TN/AG/SCC/W/43  
WT/CFMC/69  
 
20 September 2 022 
(22-7026) Page: 1/12 
Sub-Committee on Cotton    
 
 
IMPLEMENTATION OF THE DEVELOPMENT ASSISTANCE ASPECTS OF THE  
COTTON -RELATED DECISIONS IN THE 2004 JULY PACKAGE AND  
PARAGRAPH 12 OF THE HONG KONG MINISTERIAL DECLARATION  
REPORT OF THE 3 7TH ROUND OF THE DIRECTOR -GENERAL'S  
CONSULTATIVE FRAMEWORK MECHANISM ON COTTON1 
HELD ON 11 MAY 2022  
1  INTRODUCTION  
The 3 7th Round of the Director -General's Consultative Framework Mechanism on 
Cotton  (DGCFMC) took place on 11 May 2022 under the chairpersonship of Deputy Director -General 
Mr. Jean-Marie Paugam  on behalf of the Director -General Dr . Ngozi Okonjo -Iweala.  
The meeting was held in  a hybrid  format (in-person and virtual participation) and was attended 
by the Cotton -4 (C-4)2, other WTO  Members, relevant partner organizations, and key experts from 
the global cotton community.  
The Chair noted that the DGCFMC meeting would be followed  by an Information Session entitled 
"Supply chain disruptions affecting cotton exports from LDC s" and the 17th Dedicated Discussion on 
Relevant Trade -Related Development Aspects on Cotton , chaired by Ambassador Gloria Abraham 
Peralta  (Costa Rica).  
1.1  World Cotton Day (WCD)  2022  
Mr. Robson Fernandes  of the WTO Agriculture and Commodities Division (AGCD)  recalled 
the WCD celebrations since the launch  event in 2019 , as well we the activities held in 2020 and 2021. 
He noted that in August  2021 the United Nations  General Assembly  adopt ed a resolution proclai ming 
7 October as World Cotton Day  (A/Res/75/318) .  
He reported t hat, pursuant to the UN resolution,  the Food and Agriculture Organization of the 
United Nations  (FAO)  would host the activities  for WCD 2022 , and that th e WTO Secretariat would 
collaborat e on the activities  planned  by FAO in addition to  publish ing a news item and carry out a 
social media campaign to disseminate the work of the WTO on cotton , including of th e DGCFMC . 
Mr. Amrouk El Mamoun, Senior Economist, Team Leader  of the  Raw Materials and T ropical 
Products  at Markets and Trade Division of the FAO  underscore d the call in the UN resolution  which  
recognized the importance of WCD as a way to  raise awareness about the cotton sector in terms of 
socio-economic development, the impact on the livelih ood of millions of farmers worldwide, and the 
importance of cotton to producing and consuming countries. He stated  that the adoption of the 
resolution was a milestone which acknowledged the vital importan ce of the commodity  and 
recognized the efforts by all the stakeholders in the sector.  
He confirmed the commitment of the FAO, including from its senior management  and staff, to 
ensure a successful celebration of WCD on 7 October  2022. He called upon partner  organizations 
and different stakeholders to help with delivering a successful celebration.  
 
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.  
2 Benin, Burkina Faso, Chad and Mali.  TN/AG/SCC/W/43 • WT/CF MC/69  
 
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He indicated that WCD 2022 would be composed of two segments : (i) a high -level session with 
the participation of  heads of state, heads of International Organization s including partner 
Organizations as well as of FAO's Director -General to back the importance of the cotton sector and 
the efforts towards achieving the S ustainable Development Goals (SDGs) ; (ii) panel discussions on 
sustainable development of cotton produ ction and the interlinkages with market s, trade , and 
policies.  
The Chair  thanked FAO for taking the lead in organizing WCD celebrations  in 2022  and 
welcomed further information  in due course . He then gave the floor to Mr. Mike McCue from the 
International Cotton Advisory Committee (ICAC) for an update on the activities planned 
for WCD 2022.  
Mr. Mike McCue, Communications Director  of the International Cotton Advisory 
Committee  (ICAC)  recalled  that WCD had been officially launched in October 2019 at the  WTO 
through a remarkable event , where m ore than 800 people attended  from all over the world , including 
several  Ministers  and high-level government officials. The event , he remined, included  thematic 
sessions, a fashion show, exhibit ions, and enabled  networking amongst different stakeholders of the 
global cotton community .  
He informed that for WCD 2022 the date would coincide  with ICAC's World Cotton Research 
Conference in Cairo  (4 to 7 October 2022) , where the participation of more than 500 researchers  is 
expected . He indicated that more details would be shared shortly .  
The Chair  thanked Mr. McCue and invited the C -4 to make their statem ent on WCD 2022.  
Ambassador  Sougouri  of Burkina Faso , speaking on behalf of the C -4, Côte d'Ivoire , and the 
36 African co tton producing countries , indicated the importance of WCD to help addressing  the 
economic recovery efforts after the COVID -19 pandemic . He recalled that the resolution highlighted 
the historic importance of cotton both as a global commodity and as a vital element of source of 
subsistence and revenue  for millions of people  around the world , notably in LDC countries. He invited 
all Member s, UN agencies, international and regional organi zations as well as the civil society and 
non-governmental organizations  to celebrate WCD with a  view to highlight the importance of cotton 
production, transformation, trade , and consumption .  
He concluded by further recalling that  WCD was an annual opportunity by setting a platform 
to exchange about the benefits  offered by the cotton sector as well as to discuss the challenges . He 
then called for the support and promotion of WCD to make it a real lever for the development of the 
cotton sector in developing countries  and in LDCs. On behalf of t he C-4, he welcomed FAO's offer  to 
host WCD 2022 , in line with the recommendations of the UN Resolutio n. The C -4 called upon all 
partners to support that initiative.  
The Chair  thanked all who took the floor to speak about  their activities with regards to 
WCD 2022 and concluded the first agenda item by thanking the FAO for hosting WCD 2022.   
2  STATEMENT BY THE C -4 COORDINATOR  
Ambassador Sougouri of Burkina Faso , on behalf of the C -4, started by  highlight ing that t he 
cotton sector , which was already fragile in some countries, especially in LDCs, had been greatly 
impacted by the health and economic  crises created by the COVID -19 pandemic . He then called on 
partners to continue support ing cotton  producing LDCs in their post -pandemic  recovery efforts.  
He then address ed the C-4's expectations for the cotton development component of the 
12th Ministerial Conference ( MC12 ) to be held in June 2022 . He indicated that t he draft decision 
TN/AG/GEN/51 -TN/AG/SCC/GEN/23  submitted  by the C -4 was still under consideration by Members . 
He invited Members to implement the Hong Kong and Nairobi Ministerial decisions with particular 
attention to the development aspects of cotton.  
He mentioned that for the C -4 it was important that the MC12 reaffirm the p revious Ministerial 
decisions and invited Members and development partners to give full effect to them through the 
development and implementation of program mes and structural projects . These, he added , would TN/AG/SCC/W/43 • WT/CFMC/69  
 
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  enable to obtain maximum benefit s from the cotton value chains  and improv e the welfare of millions 
of people, in particular women and young people in LDCs.  
He also referred to the draft Declaration WT/GC/W/808  entitled "Action Plan to Enhance 
Support for Cotton By -product Development in L DCs". He reported and welcomed the broad adhesion 
and support that the pro posal had already received from Members. He noted, however,  that there 
was still only one Member who had reservations about the document and th at the C-4 was willing 
to engage  in ord er to have it adopted during  MC12.  
With r egard s to the second edition of the Partners' Conference, initially scheduled  on the 
margins of MC12, he welcomed the suggestion  to organize it on the margins of the Aid for Trade 
Global Review (A4T)  in July 2022. He stated that t his conference would encourage new partnerships 
and mobilize resources and technical expertise to support the implementation of cotton related 
projects in LDCs.  
He added that in LDCs the cotton sector needed more than ever the support of de velopment 
partners to find a sustainable solution to the concerns of their cotton farmers and to build a strong 
and resilient economy in the face of the deva stating consequences of the COVID -19 pandemic , other 
hazards  and global developments . Thus, the C -4 urged the technical partners to support efforts and 
initiatives to develop the  production, national processing,  and infrastructure of the cotton sector  in 
their countries .  
He particularly note d the need  to move towards  the transformation and cre ation of cotton value 
chains. Therefore, the C-4 appeal ed to all development partners (bilateral, regional and multilateral) 
to contribute to the implementation of the integrative and regional program me "Cotton Road map 
Project ", as well as the joint initia tive on technology and know -how transfer for the development of 
cotton by-products . He mentioned that those initiatives would help boost the development of value 
chains in the cotton sector and would be a real driver of job creation, poverty alleviation, i mproved 
food security as well as sustainable and inclusive economic and social development.  
The Chair thanked the Ambassador of Burkina Faso for his statement and opened the floor for 
delegations who wished to intervene.  
The representative  of the United States  noted that the United States w as willing to consider 
the proposals  on cotton by-products  and would address bilaterally with the C -4 on the pending 
points . Regarding the agriculture negotiations , which include cotton trade , he noted  that considering 
the limited time remaining to negotiate prior to MC12 and the divergen ces across the 
WTO Membership, the only feasible  outcome for cotton and most of the agriculture negotiati ng areas 
would be increased transparency . He also stated that the Uni ted States would support a general 
work plan of guiding principles that would collectively move discussions forward.  
The representative  of the European Union  reported that on the Draft General Council 
Declaration  on cotton by -products development in LDCs (document WT/GC/W/808 ), the bilateral 
consultations with the C -4 had allowed to discuss the goal of the document and that they did not 
have any further objections to WT/GC/W/808 in its revised form.  
The representative  of China  highlighted that the adoptio n of the UN Resolution on WCD was 
very encouraging for the cotton and agriculture communit ies, particularly given the current 
challenging times , the importance of cotton as a cash crop , and its role in providing  food security in 
Africa . He reported that China was fully engaged in the process of collaboration with African partners  
and noted that their experts were communicating with different stakeholders regarding the proposed 
project s to define a way forward for further cooperation . 
Ambassador Sougouri of Burkina Faso  thanked the United States for their readiness and 
highlighted the C -4's willingness to cooperate on cotton and other issues at MC12  and after it . He 
further thanked the European Union and confirmed that the C -4 have had fruitful discussions on the 
Draft Declaration  on Cotton by -products . He concluded by thanking the Delegation of China for their 
continued support to the C -4. TN/AG/SCC/W/43 • WT/CF MC/69  
 
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  3  RECENT DEVELOPMENT S IN THE GLOBAL COTTON MARKET  
Ms Aichetou Ba of the  WTO Agriculture and Commodities Division (AGCD)  present ed the recent 
cotton market trends  and international trade statistics for cotton . She noted that exports in values 
had increased  from 2017 to 2018 before slightly decreasing from 2018 onwards until 2020.  
Exports in quantities , contrarily , had remained seemingly steady with a slight upward trend 
towards the year 2020.  She noted that f rom 2017 to 2018 there had been a slight increas e in annual 
prices followed by  an increase of around 40 % from 2020 to 2021. She noted that export data for 
2021 had not been included due to data availab ility and stress ed the importance of transparency, 
access to up-to-date data, and regular updates to al low better qualit ative analyses and information  
flow. 
On LDCs cotton exports, she noted that from 2018 to 2019 there had been increas es. In Africa, 
from 2017 to 2018  there had been  a slight increase followed by a somewhat steady change 
from 2018 to 2019 and a decrease from 2019 to 2020.  
Finally, when comparing the data of exports in values of the C -4 with the World's cotton 
exports, the trend was slightly different considering that  from 2017 to 2018 there had been  a 
decrease then a recovery from 2018 to 2019 , but consistently there had been  a decrease from 2019 
to 2020.  
The Chair  thanked the Secretariat for their presentation and opened the floor for questions and 
comments.  
The representative  of the E uropean Union  indicated that production seemed to have increas ed 
whereas exports of cotton and textile were not following the same trend. Therefore, he wished to 
know the cause of the difference and what were the obstacles  and problems  encountered .  
The representative  of Chad  indicated that despite the trends presented by the Secretariat, the 
projections for 2022 seemed to be promising for LDCs and African countries. He mentioned the 
change s in energy supplies and the drastic drop in cotton demand by 1.2 million tonnes due to the 
COVID -19 pandemic. With regards to energy, he enquired whether changes in cotton production had 
been observed due to lower access to energy in Asia.  
The Chair also enquired the presenter regarding information on cotton substitution with food 
crops in the context of the food crisis.  
Ms. Ba indicated that research and data collection were still ongoing and further information 
would be provided soon. A call for Members and stakeh olders would be sent  for more information 
and further discussions.  
The representative  of Chad  provided information on the impacts of the conflict in the Black 
Sea region on the food supply and echoed the need to assess the impacts on the cotton sector.  
The Chair concluded by calling upon Members to share information with the  Secretariat on 
the impacts of changes in energy supplies and the risk of substitution of cotton production with food 
production in the context of the international food crisis  and invited the ICAC to provide further 
information on these two aspects  in sub sequent presentations .  
4  DIRECTOR -GENERAL'S EVOLVING TABLE ON COTTON DEVELOPMENT ASSISTANCE   
The Chair  recalled that the last version of the Evolving Table had been circulated to Members 
in document WT/CFMC/6/Rev.32 on 2 May 2022 and gave the floor to Mr. F ernandes to introduce 
the latest updates introduced into the document.  
Mr. Robson Fernandes  (WTO) mention ed that the last version of the Evolving Table 
(WT/CFMC/6/Rev.32 ) included updates submitted by Members and partner organizations since the 
last DGCMFC meeting in November 2021  and indicated that updates under Part I included new 
information by Brazil, the United States, the United Nations Industrial Development 
Organization  (UNIDO), the Organisation of African, Caribbean and Pacific States (OACPS) , and the TN/AG/SCC/W/43 • WT/CFMC/69  
 
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  Common Fund for Commodities (CFC). There were 26 ongoing active projects , including o ne new 
active cotton -specific project by CFC in Uganda with a value of USD 1.5 million and implementation 
from 2022 to 2027. In addition, one project by the Unit ed States in Benin, Burkina Faso, Chad, and 
Mali had been complemented and resulted in impacts on all cotton -growing member States 
in WAEMU  and ECOWAS. The Egyptian Cotton Project implemented by UNIDO had also been 
completed in March 2022.  
Under Part II, one notification had been received from Canada bringing the total number of 
active projects to 42.  
The Chair thanked the Secretariat for the update s and opened the floor to comments on the 
latest version of the Evolving Table.  
The representative  of the E uropean Union  indicated that they had been engag ing at the 
multilateral , regional and national level s where cotton ha d been identified as a priority sector. He 
reported that the European Union and its member States were support ive of  the cotton sector in 
Africa with programmes amounting to  more than  EUR 91 million.  The objectives were, in first 
instance , to ensure an income to smallholder farmers and a decent life , as well as improved resilience  
for millions of small producers in deve loping countries and especially in LDCs.  He highlighted the 
interest of the E uropean Union  in understand ing where value was added along the value chain and 
what the environmental and social sustainability of value chains were.  
He added that pursuant to the new European Union policies, such as the  Green Deal, the Farm 
to Fork strategy and with upcoming legislation on due diligence, the European Commission 
International Partnership ( EC INTPA ) wished  to support projects on the restoration of soils, 
ecological ly responsible production methods for cotton issues to provide a safe environment for 
humans , and to support a sustainable development of the sector. He underscored that i nvesting i n 
technical capacity development and digitalisation of farmer organi zations  would also be crucial  to 
increase incomes and develop local value add itions to cotton . 
These were integrated in the ongoing projects by the E uropean Union  and its member States 
and reflect ed in the Evolving Table , including : (i) a programme to support the competitiveness of 
West Africa (2020 -2023 with value of EUR 7.5 mi llion) which included the value chain of cottonseed 
oil in Burkina Faso. The cotton used was certified as organic and processed locally, stimulating not 
only sustainable producti on, but adding value, creating jobs, and fostering incentives for 
industrialisation ; (ii) a project named Ethical Fashion Initiative ( jointly with the ITC and  valued at 
EUR 2.2 m illion in  Mali and Burkina Faso) where the local and sustainable textile value  chain s were 
promoted as part of the fashion industry ; (iii) collaboration with ITC in  Benin and Burkina Faso of 
almost EUR 2.3 million with the  view to  create alternative revenue s for cotton producers; and 
(iv) promoting a sustainable cotton and garment v alue chain from Ethiopian cotton  with a budget  of 
EUR 1.5 million . 
The representative  of Brazil  indicated that an additional USD 2.2 million had been disbursed 
for their five on -going projects  reported in Part I of the Evolving Table and anticipated that for the 
next version of the Evolving Table, Brazil and ILO would be extending the project "South -South 
Cooperation for the Promotion of Decent Work in Cotton Producing Countries in Africa and La tin 
America" scheduled to b e implemented by 2024.  
The representative  of Beni n, on behalf of the C -4, Côte d'Ivoire and 36 other cotton  producing 
and exporting LDCs, expressed gratitude for the efforts made to move the discussions forward and 
the presentati on on the updated Evolving Table as well as the notifications sent by Members and 
partner organizations. He noted with satisfaction that the ratio between total commitments and total 
disbursements for specific cotton development assistance had improved fro m 23% to 34% since the  
previous version of the Table.  
He further thanked the representative of the E uropean Union  for his presentation which clearly 
showed the various types of support offered by the European Union to the C -4 countries , as well as 
to other partners. He encouraged all development partners to contribute to the implementation of 
the integrative and regi onal program me "Cotton Roadmap  Project " to ensure the development of  
cotton  value chains and make cotton  a real instrument for job creation, poverty alleviation, improve d 
food security , as well as sustainable and inclusive economic and social development.  TN/AG/SCC/W/43 • WT/CF MC/69  
 
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The Chair  concluded the agenda item by thanking Members and partner organizations for 
providing inputs to the revised Evolving Table , particularly : Brazil, Canada, the United States, the 
United Nations Industrial Development Organization (UNIDO), the Organ ization of Africa, Caribbean 
and Pacific States (OACPS), and the Common Fund for Commodities (CFC).  
He emphasized the importance of the programmes and indicated that much more could still 
be achieved thanks to these types of fundings to develop the sector  including through  the 
improvement of productivity, yields , and processing capacities.   
5  SOUTH -SOUTH COTTON COOPERATION  
The Chair  began the agenda item by highlight ing the benefits of South-South Cooperation as 
a means  for the exchange of good practices and also commended Brazil, China, India and Pakistan , 
as well as all other Members  on their regular contributions.   
The representative  of India  stated that phase two of the Cotton Technical Assistance 
Programme referred to in previous meetings would be scaled up to cover five additional African 
countries , bringing the total of African beneficiary countries to 11 for the next five -year period. He 
noted that t he focus of phase two of the programme would be on increasing cotton prod uction and 
improving the post -harvest as well as building the technical capacity of the cotton -based  textiles . To 
update activities which ha d been affected by the COVID -19 pandemic, actions had been undertaken 
to identify areas of intervention , and they we re finalizing terms of reference of project management 
between agencies in India and their missions in the relevant countries in Africa.  
The representative  of China  firstly reminded that China had announced to establish and expand 
the South-South Cooperation cluster fund up to USD 15 million in collaboration with FAO and other 
partners. He informed participants that these funds had been formally started  in 2022 in cotton 
producing Member countries in Africa . He also mentioned the bilateral collaboration supported by 
China to the benefit of African partners through a long -term strategic vision until 2035 to provide 
agriculture technolog ies and  training centres in Africa. He reported that China had also helped 
Mozambique and other African Members by sending experts to assist  on cotton  production  as well 
as on other agriculture challenges such as locust control . He also mentioned that China  had provided 
inputs such as fertilizers and pesticides.  Training programme s in African countries had been 
organized and over 100 people had been trained . He indicated that China had supported  five projects  
in the last  two years  in Burkina Faso, Sudan,  and other African countries, with specific focus on 
cotton production, cotton processing, textile  production , and trade. He also referred to assistance  
with support to acquire agriculture machinery and the processing of textiles in Benin and other 
countri es.  
He concluded by emphasizing that China had expanded its collaboration with Africa  on cotton 
as well as  bilateral  trade . He stated that d uring the last three years China's imports of African 
agriculture products had increased by 14 % for an estimated US D 4 billion , making  China the second 
main destination of African agriculture products. He noted that f rom 2020 to 2021, cotton, coffee, 
banana , and rubber exports from Africa to China ha d almost doubled.  
The representative of Mali , speaking  on behalf of the C -4, thanked the different southern 
partners for their commitments to the development of the cotton sector , notably in LDCs. He praised 
the support received particularly in light of the difficult COVID -19 health context. He mentioned that  
the economic benefits of South -South partnership s were of paramount importance to their 
populations and  urged development partners to maintain the ir support while directing more funding 
towards the realization of structuring projects, such as the integrat ion of cotton value chains, the 
realization of private and public investments, and the sharing of experiences, technologies and know -
how. That would help generate additional income, reduce poverty among youth and women, combat 
unemployment , as well as violent extremism and illegal immigration, while improving the food 
security of the local population s.  
He concluded by reiterating the C -4's call for fund s to the "Cotton Road  Map Project". TN/AG/SCC/W/43 • WT/CFMC/69  
 
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  6  COTTON DEVELOPMENT ASSISTANCE PROJECTS  
The Chair  recalled that this a genda item was in line with paragraph 11 of the Nairobi Decision 
of 2015, and paragraph 10 of the Bali Decision of 2013 and then opened the floor for the different 
interventions.  
The representative of Chad  recalled that this item was added to the DGCFMC's  agenda following 
a request by the C -4. He added that setting  up this framework for dialogue allowed to monitor the 
progress in the implementation of the projects submitted and strengthen partnerships and the share 
of experience. These projects reinforc ed the productivity and the competitiveness of the cotton , 
textile  and clothing sector s through the dynamization of the transforma tion and the local valorisation  
of cotton  with the goal  to improve the access to regional and international markets .  
He reiterate d the C -4's commitment to its integrative and regional " Cotton Road Map  Project " 
which was still pending. While welcoming the progress made in the implementation of the first phase 
with the  feasibility studies  on cotton by -products , thanks to the support of UNCTAD, EIF, ITC 
and WTO, the C -4 requested  the support of partners to implement the component linked to  the 
creation of value-added for cotton fibre in West and Central Africa.  
In addition to the "Cotton Road Map  Project ", he informed partners that other projects had 
been submitted by the C -4 and were still awaiting implementation. He noted that the group was 
counting  on the s upport of all development partners to mobilize more resources to enhance the 
effectiveness of the cotton sector in LDCs, in line with the 2013 Bali and 2015 Nairobi Ministerial 
decisions.  
He indicated that due to the conflict in Black Sea Region, LDCs were facing increased  challenges 
in tackling food insecurity . Further , the rapid inflation together with  higher  social tensions  were also 
impacting their economies and requir ed support to ensure that the recovery from the pandemic and 
support the stability of food market s.  
In conclusion, he reminded  the partners  of the C -4's proposal to establish a follow-up 
committee to coordinate the implementation of the project on the trans fer of technology and know -
how for cotton by-product development in LDCs.  
Mr. Alan McClay, Chief Executive Office r of Better Cotton Initiative (BCI)  presented on 
BCI's 2030 strategy. He indicated that the strategy remained focused on cotton and that BCI's 
mission and vision had been updated to reflect the three pillars of sustainability (ecological, social 
and economic ) for developing more sustainable agriculture and cotton production , also aligned with 
the UN 2030 Sustainable Development Goals  (SDGs) : (i) climate change mitigation, (ii) reduced use 
of pesticides, (iii) improve smallholders'  livelihoods, (iv) women's empowerment and (v) protection  
of soil health .  
He indicated that the traceability programme represented a key strategic priority . He also 
reported that cotton production complying with BCI standards had a 19 % lower greenhouse 
gases  (GHG) emission intensity per tonne of lint . He complemented  this by stating that farmers that 
adopt BCI protocols could become more resilient for mitigati ng and adapting to the effects of climate 
change.  
He specified that although cotton was the focus, consideration would be  given to the wider 
agrosystem. He expressed that BCI wanted to forge networks and relations with other initiatives and 
commodities to  ensure synergies and avoid duplications.  
He highlighted that one of the important components  of Better Cotton 's system was that 
although they were committed to work ing with farmers, they were also taking into account the 
market in where they were operati ng in order to cover  all stages of the supply chain and ensure that 
the demand for sustainable cotton was met. He concluded by remind ing that the market demand 
was triggering more sustainable production .  
The Chair  thanked Mr. McClay and opened the floor for questions and comments.  TN/AG/SCC/W/43 • WT/CF MC/69  
 
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The representative of the European Union  asked for an update on the progress of the Better 
Cotton Initiative in Africa and estimated financial  costs.  
Mr. McClay  (BCI)  responded that the y were still pursuing agreement s for interventions in 
African countries . He stated that i t could take up to two years for a country to join the Better Cotton 
system as it  involv ed gathering all the stakeholders and ensuring that due diligence procedures were 
met across the board. He emphasized that although they had one single global standard, the 
adaptation to local conditions and local circumstances was critical , hence  the time required to bring 
these countries on board. He expressed  that it was difficult  to communicate regarding  financial cost s, 
but a clearer picture would  be available  within a year.   
The Chair thanked Mr. McClay and gave the floor to Mr. Janvier Nkurunziza, Officer -in-Charge, 
Commodities Branch, United Nations Conference on Trade and Dev elopment (UNCTAD ) to provide 
an update on the progress of the Enhanced Integrated Framework (EIF) cotton by -products projects 
in Malawi and Togo.  
Mr. Janvier Nkurunziza, Officer -in-Charge, Commodities Branch, United Nations Conference 
on Trade and Development (UNCTA D) reported that the feasibility studies  on cotton by -products for 
Malawi and Togo  had been completed by the end of 2021 and validation workshops had been 
organized on 15 February 2022 in Malawi and on 8 March 2022 in Togo. He added that t he two 
projects had been  extended until the end of May 2022.  
He mentioned that the workshops focused on  assessing the opportunities from cotton stalks, 
cottonseed oil, linters and cotton cake in Malawi and on  cotton stalks, cottonseed oil, cotton seed 
processing and their residu es, and fibre residues  in Togo . He reported that v isits to stakeholders had 
allowed to identify new project opportunities. For instance , in Togo, a pilot initiative consisting in 
using cotton stalks to enrich the soil was proposed , while in Malawi a pilot initiative had been 
proposed to form aggregation centres t o keep track of cotton trade  and organize the collection of 
levies for the cotton regulator.  
He shared with participants that some of the key common issues that had been encou ntere d 
in Togo and Malawi were low cotton prices, decreased number of  cotton growers  who were changing  
to the profit of food crops such as soybeans which were considered less cumbersome and more 
profitable , low cotton yields with 600 to 800 kg per hectare  resulting in low volumes. He advised 
that in order  to promote cotton by -products it would be crucial to increase cotton production. He 
also reported  there were no high-performing  cotton by -product industries  established in either  
country.   
As per the difference s between the two countries, he indicated that the market structure in 
Togo was more monopolistic with one single ginner, the Togo NFCT, whereas in Malawi the sector 
was more liberalized. The organi zation of farmers was also different as Togo had an extens ive 
network of producers whereas Malawi had a loose association of producers. The history of cotton 
by-products was also different as Togo had only one company, Nioto , which was producing 
cottonseed oil , while Malawi had multiple companies.  
He explained t hat in Malawi, a farmer would get USD 4 cents for 1kg of cotton and indicated 
that another problem was that the prices were announced at the beginning of the season but 
subsequent changes in conditions would drive the prices lower than what had been announ ced. 
Cotton was generally associated with low profitability, low yields and the revenue per hectare was 
lower than  USD 40 per hectare. In comparison, other crops were more profitable in Malawi such as 
chilis with minimum price at 1'500 Kwachas compared to 400 Kwachas for cotton which represent ed 
the least profitable among all the other crops considered by the study . Hence, the benefit farmers 
had for substituting c otton for other crops. He emphasized the importance to focus on  cotton 
production and productivity while better organizing the cotton sector . 
In Togo, he pointed out that recommendations included to improve the mechanisms that were 
used to set cotton price s and ensure better timing of inputs provisions . On looking forward, he 
indicated that a study to analyse some aspects in more detail in the two countries  had been 
contracted , including for  a farm survey in Togo. He highlighted the need for fundraising for  phase 
two and the need for capacity building .  TN/AG/SCC/W/43 • WT/CFMC/69  
 
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The Chair  thanked Mr. Nkurunziza  and opened the floor for questions.  
The representative of Chad  echoed that profitability and yields were low and production was 
more artisanal with hand -picked cotton produce d on small -scale farms with limited mechanisation  
in contrast  to practices in  large farmers in other countries . He noted, h owever, that African cotton 
was more ecological. He stressed  the need to increase productivity to enhance competitiveness. 
Regarding prices, he indicated that they were fluctuating , thus showing the importance of cotton 
trade negotiations to allow cotton farmers to benefit from their cotton output on the internatio nal 
market in a fair way. He then enquired about the monopoly situation in Togo and the liberalization 
in Malawi and the efficacy of the se two approaches. Lastly, regarding production, he enquired about  
the recommended ways to increase productivity and yie lds. 
The representative of the European Union  conveyed  the congratulations from experts in 
Brussels to the studies by UNCTAD in relation to the quality  and in -depth assessments. He then 
highlighted the importance of using the results . The studies had showe d the potential of cotton by -
products but also some risks.  He then asked to what exten t local export taxes or import tariffs were 
hindering the intra -regional or international trade of cotton by -products . He also wondered as t o 
what exten t the valorisation of cotton by-products would lead to the creation of jobs . He concluded 
by asking whether other studies would be conducted  by UNCTAD and partner organizations  on these 
areas . 
The representative of Benin enquired about  the impact of mechani sation in cotton production 
and asked what the situation in the two countries was . He also highlighted that both studies allowed 
to flag that there were no by -product industr ies despite the importance of promoting by -product by 
small and medium enterprises  (SMEs ) for a better valorisation of cotton .  
Mr. Nkurunziza  (UNCTA D) responded that on cotton  productivity two aspects  had to be 
considered : (i) inputs that were not accessible  at the right  planting  time; and (ii) the need to increase 
production by increa sing cotton planting acreages. He noted that most of the cotton production in 
those two countries was not mechanised. Regarding monopolistic v ersus liberalized systems as found 
in Togo and Malawi, he stated that each market structure had advantages and disadvantages and 
invited proponents to consult the study for further useful information. Regarding the effects of  taxes  
on cotton production and transformation , he stressed a prob lem linked to tariff escalation , as low 
tariffs are levied on exported  cotton , contrary to processed cotton , such as cotton seed oil, which  
was subject  to higher tariffs , this backed the importance of the conversations at the WTO.   
The representative of Bur undi highlighted the similarities between Burundi and Togo regarding 
the consequences of lower cotton prices . This situation in the context of higher labour costs was 
leading  to a decrease in the number of cotton farmers in favour of other crops . He noted that in 
Burundi the number of cotton farmers  had decreased  from around 20,000 in 1993 to around  8,000  
nowadays . As a solution, Burundi had created farmers association s to promote the production of 
cotton  and so yabeans which allow ed farmers to draw revenues from cotton and associated crop s for 
cross investments . He underlined the benefit s that could be drawn from accessing better irrigation 
systems including the possibility for farmers to plant short -cycled crops in between cotton cr opping 
seasons all with the objective to increase farmers' revenues.  
The Chair thanked all interveners and gave the floor to the Brazilian Cooperation 
Agency  (ABC) to present their project "African Integration for Sustainable Genetic Improvement of 
Cotton  Farming."  
Mrs. Melissa Popoff Scheidemantel, Project A nalyst for Technical Cooperation in Africa, Asia 
and Oceania at the Brazilian Cooperation Agency ( ABC) stated that the main goal of the project was 
to promote integration and boost discussions with and  between African countries  as part of a regional 
programme financed by Brazil to support cotton production in Africa. The project stemmed  from a 
request by 10 African countries which were already participating in Brazil's regional projects . These 
projects included the "Cotton Victoria Project" in Kenya, Tanzania and Burundi and the "Shire 
Zambezi  Project"  in Malawi and Mozambique. The project was based on concrete proposals that 
contained priority issues that  had been identified  by the 15 representatives  of the referred projects .  
She highlighted that the main objective of the "African Integration for Sustainable Genetic 
Improvement of Cotton Farming" project was to contribute to the expansion of cotton breeding TN/AG/SCC/W/43 • WT/CF MC/69  
 
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  programmes in addition to creating a sustai nable cotton genetic material exchangeable  between 
Brazil  and African countries .  
She mentioned  two publications  on the cotton sector and varieties of cotton in the 15 African  
countries launched by Brazil in January  2022 as part of the project . Another initiative was the 
promotion of exchange of genetic materials between the countries. She reported that ABC had 
received requests from Benin, Burundi, Chad, Kenya, Mali, Mozambiqu e, Senegal , and Zimbabwe. 
Workshops aimed at discussing project strategies and establish ing a germplasm bank  would be 
organized . Finally, the activities included the establish ment of  a virtual platform for sharing 
information and promoting a long-term conn ection between partner countries. She concluded by 
indicating that USD 1 million was foreseen to execute the project over a 36-month  period .  
Mr. Nelci Caixeta, General Coordinator for Technical Cooperation in Africa, Asia and Oceania 
at ABC presented the two publications  stemming  from the project . He explained that the project had 
been designed as a new knowledge network integrating 1 5 countries. He then shared with 
participants the advantage s of the project  along the cotton value chain. He mentioned that the 
project planned to install 15 demonstration units , one in each beneficiary countr y, and in Brazil to 
promote the exchange of cotton varieties and expand the national germplasm banks. He added that 
some of the demonstration units had been installed in certain countries with over 300 hectares.  
He explained that the first publication was on cotton production in each country while the 
second addressed  the differe nt cotton varieties, approximately 40, in those countries. He concluded 
by stating that t he two publications were available in three languages, English, Portuguese and 
French and could be found on ABC 's and the WTO's websites.  
The Chair  thanked both repres entatives of ABC and opened the floor for comments and 
questions.  
The representative of China  stated that that project was a good example of 
information -sharing  regarding cotton research, specifically  about genetic improvement. He indicated 
that China also was collaborating with African countries  for cotton and cotton seeds quality 
improvements. He questioned whether new varieties had been provided to African cotton farmers 
as part of the project and w hat were the performances of these varieties . Also,  considering that the 
varieties were genetically improved, what were the differences in performance compared with 
traditional varieties used by African cotton farmers.  
The representative of  Benin  enquired  about  the measures undertaken by  ABC to facilitate the 
availability of genetic material and make exchanges easier considering that the current regulatory 
framework for exchanging germplasm was complicated.  
Mr. Caixeta  (ABC)  replied  to China that benefici ary countries had been requested to provide 
their varieties and the characteristics they required in order to better identify their preferences . He 
indicated that only eight countrie s had requested different varieties  and Brazil had provided some 
varieties  that were developed by the Brazilian Agricultural Research Corporation ( EMBRAPA ). In 
response to Benin, Mr. Caixeta e xplained that the next steps would consist in analysing the quality 
of seeds that were provided by the requesting countries to determine if they would be  able to 
exchange seeds with  other countries . Each country would need to acquire their own sanitary 
certificates and ABC would then facilitate the exchanges of varieties.  
Mrs. Scheidemantel  (ABC)  added that each country was going to facilitate the exchange of 
the material according to their legislation while counting on the support of their governments. 
Regarding the question from China, she stressed that assessments on new variet ies were  not yet 
available and that they were entering the testing phase to find out whether the Brazilian cotton 
varieties would  adapt  to other countries , thus, evidencing the imp ortance of the technical 
demonstration units.  
The Chair  thanked both representatives of ABC for their presentations and explanations before 
giving the floor to Mrs. Parkhi Vats to present  the new  ICAC's Private Sector Advisory Council (PSAC).  
Mrs. Parkhi  Vats, Commodity Trade Analyst at ICAC stated that  the PSAC  was a platform for 
communication between ICAC's member Governments and the cotton private sector , so as  to give TN/AG/SCC/W/43 • WT/CFMC/69  
 
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  the latter a voice regarding policy changes that could impact the cotton industry. She highlighted 
that once fully functional, the PSAC would be the only cotton specific forum in the world that would 
draw representation from every sector of the cotton valu e chain on the same platform and provide 
an interaction with the governments.  
About the structure of the PSAC, she stated that only international, regional, or national 
associations would be invited to join. They already had a list of 103 associations div ided per section 
of the cotton value chain. The PSAC would also have observers  as international organi zations, non-
governmental  organizations ( NGOs ) and national organi zations of non -ICAC Member countries  in 
addition to the Member  countrie s.  
Each committe e would elect their chair , vice -chair and representative s to participate  at the 
PSAC executive committee  which would be the main decision -making  body and would have only 
12 members, 3 from each permanent committee. Each permanent committee would discuss a 
specific topic  such as sustainability .  
She indicated that 53 organisations had accepted the invitation to be founding members of 
the PSAC and had put forward their representatives for each of the permanent committees. She 
added that the inaugural  meeting of the merchants ' permanent committee had been held in 
April 2022 while the inaugural meeting of the other three permanent committee s was to be held in 
June 2022. Invitations to the observers would be  sent out in the following months. However, no 
private firms would be allowed to join the PSAC,  and if a Member country were to be  suspended as 
an ICAC member, its associated organisation would get a one-year grace period as an observer 
before being suspen ded from the PSAC. She specified that the membership was free of charge for 
the time being, however, PSAC was holding the right to impose a fee in the future.  
The Chair  thanked Mrs. Vats  for the presentation on ICAC's new committee .  
6.1  Presentation o f Cotto n-related Development Assistance Requests submitted by 
Beneficiary Members to the Evolving Table  
The Chair  started by proposing  the presentation of cotton -related development assistance 
requests by beneficiary Members.  
The representative of Benin  reporte d that cotton was the main  export crop  in the country  and 
production had increased in the last years  from 69,000 tonnes  in 2015 to 576,000 tonnes in 2022 ; 
thus, placing Benin as one of the leading cotton producers in Africa. He stated that the objective of  
the sector w as to reach 1 million tonnes  without increasing land areas which would require to 
intensify  cultivation  and increase yields .  
As such, a number  of activities were being carried out,  such as:  improved fertility and 
durability of soils  which had started  through the project TAZCO "Transition agro -écologique dans les 
zones cotonnières du Bénin" financed by Agence Française de Développement  (AFD) . Benin had also 
initiated a project  for sustainable  agriculture mechanisation to increase yields to promote 
improvement in Benin's major cotton industries. He stated that Benin had also initiated support 
system s focusing on farmers' needs following  a national diagnostic carried out in the country to 
approp riately categorize farms based on their size, equipment/machinery  and organisation  model  to 
design tailored support.  
In addition, Benin had the ambition to put in place a sustainable protection system for cotton 
farming . The objective of the project was t o improve the phytosanitary protection of cotton by 
facilitating access to equipment, training , agricultural advice and support for the development of 
precision technology while ensuring environmental protection. The project's budget was estimated 
at EUR  5 million over three years to cover training, equipment procurement , and technology 
improvement.  
The Chair  thanked the representative of Benin and highlighted that the different projects put 
forth were an encouragement to  the international development community, partner organizations, 
technical agencies and financial organizations involved with agriculture and industrial development 
assistance to give due consideration to the needs identified by cotton producing developing  
countries . Those would deliver targeted and effective development assistance activities.  To that TN/AG/SCC/W/43 • WT/CF MC/69  
 
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  effect and following a request from the C -4 countries, he indicated that the WTO , ITC and UNCTAD 
were organizing , in conjunction , the second edition of the Partners' Conference  scheduled  in the 
afternoon of the Aid for Trade event on 27 July 2022. The event would be an opportunity to further 
discuss the project requests that were sub mitted by beneficiary developing country Members.  
7  DOMESTIC COTTON SECTOR AND OTHER REFORMS/NATIONAL COTTON FOCAL POINTS  
The Chair  introduced agenda item 7 and invited delegations to submit their reports in writing 
for translation and publication in the DG CFMC's series of document s. He underlined the importance 
of this item as it provided updated information regarding reforms in the sector.  
With regards to the designation of national cotton focal points listed in Part III of the Evolving 
Table, he informed  that the Secretariat had not received any updates on their coordinates which 
therefore kept the total number of Focal Points  at 17. He invited Members to inform the Secretariat 
in case of future changes given the importance of these contacts in facilitati ng commercial 
communications.  
8  CONCLUSION  
To conclude, the  Chair thanked  delegates, participants,  and speakers, connected virtually and 
present in the room, for their attendance to the 37th DGCFMC meeting. He noted that the different 
contributions had allowed to engage in a rich and informative session which would serve as a basis 
to develop a more re silient, sustainable, productive, and up -to-expectations cotton sector.  
He called upon Members and participants to continue to use the Consultative Mechanism as an 
open forum for project -focused discussions particularly considering the upcoming Partners' 
Conference and recalled the continuous availability of the Secretariat to provide support in the 
process.  
He reminded that the discussions would be continued in the afternoon of the same day with an 
Information Session on Supply Chain Disruptions Affectin g Cotton Exports from LDCs and the next 
day with discussions on trade aspects during the 17th Dedicated Discussion.  
Before closing the meeting, the Chair gave the floor to the E uropean Union  and the U nited 
States  who wished  to intervene under "Other Items".  
The representative of the E uropean Union  thanked the Chair for providing a date for the 
Partners ' Conference on 27 July  2022 and expressed that he was looking forward to further detailed 
information about the event. The European Union  also welcomed the imminent seminar on 
disturbances in cotton value chains and reminded that these were further affected by the 
unjustifiable and illegal Russian invasion of Ukraine. The E uropean Union  asked if these multiple 
crises would als o offer opportunities for the cotton sector in Africa over time.  
The representative of the U nited States echoed the E uropean Union  and welcomed the meeting 
to discuss the supply chains disruptions affecting cotton exports from LDCs as a result of the 
COVID -19 pandemic . He mentioned that  further disruptions in the supply chains and access to key 
agriculture products and inputs includi ng fuel to transport agriculture commodities  and fertilizers  
were caused by the Russian Federation's war against Ukraine . He indicated that the solution to these 
disruptions would be for Russia to end its illegal war in Ukraine.  
 The Chair thanked the E uropean Union  and the U nited States  for their interventions. He 
concluded the discussions by thanking the Secretariat,  interpreters, Conference Office services and 
IT for their excellent work.  
The meeting was adjourned.  
 
 
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