It could also form a basis for any report to the 
Sub-Committee on Cotton, if requested, on the implem entation of the development assistance aspects.  
Comprehensive provision of information by the co tton proponents, bilateral donor Members, and the 
multilateral and regional agencies and institutions is i ndispensable if implementation is to be effective 
and if my periodic reports are to  be substantive and meaningful.13   
17. Beyond information exchange , the objective of the consultative process include encouraging 
the continued mobilization of financial and technical assistance  in support of the efforts of the 
cotton proponent countries to respond to the cha llenges they face on cotton, including support for 
their on-going necessary domestic reforms.   
B. COTTON  PROPONENTS   
18. Cotton proponents were requested to provide in formation on action taken and envisaged to:  
• reflect cotton-sector priorities in their PRSPs;  
 
• prepare Diagnostic Trade Integration Studies (DTI Ss) to reflect their priorities, including 
cotton;  
 
• prepare cotton-sector specific studies – national strategies – in individual countries;  
 
• prepare cotton-sector specific projects to be funded;  
 
                                                      
10 WT/GC/M/89, page 30, paragraph 21.   
11 WT/GC/83/Add.1, page 40.  
12 22 October and 18 November.   
13 Full information provided is contained in the Addendum to this Report (WT/GC/83/Add.1).    WT/GC/83 
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• continue cotton-sector reforms, as agreed, at  Cotonou, in such areas as improvement of 
domestic competition in production, distributi on, buying and selling, including legislative 
framework for investors, in order to ach ieve increased market efficiency.   
 
Response from the Cotton Proponents
  
 
Benin   
 
19. As Coordinator for the Cotton Proponents, Beni n informed the consultative framework group, 
at its first meeting, that "Paragraph 13 of the Co tonou Workshop is very precise ... and should be used 
as a basis for consultations on the follow-up action".14   
20. Pursuant to the acceptance of the framework fo r the consultations, and in response to the 
specific questions put to Benin, the representative of Benin confirmed that its national authorities were hard at work to implement the relevant asp ects of the Cotonou Outcomes.  Cotton was already a 
part of Benin's agricultural sectoral study, where the sector was reflected as priority.  Benin's PRSP 
also reflected cotton-sector priorities.  A concept paper on cotton had been finalized and forwarded to 
the United States as a basis fo r accessing possible funding from the United States Millennium 
Challenge Account (MCA).  US and Benin offici als were consulting on th e "Programme Paper" 
prepared by Benin on the MCA.   
21. A first version of the Strategic Framework document had been prepared as follow-up to the 
"EU-Africa Cotton Partnership Forum", which took pl ace in Paris, from 5 to 6 July 2004.  Following 
EC comments, this document would be fi nalized and forwarded to the EC.   
22. Benin acknowledged the financial and technical assistance provided by the Government of 
Japan as a specific follow-up to the Cotonou Cotton Workshop, in the areas of "irrigation 
infrastructure" and "human resource development".   
23. On domestic reform, Benin informed the cons ultative forum that domestic efforts were on-
going to make the cotton sector more competitive.  For instance, SONAPRA was under privatization.  
Benin was committed to providing further informati on on issues raised in the consultations, as it 
becomes available.   Benin would submit requests/ project proposals to bilateral donor partners for 
financial and technical assistance to reinfo rce and strengthen the cotton industry.   
Burkina Faso
  
 
24. Burkina Faso has revised its PRSP to reflect cotton-sector priorities.  Project proposals would 
be developed and forwarded to bila teral donor partners.  On domestic reform, Burkina Faso informed 
the consultative forum that domestic cotton monopolies had been eliminated and that the sector had been opened up to private sector competition.   
Chad
 
  25. Chad, a Non-Resident Member, has not partic ipated so far, in the consultations.   
Mali
 
  
26. Mali had reflected cotton-sector priorities in its  PRSP.  The country attached importance to 
the resuscitation of its textiles school and the resusc itation of a laboratory.  Mali was interested in 
projects that would achieve regional synergies toward s the creation of a regional cotton market; and, 
appropriate regional infrastructure.  Specific proj ect proposals had not been prepared.  These would 
                                                      
14 WT/GC/83/Add.1, page 2, paragraph 6. WT/GC/83 
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be prepared and forwarded in due course.  Mali was also still awaiting appropriate information from 
its domestic authorities, includi ng on domestic reform.   
Other African Countries  
 
27. Guinea, Senegal and Uganda have participated  in the consultations and stressed their 
commercial and systemic interests.  They have undert aken to work to reflect cotton-sector priorities in 
their PRSPs, and prepare appropriate project proposal s.  This information would be provided as soon 
as it is received from national authorities.   
C. RESPONSE  FROM  BILATERAL  DEVELOPMENT  PARTNERS 
Bilateral Donor Members   
 
28. Bilateral donors were requested to provide in formation on action taken and envisaged to:  
• reflect cotton-sector priorities in their country  programmes and other relevant facilities and 
mechanisms;  
 
• provide financial and technical assistance to cotton-sector specific projects; and,  
 
• coordinate across bilateral donor and other assistance programmes.   
 
European Communities (EC)  
 
29. The European Commission responded to the questio ns posed by the Secretariat.  It presented 
the overall substantive responses by the European Communities.  In addition, several individual 
European delegations elaborated on specific nationa l contributions, initiatives and areas of emphasis.  
These delegations were  Denmark, France, the Neth erlands and Germany.  Others are considering 
possible contributions. 
European Commission   
 
30. On EU action taken and planned to reflect co tton sector-specific priorities in bilateral donor 
programmes, the EC informed the cons ultative forum that the EU Council had endorsed  the proposal 
for an " EU-Africa Partnership on Cotton ", in April 2004.  The Partnership was an important 
specific application of the EU Action Plan on agri cultural commodities, aimed at finding responses to 
the challenges faced by commodity-d ependent developing countries.   
31. In June, the EU requested 15 major cotton produc ing countries in Africa to what extent they 
were committed to formulating and implementing a national cotton strategy.  Such a national cotton 
strategy was important prior to extending support.   Ten countries had already responded favourably.15   
32. The EC has prioritised "support to cotton" as one of the areas for the 2004 Mid-Term Review 
of the national indicative programs (and here, the in itiative had to come from the individual countries 
within the framework of nationally owned development strategies).   
33. The EU and Africa organized a Cotton Forum in Pa ris, from 5 to 6 July.  At the Forum, the 
EU and African countries endorsed the "EU-Africa Cotton Partnership"  and agreed on a "Joint 
Cotton Action Plan" .16  The agreed "Joint Cotton Action Plan" identified 7 areas of action: 
                                                      
15 Benin, Burkina Faso, Chad, Madagascar, Mali, Mozambique, Senegal, Tanzania, Togo and Zambia.   
16 The website provides up to date and rele vant information: www.cotton-forum.org.   WT/GC/83 
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i) international trade; ii) national and regiona l cotton strategies; iii) policies and institutions; 
iv) technological innovation; v) risk management; vi ) chain integration; and, vii) coordination.   
34. In the "International Task Force on Commodity Risk Management", the EU had successfully 
advocated broadening pilot programme s on market-based risk instrume nts to the cotton sector in West 
Africa.  A World Bank/EU team will travel to West Africa in December to identify interest.   
35. On EU action, taken and pla nned, to provide cotton-specific financial and technical 
assistance, the EC provided detailed information.   
• Individual EU Member states have supported the development of negotiating capacity for the 
cotton proponent countries and included new co tton-related projects in their bilateral 
development assistance programmes.  
 
• €40 million had been proposed for allocation to cotton in the national indicative programmes 
of the 4 proponent countries, as part of the Mid-Term Review of EC programmes.  The 
review would be finalized soon.     
 
• The EU had tabled a proposal to the ACP fo r establishing a programme for International 
Capacity Building with international organi zations on agricultural commodities.  This 
programme included €15 million for cotton.  The targeted international organizations are the 
World Bank, FAO, UNCTAD, and the Common Fund for Commodities (CFCs).  The 
programme allows for multi-donor co-operation.   
 
• The EU considered that cotton-dependent Afri can countries (Benin, Burkina Faso and Mali) 
could benefit from the FLEX in 2005.   The EC  was considering mobilization of additional 
short-term support from non-EC sources to mitigat e the effects of export earnings shortfalls.   
 
36. On coordination efforts across bilateral donor and other assistance programmes, the EC 
identified coordination within African countries; and, different types of international coordination that 
it supported.  On the latter, attention was drawn to the "EU-Africa Cotton Steering Committee" , 
established for implementation of the EU-Africa Action Plan .  This Steering Committee was 
composed of public and private representatives.  There was the informal EU "Cotton Donor Club", 
consisting of the EC and some Member States.  An "Interagency coordination of International 
Organizations" is foreseen to implement capacity building programme on commodities and cotton.   
Denmark
 
 
37. Denmark has projects in Benin and Burkina Faso in the agricultural sector aiming at product 
diversification.  It was in the process of finalizi ng a strategy for Africa to be launched in the near 
future, which inter alia  would reflect cotton.  The IF (Denmark Chairs the Steering Committee) was 
useful.  It would enable a coordinated and struct ured process for implementation.  Denmark informed 
the consultative framework that 3 out of the 4 pro ponent countries were already in the IF process.  
France  
 38. France was committed to support for the cotton sector, including through its contributions to 
the "EU-Africa Cotton Partnership Forum" .  Bilaterally, France had a co-operation strategy in 
support of the African cotton sector.  The objective of this strategy was to support the beneficiary 
countries to face the challenges with which they are confronted in cotton production and export.  
France's assistance objectives were targeted in par ticular at Benin, Burkina Faso, Chad and Mali.  
These objectives were to assist these proponent countri es to: i) re-structure the cotton sector; and, ii) 
improve productive efficiency and competitiveness.  Co-operation and assistance also aimed at sustainable development in the cotton zone.  French  co-operation and support in  this sector is led by WT/GC/83 
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the French Agency for Development (AFD) and in the area of science and research by the Centre for 
International Co-operation and Agronomy Research for Development (CIRAD).   
39. €48 million had been set-aside for French acti on currently being impl emented and envisaged 
to strengthen the cotton sector.  This sum of €48 mil lion was an important part of French agricultural 
assistance in Africa, which was approximately €12 8 million for activities underway and envisaged.   
40. France provided detailed information on its prog ramme of co-operation with and financial 
and technical assistance to the 4 proponent countries.   French co-operation with the African countries 
and cotton sector support were being implemented in  different ways, dependi ng on the level of 
organization in the sector, particularly in Mali, Bu rkina Faso, Benin and Chad.  In Mali, France was 
supporting the privatization of th e Malian Company for the Development of Textiles.  The French 
Agency for Development (AFD) was supporting the process of re-structuring the sector and adopting 
a programme to support producers to benefit from th e privatization process, improve competitiveness, 
and soil management.  In Burkina Faso, French s upport was at two levels, namely, the progressive 
privatization of SOFITEX, the traditional operato r; and, on-going support by AFD to re-organize 
producers.  In Benin, French support was centr ed on assistance to agriculturists to enhance 
diversification of their produce, etc.  Beginni ng in 2002, the AFD had put in place an action 
programme to support reform of the cotton sector in several areas.  In Chad, since 1997, a €60 million programme has been in place over 60 months to support the rural structure in the Zone Soudanienne .   
41. French contribution to the Action Plan  adopted following the European-African Cotton 
Partnership  would focus on projects that the French Agency for Development (AFD) was in the 
process of preparation. There are 3 projects in Benin, Mali and Burkina Faso between €15 to €20 
million in value terms.  CIRAD research teams would have projects on cotton of about €1 million 
annually.   
42. France was considering allocating €3 million over  3 years to support African cotton producers 
to strengthen their negotiating capacity, to improve co tton fibre quality, and to develop new research.   
43. France supported the three broad levels of Eu ropean Community action, namely: i) active 
participation in the Doha negotiations to address the trade aspects; ii) strengthening African cotton 
production; iii) establishing a permanent framework to respond to cotton price volatility.   
Netherlands
 
 
44. The Netherlands was involved with cotton sector privatization in Mali.  Although the 
technical level of privatization had been completed,  the financial aspect remained work in progress.  
The Netherlands was focusing on cotton production sustai nability, pest controls, pesticides use, etc.  It 
was focused on similar issues in Benin.  Broadly, the Netherlands was interested in improving the 
market for inputs in West Africa and in providing support for producer institutions such as ROPPA.  
On commodity, including cotton price, fluctuations  the Netherlands confirmed that it would work 
closely with the World Bank on commodity price risk  management instruments to support the efforts 
of the cotton proponent countries to face the ch allenge of price declines and instability.   
Germany  
 
45. Germany's information was preliminary.  At a policy level, the German Development Agency 
(GTZ) was funding the Swiss group IDEAS  on its cotton activities.  GTZ had relevant programmes in 
Africa: in Benin, Burkina Faso and Chad.  In  Chad, a GTZ supported project on crop rotation was 
about to become operational.  Germany indicated that it would provide further information on its 
relevant bilateral programmes in the proponent countr ies, some of which were in partnership with 
FAO.  Germany mentioned in particular public/p rivate partnerships in Benin and Chad.   WT/GC/83 
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Japan
  
 
46. Japan provided information on concrete follo w-up action it had taken since the Cotonou 
Cotton Workshop.  After Cotonou, Japan responded to the request from the Benin and offered US$ 7.14 million grant for assistance to support basic infrastructure (irrigation facilities) under Tokyo 
International Conference on Africa Development (TICAD)  initiative.  Japan signed a contract for road 
development and irrigation to assist seed deliver y and transportation from cotton farms.  Japan 
elaborated on the extensive opportunitie s that existed under the TICAD process.
17   
47. During the July process, Japan was in dialogue with the cotton proponent countries to better 
identify their technical assistance n eeds.  Japan's procedure was to r espond to specific requests.  Japan 
reported that the Asia-Africa Investment Conference,  hosted by Japan in November, showed existing 
opportunities for additional support for cotton.  It confirmed that significant opportunities for cotton-
specific financial and technical assistance existed within the TICAD process.  TICAD was relevant 
because one of its main objectives was poverty eradicati on.  In this regard, development assistance for 
the agricultural sector, including cotton production, w as fully consistent with the objectives of poverty 
eradication in Africa.  Also, TICAD focused on invest ment for Africa.  Investment flow to Africa was 
a significant component of the solution for supporting African countries in their efforts to respond to 
the challenges they faced on cotton.   
United States   
 
48. The United States confirmed its commitment to pr oceeding with work on the twin tracks of 
the trade and development aspects of cotton in  accordance with the July Decision. On the 
implementation of the development assistance aspects, the US would pursue implementation at several inter-related levels.  At the bilateral level, the United States had fully mobilized its 
development agencies to respond to the issue.  These agencies included the Millennium Challenge 
Account (MCA) and the United States Agency fo r International Development (USAID).   
49. The US provided detailed information on operati onal steps it had taken to begin responding to 
the development assistance priorities of the cotton pr oponent countries in the cotton sector.  First, an 
inter-agency 3-week mission led by USAID took pl ace in September/October to assess the constraints 
facing the West African cotton sector.  A high-level US and private cotton-sector follow-up visit would take place in December.  The Ministers fro m the four cotton proponent countries visited the 
United States in July 2004.  The purpose of the Mini sterial visit was to exchange experiences with the 
US cotton industry and comprehensively view all asp ects of the industry and value chain, from seed to 
planting, grading and to apparel.  The Ministers al so met with Ambassador Zoellick, USTR.  From the 
assessment mission, the US would draw up reco mmendations in January 2005 to decide on the 
technical assistance that could be provided to the cotton proponents countries.  
50. The US also informed participants that Be nin, Mali and Senegal had been selected as 
countries eligible to benefit from Fiscal Year 2004 in the Millennium Challenge Account (MCA).  
Benin, Senegal and Mali had been re-selected for eligibility for Fiscal Year 2005.  Burkina Faso had 
been selected as a "threshold country" for Fiscal Year 2005 for MCA funding.   
51. The US stressed significant opportunities existi ng for funding projects, including cotton 
projects in the MCA.  However, the funding process required "give and take".  Ownership of the projects was key; this depended on meeting several indicators and presenting well prepared projects.  
Although Benin, Mali and Senegal ha d provided a general concept pape r they were yet to provide 
specific and whole project proposals.  The initial c oncept papers submitted by the proponent countries 
only related, at this time, to industrial, commercia l and tourist zones.  These general ideas were yet to 
                                                     
 
17 Japan notified the WTO Secretariat of its action in the letter to the Secretariat dated 9 June 2004.   WT/GC/83 
 Page 11 
 
 
be refined into specific proposals.  Funding could be  provided in response to clearly stated priorities 
and to professionally prepared project proposals, based on ownership.  
52. The US would work closely with the African Development Bank (AfDB) and World Bank.   
D. MULTILATERAL/REGIONAL  DEVELOPMENT  PARTNER  AGENCIES  AND  
INSTITUTIONS 
53. Participating multilateral and regional agencies and institutions were requested to provide 
information on action taken and envisaged to:  
- reflect cotton-sector priorities in country programmes, relevant facilities and 
mechanisms; and,  
- provide financial and technical assistance to cotton sector-specific projects.   
Response from Multilateral/Regional Development Partners  
 
African Development Bank (AfDB)  
 
54. The AfDB has designed a "Multinational Project" to improve the "Competitiveness of the 
African Cotton Sub-Sector".  This project h as been designed following the WTO Secretariat-
organized African Regional Workshop in Cotonou and to take account of the decisions in the July 
package on the development assistance aspects of cott on.  The project will be based on stimulating 
and strengthening the private sector and promoti ng private investment in the cotton-producing 
countries.  The objective will focus on contributio n to poverty reduction in  the AfDB's regional 
cotton-producing Member Countries.  The programme  will focus on improving income sustainability 
of the cotton sub-sector in the Bank's cotton-producin g countries.  This project is in accordance with 
the economic development strategy of the government s of the cotton-producing countries of West and 
Central Africa and with their PRSPs.  The project  was encouraged by the WTO Secretariat.  The 
AfDB will be seeking co-financing arrangements for this project, endorsed by the cotton proponent 
countries as well.  The potential dividends are significant.   
DAC /OECD     
 55. The DAC/OECD is working at two levels of fo llow-up and implementation.  First, it will 
expand and deepen the information on cotton-rela ted assistance in the Joint WTO/OECD Trade 
Capacity Building Database (TCBDB).  This would require close co-operation with the bilateral and 
multilateral donors involved with following through and tracking progress on the Cotonou Workshop 
Outcomes.  Second, the DAC/OECD will organize a comprehensive Briefing  for DAC Members with 
the participation of the relevant development ag encies and African representatives to follow-through 
on the Development Aspects.
18  This Briefing has been set for 28 Ja nuary 2005.    Benin on behalf of 
the proponents has endorsed and welcomed the Briefing.   
Food and Agricultural Organization (FAO)   
 
56. The FAO has formulated project ideas in areas of processing and marketing where the FAO 
could contribute (in partnership with other UN Agen cies) in WCA.  The projects' objectives would be 
to increase profitability, compe titiveness and sustainability of the cotton industry in WCA.  The 
project would focus on assisting WCA in developing more cost-effective sustainable production and improving efficiency in product processing, handling and marketing.  This project would be based 
within a framework of appropriate sectoral strategi es and policies to cope with international market 
                                                     
 
18 Letter from Mr. Richard Manning, DAC/OECD Ch airman to WTO DDG Dr. Rana, 7 July 2004.   WT/GC/83 
Page 12  
 
dynamics and requirements.  FAO contributions would be directed at three project areas, namely: (i) sectoral and trade policies; (ii) supply-chain perform ance; and, (iii) sustainable integrated production 
practices.  FAO noted that implementation of pr ojects in these three areas would require a multi-
disciplinary approach with organizations  like UNIDO and wider partnerships.   
57. In addition, FAO has pointed to its extensiv e Development Assistance Activities on Cotton in 
African cotton-producing countries, including the cotton proponent countries.  The list includes 
studies, workshops and seminars to assist African countries to implement the Agreement on Agriculture.  Agricultural and rural development pr ojects have been implemented in African countries 
benefiting cotton farmers directly and indirectly.  Furthermore, there was technological assistance 
specifically for cotton, such as the FAO implementation of an Integrated Production and Pest 
Management (IPPM) project in Burkina Faso, Ma li and Senegal.  There was an FAO project on 
"Reducing Reliance on Agricultural Pesticide Use in the Senegal and Niger River Basins through 
Integrated Production and Pest Management, and Community-based Pollution Prevention System".  
This project was currently on course to be implemen ted in Guinea, Senegal, Mauritania, Mali, Niger 
and Benin.  (This project is co-financed by the Global Environment Facility – GEP-UNEP).  In 
Burkina Faso, FAO (in partnership with IITA and CIRAD) is working on opportunities to improve 
incomes through improved production systems, focusi ng on crop/pasture and livestock integration.  In 
Burkina Faso and other countries in WCA, cotton is  one of the anchor cr ops being developed under 
the FAO Production Priority Area for Interdisciplinary Action (PRODS PAIA).   
58. New technological projects are under development a nd preparation.  Pilot field sites would be 
started in several African countries like Uganda, Tan zania, Mali, Burkina Faso and Benin.  The World 
Bank and several German institutions/Min istries have expressed interest.   
59. FAO stressed that African cotton-producing co untries urgently need an implementable 
strategy to ensure cotton sector long-term prosper ity.  This needed to be done by increasing market 
and technological efficiency.  FAO confirmed, gi ven its expertise, that it would actively pursue 
further projects in African cotton-producing coun tries to improve cotton sector efficiency and 
sustainability, and to design appropriate market a nd development strategies.  FAO would work with 
other institutions to promote actions to reduce price instability and efficiently manage market risks.   
International Monetary Fund (IMF)
 
 
60. The IMF would play two specific roles, namely: (i) to judge how developments in the cotton 
sector link into the overall economic picture; and, (ii) to contribute to mitigating balance of payments 
shocks.  The IMF informed participants about the flexibility for financing existing under the Poverty 
Reduction Growth Facility (PRGF).  This flexibility ex isted in the legal provisions for PRGF funding.  
With regard to Fund financing arrangements in the African cotton-exporting countries, the Fund's 
Board was explicitly recognizing the need for possibl e increases in financing as a result of shocks.  A 
precedent in this regard was set in the new Ma li 3-year PRGF arrangement, which was approved 
subsequent to the Cotonou Workshop.  Although the IMF was concerned with the broader macro-
economic picture and did not provide sectoral support, the IMF was currently working on the financing and modalities of the Fund's engagement with low-income Members, including instruments 
to help Members face shocks.  This work aims to address the particular challenge faced by cotton 
producers in Africa or similar challenges by other commodities' producers with systemic implications 
for macro-economic performance. 
19    
                                                      
19 The Fund clarified that the Trad e Integration Mechanism (TIM) was designed to apply to the class of 
situations where multilateral (or third country) trade liber alization created adjustment costs in home countries.   WT/GC/83 
 Page 13 
 
 
International Trade Centre (ITC)   
 
61. ITC technical co-operation activities are demand- driven.  Detailed needs assessment in close 
co-operation with national counterparts was the starting point for the development of specific 
technical assistance programmes and projects to supp ort the export development of cotton, cotton by-
products and value-added products derived from cotton.  Financ ial resources would be required to 
enable ITC  develop such programmes and pr ojects to respond to priority needs.   
62. ITC technical assistance is proposed for delivery through three modes: i) generic tools and 
multi-country programmes; ii) customized in itiatives; and, iii) multi-agency, multi-country 
programmes, specifically JITAP and the IF.  There are three levels to ITC assistance.  These are: 
i) capacity-building at the national level; ii) the re gional and sub-regional le vels; and, iii) the global 
level.  At these 3 levels, ITC has identified ar eas where it has activities and proposes products and 
activities on cotton that would contribute to the implementation of the Development Aspects of 
cotton.  For instance, at the global level of assist ance, it proposes the development of a "Cotton Guide 
– a Trader's Manual on Cotton", which would c ontain basic and operational information on the 
international cotton market and its requirements with practical assistance to the trader and the 
producer.  It also proposes "Market Studies on Cotton By-Products and Value-added Cotton Products".  These studies would assist producing count ries to identify and analyse potential export 
markets in order to diversify exports beyond commod ity markets.  These proposals deserve follow-up.   
United Nations Industrial Development Organization (UNIDO) 
 
 63. UNIDO confirmed that cotton was now a priority in its quality assurance programmes and 
projects.  It re-confirmed its position to participate in the Action Plan  of the EU-Africa Cotton 
Partnership .  UNIDO explained that it considered its role within the context of its technical 
assistance activities, which focus on the improveme nt of competitiveness of African cotton.   
64. UNIDO listed areas of current implementation relating to cotton.  These are: i) development 
and promotion of a special cotton label for cott on from the West African Economic and Monetary 
Union (WAEMU); ii) purchase of two instrumental cotton classification systems and accessories High Volume Instrument (HVI) for Mali and Togo; iii) WAEMU agreed assistance  for reparation of the 
HVI for Burkina Faso; and, iv) training progra mme on capacity building on the measurement in 
relation to classification, ginning and commerciali zation, for several cotton-producing countries 
(Benin, Burkina Faso, Mali, Senegal, Togo and Côte d'Ivoire).  UNIDO also pointed to possible areas 
where it could namely contribute: i) national and re gional strategies; ii) policies and institutions; iii) 
technology innovation; and, iv) chain integration.   
World Bank 
 
 
65. The World Bank reaffirmed its commitment to th is issue of importance for African countries.  
It recalled its presence and contributions at th e Cotonou Workshop and co-operation with the WTO 
Secretariat on the development assistance aspects of co tton.  It also recalled its participation at the 
EU-Africa Cotton Partnership Forum in July.  Th e World Bank responded to country priorities on a 
country-by-country basis, if those priorities were identified in their PRSPs.  The World Bank's lending 
and non-lending activities in the cotton sectors of West  and Central Africa were considerable.  World 
Bank activities took the form of policy analysis, technical assistance and capacity-building, and 
lending operations (either for investment or adjust ment) from IBRD loans or IDA credits.  These were 
specific areas where the World Bank would continue to lead and focus.  (The World Bank provided a 
detailed list of its lending and n on-lending activities in the African cotton-producing countries).20   
                                                      
20 WT/GC/83/Add.1, pages 45-46.   WT/GC/83 
Page 14  
 
66. An issue of high importance and concern by the cotton proponent countries was income 
shortfalls, arising from commodity price fluctuations due to a variety of factors, including exchange 
rate movements.  Priority and urgency were accorded  to the lead role by th e World Bank for technical 
assistance and capacity-building to identify ways to  manage the risk through market-based risk 
mitigation instruments.  "The World Bank's Comm odity Risk Management Group" provides technical 
assistance and training to build the capacity of deve loping country producers to use international risk 
management instruments to hedge exposure to short-term price and weather-related risk.  The World 
Bank noted that price-risk management in the co tton sector was complicated due to the presence of 
"high basis risk" (the low correlation between the Ne w York Board of Trade futures contract and the 
Cotlook A Index – the main price measure of the world cotton market).     
67. Critical is the Bank's technical assistance and cap acity-building to identify constraints to trade 
facilitation and expansion through the Diagnostic Trade Integration Studies (DTISs).  (The two 
Bretton Woods institutions underlined the importan ce they attached to ensuring complementarity 
between trade and development policies).   
E. POVERTY
 REDUCTION  STRATEGY  PAPERS  (PRSP S)  
68. PRSPs are vital to coordinated action by pro ponent countries, bilateral donor Members, and 
multilateral/regional agencies and institutions.  The cotton proponents have fully reflected in their 
PRSPs cotton sector priorities.  Their PRSPs also point to sectoral reform efforts underway.   
Benin   
   
69. Institutional reform of the cotton sector and cotton sector priorities are reflected in detail in 
Benin's PRSPs.  Areas for principal measures are also identified in Benin's PRSP.21   
Burkina Faso  
 
70. Cotton priorities are reflected in the PRSP for Burkina Faso, including in Matrix of Measures 
for the Period 2003 to 2004.22   
Chad  
 
71. Cotton sector priorities, particularly sectoral co mpetitiveness, are reflected in Chad's PRSP.  
Reform strategies are highlighted.  Cotton projects are identified and annexed.23   
Mali   
 72. Cotton sector priorities, including institutional re form are reflected in detail in Mali's PRSP.  
Sectoral objectives are identified as are strategies for attaining those objectives.
24   
F. THE  INTEGRATED  FRAMEWORK  FOR  LEAST-DEVELOPED  COUNTRIES  (IF)   
73. The principal objectives of the IF are to mainst ream a LDCs' trade priorities into its national 
development plans, such as the PRSPs, and to  coordinate the delivery of trade-related technical 
assistance and capacity-building .  If the cotton sector is identified as a priority by an IF beneficiary, a 
Diagnostic Trade Integration Study (DTIS), prepared within the context of the IF, provides an analysis of the sector from economy-wide pers pectives, by assessing its competitiveness and/or 
                                                     
 
21 Benin PRSP 2003 – 2005: see pages 27, 28, 107 and 119.  (Prepared in December 2002).   
22 Burkina Faso PRSP Progress Report 2000-2002: paragraph 215 and Box 3.2 (pages 99 to 100).   
23 Chad PRSP.  Pages 65 to 66; and, Project 15 on page 110).  Prepared in June 2003.   
24 Mali PRSP Annual Progress Report 2004: pages 23 to 24.  Paragraphs 140, 300 to 302.   WT/GC/83 
 Page 15 
 
 
identifying any factors impeding its competitiveness.  Because of the 6-agency partnership (IMF, ITC, 
UNCTAD, UNDP, the World Bank and the WTO) w ith bilateral donors and LDCs' representatives, 
the IF provides essential links to technical and financial assistance.  
74. The four cotton proponent countries are at various stages of the IF process.  Mali has 
completed its first draft of the DTIS, which is  due to be discussed at a national workshop from 
29 November to 1 December 2004.  Benin and Chad are in the process of preparing their DTISs, 
which are scheduled to be completed and discussed at their national workshops in early 2005.  The 
preparation for a DTIS in Burkina Faso is also unde rway, with a preliminary mission to begin the first 
step of the IF process scheduled for early 2005. 
75. An analysis of the cotton sector is undertaken in  the DTIS for Benin, Chad and Mali.  In the 
cases of Benin and Chad, the study contains a dedi cated chapter on the sector, while in Mali's DTIS, 
the cotton sector is treated as part of the chapter on agriculture and agro-industry.  The preliminary 
findings of the DTIS analyses have highlighted the urgent necessity to reform  and strengthen ginning 
factories that had been previously controlled by  national companies.  Moreover, in assessing the 
possibilities for the cotton-producing countries to enga ge in further processing of cotton fibre, the 
findings have placed emphasis on the importanc e of improving genera l economic conditions, 
including transport infrastructure and public services, aimed at reducing overall cost of doing business.  More comprehensive findings of the cotton sector analyses are expected.  
76. In addition to the analytical tools provided by the DTIS, the IF pr ovides a framework of 
coordination among development partne rs, which could play a key role in the delivery of technical 
and financial assistance to the cotton sector.  In each  beneficiary, a "lead donor" or "facilitator" is 
identified among the development community and will be  tasked as the main coordinator of bilateral 
and multilateral donors, in their efforts to suppor t the government to follow-up and implement the 
needs and priorities identified in the DTIS, included in the cotton sector.  In Benin, Chad and Mali, 
the IF Facilitators have supported the Governments throughout the IF processes.  As the cotton sector 
has been identified as a priority in their respectiv e DTIS, the IF can make a positive contribution to 
the coordinated delivery of financial and technical ass istance to the sector.  This should now be used.   
77. Bilateral donor Members and participating multila teral/regional institutions are invited to 
urgently follow-up on the findings and identified areas of assistance in the action matrices.   
G. JOINT
 INTEGRATED  TECHNICAL  ASSISTANCE  PROGRAMME  (JITAP)   
78. Three of the 4 cotton proponent countries (Benin, Burkina Faso and Mali) are JITAP 
beneficiaries.25    Although there is no specific chapter in the JITAP Programme document for cotton 
(or for any other product sector), there is provision for any JITAP country to identify any product for 
which specific action is required.  This provi sion is covered under Module 4 of the Programme 
document.  Under Module 4 (in which ITC is the lead Agency), a country may "identify product-sector strategies as a useful tool to assist their entrepreneurs and policy-makers to convert trading opportunities due to opening up of economies into new export opportunities".   
79. Benin, Burkina Faso and Mali have submitted sp ecific requests for action to be undertaken 
either in the form of "needs assessment studies"; "f ormulation of sector specific strategies"; or for 
"precise product and market development action".   
                                                     
 
25 Chad is not a JITAP beneficiary.   WT/GC/83 
Page 16  
 
Benin 
 
 
80. Benin has requested JITAP to provide techni cal assistance for the strengthening of the 
country's negotiation capacity, with a focus on the cotton sector.  It has asked for a cotton sector study on product and market diversification.  The study w ill better present the needs of Benin for assistance 
in the cotton sector by development agencies in th e context of JITAP or other programmes.    
Burkina Faso 
 
 
81. Burkina Faso has requested for capacity-building for trade negotiators; and, the formulation 
of a "strategic vision" for priority sectors, incl uding the cotton sector.  Burkina Faso like Benin has 
also asked for a "needs assess ment study" on product and market diversification and identification of 
areas of assistance by donors and agencies.   
Mali  
 
82. A project document has been produced.  However, the project document did not request for 
specific JITAP action.  It is, however, expected  that more precise requests will be made.   
83. For the three proponent countries, it is essen tial to bear in mind that like all original  JITAP 
countries, Benin, Burkina Faso and Mali will have  to exit the programme in 2005, unless granted an 
extension.  This decision will need to be made by the JITAP Steering Group.  Extension for Benin, 
Burkina Faso and Mali and the inclusio n of Chad should be considered in  light of the July Decision.   
84. Bilateral donor Members and pa rticipating multilateral/regiona l institutions now need to 
urgently follow-up in the areas of expressed need a nd identified assistance and project preparation.   
V. CONCLUSION  
85. A significant start has been made.  The multilateral system of trade development assistance is 
shifting to reflect cotton sector priorities in progr ammes, facilities and mechanisms.  This is in 
accordance with the Cotonou Cotton Workshop "Out comes" and also in accordance with the 
implementation of the development assistance aspec ts of the cotton-related decisions in the July 
Decision.  Nonetheless, there is scope for progress because the focus of activ ities are in low-income 
countries, where domestic economic circumstances are complex, the challenges extensive and the 
institutions and the infrastructure are inadequate to face up to the challenges.  Therefore, in spite of 
the better than satisfactory start that has been made , efforts still have to be scaled-up.  At the same 
time, the established process and implementation me asures underway on the development aspects, can 
only evolve towards a positive completion when ma tched by corresponding action and participation 
on the part of the proponent countries.  The facts indicate that the proponents are engaged positively.   
86. Preliminary evaluation of the information exch ange in the consultative process point to 
several areas for potential expansion in action.  One such vital area with pressing urgency is coordination at various levels.  There is the necessity  for regional coordination of similar and identical 
requests by proponent countries, to be matched by a corresponding acute need for enhanced donor 
coordination.  On the part of th e cotton proponent countries, they could consider the usefulness of 
cross-country coordination by requesting the African  Development Bank to c oordinate and rationalize 
their needs.  On the part of the donor Members,  the on-going efforts by the United States and the 
European Communities and others deserve acknow ledgement, but evidently there is scope for 
improved coordination.  The DAC/OECD also has a key role to play in underpinning enhanced donor 
coordination.  The DAC, with WTO Secretariat support, is contributing to strengthening such 
enhanced donor coordination, mutually reinforc ing the understanding on coordination as noted in the 
Cotonou Workshop "Outcomes".  Duplication of effo rts and activities need to be avoided.  For 
instance, initial Secretariat an alysis of contributions by bilateral donor Members and WT/GC/83 
 Page 17 
 
 
multilateral/regional agencies and institutions, show a pattern of competitive rush to capacity-building 
(in many cases in the same areas).  There is a rush to provide support for "needs assessments", 
"training of negotiators",  "identification of areas of financial and technical assistance", etc.   
87. The PRSPs are critical country-owned polic y documents around which a consensus has 
emerged by agencies and donors that they will invest their development efforts.  They are central to 
coordinated action.  Technical assistance deliver y mechanisms and frameworks like the Integrated 
Framework and the JITAP were expressly designed to, inter alia , address the challenges of 
coordination and building synergies.  The tripartite  representative structure of these instruments, 
composed of multilateral institutions, bilateral donors,  and beneficiary partners , should now be put to 
full use to seek greater coordination.  The Joint WTO/OECD database will play a critical role in 
tracking and monitoring progress, particularly on the dividends for synergies and enhanced 
coordination.  It is indispensable that coordinate d efforts focus around these instruments.  Support for 
capacity-building can be better rationalized and st reamlined.  Bilateral donors are strongly urged to 
use the Integrated Framework and the JITAP for great er coordination, within the policy framework of 
the PRSPs.     
88. International markets carry risks for commodities as for every sector of international trade.  
These risks have to be addressed.  Long experience clearly indicates that the most promising approaches lie in the use of market -based commodity price risk instruments.  This is a key aspect of 
on-going work on the implementation of the decisions on the development assistance aspects of cotton.  In this regard, the leadership of the Wo rld Bank is vital and indispensable.  However, the 
Bank will require the support and part nership of the international commun ity in very concrete ways.   
89. Cotton sector shocks in countries that are heavily dependent on this commodity carry the risk 
of causing broader macro-economic imbalances.  The IMF has an important role in this regard, in 
advising countries in adjusting to these shocks, a nd in providing financial support to mitigate the 
impact on the balance of payments, as appropriate. 
90. Deeper and continuing domestic  reform in the cotton proponent countries is essential to 
strengthen their competitive efficiency for particip ation in international markets.  Members and 
multilateral institutions need to encourage this process of domestic reform, which is also vital if these 
countries are to benefit from progressive improvements in market access opportunities. 
 
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