TN/AG/GEN/34/Rev.11/Add.1  
TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
11 November 2019  
(19-7645) Page: 1/70 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton  
    
 
  
COTTON  
BACKGROUND PAPER BY THE SECRETARIAT1 
Addendum  
This addendum refers to and must be read in conjunction with document  
TN/AG/GEN/34/Rev. 11 - TN/AG/SCC/GEN/13/Rev. 11. It showcases in particular: Members' replies 
to the questionnaire on new or updated cotton -related policy developments  (Annex 4) ; and 
information on cotton markets and policies from the trade policy review mechanism  (Annex 5) . 
 
_______________  
 
 
 
 
TABLE OF CONTENTS  
ANNEX 1  ................................ ................................ ................................ ............................  2 
ANNEX 2  ................................ ................................ ................................ ............................  5 
ANNEX 3  ................................ ................................ ................................ ............................  8 
ANNEX 4  ................................ ................................ ................................ ..........................  11 
ANNEX 5  ................................ ................................ ................................ ..........................  34 
 
 
  
                                              
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO. It has been prepared for 
information only and is not intended to provide any authoritative or officia l legal interpretation of the provisions 
of the WTO Agreements in general on in relation to any measure listed in this document.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 2 - 
 
  ANNEX 1  
NOTES ON TARIFF RATE QUOTA  COMMITMENTS FROM CHINA'S SCHEDUL E 
1. Tariff quotas indicated in the third column are volumes for calendar year 2001. Tariff quota 
concessions will be implemented according to the date specified in the "implementation" 
column. The implementation column indicates the date (referring to 1 January of the year 
indicated) when the final quota quantity will be achieved. The tariff quota concessions are 
subject  to equal annual adjustments (occurring on 1 January of each year), unless otherwise 
specified in the last column ("Other terms and conditions").  
2. The People's Republic of China (hereinafter referred to as "China")  shall maintain its in -quota 
applied and bo und rates (and, upon removal of the tariff -quota, its applied and bound rates) 
for HS 1514 (rape or colza (canola) oil and its fractions, whether or not refined, but not 
chemically modified) at a level equal to that for HS 1507 (soya -bean oil and its fract ions, 
whether or not refined, but not chemically modified) and for HS 1205 (rape or colza (canola) 
seeds, whether or not broken).  
3. The growth rate for the TRQ volume for canola (rapeseed) oil shall be no less than the growth 
rate for the TRQ volume for soyb ean oil.  
4. An entity granted a tariff quota allocation (quota -holder) may engage in importation through 
state-trading enterprises and/or through entities possessing the right to trade other than 
state-trading enterprises, including direct importation by the quota holder, as indicated on 
documentation issued with the allocation or reallocation of the tariff quota quantities.  
5. Application: All applications for an allocation of the tariff -quota will be submitted to the State 
Development and Planning Commission (S DPC). Specific condi tions for applying for a 
tariff-quota allocation will be published in the official journal one month in advance of the 
application period, which will be from 15 October to 30 October.  
6. Allocation:  
a. The entire tariff -quota quantity establi shed in Section I -B shall be allocated to end users 
by 1 January each year. Inquiries regarding tariff -quota allocations can be made to the 
SDPC, with responses provided within ten working days. Any additional requirement for 
importation will be automatic under the terms of the Agreement on Import Licensing 
Procedures. China shall equitably distribute allocations within each portion of the tariff -
quota to ensure complete tariff -quota utilization and to establish a tariff -quota system that 
is open, transpare nt, fair, responsive to market conditions, timely, minimally burdensome 
to trade and reflects end user preferences.  
b. In the first year, allocations to end users by the SDPC of the tariff -quota reserved for 
importation through state -trading enterprises shall  be based on a first -come, first -served 
system or the requests of the applicants and their historical import performance, 
production capacity, or other relevant commercial criteria, subject to specific conditions to 
be published one month in advance of the  opening of the application period so as to ensure 
an equitable distribution and complete tariff -quota utilization. In the first year, no less 
than 10% of the tariff -quota reserved for importation through state -trading enterprises 
will be allocated to new quota -holders.  
c. In the first year, allocations to end users by the SDPC of the tariff -quota reserved for 
importation through entities other than state -trading enterprises shall be based on a first -
come, first -served system or the requests of the applicants and their historical import 
performance, production capacity, or other relevant commercial criteria. No less than 10% 
of the tariff -quota reserved for importation through entities other than state -trading 
enterprises will be allocated to new quota -holders.  This tariff -quota will be limited to 
entities that do not receive any special or exclusive rights or privileges, and will include 
allocations to joint ventures, wholly foreign -funded enterprises, and private enterprises.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 3 - 
 
  d. Except in cases where tariff -quota  is allocated on a first -come, first -served basis, and in 
accordance with China's Schedule of Concessions and Commitments on Goods, a 
quota -holder that has imported under a tariff -quota shall, upon application, receive an 
allocation of the tariff -quota in the following year for a quantity no less than the quantity 
imported the previous year. For all methods of allocation, a quota -holder that does not 
import its full allocation under a tariff -quota will receive a proportional reduction in the 
tariff-quota al location in the subsequent year unless the quantity is returned to the 
SDPC  prior to 15  September. A quota holder that has failed to import its full allocation in 
two consecutive years and has returned that unused portion by 15 September shall have 
its quo ta allocated in the following year on the basis of its fill rate in the most recent year, 
and will not benefit from any additional reallocations until and unless there are no other 
applications. The means of calculating the penalty will be included in the TRQ regulation 
in force and publicly available, and will be applied in a consistent and equitable manner.  
e. Allocations will be established for commercially viable shipping quantities and provisions 
will be made for partial shipments against a single tariff -quota allocation. All commercial 
terms of trade, including product specification, pricing, packaging, etc., will be at the sole 
determination of the importer and the exporter taking into full account the demands of 
the end user. Tariff -quota allocations wi ll be valid for any item or mixture of items subject 
to the same tariff -quota.  
f. Inquiries on the entities which received the allocation can be made to the SDPC which 
shall provide the information within ten days.  
7. Term: The tariff -quota for each product will  be opened on 1 January each year, unless otherwise 
specified in the Schedule. Tariff -quota allocations will be valid for the calendar year.  
8. Reallocation:  
a. In any year, if a quota -holder has not contracted for the total quantity by 15 September, it 
shall re turn the unused portion of the tariff -quota quantity to the SDPC for reallocation.  
b. Applications for reallocation of the tariff -quota will be accepted by the SDPC from 
1 September to 15 September and new allocations shall be assigned by 1  October. Specific 
conditions for applying for reallocation of tariff quotas will be published in the official journal 
one month in advance of the application period. Such allocations, which shall be to new 
applicants and to entities other than those returning quota s under sub -paragraph 8 .a. above, 
will be assigned on a first -come, first -served basis. Quota -holders allocated a share of the 
tariff-quota reserved for importation through entities other than state -trading enterprises 
may import through any entity that ha s a right to trade in any product as specified in 
Section  5 of China's Protocol of Accession.  
c. Inquiries on the entities which received the reallocations can be made to the SDPC which 
will provide the information within ten days.  
d. In situations where goods h ave been shipped from their port of origin before 31 December 
of any year, but are entered after 31 December of that year, China shall extend the validity 
of the tariff quota documents and shall count such shipments against the tariff quota 
allocation for the year in which the tariff quota was initially allocated.  
Consultations:  
 
9. With a view to maintaining a transparent and open tariff quota system, upon request from any 
WTO Member, China shall consult with the Member on the administration of the tariff quo ta to 
ensure that the tariff quota will be allocated in a transparent, equitable and non-discriminatory 
manner and that the tariff quota will be fully utilized.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 4 - 
 
  Notes:  
 
1. The share of the tariff -quota reserved for importation through state -trading enterprise s is 
specified in column 7 of Section I -B. The remainder of the tariff -quota quantity is reserved for 
importation through any non -state trading enterprise possessing the right to trade in any 
product as set forth in Section 5 of China's Protocol of Accessi on. 
 
In any year, if the quantity of the tariff -quota reserved for importation through state -trading 
enterprises has not been contracted for by 15 August, quota -holders will have the right to 
trade or to import through any entity with the right to trade an y product under Section 5 of 
China's Protocol of Accession.  
 
2. China shall ensure that the applied duty for soybean oil, rapeseed oil, palm oil, peanut oil, 
cottonseed oil, sunflower seed oil, and corn oil is no greater than the applied duty for any one 
of these oils or for any other vegetable oil. Of the vegetable oils subject to tariff quota (i.e., 
soybean oil, rapeseed oil, and palm oil), if the tariff -quota for any one oil is autonomously 
increased, the tariff -quotas for the other two will be increased co mmensurately. Beginning 
1 January 2006, China will remove soybean oil, rapeseed oil and palm oil from Annex 2A of 
the Protocol of Accession and will grant the right to trade such oils to all individuals and 
enterprises.  
 
3. All quota holders, that have alread y fully used or contracted their tariff -quota allocations in 
any year by 15 September shall also be eligible for reallocation of tariff -quota from other 
quota holders that have returned their allocations.  
 
_______________  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 5 - 
 
  ANNEX 2  
CHAPTER NOTES CONCERNING TRQ COMMI TMENTS FOR COTTON FROM THE US SCHEDULE  
"CHAPTER 52  
 
COTTON  
 
Additional US Notes 1/  
 
1. Under regulations prescribed by the Secretary of the Treasury, the staple length of cotton 
shall be determined for all customs purposes by applicatio n of the Official Cotton Standards of the 
United States  for length of staple, as established by the Secretary of Agriculture and in effect when 
the determination is to be made.  
 
5. There shall be permitted entry an aggregate quantity of cotton, entered und er the provisions 
of additional US notes 6 through 11, inclusive, to this chapter, of not less than the total quantity 
specified below.  
 
 Quantity (metric ton nes) 
1995  41,926.8  
1996  48,850.4  
1997  55,773.9  
1998  62,697.5  
1999  69,621.0  
2000 and thereafter  76,544.6  
 
An additional aggregate quantity of 10,000 metric ton nes is reserved for Mexico under this note.  
 
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es) issued by the Secretary of Agriculture.  
 
1/ Note 1 and additional US notes 2, 3 and 4 to this chapter are omitted from this section and are 
in section II of this schedule. Additional US notes 5 through 11, inclusive, to this chapter are not in 
the Harmonized Tariff Sche dule of the United States . 
 
6. There shall be permitted entry an aggregate quantity of cotton, not carded or combed, having 
a staple length under 28.575 mm (1 -1/8 inches) (except harsh or rough cotton, having a staple 
length under 19.05 mm (3/4 inch)), ent ered under subh eading 5201.00.14 during the 12 -month 
period beginning September 20 in any year, of not less than the total quantity specified below.  
 
 Quantity (metric ton nes) 
1995  8,495.05 * 
1996  10,837.45*  
1997  13,179.85*  
1998  15,522.25*  
1999  17,864.65*  
2000 and thereafter  20,207.05*  
* Of the quantitative limitation provided for in this note, access levels are reserved as follows for entry under 
the provisions of this note:  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 6 - 
 
   Quantity 
(kg)  Quantity 
(kg) 
Egypt & Sudan (aggregate)  355,532  Honduras  341 
Peru 112,469  Paraguay  395 
India & Pakistan (aggregate)  908,764  Colombia  56 
China  621,780  Iraq 88 
Brazil  280,648  British East Africa  1,016  
Union of Soviet Socialist 
Republics  215,512  Indonesia & Netherlands New Guinea 
(aggregate)  32,381  
Argentina  2,360  British West Indies (except Barbados, 
Bermuda, Jamaica, or Trinidad and Tobago)  9,671  
Haiti 107 Nigeria  2,438  
Ecuador  4,233  British West Africa (except Nigeria and Ghana)  7,259  
 
The quantitative limitations established by this note may be administered through regulations 
(including licen ces and reallocation of unfilled quotas) issued by the Secretary of Agriculture.  
 
7. There shall be permitted entry an aggregate quantity of harsh or rough cotton, not carded or 
combed, having a staple length of 29.36875 mm (1 -5/32 inches) or more but under 34.925 mm (1 -
3/8 inches) and white in colo ur (except cotton of perished staple, grabbots and cotton pickings), 
entered under subheading 5201.00.24 during the 12 -month period  beginning 1 August in any year, 
of not less than the total quantity specified below.  
 
 Quantity (metric ton nes) 
1995  900.0  
1996  1,000.0  
1997  1,100.0  
1998  1,200.0  
1999  1,300.0  
2000 and thereafter  1,400.0  
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es) issued by the Secretary of Agriculture.  
 
8. There shall be permitted entry an aggregate quantity of cotton, not carded or combed, having 
a staple length of 28.575 mm (1 -1/8 inches) or more but under 34.925 mm (1 -3/8 inches) (except 
harsh or rough cotton, not carded or combed, having a staple length of 29.36875 mm (1 -5/32 
inches) or more and white in colour ) but including cotton of perished staple, grabbots and cotton 
pickings, entered under subheading 5201.00.34 during the 12 -month period beginning 1 August in 
any year, of not less than the total quantity specified below.  
 
 Quantity (metric ton nes) 
1995  5,200.0  
1996  6,460.0  
1997  7,720.0  
1998  8,980.0  
1999  10,240.0  
2000 and thereafter  11,500.0  
The quantitative limitations established by this note may be administered through regulations 
(including licen ces) issued by the Secretary of Agriculture.  
 
9. There shall be permitted entry an aggregate quantity of cotton, not carded or combed, having 
a staple length of 34.925 mm (1 -3/8 inches) or more, entered under subheading 5201.00.60 during 
the 12 -month period beginning August 1 in any year , of not less than the total quantity specified 
below.  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 7 - 
 
   
 Quantity (metric ton nes) 
1995  25,500.0  
1996  28,420.0  
1997  31,340.0  
1998  34,260.0  
1999  37,180.0  
2000 and thereafter  40,100.0  
The quantitative limitations established by this note may be administered through regulations 
(including licen ces) issued by the Secretary of Agriculture.  
 
10. There shall be permitted entry an aggregate quantity of card strips made from cotton having 
a staple length under 30.1625 mm (1 -3/16 inches), and lap waste, sliver waste and roving waste of 
cotton, all the foregoing the product of any country or are including the United States , entered under 
subheading 5202.99.10 during the 12 -month period beginning 20 September in any year, of not 
less than the total quantity  specified below.  
 
 Quantity (kg)  
1995  1,835,427*  
1996  2,135,427*  
1997  2,435,427*  
1998  2,735,427*  
1999  3,035,427*  
2000 and thereafter  3,335,427*  
* Of the quantitative limitation provided for in this note, access levels are reserved as follows for entry under 
the provisions of this note:  
 
 Quantity 
(kg)  Quantity 
(kg) 
United Kingdom  653,695  Japan  154,917  
Canada  108,721  China  7,857  
France  34,385  Egypt  3,689  
India & Pakistan (aggregate)  31,582  Cuba  2,968  
Netherlands  10,317  Germany  11,540  
Switzerland  6,711  Italy 3,215  
Belgium  5,830    
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es and reallocation of unfilled quotas) issued by the Secretary of Agriculture.  
 
11. There shall be permitted entr y an aggregate quantity of fib res of cotton processed but not 
spun, entered under subheading 5203.00.10 during the 12 -month period beginning 11 September 
in any year, of not less than the total quantity specified below.  
 
 Quantity (k g) 
1995  1,000  
1996  1,300  
1997  1,600  
1998  1,900  
1999  2,200  
2000 and thereafter  2,500  
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es) issued by the Secretary of Agriculture. " 
_______________  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 8 - 
 
  ANNEX 3  
EXCERPT FROM  ANNEX 1 TO G/AG/N/U SA/2/ADD.3 AND G/AG/N/USA/34/ADD.1  
NOTES FROM THE HARMO NIZED TARIFF SYSTEM OF THE UNITED STATES  
"36/ Short staple cotton  
 from Additional US Note 5 to Chapter 52 of the HTSUS:  
 
5. The aggregate quantity of cotton, not carded or combed, the product of any country or area 
including the United States , having a staple length under 28.575 mm (1 -1/8 inches) (except harsh 
or rough cotton, having a staple length under 19.05 mm (3 /4 inch)), entered under subheading 
5201.00.14 during the 12 -month periods from 20 September 1999, through 19 September 2000, 
inclusive, shall not exceed 17,864.65 metric ton nes or from 20 September  2000, through 
19 September 2001, inclusive, shall not exc eed 20,207.05 metric to nnes (articles the product of 
Mexico shall not be permitted or included in the aforementioned quantitative limitation and no such 
articles shall be classifiable therein).  
 
Of the quantitative limitations provided for in this note, the countries listed below shall have access 
to not less than the quantities specified below:  
 
 Quantity (kg)  
Argentina  2,360  
Brazil  280,648  
British East Africa  1,016  
British West Africa (except Nigeria and Ghana)  7,259  
British West Indies (except Barbados, Bermuda, Jamaica, Trinidad, Tobago)  9,671  
Chine  621,780  
Colombia  56 
Ecuador  4,233  
Egypt & Sudan (aggregate)  355,532  
Haiti 107 
Honduras  341 
India & Pakistan (aggregate)  908,764  
Indonesia & Netherlands New Guinea (aggregate)  32,381  
Iraq 88 
Nigeria  2,438  
Paraguay  395 
Peru 112,469  
Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, 
Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan 
(aggregate)  215,512  
Other than as provided for in the country allocations above, articles the product of countries or areas 
who are not members of the World Trade Organization shall not be permitted or included in the 
quantitative limitations set forth in this note.  
37/ Harsh  or rough cotton  
 from Additional U S Note 6 to Chapter 52 of the HTSUS:  
 
6. The aggregate quantity of harsh or rough cotton, not carded or combed, the product of any 
country or area including the United States , having a staple length of 29.36875 mm (1 -5/32 inches) 
or more but under 34.925 mm (1 -3/8 inches) and white in colour  (except cotton of perished staple, 
grabbots and cotton pickings), entered under subheading 5201.00.24 during the 12 -month periods 
from 1 August 1999, through 31 July 2000, inclusive,  shall not exceed 1,300.0  metric ton nes or 
from 1 August 2000, through 31 July 2001, incl usive, shall not exceed 1,400.0  metric ton nes 
(articles the product of Mexico shall not be permitted or included in the aforementioned quantitative 
limitatio n and no such articles shall be classifiable therein).  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 9 - 
 
   
Articles the product of countries or areas who are not members of the World Trade Organization 
shall not be permitted or included in the quantitative limitations set forth in this note.  
 
38/ Medium st aple cotton  
 from Additional U S Note 7 to Chapter 52 of the HTSUS:  
 
7. The aggregate quantity of cotton, not carded or combed, the product of any country or area 
including the United States , having a staple length of 28.575 mm (1 -1/8 inches) or more but under 
34.925 mm (1 -3/8 inches) (except harsh or rough cotton, not carded or combed, having a staple 
length of 29.36875 mm (1 -5/32 inches) or more and white in colo ur) but including cotton of perished 
staple, grabbots and cotton pickings, entered under subheading 5201.00.34 during the 12 -month 
periods from 1 August 1999, through  31 July 2000, inclu sive, shall not exceed 10,240.0  metric 
tonnes or from 1 August 2000, through 31 July 2001, inclusive, shall not exceed 11,500.0  metric 
tonnes (articles the product of Mexico shall not be permitted or included in the aforementioned 
quant itative limitation and no such articles shall be classifiable therein).  
 
Articles the product of countries or areas who are not members of the World Trade Organization 
shall not be permitted or included in the quantitative limitations set forth in this not e. 
 
39/ Long staple cotton  
 from Additional US Note 8 to Chapter 52:  
 
8. The aggregate quantity of cotton, not carded or combed, the product of any country or area 
including the United States , having a staple length of 34.925 mm (1 -3/8 inches) or more, ent ered 
under subheading 5201.00.60 during the 12 -month periods from 1 August 1999, through 
31 July 2000, inclusive, shall not exceed 37,180.0 metric ton nes or from 1 August 2000, through 
31 July 2001, inclusive, shall not exceed 40,100.0 metric ton nes (artic les the product of Mexico shall 
not be permitted or included in the aforementioned quantitative limitation and no such articles shall 
be classifiable therein).  
 
Articles the product of countries or areas who are not members of the World Trade Organization 
shall not be permitted or included in the quantitative limitations set forth in this note.  
 
40/ Cotton waste  
 from Additional US Note 9 to Chapter 52 of the HTSUS:  
 
9. The aggregate quantity of card strips made from cotton having a staple length under 
30.1625 mm (1 -3/16 inches), and lap waste, sliver waste and roving waste of cotton, all the 
foregoing the product of any country or area including the United States , entered under subheading 
5202.99.10 during the 12 -month periods from 20 September 1999, throug h 19 September 2000, 
inclusive, shall not exceed 3,035,427 kilograms or from 20 September  2000, through 19 September 
2001, inclusive, shall not exceed 3,335,427 kilograms (articles the product of Mexico shall not be 
permitted or included in the aforementioned quantitative limitation and no such articles shall be 
classifiable therein).  
 
Of the quantitative limitations provided for in this note, the countries listed below shall have access 
to not less than the quantities specified below:  
 Quantity (kg) 
Belgium  5,830  
Canada  108,721  
China  7,857  
Cuba  2,968  
Egypt  3,689  
France  34,385  
Germany  11,540  
Italy 3,215  
India & Pakistan (aggregate)  31,582  
Japan  154,917  
Netherlands  10,317  
Switzerland  6,711  
United Kingdom  653,695  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 10 - 
 
  Other than as provided for in the country allocations above, articles the product of countries or areas 
who are not members of the World Trade Organization shall not be permitted or included in the 
quantitative limitations set forth in this note.  
41/ Cotton processed bu t not spun  
 from Additional US Note 10 to Chapter 52 of the HTSUS:  
 
10. The aggregate quantity of fibres  of cotton processed but not spun, entered under subheading 
5203.00.10 during the 12 -month periods from 11 September 1999, through 10 September 2000, 
inclusive, shall not exceed 2,200 kilograms or from 11 September 2000, through 
10 September  2001, inclusive, shall not exceed 2,500 kilograms (articles the product of Mexico shall 
not be permitted or included in the aforementioned quantitat ive limitation and no such articles shall 
be classifiable therein).  
 
Articles the product of countries or areas who are not members of the World Trade Organization 
shall not be permitted or included in the quantitative limitations set forth in this note. " 
 
_______________  
 
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 11 - 
 
  ANNEX 4  
MEMBERS' REPLIES TO THE QUESTIONNAIRE  ON NEW OR UPDATED  
COTTON -RELATED POLIC Y DEVELOPMENTS  
1. Since the second dedicated discussion of the relevant trade -related developments for cotton 
of 28 November 2014, Members agreed that, in order to complement the revised background paper 
to be prepared by the WTO Secretariat  and in advance of each dedicated discussion , a questionnaire 
would be sent to Members to seek updates, on a voluntary basis, on their recent cott on-related 
policy developments  across the three pillars of Market Access, Domestic Support and Export 
Competition .1 Members were also invited to provide an assessment of the impact (or anticipated 
impact), if available, of those new or updated policy devel opments.  
 
2. Ten questionnaires were circulated, on 4  February 2015, 17 September 2015, 
22 February  20162, 13 September 2016 , 28 March 2017 , 10 October 2017 , 24 January 2018 , 
14 September 2018 , 11 February 2019  and 10 September 2019 , respectively. The following table 
lists Members who have replied  to those questionnaires. The replying Members  who are among the 
32 Members identified in paragraph s 12 and 13  of this paper  as markets of interest to LDCs  are 
identified in bold : 
 
Members who replied to the previous questionnaire s 
circulated on 4 February 2015 , 17 September 2015 , 
22 February 2016 , 13 September 2016 , 28 March 2017 , 
10 October 2017 , 24 January 2018  and 11 February 2019  Members who replied to the questionnaire 
circulated on 10 September 2019 
Argentina;  Australia ; Benin;  Brazil ; Burkina Faso; Chad;  
China ; Colombia ; Costa Rica; Egypt ; Ecuador; 
European Union ; Hong Kong, China ; Japan ; Israel;  
Maca o, China; Mali;  Mauritius ; Montenegro; Morocco ; 
New Zealand ; Pakistan ; Peru ; Russian Federation ; 
South Africa ; Chinese Taip ei; Turkey ; Ukraine; 
United States  and Uruguay  Australia; Brazil; European Union; 
Macao,  China ; Russian Federation; 
Switzerland; Turkey; and Ukraine  
 
3. Some  Members p rovided a "n il" reply, i.e. they did not report any new  or update d policy 
development  across the three pillars of Market Access, Domestic  Support and Export Competition . 
These Members are listed in the  table below.   
 
Members with a nil reply to the previous questionnaire s 
circulated on 4 February 2015 , 17 September , 
22 February 2016 , 13 September 2016 , 28 March  2017, 
10 October 2017 , 24 January 2018 , 14 September  2018 
and 11 February 2019  Members with a nil reply to the questionnaire  
circulated on 10 September 2019  
Australia; Ecuador;  European Union; Costa Rica; 
Hong  Kong, China; Japan; Maca o, China; Mauritius; 
Montenegro; New Zealand; Pakistan; Peru; Chinese 
Taipei, Russian  Federation;  South Africa;  Uganda; 
Uruguay and United States  Australia; Brazil; European Union; 
Macao,  China; Switzerland; and Turkey  
 
4. Non-nil replies are reproduced below . In cases where a Member has replied to more than one 
questionnaire, only the response to the latest questionnaire is listed. Responses to earlier 
questionnaires can be found in previous versions of the Secretariat's background paper.  
 
 
  
                                              
1 Paragraph 12 of the Chairperson report on the second dedicated discussion of the relevant 
trade -related developments for cott on (TN/AG/29 and TN/AG/SCC/3).  
2 The French and Spanish versions of the questionnaire were circulated on 8 March 2016.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 12 - 
 
  Reply from the Ru ssian Federation to the questionnaire circulated on 10 September 2019  
 
Market Access  
Russia n Federation's  exports and imports of cotton, not carded or combed 
(thousand  US dollars)  
  2018  
Export   
Belarus  481.9 
Kazakhstan  0.6 
Total  482.5 
Import   
Afghanistan  228.6  
Azerbaijan  1,547 .2 
Belarus  145.1  
European Union  155.3  
India  33.9 
Kazakhstan  6,439.5  
Kyrgyz Republic   14,535.6  
Tajikistan  24,815.2  
Turkey  1,236.6  
Turkmenistan  2,103.5  
Uzbekistan  3,448.2  
Total  54,603.7  
 
Domestic Support  
Product -specific AMS (million US dollars)  
  2017 
Non-exempt direct 
payments  0.69 
Product -specific AMS  0.69 
 
Export Competition  
There are no specific measures in the context of export competition for cotton in the Russian 
Federation.  
 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 13 - 
 
  Reply from Ukraine to the questionnaire circulated on 10 September 2019  
 
With regard to the Nairobi Ministerial Decision on Cotton (document WT/MIN(15)/46, WT/L/981 as 
of 21 December 2015)  Ukraine would like to provide the following information.  
 
Information on Cotton  
(CY 2019 ) 
 
1. Market  access  
 
In January –September 2019, there were  no changes in cotton policy in terms of market acce ss. 
  
UKTZED  
(Ukrainian Foreign 
Economic Activity 
Commodity 
Classification, based 
on Harmonized 
System 2012)  Description  2019  
Bound import duty 
rate within the MFN  Applied import duty 
rate within the MFN  
5201 00  Cotton, not carded or combed    
5201 00 10 00  - Rendered absorbent or bleached  0 0 
5201 00 90 00  - Other  0 0 
5202  Cotton waste (including yarn waste 
and garnetted stocks)    
5202 10 00 00  - Yarn waste (including thread 
waste)  1 1 
 - Other    
5202 91 00 00  -- Garnetted stock  0 0 
5202 99 00 00  -- Other  1 1 
5203 00 00 00  Cotton, carded or combed  5 5 
2. Domestic support  
In January –September 2019, no state  support for cotton was provided.  
3. Export  competitio n 
According  to Ukraine 's WTO obligations , no export  subsidies  for agricultural  products , including  
cotton , were provided .  
In respect to cotton , no Export Credit, Export Credit Guarantees or Insurance Programs (Export 
financing) and Food aid were granted, as well as no  Agriculture Exporting State Trading Enterprises 
were functioning or established.  
 
 
 
 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 14 - 
 
  Reply from Argentina to the questionnaire c irculated on 11 February 2019 (original reply 
in Spanish )  
 
The Government Secretariat for Agroindustry wishes to state that it continues to make efforts to 
incorporate the Cotton Fibre Quality Improvement Assistance Programme (PROCALGODON), created 
by vir tue of Resolution No.  537/2008 under the Better Cotton Initiative (BCI). Through it, it is hoped 
that Argentinian cotton will meet the international trade standards that the leading textile brands 
require, thus enabling its entry into those markets. To tha t end, both the public and private sectors 
will pursue joint efforts to develop the traceability programme and the network of HVI (High Volume 
Instrument) laboratories to determine the quality and origin of cotton fibre. The commitment of 
provinces with th e highest cotton production to this issue is crucial. For example, some trials have 
been conducted in Santa Fe, (promoting the use of RFID technology for the reading of bales); while 
in Santiago del Estero efforts are underway to place the producer at the centre of trials, in carrying 
out harvest and post -harvest activities, highlighting that a lot of work still needs to be done with the 
crop before its traceability can be refined. In parallel, efforts are focusing on which software to use, 
it being underst ood that a blockchain system that guarantees data inviolability throughout the 
various steps being traced should be considered. Regarding improved cotton fibre quality, INTA has 
been conducting research on new varieties, which will include the Guazuncho 4 INTA BGRR, Pora 3 
INTA BGRR and Guaraní INTA BGRR grades, which, among other features, are resistant to diseases 
(such as the Cotton Blue Disease). Testing protocols are being conducted and are at the experimental 
stage.  
While it is true that cotton export s have been affected by Decree No.  793/2018, which establishes 
a levy on this activity, and the amendments thereto, the national authorities are currently trying to 
identify solutions that will meet the requirements of the sector.  
Lastly, we wish to recall  and highlight the commitment by the State and regional producers to 
combat the cotton boll weevil ( Anthonomus grandis, Boheman ), the main pest affecting this crop. 
Success depends on efficient existing plant health agencies and the establishment of new on es. This 
is clearly demonstrated in the provinces of Santiago del Estero, Chaco and Santa Fe, the main 
cotton -producing provinces in Argentina. However, it should be noted that, due to severe weather 
conditions affecting a large part of the cotton zone in our country, these efforts have been stymied 
and several provinces have declared a flood emergency.  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 15 - 
 
  Reply from Brazil to the questionnaire circulated on 11 February 2019  
 
With regard to  the Director of the Agriculture and Commodities Division 's invitation to Members, on 
11 February 2019, to provide updates on cotton -related policy developments in view of the 
forthcoming dedicated discussion, Brazil submits the following information (conc erning the period 
between October 2018 and March 2019):  
 
- Market Access: Of the three tariff lines in heading 5201 (cotton, not carded or combed), all 
maintained an applied duty rate of 6%.  
 
- Domestic Support: There has been no domestic support provided to Brazilian cotton 
producers.  
 
- Export Competition: No export subsidies have been granted to cotton.  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 16 - 
 
  Reply from the European Union to the questionnaire circulated on 11 February 2019  
 
In reply to the questionnaire of the WTO Secretariat of 11 February 2019 on new or updated cotton 
related policy developments in advance of the eleventh dedicated discussion on cotton, the European 
Union provides below the data on direct payment expenditures for cotton granted in accordance with 
Article 6.5 of the  Agreement on Agriculture. No other cotton -related policy developments occurred 
in the EU during the reporting period.  
 
Description of 
Measure  2009/  
2010  2010/  
2011  2011/  
2012  2012/  
2013  2013/  
2014  2014/  
2015  2015/  
2016  2016/  
2017  2017/  
2018  
Payments based on 
fixed area and 
yields: Cotton 
(Title  IV, Chapter 1, 
Section 6 of 
Regulation (EC) No. 
73/2009; from  2015, 
Title IV, Chapter  2 of 
Regulation (EU) No. 
1307/2013)  221.7  247.3  245.8  242.3  231.8  244.0  243.9  233.8  243.75  
 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 17 - 
 
  Reply from Peru to the questionnaire circulated on 11 February 2019 (original reply in 
Spanish)  
 
I. Market Access  
 
Peru made no changes to its cotton -related policies concerning market access.  
 
II. Domestic Support  
 
a. Cotton Financing Programme  
 
1. Description of the programme:  
 
Funding programme consisting of the provision of repayable loans to eligible small cotton 
producers forming part of producer organizations in the Pisco, Chincha and Cañete valleys.  
 
2. Objective:  
 
Provision of loans to finance cotton farming for the purchase of inputs (seed, fertilizers and 
agrochemicals), machinery, labour, administrative costs and technical assistance.  
 
3. Beneficiaries:  
 
Small cotton producers in the Pisco, Chincha and Cañete valleys, through producer 
organizations (formally established cooper atives and/or associations), which, in addition, 
provide services relating to business management and technical assistance.  
 
4. Duration:  
 
November  2018 to March  2019.  
 
5. Form of benefit:  
 
The Temporary Funding Programme for Agricultural Inputs, financed with resources from 
the AGROPERU Fund through AGROBANCO, is intended for small producer organizations in 
the Pisco, Chincha and Cañete valleys, for the purchase of inputs (seed, fertilizers and 
agrochemicals), labour, technical assistance and technical management support.  
The preferential rate for cotton producers is an Annual Effective Rate of 12% for up to 
nine months for the Tanguis variety and up to seven months for the Hazera and 
IPA 59 varieties.  
The funding amount per hectare is PEN  4,300.00, with a maximum of 4  ha per producer, 
distributed as follows:  
Table 1  - Per Hectare Funding Breakdown  
Category  Amount (in soles)  
Inputs: seed, fertilizers and agrochemicals  4,130.00  Services: labour, machinery and water  
Technical assistance  140.00  
Technical management support  30.00  
Total  4,300.00  
Source:  Agricultural Financing and Insurance Directorate, based on the Financing Programme for the 
2018 -2019 Cotton Season – Agroperú Fund, Agrobanco.  
III. Export Competition  
 
Peru does not provide export subsidies for agricultural products, including cotton.  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 18 - 
 
  Reply from Turkey to the questionnaire circulated on 11 February 2019  
 
With regard to the Director of the Agriculture and Commodities Division's invitation to Members, on 
the 11 February 2019, to provide updates on cotton -related policy developments in ad vance of the 
forthcoming eleventh dedicated discussion on cotton, Turkey submits the following information:  
 
- Market Access : In Turkey 's Harmonized System, there are two products with 12 digits code 
under in heading 52.01 (cotton, not carded or combed) as f ollowings : 
• 5201.00.10.00.00  - Rendered absorbent or bleached  
• 5201.00.90.00.00  – Others . 
 
Turkey applies 0 % customs duty to all countries for these goods.  
Notwithstanding, as of 17.04.2016, Turkey has started to implement a rate of 3 % (CIF) anti -
dumping dut y, if the goods are, which listed above, with the US origin.  
 
- Domestic Support : No new or updated cotton -related policy developments . 
 
- Export Competition : No new or updated cotton -related policy developments . 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 19 - 
 
  Reply from the United States to the questionnaire circulated on 11 February 2019   
 
•  Market Access:  There are no new or updated cotton -related policy developments.  
  
•  Domestic Support:  There are no new or updated cotton -specific programs to report, but several 
other programs not specific to cotton were updated to affect multiple commodities, including cotton. 
We do not anticipate any market impact from the changes covered below.  
 
MFP ( Market Facilitation Program) : The Market Facilitation Program, announced in July 2018, 
provides direct payments to producers of nine commodities, including cotton, to help them adjust to 
disrupted export markets resulting from retaliatory tariffs. The MFP is established under the statutory 
authority of the Commodity Credit Corporation (CCC) Charter Act and is under the administration of 
the US Department of Agriculture (USDA) Farm Service Agency (FSA). The initial MFP payment was 
calculated as 50 % of a producer 's 2018 production times the announced MFP rate, with those 
payments beginning in September 2018. On December 18, 2018, CCC announced a second payment 
rate that applied to the remaining 50 % of the producer 's 2018 production. The first and sec ond MFP 
payment rates for cotton were US$0.06 per pound. MFP payments were limited to a combined per 
person or legal entity cap of US$125,000 for all crops (corn, cotton, sorghum, soybeans, and wheat), 
with additional payment caps of US$125,000 each for th e combined total for livestock (dairy and 
hogs) and for the combined total for specialty crops (sweet cherries and shelled almonds).   
  
Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) Programs : The Bipartisan Budget 
Act of 2018 (BBA) establi shed seed cotton as a covered commodity under the ARC and PLC programs 
effective with the 2018 crop year. Producers with generic base acres (former upland cotton base 
acres) under the ARC/PLC program reallocated their generic base to either seed cotton or other 
covered commodities based on historical plantings on those acres. The seed cotton PLC payment 
yield per base acre was set as 2.4 times the payment yield for the producer 's former upland cotton 
base acres. Producers were provided a one -time opportunit y to update payment yields for seed 
cotton base.  
 
Payments under the ARC/PLC program are decoupled from production; producers with seed cotton 
base acres are not required to produce seed cotton or any other commodity to remain eligible for 
payments when t riggered.  
 
The Agriculture Improvement Act of 2018 (2018 Farm Bill) authorizes the ARC and PLC programs 
for the 2019 -2023 crop years.  
  
MAL (Marketing Assistance Loans) : Under the 2018 Farm Bill, the loan rate for extra -long staple 
cotton was increased fro m US$0.7977 per pound to US$0.95 per pound. The loan rate for upland 
cotton, which is set as a range from US$0.45 to US$0.52 per pound, remains the same but year -to-
year changes are now limited so that each year 's rate is not less than 98 % of the loan rate  for the 
preceding year.  
   
•  Export Competition:  There are no new or updated cotton -related policy developments.  
 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 20 - 
 
  Reply from Egypt to the questionnaire circulated on 14 September  2018  
 
- Market Access conditions : 
 
1) Applied tariffs on cotton 2018 versus Egypt 's Bound tariffs:  
 
HS Description  Applied tariff  
2015 %  Bound Tariff %  
5201.00  Cotton, not carded or combed  Free 5 
5202.00  Cotton waste (including yarn waste and garnetted stock)    
5202.10  - Yarn waste (including thread waste)  5 5 
 - Other:    
5202.91  - - Garnetted stock  5 5 
5202.99  - - Other  5 5 
5203.00  Cotton, carded or combed  5 5 
 
2) Egyptian cotton trade  
 
 
2015  2016  2017  Until June 2018  
Quantity 
(tonnes) VALUE 
(US$ 
million)  Quantity 
(tonnes) VALUE 
(US$ 
million)  Quantity 
(tonnes) VALUE 
(US$ 
million)  Quantity 
(tonnes) VALUE 
(US$ 
million)  
Exports  36404.54  90.411261  30565.039  87.5227  32129.719  93.7157  23429.95  72.8173  
Imports  73530.91  146.067  842818.8  147.4436  115912.449  235.629  62904.62  133.43  
 
3) Egyptian cotton production (.000 quintals)  
 
2017/2018  2016/2017  2015/2016  Year  
1407  7270  1096  Production  
 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 21 - 
 
  Reply from Colombia to the questionnaire circulated on 24 January 2018 (original reply in 
Spanish)  
 
The WTO questionnaire requests information on any new or updated cotton -related 
policy  developments.  
 
Market access : In addition to the duty -free treatment granted by Colombia to its main 
cotton -supplying trading partners, the Colombian Government considered it viable to grant a  15,000 
tonne import quota for 201 8, at a zero tariff rate, for uncarded and uncombed cotton under tariff 
subheading 5201.00.30.00 for third countries with which trade agreements have not been 
concluded.  
 
The quota was opened to help supply domestic industry in the quantities required for industrial 
consumption in 2018, even though the fibre included in this subheading is not produced in the 
country's cotton regions. This measure is pending approval and regulation.  
 
Domestic support : Owing to the good performance of the cotton market and th e high prices 
recorded in 2016 -2017, the Colombian Government does not envisage implementing any support 
programme for producers, nor does it have any new or recent cotton -related instruments.  
 
Export competition : Colombia did not apply any export competition measures.  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 22 - 
 
  Reply from Angola to the questionnaire circulated on 28  March 2017  
 
In response to the Secretariat questionnaire, Angola is giving the following information:  
 
(1)   Market access  
 
Cotton production in Angola is insignificant. In 2016, th e production of cotton fibre ( lint) was 
640 tonnes. For 2017, cotton fibre production is estimated at 68 tonnes. Projected cotton fibre 
production for 2018 is 480 tonnes.  
 
Prior to the rehabilitation of the national textile industry, the cotton produced wa s exported to 
Bangladesh. After the rehabilitation of the textile industry, the cotton produced in the country started 
to sell in the domestic market.  
 
The national textile industry, composed of three spinning and weaving factories, has imported cotton 
from Greece and India to meet its needs. This picture will be change with the full re -launch of cotton 
production in the country. The estimated yearly need of the national textile industry is estimated at 
24.000 tonnes of cotton fibre.  
 
(2)   Domestic support  
 
In 2017 the Ministry of Agriculture took the first step towards the sustainable re -launch of cotton 
production in the country. This year 212 hectares of land were cultivated. The Ministry of Agriculture 
provided seeds and inputs and assisted with the preparati on of land.  
 
Banks in Angola are available to finance the cotton value chain, provided entrepreneurs submit 
feasible investment projects.  
 
The Angolan Executive is committed to mobilizing financial resources for the relaunch of the cotton 
value chain.  
 
(3)   Export competition  
 
Angola does not apply any export competition measures.  
 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 23 - 
 
  Reply from Burkina Faso to the questionnaire circulated on 28  March 2017 (original reply 
in French)  
 
There have been no particular changes  across the three pillars of market access, domestic support 
and export competition since the 26th round of the WTO Director -General's Consultative Framework 
Mechanism on Cotton. Burkina Faso's cotton -related policy developments are summarized in the 
following table:  
 
Pillars  Cotton -related policy 
developments  Comments  
Market Access  Nothing to report  Nothing to report  
Domestic Support  Nothing to report  Nothing to report  
Export Competition  Nothing to report  Nothing to report  
 
By way of general comment on Burkina Faso's cotton sector, it is important to point out that for this 
2017/2018 cotton season, the cotton will be grown from 100% conventional cotton seed.  
 
 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 24 - 
 
  Reply from Benin to the questionnaire circulated on 13  September 2016 (original re ply in 
French)  
 
Eager to bring about a significant expansion of the cotton sector in the framework of a public -private 
partnership, the Council of Ministers decided to revive the Framework Agreement between the State 
and the Cotton Trade Association (AIC).  Accordingly, the agreement, which had been suspended on 
23 September  2013, was renewed on 28  April 2016. A number of reforms undertaken by the 
Beninese Government have had a direct or indirect impact on the cotton sector through the three 
pillars of agric ulture, i.e. market access, domestic support and export competition.  
 
(1)   Market access  
 
One of the aims of the amending finance law adopted in July  2016 and the preliminary draft finance 
law of 2017 is to promote measures to stimulate private investment. Acco rdingly, since July  2016, 
the registration formalities for the following documents are taxed at 0% : 
 
• deeds for transfer of movable and immovable property, in connection with the 
improvement of the business climate;  
• credit agreements, in order to reduce the cost of credit transactions.  
Measures were also taken to reduce harassment along the trunk roads.  
 
Similarly, in connection with the transport of seed cotton from the self -managed markets to the 
processing plants, the Government decided to remov e the rehabilitation of rural roads from the 
responsibilities relating to critical functions. The rehabilitation of dirt roads used for cotton is now 
the responsibility of the State.  
 
(2)   Domestic s upport  
 
In connection with domestic support, the following new  measures have been taken:  
 
• Revival of the Framework Agreement between the State and the AIC. The introduction of 
domestic price support mechanisms for producers  is now the responsibility of the 
sectoral trade associations in cooperation with the Ministry.  
• Production and agricultural research capacity -building through the introduction, in July  2016, 
of an agricultural research contribution charged on exports of cotton seed and fibre and raw 
cashew nuts, at a rate of CFAF 10 per kilogram exported.  
• Suspension  by the Government of cotton subsidies (particularly in relation to inputs) as from 
the 2016 -2017 season.  
(3)   Export c ompetition  
 
The introduction of a framework conducive to agro -industry is at the centre of the interim budget 
for 2016. A public/private partn ership law will help to promote the processing industry and in 
particular the cotton spinning mills.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 25 - 
 
  Reply from Mali to the questionnaire circulated on 13  September 2016 (original reply in 
French)  
 
The following noteworthy developments have occurred since  July 2016:  
 
(1)   Market access  
 
Awareness -raising missions along major roads to reduce the number of checkpoints;  
 
Fact-finding mission to assess the opportunities offered by Mauritania's Autonomous Port . 
 
(2)   Domestic support  
 
Signing of a performance contract with the Compagnie Malienne des Textiles (COMATEX  SA) for the 
sourcing of raw materials on preferential terms;  
 
Payment of VAT abolished (exemption) on the purchase price of cotton seed for the crushing  plants;  
 
"1,000 tra ctors" programme: facilitated access to tractors in order to boost domestic production;  
 
Signing of a protocol between the National Oil  Mill and Cattle Feed Federation  of Mali (FENAPHAB) 
and stakeholders in the livestock meat subsector in order to provide better access to oil cake and 
other cattle feed.  
 
(3)   Export c ompetition  
 
Mali does not grant any cotton export subsidies.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 26 - 
 
  Reply from Australia to the questionnaire circulated on 22  February 2016  
 
Cotton Research and 
Development  Research into 
improvements in cotton 
production  $A 7.729 million for 
2014 -15 Australian Government 
Department of Agriculture, 
Water Resources (DAWR)  
 
 
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 27 - 
 
  Reply from Israel to the questionnaire circulated on 22  February 2016  
 
With regard to the Chairman 's requests on cotton Israel would like to inform the Members of the 
following:  
 
No new or updated cotton -related policy developments occurred in Israel in 2015 . 
 
(1)   Market access  
 
No changes in tariffs related to cotton were made during 2015.  
 
(2)   Domestic support  
 
Israel's budgetary outlay for cotton in both thousand  US$ and thousand tonnes (marketing year, 
1 October -30 September) for 2015 was zero.  
 
Market price support, non -exempt direct payments, other product -specific support , product -specific 
EMS and product -specific AMS for cotton during 2015 were also zero.  
 
(3)   Export competition  
 
Export subsidies for cotton were zero in 2015.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 28 - 
 
  Reply from South Africa to the questionnaire circulated on 22  February 2016  
 
(1)   Market access  
 
No changes were m ade to market access related policies in recent years.  
 
All tariffs for co tton at the applied level are zero, with the exception of the following lines:  
 
Product code  Product  Tariff  
5201 0020  Ginned, but not further processed  ZAR 1.60/kg  
5201 0090  Other  15% 
5203 00  Cotton, carded or combed  15% 
 
On the above tariff lines, a preference tariff of zero is applied for cotton origination in SADC countries 
and the EU in accordance with relevant Free Trade Agreements.  
 
In recent years, an average in access of 90% of South Africa's cotton imports originat es from SADC 
countries. The suppliers of cotton in this regard are, in the main, LDCs.  
 
(2)   Domestic support  
 
No changes were made to Domestic Support policies.  
 
No AMS has been used on cotton for more than 15 years. Cotton production might indirectly benefit 
from Green Box expenditure.  
 
(3)   Export competition  
 
No changes were made to EC policies.  
 
South Africa did not make use of export subsidies since  the year  2000.  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 29 - 
 
  Reply from Chad to the questionnaire circulated on 4  February 2015 (original reply in 
French)   
 
The Permanent Mission of the Republic of Chad to the World Trade Organization (WTO) presents its 
compliments to the WTO Secretariat and, further to the Secretariat's correspond ence of 
4 February  2015 on relevant trade -related developments for cotton, has the honour to transmit 
herewith details of new cotton -related policy developments that have occurred in Chad since 
January  2014 in relation to the following three pillars:  
 
(1)   Mark et access 
 
Chad has adopted an action plan with a view to substantially increasing production in its cotton 
sector. This will enable the country to boost exports to the main consumer countries, most notably 
Bangladesh, India, Indonesia, Portugal and German y. 
 
(2)   Dom estic support  
 
Despite a difficult budgetary situation, due to the fall in oil prices which has spread to other raw 
materials and which has played a significant role in slowing down the country's economic growth, 
the Chadian State has fought to main tain its cotton sector, which is of considerable economic and 
social importance for millions of Chadians. This support, which has a significant impact on priority 
sectors such as education and health, clearly demonstrates the Government's determination to do 
everything possible to ensure that this important sector does not disappear - something that would 
have disastrous consequences for Chad and its population. This support is consistent with Article  6.2 
of the Agreement on Agriculture.  
 
(3)   Export competition  
 
Chad continues to suffer the severe financial consequences of falling cotton prices due to the unfair 
competition that we are continuously denouncing at the WTO. If all cotton -producing countries were 
on an equal footing in the international market, Chad ian cotton would be more competitive and the 
cotton sector would be making a profit instead of the successive losses recorded in recent years.  
 
This is a moral issue within the WTO, and as WTO Members we are all responsible for finding a 
solution to this s ituation, which is unacceptable to countries like ours.  
 
The Permanent Mission of the Republic of Chad to the World Trade Organization takes this 
opportunity to renew the assurances of its highest consideration to the WTO Secretariat.  
 
Access to internatio nal markets  
 
The Société Cotonnière du Tchad (COTONTCHAD) exported 31,700 tonnes of fibre in 2014 and 
envisages export production of 52,000 tonnes of fibre in 2015, i.e. an increase of almost 50%. This 
significant increase is linked to the creation of a business plan that envisages a gradual increase in 
production to 120,000 tonnes of fibre by 2018.  
 
This business plan was adopted by the Board of Directors, which includes representatives of the 
various Ministers responsible for agricultural policy in general and the development of the cotton 
sector in particular.  
 
The increase in production has been p ossible thanks to the support the State has provided by selling 
inputs (fertilizer, insecticides and various other materials) to farmers to increase crop yields, and 
the increase in the purchase price paid to cotton farmers, which is set at 240 CFAF/kg for  high-grade 
cotton.  
 
Cotton is of considerable economic and social importance to Chad. The Chadian government has 
spared no effort to provide financial support to increase cotton production, since this sector provides 
a livelihood, both directly and indire ctly, for almost 3 million people. The cotton sector is the only 
sector that brings large quantities of fresh capital into producing regions. It helps to settle the 
population, and COTONTCHAD SN, which is in charge of purchasing, ginning and marketing, fun ds 
village associations with a view to the construction of classrooms and family health clinics.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 30 - 
 
  3756CFAF 20 billion in cash was distributed to farmers in 2014 for the purchase of seed cotton, 
and the company plans to provide CFAF 31 billion in 2015. In an ticipation of the increase 
in production in the next two to three years, the Chadian State has committed itself, 
via the Development Bank of Central African States (BDEAC), to a long -term loan of approximately 
CFAF 30 billion for  COTONTCHAD SN, so as to en sure the renewal and strengthening of logistics and 
industrial infrastructure.  
 
Due to the lack of cotton processing infrastructure at national and regional level, COTONTCHAD SN 
exports 98% of its production abroad. The main consumer markets are Asian and European 
countries. Although there are no particular restrictions affecting Chad directly, certain domestic 
policies implemented by wealthier countries distort competitiveness. This means that certain mills, 
while appreciating the intrinsic qualities of Ch adian cotton, refrain from buying our cotton when they 
compare its price with the local prices of their own production, which are driven down artificially. 
However, given the much appreciated quality of Chadian cotton, our sales remain steady, despite 
the fall in prices.  
 
Listed below are the main consumers of Chadian cotton in 2014 and 2015:  
Exports o f Chadian Cotton by Country  
COUNTRY  QUANTITY (TONNES)  
2014  Projection for 2015  
Germany  1,500  3,500  
Portugal  2,550  5,200  
Spain  700 1,300  
Italy 200 900 
India  8,300  9,500  
Indonesia  3,380  5,800  
Bangladesh  11,415  18,220  
China  1,850  3,800  
Malaysia  180 680 
Thailand  500 600 
Viet Nam  1,125  2,500  
Total  31,700  52,000  
 
State Domestic Support  
 
In 2014, the Chadian State budgeted 6.9 billion to support farmers by subsidizing fertilizer. 
For 2015, it budgeted 6.69 billion. Of the amount for 2014, COTONTCHAD SN received 3.5 billion, 
although nothing has yet been paid out under the 2015 budget due to the country's current economic 
and financial situ ation, which is particularly difficult.  
 
This support is consistent with the provisions of Article 6.2 on special and differential treatment for 
the promotion of agriculture and rural areas in low -income countries and the fight against poverty.  
 
Despite a difficult budgetary situation, due to the drop in oil prices which has spread to other raw 
materials and which has played a significant role in slowing down the country's economic growth, 
the Chadian State has fought to maintain its cotton sector, which is  of considerable economic and 
social importance for millions of Chadians. The State's actions, which have had an important impact 
on priority sectors such as education and health, clearly demonstrate the Government's 
determination to do everything possible  to ensure that this important sector does not disappear - 
something that would have disastrous consequences for Chad and its population.  
 
Cotton plays a pivotal role in our country's development. It is competitive. And yet it suffers from 
the effects of t he massive cotton subsidies provided by certain countries, which have the effect of 
driving down prices on the international market.  
 
For Chad, the time has come to move on from general statements and engage constructively in 
substantive discussions on the  cotton issue. This belief forms the basis of its commitment and 
determination to continue negotiating with other C4 members at the WTO. Chad remains open to 
any initiatives that might help to find an acceptable solution to the cotton issue.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 31 - 
 
  Export Compet ition  
 
The massive support provided to farmers in the form of both production and operating subsidies by 
countries such as the United States and China and by the European Union constitute unfair 
competition and have been denounced for several years now by the C4 countries within the WTO 
framework. The least developed countries (LDCs) continue to suffer the severe financial 
consequences of falling cotton prices. If all cotton -producing countries were on an equal footing in 
the international market, African cotton w ould be more competitive and the cotton sector would be 
making a profit instead of the successive losses recorded in recent years.  
 
Countries such as the United States and China have introduced mechanisms to help the  C4 countries 
with a view to repairing t he harm they have suffered, but these interventions amount  to very little 
when compared with the hundreds of millions of dollars paid to their respective  producers.  
 
What is being demanded by the C4 countries in general, and by Chad in particular, is compl iance 
with the WTO rules that condemn unfair competition and the artificial driving down of prices, rather 
than the rules on subsidies, which are already well defined and should be limited in terms of  volume.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 32 - 
 
  Reply from China to the questionnaire circula ted on 4  February 20153 
 
First, China supports C 4's position and their request to solve their problem according to the 
Ministerial Decision on Cotton of December 2013 adopted at MC9. We also support the approach to 
solve the problem of cotton on the basis of the Agriculture Modalities of 2008  (TN/AG/W/4/R ev.4). 
We would continue to work together with all Members to find the solution to this issue.  
 
Second, China's cotton sector is subsistence farming.  
 
China is among the largest cotton producers in the world. However, China's production is based on 
small -scale and subsistence farming, and the average acreage of cotton is 0.3 hectare per 
household. Moreover, China's cotton production is located remotely in the resource -poor and 
underdeveloped ethnic minority areas, serving as the only instrument for local l ivelihood security 
and poverty reduction.  
 
After joining the WTO, China's cotton production has shown a declining trend; the cotton acreage 
has diminished from 4.8 million hectares in 2001 to 4.3 million hectares in 2013. The main reason 
for such a declin e is the high production cost compared to the lower price of cotton caused by 
subsidies of the developed Members.  
 
Third, China's cotton subsidies are at minimal low level.  
 
China's agriculture support toolbox is short supplied compared to other WTO Member s. It has no 
AMS including on cotton, no development box. China is only entitled to de minimis , for which the 
level is also lower than for other developing Members (8.5% versus 10%).  
 
China's cotton support remains lower both in absolute terms and per capi ta terms. In absolute terms, 
China's cotton support is US $480 million. In per capita terms per cotton farmer, China's cotton 
support is only just US $16. 
 
Fourth, China's cotton subsidy policy is a passive response.  
 
China has been the victim to the cotton subsidies by the developed Members. Since its accession 
into the WTO, China's cotton imports surged from 113,000 tonnes to 4.2 million tonnes, while the 
cotton acreage actually diminished.  
 
China's poor subsistence cotton farmers are over 30 million in ho usehold, and they will be forced 
out of jobs if the Government does not take the necessary actions. Therefore, the Chinese 
Government has no choice but to subsidize its poor cotton famers to offset the subsidies and 
safeguard the livelihood of those poor f amers.  
 
Fifth, China's cotton subsidy policy does not distort international trade.  
 
China's temporary cotton reserve policy is designed to offset the turbulence of the volatile 
international market caused by the subsidies of developed Members. This policy does not create 
production distortion or trade distortion. On the production side, C hina's cotton production does not 
increase in a significant manner. On the import side, China's cotton import continues to increase 
from 2.8 million tonnes in 2010 to 4.2 million tonnes in 2013. If the import on cotton yarn is included, 
the cotton import w ill be increased from 4.1 million tonnes to 6.5 million tonnes, which provides 
strong incentives for all cotton producers and the developing ones in particular in the context of 
depressed global cotton prices. In addition, the cotton in stock is intended f or domestic textile 
industry rather than for export, thus producing no distortion on international cotton market.  
 
In the meantime, exports of Chinese textiles are still subject to tariff peaks, tariff escalations and 
other protectionist measures of develo ped Members, which the developed Members intend to ignore 
through the so -called recalibration exercise.  
 
Sixth, China has made significant contribution to resolving the cotton issue.  
 
                                              
3 This reply was provided after the circulation of the second revision of this background paper and is 
included in document TN/AG/GEN/34/ Rev.2/Add.1 – TN/AG/SCC/GEN/13/Rev.2/Add.1.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 33 - 
 
  China has been the largest cotton importer, and its share in the global cotton import has been 
consistently more than 50%, which creates a lot of market access for the export developing 
Members.  
 
China has been extensively importing a large amount of cotton from African cotton -producing 
Members, including the C4. During the pe riod 2001 to 2013, China's cotton imports from Africa 
increased from 3,700 tonnes to 442,000 tonnes.  
 
On the development assistance side, China has been committed to providing technical and financial 
assistance to the C4 to enhance their production and exp ort capacity. China signed cooperation 
Communiqués with the C4 members in 2011 and 2013, respectively, which cover the supplies of 
agriculture inputs, training courses, technology transfer, etc. In addition, China has also been 
providing various cot ton-related assistance to the C 4 through bilateral channels.  
 
On the allocation of the cotton TRQ  
 
Regarding the allocation of TRQ of cotton, it is consistent with China's WTO commitment. Another 
related question is about the import exceeding the import qu ota. I n addition to the 894,000  tonnes, 
we import more than the TRQ subject to the sliding duties.  
 
On China's domestic support notification  
 
Regarding the notification, China has just updated its domestic support notification up to 2010, and 
preparation for new  notifications is underway.  
 
On China's cotton stock  
 
Regarding China's cotton stock, the stock is real, as we have imported more cotton than our 
obligation. We import cotton for textile processing, but we are facing a lot of difficulties in the textile 
sector as just mentioned. The other reason for the huge stock is that the price for cotton is distorted 
by the subsidies from developed Members.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 34 - 
 
  ANNEX 5  
INFORMATION ON COTTO N MARKETS AND POLICI ES FROM  
THE TRADE POLICY REVIEW MECHANISM1 
1.1.  At the second dedicated discussion of the relevant trade -related developments for cotton, 
Members agreed that, in order to complement the revised background paper to be prepared by the 
WTO Secretariat , the Secretariat would compile information related to cotton markets and policies 
contained in the most recent T rade Policy Review (TPR)  reports.2 
1.2.  The Secretariat searched  the most recent  TPR reports available by Governments  and by  the 
WTO Secretariat for the 32 Members identified  in paragraphs 12 and 13 of this paper . Information 
that met the following  two criteria has been  included in this Annex:  (1) information relevant to cotton 
markets and policies ; and (2) information not presented elsewhere in th is background paper . 
1.3.  No relevant information was found  for the following fourteen  Members :3 Bahrain, Kingdom of 
(April  2014); Canada (June 201 9); Hong Kong, China (November 2018 ); Iceland (October  2017); 
Japan (March 2017 ); Kenya ( March  2019)4; Kore a, Republic of (October  2016); Malaysia ( February 
2018); Mexico (April 2017); New Zealand (Ju ly 2015 ); Russian Federation (September  2016) ; 
Norway ( June 2018); Switzerland (May 2017 ) and Chinese  Taipei (September  2018).5 
1.4.  For the remaining  18 Members, the relevant i nformation found is presented below by Member. 
The date of the most recent TPR report available, as well as the type of report and the document 
symbol for the report , are indicated next to  each Member. No relevant information was fo und in  the 
most recent Government reports available for these 18  Members .  
1.5.  Information is listed along with the headings of the chapters from which it is extracted , and 
"…" represents information left out from a table, a paragraph or a chapter.  
1.6.  Information not directly linked to cotton markets and policies but which provides context for 
understanding the above -mentioned information may have also been included  based  on the 
Secretariat's own judgement and is without prejudice to information excluded from this Annex.  
                                              
1 The purpose of the Trade Policy Review Mechanism ("TPRM") is to contribute to improved adherence 
by all Members to rules, disciplines and commitments made under the Multilateral Trade Agreements and, 
where applicable, the Plurilateral Trade Agreements, an d hence to the smoother functioning of the multilateral 
trading system, by achieving greater transparency in, and understanding of, the trade policies and practices of 
Members. Accordingly, the review mechanism enables the regular collective appreciation a nd evaluation of the 
full range of individual Members' trade policies and practices and their impact on the functioning of the 
multilateral trading system. It is not, however, intended to serve as a basis for the enforcement of specific 
obligations under t he Agreements or for dispute settlement procedures, or to impose new policy commitments 
on Members (Annex 3 (A)(i) of the Marrakesh Agreement).  
2 Paragraph 13 of the Chairperson's report of the second dedicated discussion of the relevant 
trade -related deve lopments for cotton (TN/AG/29 and TN/AG/SCC/3).  
3 The date in brackets is that of the most recent TPR report available.  
4 Joint Trade Policy Review of the East African Community (EAC).  
5 The Secretariat report for the 2014 TPR (WT/TPR/S/302) is being revis ed therefore the report from the 
previous TPR (July 2010) was used and no relevant information was found.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 35 - 
 
  AUSTRALIA (MARCH 201 5) - SECRETARIAT REP ORT (WT/TPR/S/312 /REV.1 ) 
"4.  TRADE POLICIES BY SECTOR  
4.2  Agriculture, Livestock, and Fisheries  
4.2.2   Main p olicy developments  
4.2.2.2   Domestic support measures  
 
Under its Carbon Farming Futures Program (2011 -2017), Australia has implemented a Filling the 
Research Gap, Action on the Ground, Extension and Outreach Program, and related offset 
incentives.6 
 
APPENDIX TABLES  
Table A1. 2 - Merchandise exports, by product groups, 2010 -2013 
 2010  2011  2012  2013  
Total exports (US $ billion)  212.5  270.1  256.6  253.7  
Total exports ( $A billion)  231.1  261.7  247.8  262.0  
 (% of total)  
Total primary products  77.3 79.8 79.0 80.4 
Agriculture  13.9 14.3 15.5 15.8 
… … … … … 
Agricultural raw material  2.5 3.0 3.0 3.0 
2631  Cotton (other than linters), not carded or combed  0.5 1.0 1.1 1.0 
… … … … … 
Source:  WTO Secretariat calculations, based on data provided by the Australian authorities in SITC four -digit 
classification.  
                                              
6 … Under the Action on the Ground funding programme, farmers and land managers undertake on -farm 
trials of abatement technologies, practices and mana gement strategies to measure and demonstrate how they 
can reduce agricultural greenhouse gas emissions of methane and nitrous oxide or increase the sequestration 
of carbon in soil while maintaining or improving farm productivity. By March 2014, 89 multi -year grants worth 
up to $A 44.29 million had received funding; these projects were trialling a diverse range of on -farm practices 
and management strategies, on more than 530 properties across the country. By  April 2013, 24  projects 
valued at $A 21.3 million were funded under the Extension and Outreach program supporting sector -specific 
projects, including the livestock, dairy, horticulture, cotton and grains industries (Department of Agriculture 
online information. Viewed at: http://www.daff.gov.au/about/current -grants ; and Productivity Commission, 
2013d).  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 36 - 
 
  BANGLADESH (APRIL  2019) - SECRETARIAT REPORT ( WT/TPR/S/ 385) 
Table A1. 2 - Merchandise imports, by HS sections and major HS chapters/subheadings, 
2011 -17 
a.  HS section/chapter/subheading  2011/12  2012/13  2013/14  2014/15  2015/16  2016/17  
Total (BDT billion)  2,942.8  3,144.3  2,822.3  3,670.7  3,869.3  4,712.5  
Total (US $ million)  37,205.4  39,336.8  36,313.0  47,257.4  49,439.9  59,562.0  
  
(% of total imports)  
… … … … … … …  
5201 Cotton, not carded or combed  5.3 5.8 6.4 5.0 4.6 4.7 
… … … … … … … 
Note:  Totals differ from imports by selected origins, shown in Table A1.4, because the totals in this table 
were taken from Bangladesh Bank online information.  
Source:  WTO calculations, based on online data from the Bangladesh Bureau of Statistics.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 37 - 
 
  BRAZIL (JULY 2017 ) - SECRETARIAT REPO RT (WT/TPR/S/ 358) 
4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.4   Domestic support  
4.1.4.1   Agricultural/rural credit  
4.1.4.1.1   Minimum price guarantees  
 
During the review period, Brazil maintained unchanged its 1966 policy of guaranteed minimum prices 
(PGPM), an important pillar of its agricultural policy. The basic element of this policy rema ins the 
regionally -set minimum guaranteed prices which cover a broad range of crops from rice, wheat, 
maize, cotton, and soybeans, to regional crops like cassava, beans, açaí, guaraná, and sisal, as well 
as a few livestock products like cow and goat milk a nd honey (Table 4.6).7 On the basis of these 
minimum guaranteed prices, the government implements several price support mechanisms 
(Table  4.6), including direct government purchases (AGF); premiums to commercial buyers who pay 
minimum prices to supply producers (PEP, VEP); and public and private options contracts backed by 
private risk premium options (COV, PROP, PEPRO).  In addition to these programmes, producers 
receive various reduced -interest marketing loans which enable them to withhold the sale of a product 
in anticipation of a higher market price (FPPG, FEPM  and FEE below). The state -owned CONAB 
(Section 4.2.2) operates both the AGF set by the MAPA Secretary of Agricultural Policy (SPA) for 
commercial and small -scale farms, and the equivalent programme set by the SEAD for s mall-scale 
agriculture (PAA, Section 4.2.4.3) as well as the minimum prices programme for family farms (PGPAF 
programme). …  
Table 4.6 - Price support programmes, 2014/2015 and 2015/ 2016 
Price support programme/description  Use/cost  
Policy of Guaranteed Minimum Prices (PGPM)   
Regulated by Decree No. 57,391 of 12 December 1965 and Decree -
Law No. 79 of 19 December 1966. The PGPM fixes minimum 
guaranteed prices annually for some of Brazil's main crops. Prices are 
promulgated by the National Monetary Council (CMN) through 
Portarias . Portaria No.  854 of 20 August 2014 fixes minimum prices 
for a number of products for the 2014/15 summer harvest. When 
determining minimum prices, the CMN takes into account production 
costs in the different regions, as well as several factors affecting 
domestic and international market prices. The PGPM is implemented 
through credit lines (EGF and LEC); and commercialization 
instruments (AGF, PEP, VEP, PEPRO, COV and PROP; see below).  Products benefited by PGPM in the 
2014/15 were cotton, corn, orange 
and edible beans.  
The only product benefited by PGPM 
in 2016 was wheat.  
… … 
Premium for Product Outflow (PEP)   
The CONAB grants an equalization premium to wholesalers who agree 
to pay farmers a reference price. The premium is determined in public 
auctions and generally reflects the difference between the reference 
price and the market price. In addition to guarante eing minimum 
prices for producers, the PEP is used to shift the supply of agricultural 
products across regions, so as to avoid shortages and prevent the 
accumulation of stocks. In theory, all products included in the PGPM 
can participate in the PEP; howeve r, the programme has been used 
for only a few products so far, mainly cotton, corn, wheat, sisal, beans, 
rice, and wine.  The programme did not support any 
products in 2014/15 crop year. The 
programme supported only wheat 
in 2016 (47,791 tonnes, 
R$8.8  million).  
Agricultural Products' Sale Option Private Premium (PEPRO)   
This scheme offers producers and cooperatives the possibility to sell 
their product at a premium, equal to the difference between reference 
and market prices, fixed through an auction. In contrast to the PEP, 
premiums are paid directly to producers.  In the 2014/15 crop year, the 
programme supported only cotton 
(R$2.4  million and 905,278 tonnes), 
corn (R$256 million and 
5,803  million tonnes) and oranges 
(R$47.1  million  and 
850,383  tonnes). In 2016, the 
programme supported only wheat 
(404,886 tonnes, R$108  million)  
                                              
7 OECD (2016), Agricultural Policy Monitoring and Evaluation 2016 , 16 June. Viewed at: 
http://www.oecd -ilibrary.org/agriculture -and-food/agricultural -policy -monitoring -and-evaluation -
2016_agr_pol -2016-en; USTR (2016), 2016 National Trade Estimate Report on Foreign Trade  Barriers . Viewed 
at: https://ustr.gov/about -us/policy -offices/press -office/reports -and-publications/2016/2016 -national -trade -
estimate . TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 38 - 
 
  With 9% and 8.7% inflation in 2015 and 2016 respectively (Table 1.2), regional minimum 
guaranteed prices were kept constant between 2014/15 and 2015/16 for b asic and domestic wheat, 
cotton, Arabica coffee, maize, sorghum, jute, rubber and cocoa.8 They were increased by about 7% 
for cassava, ... In 2016/17 minimum guaranteed prices were raised as follows: 9% for rice; 18% 
for cotton…  
Table 4.7 - PGPM operation s, 2013 -16 
(R$ million)    
2013  2014  2015  2016  
Disbursement (purchase)  
AGF Total  79 84 0 0 
… … … … … 
COV Total  1,395  0 0 0 
… … … … … 
PEP Total  0 0 0 9 
… … … … … 
PEPRO  Total  484 631 15 69 
Cotton  0 244 0 0 
… … … … … 
Total   1,958  715 15 78 
 
Table 4.8 - Budget allocated to family farming programmes and measures, harvest year 
2012/13  
Programme  Description  Budget 
…  … … 
Price Guarantee 
Programme for 
Family Farming 
(PGPAF)  An indexation of the credit taken out by family farmers under the 
PRONAF, through which the price is fixed when the credit is 
granted. Upon repayment of the PRONAF's credit, if the price of the 
product financed has decreased, the farmer benefits from a 
discount from the amount due, equivalent to the difference 
between th e product's market price and the price set in the 
programme's index. The limit for the PGPAF bonus per farmer is 
R$7,000 each year. The programme covers 49 products, including 
corn, cotton, rice, milk, and oranges.  R$90 million 
…  … … 
Total budget   R$35.3  billion  
 
…
                                              
8 OECD (2016), Agricultural Policy Monitoring and Evaluation 2016 , 16 June. Viewed at: 
http://www.oecd -ilibrary.or g/agriculture -and-food/agricultural -policy -monitoring -and-evaluation -
2016_agr_pol -2016-en. TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 39 - 
 
  CHINA (JULY 2018 ) - SECRETARIAT REPORT ( WT/TPR/S/375/REV.1 ) 
SUMMARY  
… 
 
State involvement in the economy remains considerable. According to a notification submitted in 
2015, state -trading requirements concerned, inter alia : grain, sugar, tobacco, rice, maize, cotton, 
coal, crude oil, processed oil, chemical fertilizers, tungst en, tea, silk, antimony and silver. …  
… 
 
3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  MEASURES DIRECTLY AF FECTING IMPORTS  
3.1.5   Import prohibitions, restrictions, and licensing  
Table 3.5 - Solid wastes forbidden for import into China since end-2017  
No. Category  HS Code  Waste name  
17 
Waste textile 
raw materials  … … 
18 5202100000  Waste cotton yarn (including waste cotton thread)  
19 5202910000  Recycled fibre of cotton  
20 5202990000  O ther cotton waste  
21 … … 
Source:  WTO document G/TBT/N/CHN/1211, 18 July 2017.  
3.2  MEASURES DIRECTLY AF FECTING EXPORTS  
3.2.3   Export prohibitions, restrictions, and licensing  
 
Table 3.12 - Products subject to export quotas and licensing  
Products  Type of 
management  Comment  
Goods subject to quota and licensing    
Rice, maize, wheat, cotton, coal  Export quota 
(licensing)  The quota is 
allocated by the 
NDRC  
The licence is issued 
by MO FCOM  
… … … 
Source:  MOFCOM GACC Joint Announcement No. 76 of 2015 (in Chinese). Viewed at: 
http://wms.mofcom.gov.cn/article/zcfb/g/201512/20151201225345.shtml ; and information 
provided by the authorities of China.  
3.3  MEASURES AFFECTING P RODUCTION AND TRADE  
3.3.5   State trading, state -owned enterprises, and privatization  
 
… 
STEs in China have the exclusive right to import or export the following products: grain, sugar, 
tobacco, rice, corn, cot ton, coal, crude oil, processed oil, chemical fertilizers, tungsten, antimony 
and silver (Section 4.2). The authorities indicate that state trading enterprises operate following the 
market mechanism, with no government interference.  
… 
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 40 - 
 
  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Features and market development  
… 
The value of production of agricultural basic products continued to increase during the period  2013-
16, reaching RMB 10,055 billion in 2016 (Table 4.2). The comparative evolutions of volume and 
value during the period varied considerably depending of the p roduct (Charts 4.1 and  4.2). For pigs, 
the increased value was due to higher prices, while production slightly declined from its peak in 
2014. In the case of corn, the volume remained largely stable since 2013, while the value of 
production increased stead ily. In the case of cotton, the value fell more than the volume. No data 
were made available by the authorities on the volume of production of cereals, fruits and nuts, and 
vegetables.  
Table 4.2 - Agricultural production, 2013 -17 
 Value of 
production of 
agriculture, 
forestry, 
animal 
husbandry 
and fishery  Corn Cereals  Pigs Poultry  Fruits 
and nuts  Vegetables  Cotton  
RMB 1 million         
2013  8,736,069  475,520  601,460  1,256,060  703,221  696,898  1,626,247  142,203  
2014  9,189,183  479,173  619,302  1,229,759  739,378  1,011,947  1,757,014  130,934  
2015  9,617,574  431,493  612,906  1,285,965  739,547  1,115,353  2,009,154  104,142  
2016  10,054,073  372,268  608,911  1,439,154  761,912  1,150,096  2,141,818  93,049  
1,000 ton nes        
2013  .. 218,489  .. 54,930  17,984  .. .. 6,299  
2014  .. 215,646  .. 56,714  17,507  .. .. 6,178  
2015  .. 224,632  .. 54,865  18,263  .. .. 5,603  
2016  .. 219,552  .. 52,991  18,882  .. .. 5,299  
2017  .. 215,891  .. 53,401  18,972  .. .. 5,486  
.. Not available.  
Source:  Information provided by the authorities.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 41 - 
 
  Chart 4.1 - Value of production  
(RMB million)   
 
Source:  Data provided by the authorities.  
Chart 4.2 - Volume of production  
(2005 = 100)  
 
Source:  Data provided by the authorities.  
  
TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 42 - 
 
  4.1.3   Policy instruments  
… 
China continues to make use of tariff rate quotas (TRQs). Since its previous Review, there have been 
no substantial changes regarding the products subject to TRQs, the tariff rates applied, or the system 
to allocate them (Table 4.4). In -quota and out -of-quota rates have not changed; they are all 
ad valorem , with the exception of the out -of-quota rate for one type of cotton (HS  52.01.00.00). 
Out-of-quota imports of this type of cotton may be subject to a sliding duty that depends upon the 
price of cotton, bu t that cannot exceed 40% (i.e. the bound rate for cotton). Under this system, 
China fixes a threshold price (RMB 15/kg in 2015). If the price of imports is equal to or higher than 
the threshold price, a specific duty of RMB 0.57/kg is levied, and if the im port price is lower than the 
threshold price, an ad valorem  rate based on the formula applies).9 Out-of-quota rates for other 
products are, in most cases, equal to bound rates.   
Table 4.4 - Tariff rate quotas on agricultural products and their utilization,  2015 -16 
Products  Out-of-
quota 
rates  In-quota 
rates  Tariff 
quota 
quantity  In-quota imports  
2015  2016  
(%) (tonnes)  
… … … … … … 
Cotton (2 lines)  40 1 894,000  894,000  894,000  
Note:  The number of tariff lines in brackets refers to the 2015 tariff schedule.  
Source:  WTO document G/AG/N/CHN/30, 2 February 2016; and Ministry of Finance (2015), Customs Tariff of 
Imports and Export of the People's Republic of China , 2015.   
The NDRC is responsible for allocating TRQs for grains and cotton, and MOFC OM allocates the rest. 
Some products subject to TRQs (i.e. grains, cotton, and sugar) are also subject to state trading. In 
these cases, one part of the quota is allocated to state -trading enterprises and the other part to 
other enterprises. The administra tion methods of the TRQs as described by China in its notification 
to the WTO (MA:1 G/AG/N/CHN/2) have remained unchanged.  
The importation of grain (wheat, maize, rice), sugar, tobacco and cotton is subject to state trading.10  
… 
4.1.3.1   Border  measures  
4.1.3.1.2   Measures affecting exports  
… 
Exports of cotton, rice, maize, and tobacco are subject to state trading. These products, except for 
tobacco, are also subject to export quotas, which are managed by the NDRC, and are allocated only 
to state trading enterprises. Wheat is also subject to ex port quotas.  
… 
                                              
9 The variable rate is calculated according to a formula, which may be viewed in: Ministry of Finance 
(2015), Customs Tariff of Import and Export of the People's Rep ublic of China 2015  (The Legal Texts), Beijing, 
p. 442.  
10 See WTO documents G/STR/N/10 -15/CHN, 19 October 2015, and G/STR/N/10 -15/CHN/Corr.1, 
2 December 2016. The notifying period is 2003 -14. TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 43 - 
 
  Table 4.5 - Agricultural products subject to export quotas and licensing in 2017  
Products  Type of 
licence  Comment  
Goods subject to quota and licensing  
Rice, maize, wheat and cotton  Export 
quota 
licensing  The quota is allocated by the 
NDRC, and the licence is 
issued by MOFCOM  
… … … 
Goods subject to licensing  
… … … 
Source:  MOFCOM GACC Decree [201 7] No. 88. Viewed at: 
http://www.mofcom.gov.cn/article/b/c/201712/20171202690523.shtml . 
… 
4.1.3.2   Internal measures  
4.1.3.2.2   Price  controls and market price support systems  
 
With effect from 1 January 2016, agricultural products (grains, cotton, edible vegetable oil, sugar, 
and silk) and tobacco leaf were removed from the list of products subject to price controls .11  
…  
Regarding cot ton, in 2014, China stopped the procurement price system and the stockholding 
programme. They were replaced, on a pilot basis, in the Xinjiang Autonomous Region, by a 
mechanism that sets a target price for cotton. In 2014, the target price for cotton was R MB 19,800 
per tonne; in 2015, it was RMB  19,100; and in 2016 and 2017, it was RMB 18,600. Through the new 
mechanism, if the market price falls below the target price, the central Government provides a 
subsidy to cotton farmers. During the pilot reform on t arget cotton prices, the market price for cotton 
fell to below that of the target price, a situation which triggered the subsidy mechanism. Data on 
the corresponding expenditures were not made available at the time of writing of the present report. 
As of 2 017, a limit was set whereby only 85% of the national cotton production benefits from the 
mechanism. At this stage, there is no plan for the generalization of this pilot scheme, and there are 
no measures to specifically support cotton production in other r egions.  
… 
… On the other hand, the stockpiles of cotton and maize have declined from the peaks in 2015/16 
and 2016/17, respectively.12 Furthermore, the minimum support prices for rice and wheat have been 
reduced, while the reform of the systems of collecti on, storage, and price -formation of agricultural 
products will continue.13 
                                              
11 NDRC Document [2015] No. 29, 8 October 2015. Viewed at: 
http://www.sdpc.gov.cn/zcfb/zcfbl/201510/t20151020_755152.html  [5 April 2018] .  
12 USDA Foreign Agricultural Service. Online PS&D database. Viewed at: 
https://apps.fas.usda.gov/psdonline/app/index.html#/app/advQuery  [March 2018].  
13 The 2018 No. 1 Docume nt of the CCCPC and the State Council, 4 February 2018.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 44 - 
 
  Chart 4.3 - Stocks of selected commodities at beginning of marketing years 2005/06 – 
2016/17  
'000 tonnes, except cotton ('000 480 lb bales)  
 
Source:  Online information. Viewed at: https://apps.fas.usda.gov/psdonline/app/index.html#/app/advQuery  
[March 2018].  
 
 
 
 - 20,000 40,000 60,000 80,000 100,000 120,000
Corn
Cotton
Rice, Milled
WheatTN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 45 - 
 
  COLOMBIA (JUNE 2018 ) - SECRET ARIAT REPORT (WT/TPR /S/372 ) 
SUMMARY  
… 
 
… Colombia promotes the use of Price Stabilization Funds (FEPs) in order to deal with fluctuations in 
world prices for certain agricultural products. The resources for these funds come from parafiscal 
charges, mainly charges levied on producers which remain outside the national budget and are 
reinvested by the private sector in programmes of benefit to the activity from which they are 
sourced. In 2017, there were FEPs for cotton, sugar, cocoa, meat, milk and products thereof; and 
palm o il. 
 
… 
 
3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  MEASURES DIRECTLY AF FECTING IMPORTS  
3.1.3   TARIFFS  
3.1.3.5   TARIFF CONCESSIONS  
 
… 
 
Given the insufficient level of domestic cotton production and in order to boost the textiles and 
clothing sector, through Decrees No.  2.530 of 12  December  2014 and No.  1.347 of 22  August  2016 
the Government temporarily authorized the use of zero tariff quotas on cotton imports for a specified 
number of tonnes according to industry needs. …  
 
… 
 
4  TRAD E POLICIES BY SECTOR   
4.1  AGRICULTURE, FORESTR Y AND FISHERIES  
4.1.3   DOMESTIC SUPPORT, SU BSIDIES AND OTHER SU PPORT SCHEMES   
 
… 
Colombia makes use of price stabilization mechanisms in order to deal with fluctuations in world 
prices for certain agricultura l products. The Price Stabilization Funds (FEPs), created by Law No.  101 
of 1993, are intended to guarantee producers' incomes, regulate domestic production, and prevent 
price speculation, in addition to promoting agricultural exports. The resources for th ese funds come 
from parafiscal charges: these are charges levied on producers which remain outside the national 
budget and are reinvested by the private sector in programmes of benefit to the activity from which 
they are sourced. In 2017, there were FEPs f or cotton, sugar, cocoa, meat, milk and products 
thereof; and palm oil.14 Each FEP has a Steering Committee, composed of producers and officials 
from the National Government, which establishes the methodology for calculating a reference price 
based on the m ost representative international market quotation for each product. Producers and/or 
exporters make "transfers" to the respective FEP when the market price falls below the reference 
price, or receive compensation from the FEP when the price is above the re ference price.  
… 
Pursuant to Article 7 of Law No.  101 of 1993, the Government may provide selective and temporary 
incentives or support to producers, for agricultural production, protecting rural income and 
maintaining peace. In this context, the Guarantee d Minimum Price  (PMG) scheme for cotton protects 
Colombian farmers' incomes from fluctuations in international prices by offering compensation for 
the price differential between market prices (New York Exchange) and a minimum guaranteed price 
                                              
14 The FEP for cotton, which is managed by the Colombian Cotton Confederation (CONALGODON); the 
FEP for centrifugal sugars, molasses obtained by extracting or refining sugar, and sugar syrups, managed by 
the Colombian Sugar Cane Growers' Association (ASOCAÑA); the FEP for cocoa, managed by the National 
Federation of Cocoa Growers (FEDECACAO); the FEP for promoting the export of meat, milk and products 
thereof, managed by the Colombian Cattle Breeders' F ederation (FEDEGAN); and the FEP for palm kernel oil, 
palm oil and fractions thereof, managed by the National Federation of Palm Oil Producers (FEDEPALMA).  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 46 - 
 
  per tonne of lint. In 2016, the MADR allocated Col$8,920  million of resources to protect growers' 
incomes by granting indemnities to cotton farmers in respect of the two harvests in 2016, for a total 
of 12,968 tonnes of lint marketed. The PMG policy agreed with the Gov ernment expired in 2017 and 
the scheme ceased to operate. …  
4.1.4   FINANCING AND INSURA NCE  
4.1.4.5   OTHER FINANCING SCHE MES  
 
In addition to the loan programmes implemented by FINAGRO and the support given by the FAG, 
the sector is supported by other schemes, too, such as the Agricultural Development Fund and the 
Agricultural Solidarity Fund (FONSA).  
FONSA, created by Law No.  302 of 1996, partially amended by Law No.  1.731 of 2014, is an MADR 
fund, administered by FINAGRO, whose purpose is to provide e conomic support to small -scale 
agricultural producers and fishermen to tackle and partially or fully alleviate their debts when in the 
course of their activities they encounter crisis situations which severely affect crops or the quality, 
volume and market ing of agricultural products. Law No.  1.694 of 2013 and its regulations in Decree 
No. 355 of 2014 expanded the scope of the Fund to encompass instances of significant and sustained 
variations in prices of agricultural products or inputs that cause severe a nd sustained falls in income 
for producers. Up to 2017, producers of cotton, cocoa, coffee, sugar cane, bulb onion, beans, milk, 
maize, oil palm and potatoes benefited from FONSA on account of falling prices.15 
… 
                                              
15 Under Law No.  1.731 of 2014, for the purposes of FONSA small producers are considered to be 
natura l persons: (a) whose total assets do not exceed 250 SMLMVs; (b) no less than two thirds of whose 
income stems from agricultural and/or fishing activity or who have at least 75% of their assets invested in the 
agricultural sector. Medium -sized producers for  FONSA purposes are natural persons with total assets not 
exceeding 700 SMLMVs. MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacion -control -
gestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE%20LA%20REPUBLICA/Memorias_al_Congreso_de_la
_Republica_%202016_2017.pdf . TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 47 - 
 
  EGYPT (FEBRUARY 2018 ) - SECRETARIAT REPORT (WT/TPR/S/ 367) 
SUMMARY  
… 
 
… It has also discouraged the production of crops that use water intensively, such as cotton and 
sugar. … 
 
… 
 
3  TRADE POLICIES AND P RACTICES BY MEASURE   
3.1  MEASURES DIRECTLY AF FECTING IMPORTS  
3.1.5   ANTI -DUMPING, COUNTERVAI LING, AND SAFEGUARD MEASURES  
3.1.5.3   SAFEGUARDS   
 
… 
Since its last TPR in 2005, Egypt has initiated 14 safeguard investigations, imposed provisional 
measures in all of them and final safeguard measures on three products: blankets, ste el rebar, 
cotton and mixed yarns (Table 3.19). Although few final measures were adopted, the application of 
provisional measures could have acted as a deterrent to trade.  
Table 3.19 - Safeguard measures imposed, 2005 -June 2017  
Product  Countries 
concerned  Domestic 
legal 
instrument  Imposed duties 
(c.i.f. basis)  Notification  Situation as 
at 30  June 
2017  
… … … … … … 
C otton and 
mixed 
yarns 
(other than 
sewing 
threads)  A ll Ministerial 
Decree 
No. 19/2009  25% of c.i.f. value 
for a period of one 
year or not less 
than US$1/kg   Duties 
eliminated by 
Decree 
336/2009  
Woven 
cotton or 
mixed 
yarns  A ll Ministerial 
Decree 
No. 20/2009  25% of c.i.f. value 
for one year 
period or not less 
than US$1/kg   Duties 
eliminated by 
Decree 
336/2009  
… … … … … … 
C otton and 
mixed 
yarns 
(other than 
sewing 
threads)  A ll Ministerial 
Decree 
736/2011  
(provisional) 
Ministerial 
Decree 
No. 589/2012 
(definitive ) 3.33 LE/ kg for 
200 days 
(provisional)  
LE 3.48 kg from 
18/7/2012 until 
30/12/2012, and 
LE 3.13/kg from 
31/12/2012 until 
30/12/2013, and 
LE 2/kg from 
31/12/2013 until 
30/12/2014  G/SG/N/6/EGY/5,  
5 December 2011;  
 
G/SG/N/7/EGY/5/Suppl .1, 
24 September  2012  
 
G/SG/N/7/EGY/4 G/SG/N/11/EGY/4,  
9 January 2012  
 
G/SG/N/6/EGY/6 G/SG/N/7/EGY/5 
G/SG/N/11/EGY/ 3, 
5 March 2012  
 
G/SG/N/8/EGY/6 G/SG/N/10/EGY/6 
G/SG/N/11/EGY/5, 20  July 2012 
 
G/SG/N/8/EGY/6/Corr.1 
G/SG/N/10/EGY/6/Corr.1 
G/SG/N/11/EGY/5/Corr.1,  8 August 
2012  Duties 
expired on 
30/12/2014  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 48 - 
 
  Product  Countries 
concerned  Domestic 
legal 
instrument  Imposed duties 
(c.i.f. basis)  Notification  Situation as 
at 30  June 
2017  
Woven 
cotton or 
mixed 
yarns  A ll Ministerial 
Decree 
No. 116/2012 
(provisional)  10% of c. i.f. value 
and not less than 
LE 3.33/kg  G/SG/N/6/EGY/5,  
5 December 2011  
G/SG/N/7/EGY/5/Suppl.1, 
24 September  2012  
G/SG/N/7/EGY/4 G/SG/N/11/EGY/2,  
9 January 2012  
 
G/SG/N/6/EGY/6 G/SG/N/7/EGY/5 
G/SG/N/11/EGY/3,  
5 March 2012  
 
G/SG/N/8/EGY/6 G/SG/N/10/EGY/6 
G/SG/N/11/EGY/5, 20  July 2012 
 
G/SG/N/8/EGY/6/Corr.1 
G/SG/N/10/EGY/6/Corr.1 
G/SG/N/11/EGY/5/Corr.1, 8 August 
2012  Duties 
eliminated by 
Decree 
693/2012  
… … … … … … 
Source:   Ministry of Trade and Industry and WTO notifications.  
4  TRADE POLICIES BY SE CTOR  
4.1  AGRICULTURE AND FISH ERIES  
4.1.1   AGRICULTURE  
4.1.1.1   MAIN FEATURES   
 
… 
Table 4.2 describes land use by crops between 2005 and 2016. The use of land for the production 
of wheat has increased, by some 12%, and so has the use of land for the production of maize, by 
14.4%, while for sugar beet it has risen by more than 235% . On t he other hand, land dedicated to 
the production of sugar cane has remained stable, while there has been a decline in areas used to 
grow rice mainly in order to rationalize the use of irrigation water. The land use for cotton has also 
declined.  
Table 4.2 - Land use by crop, 2005 -16 
(Thousand feddansa) 
Crop  2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  2016  
… … … … … … … … … … … … … 
Cotton  657 536 575 313 284 369 520 333 287 369 241 131 
a 1 feddan is equivalent to 0.42 hectares.  
Source:  Information provided by the authorities.  
Table 4.3 describes the evolution of the production of the most important agricultural crops in Egypt 
between 2005 and 2016. As can be seen, the production of sugar beet has almost quadrupled during 
the period; the production of wheat has increased by 15%, and the production of meat, fruit and 
vegetables has also followed an upward path. However, during the period, Egypt has experienced a 
decline in the production of some traditional crops such as cotton and rice.  
Table 4.3 - Agricultural outputs, 2005 -16 
('000 tonnes)  
 2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  2016  
… … … … … … … … … … … … … 
C otton lint  202 602 222 364 95 137 181 109 94 113 160 114 
… … … … … … … … … … … … … 
Source:  Information provided by the authorities . TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 49 - 
 
  Table A3. 4 - Egypt's notifications to the SPS Committee, 2005 -November 2017  
Agency 
responsible  Legal basis  Description  Date  Notification  
… … … … … 
CAPQ   Import requirements of cotton lint  5 January 2011  G/SPS/N/EGY/42  
… … … … … 
Note:  GOVS stands for General Organization for Veterinary Services; CAPQ stands for Central 
Administration of Plant Quarantine; EOS stands for Egyptian Organization for Standardization; MALR 
stands for Ministry of Agriculture and Land Reclamation and NFSA  stands for National Food Safety 
Authority.  
Source:  Ministry of Trade and Industry and WTO notifications.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 50 - 
 
  EUROPEAN UNION (JULY 2017 ) - SECRETARIAT REPORT ( WT/TPR/S/ 357) 
4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.1   Trade  
4.1.2   Agricultural polic ies  
4.1.2.1   Domestic support  
4.1.2.1.1   Direct payments  
Voluntary coupled support  
… 
In addition to voluntary coupled support, the EU provides for payments for cotton in Greece, Spain, 
and Bulgaria ( Table 4.5).16 
Table 4.5 - Crop -specific payments for cotton  
 Area  
ha Fixed yield  
tonne/ha  Payment  
€/ha  
Bulgaria  3,342  1.2 2015: 584.88  
   2016 and onward: 649.45  
Greece  250,000  3.2 234.18  
Spain  48,000  3.5 362.15  
Source:  Regulation (EU) No. 1307/2013, Article 58.  
                                              
16 Regulation (EU) No. 1307/2013 also provides for payments in Portugal but there is no production in 
Portugal, and no payments are made.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 51 - 
 
  INDIA (JUNE 2015)  - SECRETARIAT REPORT ( WT/TPR/S/313 /REV.1 ) 
 
2  TRADE AND INVESTMENT REGIME  
2.2  Trade  Policy Formulation and Objectives  
2.2.2   Trade policy goals  
… 
 
… During the period 3 July 2009 and 31 March 2013 export restrictions were placed on wheat flour 
and exports of cotton were subject to prior registration of contracts with DGFT. …  
… 
 
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.5   Other charges affecting imports  
 
Table  3.5 - Summary analysis of India's import charges, 2014 -15 
   Effective applied rates 
(MFN)  Total duty rate, incl. extra 
chargesa 
No. of 
lines  Average 
(%) Range  
(%) Average  
(%) Range  
(%) 
Total  11,481  13.0 0-150 28.3 0-537.5  
HS 01 -24 1,609  37.7 0-150 46.2 0-537.5  
HS 25 -97 9,872  9.0 0-100 25.3 0-186.1  
By WTO definition       
Agricultural 
products  1,496  36.4 0-150 46.1 0-537.5  
… … … … … … 
Cotton  11 2.7 0-30 3.3 0-36.1 
… … … … … … 
Note:  Calculations exclude specific rates and include the ad valorem  part of alternate rates.  
Source:  WTO calculations, based on data provided by the Indian authorities; and Big's Easy Reference 
Customs Tariff, 2014 (35th edition).  
 
3.1.9   Import prohibitions, restrictions, and licensing  
3.1.9.3   Import surveillance  
 
India does not maintain any mechanism to monitor imports of items that are considered to be 
sensitive; such a mechanism  was discontinued  by April 2012.17  
 
3.2  Measures Directly Affecting Exports  
3.2.4   Export  prohibitions, restrictions, and licensing  
3.2.4.2   Export licensing and quotas  
… 
 
On 8 December 2014, the previous requirement that exports of cotton and cotton yarn required an 
export authorization registration certificate (EARCs) issued by the DGFT was  abolished.18  
… 
 
  
                                              
17 At the end of March 2012, there were 415 sensitive items (based on HS eight -digit classifications). 
These included mil k and milk products, fruits and vegetables, pulses, poultry, tea and coffee, spices, food 
grains, edible oils, cotton and silk, marble and granite, automobiles, parts and accessories of motor vehicles, 
products produced by small -scale industries, and other  products (bamboos, cocoa, copra, and sugar).  
18 DGFT Notifications Nos. 102 and 103, 8 December 2014.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 52 - 
 
  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.1   General policy framework  
4.1.1.3   Internal measures  
Table  4.3 - Minimum support prices, 2010 -15 
(Rs per quintal)  
Minimum support prices (MSPs)  2010 -11 2014 -15 
… … … 
Cotton (medium staple)  2,500  3,750  
… … … 
Source:  Directorate of Economics and Statistics online information. Viewed at: 
http://eands.dacnet.nic.in/msp/MSPStatement(2014.29.10).pdf ; and information provided by the 
Indian authorities.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 53 - 
 
  INDONESIA (APRIL 201 3) - SECRETARIAT REPORT (WT/TPR/S/278/REV.1)  
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.6   Contingency measures  
3.1.6.2   Safeguard measures  
 
Table 3.10 - Safeguard activity, 2007 -12  
Product  Investigation 
initiation  Investigation outcome  
… … … 
Cotton yarn (other than sewing 
thread)  25.06.2010  Imposition on 06.06.2011 of safeguard measures for 
three years:  Rp 40,687 per kg (06.06.2011 to 
05.06.2012);  Rp 38,144 per kg (06.06.2012 to 
05.06.2013);  and Rp 35,601 per kg (06.06.2013 to 
05.06.2014).  Certain tariff lines as well as 105 
developing countries are excluded from the 
safeguard measure  
Woven fabrics of cotton  25.06.2010  Imposition on 23.03.2011 of safeguard measures for 
three years:  Rp 116,800 per kg (23.03.2011 to 
22.03.2012); Rp 109,500 per kg (23.03.2012 to 
22.03.2013); and Rp 102,200 per kg (23.03.2013 to 
22.03.2014)  
… … … 
Source:  Notifications to the WTO Committee on Safeguards; and additional information provided by the 
authorities.  
 
APPENDIX TABLES  
Table A1.4  - Merchandise imports by product group, 2007 -11 
(US$ million and %)  
 2007  2008  2009  2010  2011  
Total imports (US $ million)  74,473.4  129,244.1  96,829.2  135,663.3  177,435.6  
 (% of total)  
Total primary products  47.4 38.1 34.6 35.3 39.2 
 Agriculture  14.1 10.3 11.7 11.5 12.6 
 … … … … … … 
 Agricultural raw material  3.5 3.0 2.8 3.1 3.2 
 2631 Cotton (other than  
 linters), not carded or  
 combed  1.1 0.9 0.8 0.8 1.0 
 … … … … … … 
Source:  UNSD Comtrade database, SITC Rev.3.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 54 - 
 
  MAURITIUS (OCTOBER 2 014)  - SECRETARIAT REPORT ( WT/TPR/S/304/REV.1)  
APPENDIX TABLES  
Table A1. 3 - Merchandise imports by product group, 2007 -13 
(US$ million and %)   
2007  2008  2009  2010  2011  2012  2013  
Total (US $ million)  3,901  4,670  3,725  4,402  5,159  5,772  5,398  
(%) 
Total primary products  40.7 45.9 40.7 43.4 46.9 45.5 47.0 
Agriculture  21.3 23.5 23.9 23.1 24.2 23.5 24.2 
… … … … … … … … 
Agricultural raw material  2.5 2.6 2.4 2.2 3.0 2.0 2.2 
2631 Cotton (other than linters), not carded or 
combed  0.9 1.2 0.9 0.8 1.5 0.8 0.8 
… … … … … … … … 
Source:  UNSD Comtrade database, SITC Rev.3.  
Table A3. 1 - VAT-exempt supplies, 2013  
Item  
… 
Cotton of headings 52.01, 52.02 and 52.03  
… 
Source:  Value Added Tax Act 1998 (Consolidated Version with amendments to 1 September 2013), First 
Schedule. Viewed at: http://mra.gov.mu/download/VATAct_Proclamation_38_2013.pdf  and  
http://mra.gov.mu/download/VATAct_Proclamati on_38_2013.pdf .  
  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 55 - 
 
  MOROCCO ( FEBRUARY 2016 ) - SECRETARIAT REPORT ( WT/TPR/S/329 ) 
4  TRADE POLICIES BY SECTOR  
4.1  Agriculture and agro -industry  
4.1.1   Overview  
Table 4.2 - Main imports of agricultural products, 2008 -2014  
(US$ million)  
Products  2008  2009  2010  2011  2012  2013  2014  
Total imports  42,322  32,882  35,379  44,263  44,790  45,186  46,035  
Agriculture  5,191  3,809  4,197  5,797  5,773  5,042  5,811  
 % of total  12.3 11.6 11.9 13.1 12.9 11.2 12.6 
Main products         
… … … … … … … … 
HS 5201 Cotton, not carded or combed  76 49 71 123 79 71 73 
… … … … … … … … 
Note:  Agriculture by WTO definition.  
Source:  WTO Secretariat calculations based on data from the UNSD Comtrade  database; statistics from the 
Moroccan Foreign Exchange Board for 2014.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 56 - 
 
  PAKISTAN (MARCH 2015 ) - SECRETARIAT REPORT ( WT/TPR/S/311 /REV.1 ) 
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.3  Measures Directly Affecting Exports  
3.3.1   Registration , documentation, clearance, inspection, and minimum prices  
 
The Trade Development Authority of Pakistan (TDAP) under the Ministry of Commerce succeeded 
the Export Promotion Bureau (EPB) in 2006 and has pursued a more holistic strategy with respect 
to global trade development compared to its predecessor. …  
… 
 
Export contract registration with TDAP remains a requirement for export of cotton. …  
 
3.3.3 Export prohibitions, restrictions, and licensing  
3.3.3.2 Export licensing and restrictions  
 
Table 3.8 - Exports subject to certain conditions  
 HS Code  Item/goods  Condition/procedure/formalities  
… … … … 
10 5201.0000  C otton  
 (i) Export contract registration with TDAP and classification 
certificate issued by the Pakistan Cotton Standards Institute  
… … … … 
Source : Export Policy Order 2013, Ministry of Commerce.  
4  TRADE POLICIES BY SECTOR  
4.2  Agriculture  
4.2.3   Key sub -sectors  
4.2.3.1   Crops  
Table 4.2 - Area and production of important crops, 2009 -14  
(Area "000" hectares and production "000" tonnes)  
Crops  2009/10  2010/11  2011/12  2012/13  2013/14   
Area  
 
Production  
 
 
Area  
 
Production  
 
 
Area  
 
Production  
 
 
Area  
 
Production  
 
Area  
 
Production  
… … … … … … … … … … … 
C ottona 3,106  12,913  2,689  11,460  2,834.5  13,595.0  2,878.8  13,030.7  2,805.7  12,769.0  
… … … … … … … … … … … 
a Cotton production is in thousand bales (375 lbs per bale).  
Source:  Pakistan Bureau of Statistics.  
4.2.3.1.4   Cotton  
Pakistan is the fourth largest cotton producer in the world. Cotton is cultivated by around 1.6  million 
farmers, mostly with smallholdings of less than five hectares. Yields have been largely stagnant for 
the last several years. Cotton is exported as a raw  material, but also provides an essential input to 
the domestic textiles industry.  
The Pakistan Central Cotton Committee (PCCC), a semi -autonomous body in the Ministry of Textile 
Industry has as an objective to improve the sector's productivity. Its annual budget of PRs  500 to 
600 million is funded by a cess payable by the mills. Support pric es for cotton were abandoned 
in 2008. Export contracts on cotton must be registered, with exports being subject to mandatory 
quality inspection and certification.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 57 - 
 
  Exports of raw cotton  amounted to US $217 million in 2013, whereas exports of cotton  yarn 
amounted to US $2.2 billion. Pakistan also imports high -quality cotton, to blend with domestic cotton 
and to produce quality fabrics; imports amount ed to US $757 million of raw cotton and 
US$151 million of cotton yarn in 2013. The average MFN tariff on cotton imports is 3.8%, with tariffs 
ranging from 1% to 10%.  
APPENDIX TABLES  
Table A1.2  - Pakistan's merchandise imports by group of products, 2007 -13  
(US$ billion and %)  
  2007  2008  2009  2010  2011  2012  2013  
Total imports (US $ billion)  32.59  42.33  31.58  37.54  43.58  43.81  43.78  
 (% of total)  
Total primary products  43.2 53.1 47.2 51.2 53.7 53.9 52.2 
A griculture  13.9 16.8 15.6 17.9 16.9 14.9 14.5 
… … … … … … … … 
2631 Cotton (other than linters), 
not carded or combed  2.7 2.8 1.5 2.0 1.9 1.3 1.7 
… … … … … … … … 
Source:  UNSD, Comtrade database (SITC Rev.3).  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 58 - 
 
  PERU ( OCTOBER  2019) - SECRETARIAT REPORT ( WT/TPR/S/ 393) 
APPENDIX TABLES  
Table A1. 2 Total merchandise imports by HS section, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  
Total imports  42,169  43,327  42,184  38,036  36,153  39,788  43,136    
(% of imports)   
… … … … … … … …  
52. Cotton  0.9 0.8 0.9 0.8 0.7 0.8 0.8  
… … … … … … … … 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
 
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 59 - 
 
  SOUTH AFRICA (NOVEMB ER 2015 ) - SECRETARIAT REPORT  (WT/TPR/S/324 /REV.1 )19 
3  TRADE  POLICIES AND PRACTICES BY MEASURE  
3.3  Measures affecting production and trade  
3.3.2   Competition policy and price controls  
3.3.2.2   Price control  
 
In general, prices in South Africa are market -determined. Guideline prices, for agricultural products 
subject to levies, continue to be determined under the Marketing of Agricultural Products Act (Act 
No. 47 of 1996), to ensure that the levy does not exceed 5% of the actual price. Guideline prices 
are determined for the wine industries, milk and dairy products , as well as cotton lint.  
… 
 
4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.2   Policy  
… 
 
Levies continue to apply to the export and/or production of the following products: …, cotton, …  
 
                                              
19 Trade Policy Review of the Southern African Customs Union (SACU).  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 60 - 
 
  THAILAND (NOVE MBER 2015 ) - SECRETARIAT REPORT ( WT/TPR/S /326 /REV.1 ) 
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.4  Other Measures Affecting Production and Trade  
3.4.4   Competition policy and consumer protection  
3.4.4.2   Price controls  
 
… Its Central Commission on Prices of Goods and Services (CCP) in the DIT has the authority to set 
out: the goods and services subject to price controls; controls for their sale or purchase prices; and, 
procedures and conditions relating to the display of prices. …  
… The CCP Monitoring List remains divided into three categories (Table  3.7): the Sensitive goods 
and services whose prices are monitored daily because they are expected to increase in the near 
future; the Priority Watch goods and services that are monitored twice a week; and the Watch goods 
and services that are monito red twice a month. …  
Table 3.7 - Products and services subject to monitoring, April 2015  
List Products  
 Goods  
Sensitive  …  
Priority Watch  … 
Watch  … 82.  Absorbent cotton …161.  Cotton wool …  
 Services  
… … 
Source:  Department of Internal Trade online information. Viewed at: 
http://www.dit.go.th/en/backoffice/uploadfile/255610011351485115749.pdf  and 
http://www.dit.go.th/en/backoffice/uploadfile/255610011147057425749.pdf .  
4  TRADE POLICIES BY SECTOR  
4.2  Agriculture and Food Processing  
4.2.2   Trade  
… 
 
In value terms, major imports are soya bean oil cakes, soya beans, food preparations and cotton 
(Table 4.4). The main sources of soya bean oil cakes and soya beans are Brazil, Argentina and the 
United States; of food preparations, the United States, Singap ore and China; and of cotton, the 
United States, Australia, Brazil, and Mali. …  
Table 4.4 - Imports of selected agricultural products, 2008 -14 
HS code   2008  2009  2010  2011  2012  2013  2014  
… … … … … … … … … 
5201 - Cotton, not 
carded/combed  US$ million  715.3  484.6  729.6  1,120.0  748.9  734.2  676.3  
'000 tonnes  435.9  349.7  383.7  319.2  305.8  344.9  322.3  
… … … … … … … … … 
Note:  WTO definition of agriculture used.  
Source:  UNSD Comtrade database.  
 TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 61 - 
 
  TURKEY ( MARCH 2016 ) - SECRETARIAT REPORT (WT/TPR/S/ 331) 
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.8   Contingency measures  
3.1.8.1   Anti-dumping and countervailing measures  
… 
… One anti -dumping investigation has been initiated ex officio with respect to the United States on 
cotton.  … 
… 
Over the review period, there has been considerable anti -dumping activity. Since the beginning of 
2012, 25 new investigations have been initiated and 14 new measures have been imposed; many 
of these have affected  more than one WTO Member (Table A3.2). Additionally, various existing anti -
dumping measures have been extended (Table A3.3). Since 2012, a concern has been raised by the 
United States in a meeting of the Committee on Anti -Dumping Practices about Turkey's investigation 
on cotton.20 
Table A3. 2 - New anti -dumping investigations initiated and measures imposed or 
terminated, 2012 -15 
Products concerned  Exporter(s) affected  Status  
… … … 
Cotton (HS 5201)  United States  Initiation of investigation on 18 October 2014  
… … … 
Source:  WTO document WT/TPR/OV/W/9, 3 July 2015 and information provided by the authorities.  
3.1.8.2   Safeguard measures  
… 
Since the beginning of 2012, Turkey has launched five safeguard investigations. At mid -
October  2015, two of these were still ongoing, definitive safeguard measures had been imposed on 
another two, and one investigation was completed with no definitive measure imposed. Existing 
safeguard measures were extended in eight cases; and of these, one expired in 2014 (fo otwear) 
and two expired in 2015 (matches and motorcycles) (Table A3.4). On 31  December 2012, ahead of 
schedule, Turkey terminated the safeguard measure on cotton yarn. …  
Over the review period, Turkey has responded to questions posed by India in the WTO  Committee 
on Safeguards regarding certain aspects of determination of serious injury in the context of Turkey's 
notifications on polyethylene terephthalate and certain types of cotton yarn.21 … 
… 
Table A3. 4 - Safeguard investigations initiated and measures im posed or extended, 
2012 -15 
Date original 
investigation published 
in the Official Gazette  Product(s) subject 
to investigation  Imposition of safeguard 
measure  Extension of safeguard 
measure  
… … … … 
21.10.2008  C otton yarn  
Turkey terminated 
this measure as of 
31 December 2012.  15/7/2008 -14/7/2011  
A pplication of variable duty with 
liberalization annually:  
1st period: 20% max. US $1/kg-
min. US $0.35/kg;  
2nd period: 19% max. 
US$0.95/kg -min. US $0.33/kg;  
3rd period: 18% max. 
US$0.90/kg -min US $0.31/kg.  
Various developing countries 
excluded.  15/7/2011 -14/7/2014  
A pplication of variable duty with 
liberalization annually:  
1st period: 10% max. 
US$0.85/kg -min US $0.29/kg;  
2nd period: 9% max. 
US$0.80/kg -min US $0.26/kg;  
3rd period: 8% max. 
US$0.75/kg -min US $0.23/kg.  
V arious developing countries 
excluded.  
… … … … 
Source:  Turkey's notifications to the WTO Committee on Safeguards.  
  
                                              
20 WTO document G/ADP/M/48, 6 August 2015.  
21 WTO documents G/SG/Q2/TUR/6/Rev.1, 11 May 2012 and G/SG/Q2/TUR/6, 4 May 2012.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 62 - 
 
  3.1.9   Standards and other technical requirements  
3.1.9.4   Controls at the border  
… 
 
In 2011, Turkey started pilot implementation of a risk -based trade control system, TAREKS, to carry 
out safety checks on imported and exported goods on the basis of risk. Consequently, since January 
2012, conformity assessment of certain imported goods (to ys, medical devices, telecommunication 
products, personal protective equipment, batteries and accumulators, construction products, and 
shoes) and as of August 2012, transactions related to cotton controls have been taken under the 
scope of TAREKS. …  
TAREKS  introduces a new risk assessment understanding and emphasizes the control of "risky" 
products while leaving behind the era of checking each product at each arrival at customs. TAREKS 
reduces bureaucratic procedures as well as the number of documents to be  submitted during the 
control process and replaces the paper documentation. It also contributes to effective traceability 
and market surveillance schemes.  
Quality checks for agricultural products are also part of the control process pursuant to Communique  
No. 2015/21 on Commercial Quality Controls on Certain Agricultural Produce at Export and Import 
Stage. In accordance with the Communiqué No. 2012/25, cotton is also subject to commercial quality 
controls at export and import stages and in the domestic mar ket as well. See Section 3.2.4.2 for 
details on the export quality control of agricultural products.  
4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.2   Production   
 
Hazelnuts are the largest earner for the fruit and nut category (Table 4.1).  
Table 4.1 - Major crop production, 2010 -14 
 Production value (TL million)  (% of total)  
2010  2011  2012  2013  2014 a 2010  2014a 
Crop production (total)  80,038  88,979  87,947  92,453  97,988  100.0  100.0  
          
…  …  …  …  …  …  …  …  
Raw materials used in textiles, of which:  2,642  4,883  2,758  2,941  3,467  3.3 3.5 
C otton (raw)  2,642  4,883  2,758  2,941  3,467  3.3 3.5 
…  …  …  …  …  …  …  …  
a 2014 data is provisional.  
Sources:  Turkstat , Agricultural Structure (production, price, value) Publication; Turkstat, The Summary of 
Agricultural Statistics Publication.  
4.1.3   Trade  
4.1.3.1   Overview   
… 
 
Over the past five years, imports of raw materials and exports of processed goods have increased 
in parallel: as imports of cotton, wheat, and tobacco increased, exports of textiles, flour and 
confectionary, and tobacco products also increased. …  
… 
Table 4.3 - Exports of agricultural products, 2010 -14 
(US$ million)    
2010  2011  2012  2013  2014  
 Total exports  113,979  134,915  152,537  151,803  157,715  
 Total agriculture exports  11,899  14,350  15,105  16,707  17,635  
 of which       
… … … … … … … 
1512 Sunflower -seed, safflower or cotton -seed oil  103 341 418 496 790 
… … … … … … … 
Source:  UNSD Comtrade.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 63 - 
 
  … 
Table 4.4 - Imports of agricultural products, 2010 -14 
(US$ million)  
    2010  2011  2012  2013  2014  
   Total imports  185,541  240,839  236,544  251,661  242,224  
   Total agricultural imports  9,865  13,477  12,599  13,398  14,554  
   of which       
5201   C otton, not carded or combed  1,720  1,850  1,275  1,681  1,750  
…   … … … … … … 
1512   Sunflower, safflower or cotton -seed oil  274 629 988 919 1,201  
…   … … … … … … 
Source:  UNSD Comtrade.  
The main source of imports also depends on the product: in 2014, the United States was the main 
supplier of cotton (HS 5201); … 
4.1.4   Support programmes   
Table 4.8 - Main measures of agricultural support, 2011 -14 
(TL million)  
 2011  2012  2013  2014  
Producer support estimate (PSE)  27,022.51  26,041.07  31,385.15  33,888.92  
… … … … … 
Deficiency payments:  2,434.49  2,736.55  2,639.91  2,689.09  
C otton premium  792.27  1,123.69  1,037.21  1,075.23  
… … … … … 
Source:  OECD, PSE.  
5  APPENDIX TABLES  
Table A2. 1 - Turkey's Involvement in Dispute Settlement Cases, 1  January  2012  – 
1 December 2015  
Subject  Respondent/  
complainant/  
appellant  Request for 
consultation 
received  Status  
(as at 30  October 
2014)  WTO 
document 
series  
Panels  
Turkey as a respondent:  
Turkey – Safeguard Measures on 
Imports of Cotton Yarn (other than 
Sewing Thread)  Turkey/India  13-Feb-12 C onsultations requested  WT/DS428  
… … … … … 
Source:  WTO Secretariat.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 64 - 
 
  UNITED STATES  (DECEMBER 201 8) - SECRETARIAT REPORT ( WT/TPR/S/3 82/REV.1)  
SUMMARY  
 
… 
…The 2014 Farm Bill was amended in early 2018, through the passage of the Bipartisan Budget Act 
of 2018, to provide support for seed cotton, to make the Margin Protection Programme more 
attractive for small and medium -sized dairy farms, and to m ake additional disaster relief available. 
A programme to support the cost of cotton ginning was re -introduced as a temporary measure in 
March 2018. The legislative process for the 2018 Farm Bill is ongoing.  
… 
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.4    Other charges affecting imports  
Table  3.3 - Agricultural fees, applicable since 28 December 2015  
Fee Legal reference  Reason  Amount of fee  
… … … … 
Cotton Import 
Assessment  Cotton Research and 
Promotion Act of 1989 7 
CFR 1205  Cotton research, 
promotion, consumer 
information  Varies according to the 
product and HTS 
number  
… … … … 
Source:  CBP online information. Viewed at: 
 http://www.cbp.gov/sites/default/files/documents/userfee0407_3.pdf  and 
 https://www.aphis.usda.gov/aphis/ourfocus/business -services/user_fees/aqi_user_fees ; and 
 information provided by the authorities.  
4  TRADE POLICIES BY SECTOR   
4.1  Agriculture  
4.1.1   Main features  
 
… 
 
…The United States is the world's largest producer of soybeans, maize, beef, chicken, and turkey, 
and ranks third in the world in the production of pig meat and cotton. Market developments in the 
United States t herefore have a considerable influence on the world market prices for many 
commodities.  
Table  4.1 - Value of production, 2010 -17 
(US$ billion and %)  
 2010  2011  2012  2013  2014  2015  2016  2017  % of 
totala 
Total  334.9  379.5  396.6  394.3  406.4  376.2  355.5  372.7  100.0  
… … … … … … … … … … 
Cotton  7.3 7.0 6.3 5.2 5.1 4.0 5.8 7.2 1.9 
… … … … … … … … … … 
a  Percentage of total for the year 2016.  
Source:  USDA National Agricultural Statistics Service online. Viewed at: https://quickstats.nass.usda.gov/ ; 
 USDA National Agricultural Statistics Service online information, "Poultry Production and Value", 
 differ ent bulletins, viewed at: 
 http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1130 ; and OECD 
 Stats, Agriculture Policy Indicators, 2017 Monit oring and Evaluation: Reference Tables.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 65 - 
 
  Despite a sizable domestic market, much of agriculture is highly export oriented, particularly in the 
production of soybeans, maize, wheat, cotton, and chicken. The United States is the world's leading 
exporter of mo st of these commodities. … 
Table  4.2 - US and world production and trade of selected commodities, 2010 -19 
('000 tonnes, unless otherwise indicated)  
 Marketing year  2010/  
11 2011/  
12 2012/  
13 2013/  
14 2014/  
15 2015/  
16 2016/  
17 2017/  
18 2018/  
19  
… … … … … … … … … … 
Cotton (thousand 480 lb. bales)          
Production  United States  18,102  15,573  17,314  12,909  16,319  12,888  17,170  20,923  19,235   
% of world  15.4 12.2 14.0 10.7 13.7 13.4 16.1 16.9 16.0 
Exports  United States  14,376  11,714  13,026  10,530  11,246  9,153  14,917  15,847  15,500   
% of world  41.2 25.5 28.0 25.8 31.7 26.2 39.6 38.8 37.0   
… … … … … … … … … 
Source:  USDA Foreign Agricultural Service, Production, Supply and Distribution database. Viewed at: 
 https://apps.fas.usda.gov/psdonline/app/index.html#/app/advQuery . 
Except in 2005 and 2006, when imports almost matched exports, the United States has been a 
significant net exporter of agricultural products since 2000, although the trade surplus has declined 
since the peak period 2012 -14 (Chart 4.1).  
Table  4.3 - Exports and imports of selected products, 2012 -July 18a 
 2012  2013  2014  2015  2016  2017  July 2018  
Total exports  US$ million  145,933  148,499  154,554  137,229  138,909  142,905  85,925    
…  
…  
…  
…  
5201  C otton  US$ million  6,225  5,592  4,396  3,889  3,959  5,828  4,995    
'000 tonnes  2,752  2,790  2,167  2,396  2,469  3,253  2,756  
… … … … … … … … … … 
a HS headings 0201 (meat of bovine animals, fresh and chilled) and 0202 (meat of bovine animals, 
frozen) have been added together so that trade in meat of bovine animals is comparable to HS headings 0203 
(meat of swine) and 0207 (meat and edible offal of poultry), which both include fresh, chilled, and frozen meat 
under the same HS heading.  
Source:  UNSD Comtrade database.  
4.1.2   Major support programme  
4.1.2 .1  General legal framework  
 
… 
 
… While the first versions of farm legislation (in the 1930s) focused on support to producers of staple 
commodities (maize, soybeans, wheat, cotton, sugar, rice, and dairy), modern farm bills are much 
wider in scope, and address a range of issues such as revenue and price support, crop insurance, 
credit, disaster relief, conservation, research, bioenergy, horticulture and organic farming, rural 
development, nutrition, food aid, and trade. The farm bills are renewed approxi mately every five 
years.  
 
... A new programme, the Supplemental Coverage Option (SCO), which requires producers to have 
an underlying insurance policy, allowed them to add an area -based plan on top of individual farm 
coverage. Producers with historical upl and cotton base were not eligible to elect PLC or ARC for 
cotton, but cotton producers were offered a supplemental crop insurance programme: the Stacked 
Income Protection Plan (STAX). The Farm Bill also sought to rationalize various conservation 
programmes . 
… 
The 2014 Farm Bill was amended in early 2018, through the passage of the Bipartisan Budget Act 
of 2018 (PL 115 -123). As part of the revision, "seed cotton" has now become a covered commodity 
under the PLC and ARC programmes from the 2018 crop year. …  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 66 - 
 
  … 
4.1.2.6 Cotton  
According to the 2012 Census, there were 18,155 cotton farms, down from more than 1  million 
farms in the 1940s. Nevertheless, the United States is the world's third largest producer, and the 
number one exporter, of cotton. Cotton has always been an important export crop, and exports have 
continued to rise with the decline in textile production in the United States.  
The 2014 Farm Bill did not include upland cotton as a covered commodity under the PLC or ARC 
programmes, but introduced a subsidized Stacked Income Protection Plan (STAX), a cotton -specific 
supplemental crop insurance programme. STAX, which provides coverage for losses of up to 20% of 
the expected county revenue, could be bought on its own or in conjunction with an underlying  
(companion) policy.22 STAX, which triggers indemnities when area revenue declines below 90% of 
the expected level, could cover a maximum 30% of the expected revenue or the difference between 
90% and the loss level under the companion policy. The grower als o chooses the effective coverage 
under STAX by electing a multiplier (protection factor), ranging from 80% to 120%. However, even 
with most of the premium (80%) paid by the Federal Government, cotton farmers were reluctant to 
sign up to STAX, particularly in the southern plains. Nationwide, only 30% of the eligible acreage 
was enrolled in STAX the first year the plan was offered and, though there were differing regional 
trends, overall participation rates declined further to 26% in 2016 and 23.9% in 2017.23 
While upland cotton was not included as a covered commodity under the PLC and ARC programmes, 
former upland cotton base became "generic acres", and farmers with generic acres could qualify for 
PLC and ARC payments by planting those lands with crops eligibl e for ARC or the PLC. Payments 
would accordingly be based on current planting decisions, and not on historical production, for the 
crops planted on generic acres. Of the 17.6 million generic acres in total, some 8.66 million acres 
were planted with ARC - and PLC -eligible crops in the 2016 crop year, resulting in payments 
amounting to US$505 million. The most commonly planted crops were peanuts enrolled in PLC, 
planted on 1 million acres, with US$186 million paid, and maize enrolled in ARC -CO, planted on 
2 million acres, with US$114 million paid.24 
The Bipartisan Budget Act of 2018 revised the ARC and PLC support programmes, with the 
introduction of seed cotton, defined as unginned upland cotton including both lint and seed, as a 
covered commodity under ARC and  PLC for the 2018 crop year. Producers with generic base acres 
have the option to allocate those base acres to seed cotton or other covered commodities, based on 
2009-12 plantings. Generic acres without the required 2009 -12 plantings of either cotton or ot her 
covered commodities become unassigned base acres.25 Either ARC or PLC may be selected for the 
seed cotton acres, with a one -time opportunity to update the PLC yield for seed cotton. The reference 
price (PLC) is set at US$0.367 per pound, and the marketi ng loan rate for seed cotton at US$0.25  per 
pound (for use only in the PLC programme; marketing assistance loans are not authorized for seed 
cotton). Farmers who choose to enrol historical seed cotton base acres in ARC or PLC will not be 
eligible to enrol in STAX for current cotton production as from the 2019 crop year.  
As a temporary measure to support cotton producers, the US Department of Agriculture (USDA) 
announced a second Cotton Ginning Cost Share (CGCS) programme in March 2018. Producers were 
invite d to sign up by 31 May 2018 to receive a one -time payment equal to 20% of the average 
                                              
22 Examples of such policies are Yield Protection, Revenue Protection, Revenue Protection with the 
Harvest Price Exclusion, and any Area Risk Protection.  
23 Glauber, Joseph, W. Unraveling Reform? Cotton in the 2018 Farm Bi ll, American Enterprise Institute, 
January 2018. The author bases his calculations on data from the USDA Risk Management Agency.  
24 USDA FSA online information. Viewed at: https://www.fsa.usda.gov/Assets/USDA -FSA-
Public/usdafiles/arc -plc/pdf/2016%20ARC%20PLC%20payments%20April%202018.pdf . 
25 Unassigned base acres are not eligible for payments. A farm owner that did not plant any  covered 
commodities (including seed cotton) on the generic base acres during the 2009 -16 crop years would now have 
an unassigned crop base.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 67 - 
 
  ginning costs, based on their cotton planted acres reported to the FSA for 2016.26 The cost -sharing 
payment is limited to US$40,000 per person or legal entity.27 
4.1.4 Leve ls of support  
With few exceptions, producer prices are largely aligned with border prices. Among the main 
commodities tracked by the OECD, the highest single commodity transfers (as a percentage of gross 
farm receipts) occur to sugar, milk, and cotton. ...  
Table  4.5 - Total PSE and single commodity transfer values for selected commodities, 
2008 -17 
(US$ million or % of gross farm receipts for respective products)  
 2008  2009  2010  2011  2012  2013  2014  2015  2016  2017a 
Producer support estimate            
US$ million  29,954  31,535  30,774  32,684  36,040  29,056  40,517  38,225  36,485  39,606  
PSE as % gross farm receipts  8.6 10.1  8.6 8.0 8.5 6.9 9.3 9.5 9.6 9.9 
Single commodity transfers            
… … … … … … … … … … … 
C otton            
 US$ million  1,313  252 339 813 591 529 889 852 518 712 
 SC T as % gross farm receipts  30.1  6.2 4.4 10.4  8.6 9.4 14.9  17.9  8.2 9.6 
… … … … … … … … … … … 
a  Preliminary data.  
Source:  OECD Stats.  
… 
Table  4.6 - Federal subsidy programmes for agriculture, FY2015 -16 
(US$ million)  
Programmes  Expenditure  
FY2015  FY2016  
Agriculture Income Support and Marketing Assistance for Covered 
Commodities    
… … … 
Extra -long staple (ELS) cotton  0 0 
Upland cotton  49.0 47.0 
… … … 
Source:  WTO document G/SCM/N/315/USA, 14 March 2018.  
  
                                              
26 The ginning costs are averaged for four production regions, and range from US$19.65 in the 
Southwest (Kansas, Okl ahoma and Texas) to US$48.02 in the West (Arizona, California and New Mexico). 
USDA FSA online information. Viewed at: https://www.fsa.usda.gov/Assets/USDA -FSA-Public/usdafiles/ cotton -
ginning -cost-share/cgcs_program_fact_sheet_march_2018.pdf . 
27 Conditions  also apply, i.e. compliance with conservation measures, active engagement in farming, 
and that the producer's average adjusted gross income (in the preceding three tax years) must not exceed 
US$900,000.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 68 - 
 
  Table A4.1  - Commodity Loan Rates and Price Loss Coverage Reference Prices, 
Agricultural Act of 2014 (as amended)  
Covered commodities  Marketing loan programme  
Commodity loan rates  Price loss coverage  
Reference prices  
  Converted into 
US$/tonne   Converted into 
US$/tonne  
… … … … … 
Extra -long staple cotton (lb.)  0.7977  1758.6  n.a. n.a. 
Seed cotton (lb.)  0.25a 551.2a 0.367  809.1  
Upland cotton  Simple average of the adjusted 
prevailing world price for the two 
immediately preceding MYs, but not 
less than US$0.45/lb. or more than 
US$0.52/lb. The loan rate for the 
2017 crop year was US$0.4949/lb.  n.a. n.a. 
n.a. Not applicable (i.e. not a covered commodity).  
a The loan rate is set only for the purposes of determining the effective prices for seed cotton under 
the Price Loss Coverage programme. Seed cotton is not a covered commodity under the marketing 
assistance loan programme.  
Note:  For the conversion factors, see  US TPR (2010), Table AIV.1.  
Source:  The Agricultural Act of 2014, as amended, and information provided by the authorities.  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 69 - 
 
  VIET NAM (SEPTEMBER 2013)  - SECRETARIAT REPORT ( WT/TPR/S/287/REV.1)  
4  TRADE POLICIES BY SECTOR  
4.2  Agriculture  
4.2.2   Trade  
Table 4.2  - Exports  and imports of agricultural, 2005 -11 
HS 2002    2005  2006  2007  2008  2009  2010  2011  
… … … … … … … … … 
Imports  
 TOTAL (not including rubber)  2,404  2,850  4,066  5,819  5,757  7,849  10,052  
… … … … … … … … … … 
5201  C otton, not carded 
or combed  '000 tonnes  106 176 202 291 295 349 320 
US$ million  163 214 259 456 385 661 1,037  
… … … … … … … … … … 
Source:  UNSD Comtrade.  
4.2.3   Policies  
4.2.3.2   Domestic policies  
 
… 
Product -specific plans set out objectives and general policies for some crops and other agricultural 
products….28 Similarly, the Cotton Development Master Plan for 2015 -20 sets targets for areas (in 
this case, an increase in area planted) and states that assistance will be provided through low -
interest loans a nd improved infrastructure.29 
… 
APPENDIX TABLES  
Table A1. 2 - Merchandise imports by product group, 2007 -11 
(US$ million and %)  
  2007  2008  2009  2010  2011  
Total imports (US $ million)  62,764.7  80,713.8  69,948.8  84,838.6  106,749.9  
 % of total  
Total primary products  27.5 29.0 25.5 26.5 28.3 
Agriculture  9.4 9.8 10.8 12.1 12.4 
… … … … … … 
2631 Cotton (other than linters), not 
carded or combed  0.4 0.6 0.5 0.8 1.0 
… … … … … … 
Source:  UNSD Comtrade database, SITC Rev.3.  
                                              
28 USDA Foreign Agricultural Service (2012a).  
29 USDA Foreign Agricultural Service (2012b).  TN/AG/GEN/34/Rev.11/Add.1 • TN/AG/SCC/GEN/13/Rev.11/Add.1  
 
- 70 - 
 
  Table A3. 3 - Preferential tariff averages for selected product groups, 2013  
 
No. of 
lines MFN 
applied  ATIGA
a AK 
FTAb AC 
FTAc AANZ 
FTAd AI 
FTAe AJ 
CEPAf VJ 
EPAg 
Description   (%) (%) (%) (%) (%) (%) (%) (%) 
Total  9,558  10.4 2.0 7.5 4.2 8.2 9.1 7.8 7.6 
HS 01 -24 1,594  17.4 2.8 10.5 4.7 13.5 15.5 14.3 14.5 
HS 25 -97 7,964  9.0 1.8 6.9 4.1 7.2 7.8 6.5 6.2 
By WTO 
category           
WTO Agriculture  1,298  17.4 3.4 10.4 5.4 12.6 15.1 13.8 14.0 
 …  …  …  …  …  …  …  …  …  … 
C otton  5 6.0 0.0 3.0 3.0 3.0 6.0 3.0 3.3 
 …  …  …  …  …  …  …  …  …  … 
a ASEAN Trade in Goods Agreement (Circular No. 161/2011/TT -BTC).  
b ASEAN -Korea Free Trade Agreement (Circular No. 163/2011/TT -BTC).  
c ASEAN -China Free Trade Agreement (Circular No. 162/2011/TT -BTC).  
d ASEAN -Australia New Zealand Free Trade Agreement (Circular No. 44/2012/TT -BTC).  
e ASEAN -India Free Trade Agreement (Circular No. 45/2012/TT -BTC).  
f ASEAN -Japan Comprehensive Economic Partnership Agreement (Circular No. 20/2012/TT -BTC).  
g Viet Nam-Japan Eco nomic Partnership Agreement (Circular No. 21/2012/TT -BTC).  
Source:  WTO Secretariat calculations, based on data from the Ministry of Fi nance, Circular 
No. 193/2012/TT -BTC and Circular Nos. as in footnotes (a) to (g). 
__________