TN/AG/SCC/W/40  
WT/CFMC/W/97  
 
11 November 2021  
(21-8525) Page: 1/83 
Sub-Committee on Cotton  Original: English  
 
IMPACT OF THE COVID -19 PANDEMIC ON COTTON AND ITS VALUE CHAINS:  
THE CASE OF THE C -4 AND OTHER LDCS  
STUDY BY THE SECRETARIAT1,2 
 
  
 
1 Study requested at the Cotton Dedicated Discussions of 28 May 2021 (as reflected in TN/AG/49 - 
TN/AG/SCC/17).  
2 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 official legal interpretation of the provisions 
of the WTO Agreements in general or in relation to any specific entity or measure listed in this document.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  ACKNOWLEDGMENTS  ................................ ................................ ................................ ....... 4 
FOREWORD BY THE DIRECTOR -GENERAL  ................................ ................................ .........  5 
EXECUTIVE SUMMARY  ................................ ................................ ................................ ...... 7 
MAIN TAKEWAYS  ................................ ................................ ................................ ...........  10 
ACRONYMS  ................................ ................................ ................................ .....................  11 
INTRODUCTION  ................................ ................................ ................................ .............  11 
METHODOLOGY AND LIMITATIONS  ................................ ................................ ................  12 
1  ECONOMIC, SOCIAL AND ENVIRONMENTAL INDICATORS AND COVID -19 IMPACTS  ... 13 
1.1  Economy -wide impacts in reference LDCs  ................................ ................................ ..... 13 
1.1.1  GDP per capita  decreased in 2020 and growth rates were projected to slow  ....................  13 
1.1.2  Key food security indicators worsened in 2020 for some reference LDCs  .........................  16 
1.2  The cotton sector in African LDCs is negatively  affected by climate change while having low 
environmental impacts  ................................ ................................ ................................ ..... 18 
1.3  The agriculture and cotton sectors in reference LDCs  ................................ ......................  23 
1.3.1  Value addition in agriculture is especially important  ................................ .....................  23 
1.3.2  Cotton is an important engine of agricultural value addition  ................................ ..........  27 
1.3.3  Agriculture employs more than half of the labour force  ................................ .................  28 
1.4  Cotton -specific COVID -19 impacts in reference LDCs  ................................ ......................  29 
1.4.1  Impact on cotton prices  ................................ ................................ ...........................  29 
1.4.2  Costs associated with cotton production and export from LDCs have increased, and logistics 
have become more complex  ................................ ................................ ..............................  34 
1.4.3  Cotton production, harvested area, and productivity show resilience  ..............................  35 
1.4.4  Adverse impacts on cotton exports  ................................ ................................ ............  36 
1.4.5  New trade patterns and trade linkages emerged in 2020  ................................ ..............  48 
1.4.6  The COVID -19 pandemic accelerated some trends in cons umer preferences worldwide  ..... 53 
2  RECOVERY AND RESILIENCE – MEASURES ADOPTED AND WAY FORWARD  ................  54 
2.1  Cotton -specific development assistance flows decreased from 2020 to 2021  ......................  54 
2.2  Analysis of responses to the WTO -ICAC survey  ................................ ..............................  55 
2.3  Measures taken by LDCs at the national level  ................................ ................................  55 
2.3.1  Recommendations from LDCs' public and private stakeholders for measures in supp ort of 
recovery and resilience  ................................ ................................ ................................ ..... 57 
2.3.2  Brief overview of responses from non -LDC respondents  ................................ ................  58 
2.4  Actions undertaken by the International Community  ................................ .......................  59 
CONCLUSIONS  ................................ ................................ ................................ ...............  65 
ANNEXES  ................................ ................................ ................................ ........................  67 
Annex 1 - WTO-ICAC Survey  ................................ ................................ .............................  67 
Annex 2 - Share of various agricultural products including cotton in total agricultural crops 
harvested area  ................................ ................................ ................................ ................  70 TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  Annex 3 - Excerpt from the May 2021 WTO Evolving Table  ................................ ....................  78 
REFERENCES  ................................ ................................ ................................ ..................  81 
 
List of figures  
Figure 1: GDP per capita  evolution 2018 -2020 in reference group of cotton -producing  LDCs (left) 
and in the comparative group of LDCs (right) in constant 2017 international USD, PPP  ...............  14 
Figure 2: Real GDP forecasts for the C -4 and their main cotton trading partners  .......................  15 
Figure 3: GFSI scores worsened in 2020 and remained below 2017 levels  
in several reference LDCs  ................................ ................................ ................................ .. 16 
Figure 4: Undernourishment was higher in the C -4 countries, Malawi, and in Mozambique over the 
3-year period 2018 -2020 ................................ ................................ ................................ .. 17 
Figure 5: 3 -Year moving average of temperature and total annual rainfall in the reference group of 
LDCs ................................ ................................ ................................ ..............................  19 
Figure 6: Value addition in agriculture and other sectors in the reference group of LDCs (percentage 
of GDP)  ................................ ................................ ................................ ..........................  24 
Figure 7: Value of cotton exports as a percentage of agricul tural value added  
in reference  LDCs ................................ ................................ ................................ ............  27 
Figure 8: Average employment in agriculture, industry and services in reference LDCs  
(% of total employment) (modeled ILO estimate)  ................................ ................................ . 28 
Figure 9: "A Index" fall in March -April 2020  ................................ ................................ .........  30 
Figure 10: Effects of COVID -19 on Major Apparel Export Markets  ................................ ............  31 
Figure 11: Cotton price trends in 2018 -2021, in nominal USD/kg (left -hand graph);  
Price outlook (nominal USD/kg): Cotton 6 -month moving average price level  
and 12 -month standard deviation  ................................ ................................ .......................  32 
Figure 12: World prices of cotton and other crops  ................................ ................................ . 33 
Figure 13: Cotton Production in reference LDCs (thousand tonnes of fibre)  ...............................  36 
Figure 14: Harvested area (thousand hectares)  ................................ ................................ .... 36 
Figure 15: Yield (Kg of lint/hectare)  ................................ ................................ ....................  36 
Figure 16: Cotton export values, quantities and shares over total merchandise  exports  
in reference LDCs  ................................ ................................ ................................ ............  38 
Figure 17: In the C -4, the quantity of cotton exported and the value of exports followed similar 
trends during the period 2016 - 2020 ................................ ................................ ..................  44 
Figure 18: Monthly cotton export data show impacts of the pandemic in the C -4 countries (tonnes)
 ................................ ................................ ................................ ................................ ..... 46 
Figure 19: Selected LDCs' raw cotton exports by destination, in USD millions  ...........................  49 
Figure 20: Other LDCs' raw cotton exports by destination, in USD millions  ...............................  50 
Figure 21: overview of cotton -specific development assistance commitments, disbursements, and 
number of projects recorded in the Evolving Table (in USD, left axis)  ................................ ...... 55 
Figure 22: Summary plot of survey results for the LDCs (survey question 2)  ............................  68 
Figure 23: Summary plot of survey results for the LDCs (survey question 3)  ............................  69 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  List of tables  
Table 1: Change between 2019 and 2020 - GDP per capita  in reference group of cotton -producing 
LDCs (left) and in the comparative group of LDCs (right)  
in constant  2017 international USD, PPP  ................................ ................................ ..............  15 
Table 2: Estimated number of individual cotton farmers in reference LDCs  ...............................  28 
Table 3: Value of cotton exports (USD millions) in reference LDCs  
and percentage change from 2019 -2020 ................................ ................................ .............  43 
Table 4: National pandemic response measures as reported by LDC survey respondents  ............  56 
Table 5: Other programmes enacted by international entities  ................................ .................  60 
 
List of boxes  
Box 1: Impacts on social indicators in Africa: study by the African Cotton Foundation (ACF)  
and Olam International  ................................ ................................ ................................ ..... 17 
Box 2 – A private sector view on prices, logistics, and global market trends  
during and after 2020  ................................ ................................ ................................ ....... 53 
Box 3: Better Cotton Adapts to COVID -19 Pandemic to Support Smallholder Farmers  ................  63 
Box 4: Enhancing safe trade in plants and plant products: the ePhyto solution  ..........................  64 
 
 
ACKNOWLEDGMENTS  
This study was prepared under the general responsibility of Jean -Marie Paugam, WTO Deputy 
Director -General, Yuvan Beejadhur, Senior Advisor to the WTO Director -General and Edwini Kessie, 
Director of the Agriculture and Commodities Division (AGCD).  
  
Within AGCD, the study was coordinated by Fabrizio Meliadò. The authors of the study are 
Fabrizio  Meliadò (corresponding author), Aichetou Ba and Richael Addo. Marième Fall, Cédric Pène, 
Jonathan Hepburn and Wenjing Wu provided guidance, reviews and advice for the preparation and 
finalization of the study. Marie -Line Frizon and Helen Favez coordinated formatting and copy editing. 
AGCD is grateful to the following WTO colleagues: the Economic Research and Statistics Division 
who supported data collection, the Sta ndards and Trade Development Facility who provided a written 
contribution, the Graphic Design Section and the translators in the Language and Documentation 
Services Division for the high quality of their work.  
  
The WTO Secretariat would like to express it s sincere gratitude to the Secretariat of the International 
Cotton Advisory Committee, who co -authored a survey in preparation for this study, provided key 
data and peer reviewed earlier drafts. Gratitude goes also to Belinda Edmonds of the African Cotton 
Foundation in cooperation with Olam International, Rebecca Owen and Damien Sanfilippo of Better 
Cotton, Charles Jannet (Director, Ecom Agroindustrial Corp. Ltd. and President, Afcot), the 
Secretariat of the Programme Régional de Production Intégrée du Coto n en Afrique and the 
Secretariat of the International Grains Council, who all shared valuable input, data and case studies.  
 
 
DISCLAIMER  
The study and its contents are the sole responsibility of the WTO Secretariat, except for the text 
boxes provided by ex ternal contributors, which are the sole responsibility of their authors. The study 
does not reflect the opinions or views of Members of the WTO. The authors of the study also wish to 
exonerate those who have commented upon it from responsibility for any ou tstanding errors or 
omissions.  
 
_______________  
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  FOREWORD BY THE DIRECTOR -GENERAL  
Around the world, the COVID -19 pandemic has cost people their lives and their livelihoods. People 
living in the world's poorest countries have faced particularly severe cha llenges, especially in those 
where a single product - such as cotton - is key to trade, inclusive prosperity, and sustainable 
growth.  
 
Fortunately, in many Least Developed Countries (LDCs), cotton trade has mirrored the rebound we 
see in other goods and co mmodities, as exporters respond to demand growth abroad, and begin to 
lay the foundations for the recovery.  
 
The WTO is today actively addressing the challenge of vaccine equity, which is a precondition for 
rebuilding sustainable economic activity across t he organisation's membership.  
 
At the same time, we are working to ensure that trade contributes to the full and equitable 
integration of LDCs in the global trading system of the future, including through our work on cotton.  
 
The United Nations General Ass embly recognised the critical role that cotton plays in economic 
development, international trade, and poverty alleviation in the resolution they adopted this year, 
proclaiming 7 October as World Cotton Day.  
 
At the WTO, our work on cotton takes place under two tracks: development assistance and trade 
negotiations.  
 
Under the development assistance track, t he WTO has brought together development partners and 
developing countries  to help with the funding of projects in support of the cotton sector.  
 
And under the negotiating track, WTO Members continue to seek to reduce significantly the trade -
distorting subsidies to cotton that undermine the competitiveness of producers in LDCs and other 
countries, especially the most vulnerable low -income and resource -poor farmers. While negotiations 
on trade -distorting domestic support have so far progressed only slowly,  WTO Members have taken 
some steps forward in other areas – notably by agree ing in December 2015 to eliminate cotton 
export subsidies and by committ ing to grant , to the extent possible , duty-free and quota -free market 
access for LDC exports of cotton and cotton -related products.  
 
Action on both the trade and development tracks is therefore essential  if markets for cotton and 
cotton by -products are to be come more competitive, equitable and sustainable.  
 
This study is part of our broader efforts at the WTO to ensure trade helps countries respond 
effectively to COVID -19; supports the economic development of LDCs, especially the C -4 and other 
cotton -producin g countries in Africa; and builds resilience to future shocks, including those 
associated with climate change.  
 
It aims to shed light on how COVID -19 affected 10 cotton -producing African LDCs by providing a 
preliminary review of the impact of the pandemic on production and trade in cotton and its value 
chains. The analysis looks specifically at those countries that have identified cotton as a key 
development priority, building on available data at the time of drafting.  
 
The study responds directly to a request made by the C -4 at the WTO's Cotton Dedicated Discussion s 
on 28 May 2021 - and seeks to inform discussions at the upcoming second Partners' Conference 
planned in the margins of the WTO 12th Ministerial Conference.  
 
The study shows that, in 2020, wh en the pandemic first hit, GDP per person fell by 2.1% on average 
in the ten African LDCs that are the focus of the analysis. It also finds that, although these countries' 
experiences varied considerably, the value of cotton exports dropped by 34% on avera ge. While 
cotton output in the group fell on average by 18% from 2019 to 2020, in some countries it fell 
precipitously by 79%.  
 
The study also shows how the cotton sector has been central to efforts to rebuild from the pandemic 
and galvanise economic activ ity in the wake of its shock. As such, it will help policy makers and 
development partners to learn lessons from those countries that have managed to maintain or even 
slightly increase their productivity during the pandemic.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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For cotton producing LDCs, the  path to recovery is not a straight one, nor is it particularly easy. 
However, our hope is that this study will contribute to their efforts to travel along it, and those of 
their development partners, by shining a light on the road we have come down so far , and by 
directing its beam into the future.  
 
Trade in cotton can and must play a role in rebuilding viable, vibrant, and sustainable economies, 
so that the millions of people whose livelihoods depend on the sector can envisage a better life for 
themselves  and their families.  
 
 
 
 
 
 
 
 
 
Ngozi Okonjo -Iweala  
    Director -General  
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  EXECUTIVE SUMMARY  
1.1.  This study focuses on ten Least Developed Countries (LDCs) that indicated cotton was a key 
priority area for their development strategies at the WTO's 2019 "Partners' Conference to Support 
Cotton Development in LDCs"3. These countries are Benin, Burkina Faso, Chad, Malawi, Mali, 
Mozambique, the United Republic of Tanzania (hereinafter "Tanzania"), Togo, Uganda, and Zambia 
(hereinafter "the reference LDCs").  
1.2.  In 2020, the first year of the COVID -19 pandemic, GDP per capita  decreased by 2.1% on 
average in the reference group of LDCs, while food security indicators also worsened in several of 
these countries. Their agriculture and cotton sectors were already suf fering from the impacts of 
climate change, with average mean temperature increasing for almost all reference LDCs over the 
last 30 years, and significant variations in mean rainfall, entailing aggravated difficulties for 
agricultural planning in countries where cultivation is almost entirely rainfed, as well as worsened 
conditions for those who work in the fields.  
1.3.  While cotton remains critical for livelihoods and rural development especially in Africa, 
the COVID -19 crisis highlighted the need for government s to ensure the cotton sector is resilient to 
future shocks, including climate -related extreme weather events and changing temperature and 
precipitation patterns.  
1.4.  On average, the area planted with cotton in reference LDCs decreased by 16% and cotton 
produc tion decreased by 18% from 2019 to 2020, with drops reaching -79% in some countries. 
Other countries in the same reference group nonetheless managed to increase their production and 
yields slightly in the same period.  
1.5.  These mixed agronomic performances ar e mirrored in trade: while six countries experienced a 
sharp decline in their cotton exports from 2019 to 2020, others appear to have maintained previous 
export levels or even show improvements on those levels. In net terms, however, the reference 
group's cotton export value decreased by 34%. In terms of export revenues, this represents a loss 
of over USD 500 million in value (from 1,5 USD billion of export revenues in  2019 to 997 USD million 
in 2020).  
1.6.  Explanations for the positive performance of some LDCs can be found in shifts in some trade 
patterns with subsequent creation or reinforcement of trading relationships, allowing the sector to 
respond to the challenges posed by the pandemic, the associated fall in demand and international 
prices, and the impact  of COVID -19 response measures. On the other hand, the negative 
performance of other countries in the group may be attributed, inter alia , to the way such countries 
adapted to perceived changes in international prices as well the broader scenario for cotto n trade in 
the wake of the first wave of the pandemic, i.e., in the summer of 2020.  
1.7.  World cotton prices started declining in June 2018, falling from USD  2.15 per kg to 
USD 1.56 per kg in mid -2019. They then fell further to USD 1.40 per kg in April 2020 (w ith a sharp 
decline as of March 2020, when the pandemic was declared). ICAC data indicates that cotton prices 
fell particularly sharply from March 2020, before beginning to rise again in September  2020. 
However, while experts expected international cotton prices to rebound in 2021 to over 
USD 2.00 per kg, seed prices in 2020/21 were projected to decline in certain countries. For instance, 
prices of seed cotton in 2019/20 were USD 0.45 per kg in Mali and USD 0.42 per kg in Cameroon 
but were expected to fall by 30% and 12% respectively in the next season.  
1.8.  In some reference countries, the fall of seed cotton prices caused a decrease in cotton sowing. 
Poor access to market price information and uncertainty over future cotton demand and prices 
affected farmers' p roduction decisions.  
1.9.  In addition, and as signalled by many national stakeholders in reference LDCs, both input and 
logistics costs associated with cotton production and export have increased drastically in connection 
with the pandemic and the disruptions i t caused to maritime transport. For example, container vessel 
calls decreased by close to 4% in total in African ports from 2019 to 2020. The ports that recorded 
the most significant decreases in container vessel calls from 2019 to 2020 were those of 
 
3 See: https://www.wto.org/english/tratop_e/agric_e/prog_partnerconf_wcd2019_e.htm . TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  Mozam bique  (-28%), Mauritius ( -14%), Kenya ( -11%), Senegal ( -10%), South Africa ( -9%), 
Nigeria  (-9%) and Egypt ( -8%). In addition, overall freight rates more than doubled for the route 
Shanghai -West Africa in the course of 2020.  
1.10.  The following recommendations fr om public and private stakeholders  to support 
recovery and resilience are extracted from the survey conducted by the WTO and the International 
Cotton Advisory Committee (ICAC) in the reference LDCs  4: 
• Digitalization : survey responses showed  that, during t he pandemic , it was essential for LDCs 
to digitalize  their input and supply system s, due to human resource shortages  resulting from  
COVID -19 containment measures . Respondents also called for the introduction of virtual 
training platforms  for extension staff and farmers, the establishment  of e-payment services 
to farmers to enable them to avoid handling cash , and the development of technologies to 
boost cotton produ ctivity, as well as  the development of e -commerce platforms.  
• Agricultural Inputs : survey responses underscored the importance of timely and affordable 
access to agricultural  inputs such as quality seeds, the extension of input support programs 
to cotton fa rmers , and the provision of a formal certified seed supply system.  Respondents 
indicated that the COVID -19 pandemic has also meant cotton producers are now in greater 
need of support to help them afford agricultural tools and machinery,  as the prices of th ese 
goods have risen due to an increase in  steel prices5. 
• Funding : LDC respondents  request ed economic recovery programs, including in relation to 
access to inputs, stimulus support and subsidies to farmers for agricultural  inputs. Some 
respondents also suggested the creation of credit line s with subsidized interest rates to 
encourage access to  inputs  such as seeds, fertilizers, machinery, and various equipment , in 
order to enhance  cotton prod uctivity  and promote economic well -being in ru ral areas.  
• Some respondents suggested increasing warehousing capacity of cotton ginning 
companies  to improve their competitiveness and create incentives  to improve cotton 
productivity  in smallholder farmer  cooperatives . This would also ensure that  cotton quality is  
not impacted in case of transport delays.  
• Price stabilization : among the survey respondents, some producers suggested  maintain ing 
or increas ing the current purchase price of seed cotton , while some buyers favoured  a subsidy 
on the price of seed cotton.  
• Improved soil fertility and agricultural practices : survey respondents emphasised the 
value of improved soil fertility management, adoption of supplemental irrigation systems, 
modernization, and mechanization. They also highlighted the implementati on of climate 
change adaptation programmes and continuous training on good agronomic practices.  
• Policies for trade, exports, and imports : the respondents called for streamlined regulatory 
import and export procedures; exemptions or reduction from export a nd import taxes for 
agricultural products (including cotton); an easing of trade in farm inputs, machinery, and 
equipment, including through tariff reductions; and relaxation of cross border restrictions, 
including international flight restrictions.  
• Texti les: survey respondents suggested policies including cutting energy costs and subsidies 
to encourage local processing and consumption. Survey responses also highlighted the 
importance of promoting and strengthening the processing capacities of textile unit s and 
infrastructure to support textile processing while also promoting artisanal weaving by 
smallholder farmers in rural areas. Some respondents suggested that specific tax incentive 
packages could be created to attract domestic and foreign direct investm ent in the textile and 
clothing industry, and to remove tax es on textile equipment imports. Many survey replies 
 
4 See Annex 1 for  detailed information on survey respondents.  
5 Steel prices reportedly doubled in 2020 and 2021, see e.g., https://fortune.com/2021/07/08/steel -
prices -2021-going -up-bubble/ . TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  proposed that second -hand clothing imports be banned, and that governments also facilitate 
access to finance and investment funds.  
Policy options and way forward for national stakeholders and development partners  
 
1.11. The COVID -19 crisis highlighted the importance of ensuring the cotton sector is resilient to 
future shocks, including climate -related extreme weather events and changing temp erature and 
precipitation patterns. An important part of doing so will involve ensuring that policy responses help 
boost productivity sustainably and improve competitiveness in cotton and the agricultural sector.  
1.12. Policy makers also need to consider how policy interventions will affect cotton value chains in 
their entirety, including the impact on the textile industry and other industries using cotton and 
cotton by -products. This includes ensuring that the competitiveness of the cotton sector creates 
synergies with other vibrant parts of these countries' economies, including the services sector.  
1.13. More broadly, a critical policy challenge for policy makers will be to situate the cotton sector 
within a broad vision of economic development for both r ural and urban areas. Doing so should be 
complementary to global efforts at the WTO to reduce trade distortions, including those associated 
with trade distorting domestic support to cotton, and to eliminate various barriers to trade that 
hamper development  in African cotton producing LDCs.  
1.14. C-4 countries are among those that have most effectively weathered the COVID -19 storm. 
This should send important signals of confidence to international investors and donors. However , 
even within the C -4 there have been different experiences, policy responses, and trade and market 
trajectories. This heterogeneity across LDCs means there are plenty of opportunities to learn lessons 
from success stories as governments and development partners lay the foundations for th e recovery.  
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  MAIN TAKEWAYS  
1. Cotton trade is key to the economic development, rural livelihoods, and food security 
of millions of people in Africa and has been hit hard by the pandemic .  
• Cotton export revenues contribute up to 10% of total agricultural value addition in some LDCs.  
• Agriculture is critical to livelihoods and rural development in the countries studied, employing 
more than 50% of their total labour force.  
• Furthermore, among the millions of cotton farmers in the C -4 and other LDCs, an 
estim ated 450,000  are women . Women also add value to cotton, for example by producing 
soap from cotton ginning waste.  
• However, when the COVID -19 pandemic broke out in 2020, export revenues decreased 
by 34% in the group of 10 cotton producing LDCs that are the focus of this study, while both 
input and maritime freight costs increased in the first year of the pandemic and remained 
inflated in 2021.  
• Constraints on container availability and other service interruptions further undermined 
competitiveness in the ten  cotton -producing  LDCs studied, six of which are landlocked. 6 
2. In African LDCs, cotton should be situated within a broader vision of competitiveness, 
productivity, in the context of the COVID -19 recovery plans.   
• In many cotton producing LDCs, the services and agricultural sectors are the main sources of 
GDP value addition, with agriculture being more significant than the industrial sector in Benin, 
Chad, Mali, Malawi, and Mozambique.  
• Improved synergies between th e cotton and services sectors could help boost local value 
addition and trade in higher value products and put people and small enterprises at the centre 
of value chain development.   
• The C-4 countries are among those that have most effectively weathered th e COVID -19 storm. 
This should strengthen  the confidence of international investors and donors. However , even 
within the C -4 there have been different experiences, policy responses, and trade and market 
trajectories.  
• This heterogeneity, which is reflected across all the LDCs analysed in this study, means there 
are many  opportunities to learn lessons from success stories as national stakeholders, 
governments and development partners lay the foundations for the recovery.  
3. Cotton has a key role to play in bu ilding resilience to future shocks, including as part of 
a broader climate action strategy.  
• Farmers and other economic actors in African LDCs are already being affected by c hanging 
temperature and precipitation patterns, and by the increasing frequency and  intensity of 
extreme weather events.  
• Mean temperatures have increased over the last 30 years in the countries studied, making it 
harder for farmers to plan, and exacerbating their working conditions.  
• Furthermore, among the 10 cotton -producing LDCs studied, Benin, Chad, Togo, and Uganda 
experienced significant temperature varia bility, and Malawi, Mozambique, Tanzania, Togo and 
Uganda experienced significant varia bility in total annual rainfall .  
• In addi tion, African cotton and textile sectors can contribute to climate change mitigation, as 
their lower use of irrigation and chemical inputs means they produce cotton more sustainably 
than in other regions.  
 
6 These countries are Burkina Faso, Chad, Malawi , Mali, Uganda, and Zambia.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  ACRONYMS  
ACF African Cotton Foundation  
ASI Agricul tural Stress Index  
C-4 Cotton -4 (Benin, Burkina Faso, Chad, Mali)  
FAO The Food and Agriculture Organization of the United Nations  
GFSI Global Food Security Index  
GDP Gross Domestic Product  
ICAC International Cotton Advisory Committee  
IGC International Grains Council  
ILO International Labour Organization  
IMF International Monetary Fund  
LDCs Least Developed Countries  
PR-PICA Programme Régional de Production Intégrée du Coton en Afrique  
SDGs  Sustainable Development Goals  
STDF  Standards and Trade Development Facility  
WEO World Economic Outlook  
WTO World Trade Organization  
 
 
INTRODUCTION  
Much of the world's cotton production crosses international borders to be processed into final 
end-use products. Cotton is second only to soybeans in terms of the percentage of production that 
is exported annually, ahead of wheat, maize, and rice. Indeed, over 150 countries are involved in 
exports or imports of cotton every year. The global cotton area accounts for only 2.5% of the world's 
arable land, yet the annual value of world cotton production in 2021 is estimated to be 
USD 50.6 billion when looking only at cotton fibre.7  
 
Although in a typical year Africa produces only about 6% of the world's cotton lint, it exports more 
than 90% of its annual production, making cotton a vital cash crop in reportedly more than 30  African 
countries. Most of these are classified by the United Nations as Least Developed Countries  (LDCs), 
with some featuring among the top ten world exporters of raw cotton  lint. In the Cotton -4 countries 
alone (Benin, Burkina Faso, Chad and Mali, hereafter "the C -4"), cotton represents between 3% and 
10% of Gross Domestic Product (GDP).8 
 
Limited capacities for local value addition help to explain why, for these countries,  most benefits are 
derived from raw cotton exports. In addition, Africa's cotton production as a share of global 
production has remained far behind its potential compared to other main cotton producers in the 
world, due to low productivity levels. Lint yie lds in 10 large African cotton -producing LDCs averaged 
300 kg/hectare in 2018/2019, compared to a world average lint yield estimated at 755  kg/hectare 
in the crop season 2020/2021.9 
 
International cotton -to-textile value chains have suffered significantly  from a series of impacts due 
to the COVID -19 pandemic. These have included a fall in demand for textile and apparel products, 
which led to sharp decreases in international prices for cotton, entailing order cancellations as well 
as a net deterioration of the terms of trade for African LDCs and other countries. These countries 
also rely on imported inputs and face significant logistical hurdles and high trade costs when moving 
cotton from farms to export hubs. However, the pandemic has had quite different i mpacts on 
cotton -producing LDCs and their trading partners, due in part to the different nature of measures 
taken by countries to contain the spread of the disease. Some countries were also affected more 
than others as a result of pre -existing fragilities and major persistent impacts of exogenous factors, 
including agronomic issues, difficulties in integrating further into international value chains, and – as 
mentioned above - limited capacity for adding value locally.  
 
While the number of reported COVID -19 infections was comparatively low on the African continent, 
the economic consequences of the COVID -19 crisis worsened the challenges that numerous African 
countries were facing before the pandemic. For instance, the UNDP estimated that 10 million people 
 
7 See ICAC presentation  at the May 2021 WTO Dedicated Discussion on Cotton, as reflected in WTO 
document TN/AG/49 - TN/AG/SCC/17 . 
8 UCC-Fact-Sheet -Aug-2016.pd f (usaid.gov) . 
9 (Recent trends and prospects in the world cotton market and policy developments (fao.org) ). TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 12 - 
 
  would be pushed into extreme poverty in 2020, representing a 4% increase in the number of people 
living with less than USD 1.90 per day in a group of 10 African countries.10 The COVID -19 crisis was 
furthermore responsible for an overall 2% growth contraction  in Sub -Saharan Africa in 2020, making 
it the region's first recession in 25 years.11 These impacts have slowed down progress towards 
the 2030 Sustainable Development Goals.  
 
Specifically, Africa's cotton sector has been affected by measures taken to contain the spread of the 
virus: these have further limited countries' ability to produce, process and trade cotton, leading to 
negative economic, social and environmental impacts,  but have also spurred efforts by individual 
LDCs to adapt to these new challenges.  
 
This study, prepared by the WTO Secretariat in response to a request by the C -412, therefore reviews 
the impacts of the COVID -19 pandemic on cotton and its value chains i n 10 reference African  LDCs, 
by looking holistically at economic, social and environmental indicators, and illustrates examples of 
recovery and resilience measures identified by national and international actors.  
 
The study is divided in two parts. Part I  presents the impacts of the pandemic in light of the economic 
and social importance of cotton, as well as environmental challenges of the cotton sector. Part  II 
elaborates on national, regional and international measures taken to counter the negative effe cts of 
the pandemic and increase the resilience of the sector. Part II then presents the results of a 
WTO-ICAC survey that draws on primary data from different countries to assess the impacts of the 
COVID -19 pandemic. The findings of the study are based bo th on results from this survey and on 
desk research by the WTO Secretariat from June to September 2021. The analysis updates and 
expands on information shared by experts and C -4 stakeholders at the July 2020 information session 
on cotton and COVID -19.13  
 
 
METHODOLOGY AND LIMITATIONS  
Primary and secondary data sources : this study is based on secondary data from official sources, 
including ICAC reports; the International Trade Centre  (ITC) Trade Map; the World Bank's data bank; 
data sets from the United Nati ons Food and Agriculture Organization  (FAO), the International 
Monetary Fund  (IMF), the World Food Programme, and the Better Cotton Initiative  (BCI); and 
WTO Members' statements. It also includes primary data from the results of a WTO -ICAC survey 
assessing  the impact of the COVID -19 pandemic in different countries (see Part  II and Annex  1). 
Importantly, it should be noted that certain data discrepancies across different sources arose when 
collecting data, e.g., for quantities of cotton produced or exported;  in these cases, and for the sake 
of data consistency, the study authors opted for the choice of a single data source.  
 
Reference group of Least -Developed Countries (LDCs) : more than half of the 46  countries 
classified as LDCs by the United Nations14 are countries where cotton plays an important role for the 
livelihoods of millions of people. At the WTO's 2019 Partners' Conference, ten of these LDCs identified 
cotton as a priority area in their development strategies: in this study, we refer to these countries 
as the "reference group of LDCs". The ten countries are: Benin, Burkina Faso, Chad, Mali, 
Mozambique, Malawi, Tanzania, Togo, Uganda, and Zambia. The analysis in this study focuses on 
these ten countries.  
 
 
10 These countries are Angola, Cabo Verde, Chad, Democratic Republic of Congo , Ethiopia, Kenya, Mali, 
Mauritius, Nigeria and South Africa. See: Long-Term Socio -Economic Impacts of COVID -19 in African Contexts 
| UNDP in Africa . 
11 (9781464817144.pdf (worldbank.org) ). 
12 See Report of the 15th Dedicated Discussion of the Relevant Trade -Related Developments for Cotton, 
held on 28 May 2021 , WTO document TN/AG/49  - TN/AG/SCC/17 . 
13 WTO, Report Information Session on COVID -19 and Cotton "from facts to solutions", 2020 . 
14 https://www.un.org/development/desa/d pad/wp -content/uploads/sites/45/publication/ldc_list.pdf . 
Cotton -producing LDCs are classified by the World Bank as either "low income economies"  or "lower middle -
income economies . For the 2021 fiscal year, low -income economies are defined as those with a per capita  GNI 
(calculated using the World Bank Atlas method ) of USD 1,035 or less in 2019 . Lower middle -income economies 
are those with a per capita  GNI between USD 1,036 and USD 4,045 . Upper middle -income economies are 
those with a per capita  GNI between USD 4,046 and USD 12,535  and high-income economies are those with a 
per capita  GNI of USD 12,536 or more.  Source: 
https://datahelpdesk.worldbank.org/knowledgebase/articles/906519 -world -bank-country -and-lending -groups  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 13 - 
 
  Comparative group of LDCs : where releva nt, the study also uses a comparative group of LDCs 
which do not produce cotton: these countries are instead large exporters of cereals, products which 
farmers in LDCs often plant in rotation with cotton.  
 
Tariffs and non -tariff measures (NTMs):  the study  does not cover cotton tariffs and NTMs 
because this information is published biannually by the Secretariat in document series 
TN/AG/GEN/34  - TN/AG/SCC/GEN/13 (the  "Background Paper"). Section 3.1 and 3.4 of the 
background paper contain, for the 33 Members15 identified as markets of interests to LDCs, bound 
and applied duties and NTMs applicable to cotton respectively.16 In addition, the WTO -ITC 
Cotton  Portal  provides interactive access to the information contained in this document, along with 
other key resources.  
 
Crop/Marketing Year : as with other agricultural commodities, cotton production, consumption, 
and prices are commonly discussed in terms of crop yea rs. The term crop/marketing year reflects 
the planting and harvesting patterns for crops. For cotton, the crop year runs from 1  August to 
31 July. The current 2021/2022 crop year began on 1  August  2021. This study makes an 
approximate conversion of crop ye ars into marketing years: e.g., crop year 2019/2020 is reported 
as marketing year 2020. This is done to enhance accessibility to relevant information for 
non-specialized readers.  
 
Limitations on data availability and relevance : information on cotton trade data in reference 
LDCs is sometimes missing (both direct and mirror data), while it also keeps on being constantly 
updated by relevant sources. In relevant instances, and where possible and available, missing data 
was replaced by mirror data. In some cases , only mirror data was available. The study mostly uses 
HS5201 (cotton, not carded or combed) and HS5203 (cotton, carded or combed) combined to 
analyse trade quantities and values. The main source for these data was ITC Trade Map accessed 
through the WTO -ITC Cotton Portal. Additional sources to fill data gaps have been Trade Data 
Monitor, the UN Comtrade Database, and the ICAC Cotton Databook 2021.  
 
1  ECONOMIC, SOCIAL AND ENVIRONMENTAL INDICATORS AND COVID -19 IMPACTS  
1.1  Economy -wide impacts in reference LDCs  
1.1.1   GDP per capita  decreased  in 2020 and growth rates were projected to slow  
1.1.  GDP per capita  fell between 2019 and 2020 in reference LDCs, except in Benin, with Chad and 
Mali performing the worst from among the C -4. The average percentage change in the reference 
group of LDCs was minus 2,1% down to the 2018 level, whereas in the comparative group of LDCs 
it was 1,8% ( Figure 1). Figures for the period 2018 -2020 also show significa nt differences between 
countries within the reference and comparative groups.  
 
15 Please refer to paragraph 12 and 13 of the background paper for further information.  
16 The term "cotton" in the background paper refers to the products covered by the Harmonized System 
nomenclature (HS) headings 52.01, 52.02 and 52.03. Further to the Nairobi Ministerial Decision on cotton 
(document WT/MIN(15)/46 and WT/L/981), Addendum 2 to the background pap er includes bound and applied 
duties and NTMs for relevant cotton -related products as listed in the annex to the Nairobi Decision.   
  TN/AG/SCC/W/40 • WT/CF MC/W/97  
 
- 14 - Figure 1: GDP per capita  evolution 2018 -2020 in reference group of cotton -producing  LDCs (left) and in the comparative group of LDCs (right) 
in constant 2017 international USD, PPP  
  
Notes : 
* Data for 2020 are estimates.  
Source:  World Bank: World Development Indicators.  
 https://databank.worldbank.org/source/world -development -indicators/Type/TABLE/preview/on# . 
Authors' calculations.  
 
9092949698100102104106108110
2018 2019 2020GDP per capita, Index 2018=100
Year
Benin Burkina Faso Chad
Mali Malawi Mozambique
Tanzania Uganda Zambia
Togo Average
859095100105110115
2018 2019 2020GDP per capita, Index 2018=100
Year
Bangladesh Cambodia Djibouti
Ethiopia Guinea Haiti
Lao PDR Myanmar Senegal
Sudan AverageTN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 15 - 
 
  Table 1: Change between 2019 and 2020 - GDP per capita  in reference group of 
cotton -producing LDCs (left) and in the comparative group of LDCs (right) in 
constant  2017 international US D, PPP  
Reference group  
 % change GDP 2019/2020  Comparative group  % change GDP 
2019/2020  
Benin  1.1 Bangladesh  1.4 
Burkina Faso  -0.8 Cambodia  -4.5 
Chad -3.8 Djibouti  -1.0 
Mali -4.5 Ethiopia  3.4 
Malawi  -1.8 Guinea  4.0 
Mozambique  -4.1 Haiti -4.6 
Tanzania  -0.9 Lao People's Democratic Rep.  -1.0 
Uganda  -0.5 Myanmar  -10.6 
Zambia  -5.8 Senegal  -1.8 
Togo -0.7 Sudan  -3.9 
Average  -2.2 Average  -1.8 
 
1.2.  The C -4 countries are the main cotton exporters in the reference group of LDCs. Figure 2 shows 
how the recovery outlooks have evolved since the first quarter of 2020. It  shows that 
the GDP outlook for C -4 countries has closely followed the GDP outlook for a group of countries 
representing the main cotton importers from the C -4, with a deterioration in October 2020 before a 
slight upward revision in April  2021 ( Figure 2, right and left -hand curve).  
1.3.  It can also be noted that forecasts for C -4 importers in the April 2021 report also showed a 
slightly lower recovery in 2021 compared to 2017  than for its main importing partners, contrary to 
the initial April 2020 reports for which C -4 growth forecasts exceeded those of the group of importing 
countries.  
Figure 2: Real GDP forecasts for the C -4 and their main cotton tra ding partners  
 
Notes:  
* Index 2017 = 100, weighted averages by GDP PPP aggregated.  
** Importers: Bangladesh, China, Egypt, France, Germany, India, Indonesia, Malaysia, Netherlands, 
Portugal, Singapore, Switzerland, Thailand, Turkey, United Kingdom, and Viet Nam (source: main 
importers by value, HS5201 , ITC trade map data for 2020).  
Source:  IMF, World Economic Outlook Database, April 2020, October 2020, April 2021.  
Authors' calculations.  
 
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 16 - 
 
  1.1.2   Key food security indicators worsened in 2020 for some reference LDCs  
1.4.  The Global Food Security Index (GFSI)17 is a composite index constructed using data on  food 
affordability, availability, quality and safety, taken mostly from official UN sources. As Figure 11 
shows, the evolution of the GFSI scores between 2019 and 2020 shows a degradation in several 
countries such as Burkina Faso and Zambia, but not all. The GFSI index also shows GFSI indexes 
remained below 2017 levels in most reference LDCs other than C -4 countries (except Benin with a 
quasi -identical score).  
1.5.  The C -4's agricultural water risk indicator was at zero, the lowest possible score, reflecting the 
significance of flood, drought or contamination risks, indicating that the importance of these risks as 
a source of food supply volatility. As Error! Reference source not found.  shows, the prevalence 
of undernourishment among the total population was also higher in the C -4 countries, Malawi, and 
in Mozambique in the 3 -year 2018-2020 period when  compared with average undernourishment 
levels during the previous two such periods, confirming the higher vulnerability of these countries 
during the  COVID -19 pandemic period.  
Figure 3: GFSI scores worsened in 2020 and remained be low 2017 levels in several 
reference LDCs  
 
Source:  Global Food Security Index.  
 The Economist Intelligence Unit:  
 https://foodsecurityindex.eiu.com/ . 
Authors' calculations.  
 
17 "The Global Food Security Index (GFSI) considers the issues of food affordability, availability, quality 
and safety, and natural resources and resilience across a set of 113 countries. The index is a dynamic quantitative 
and qualitative benchmarking model constructed from 59 unique indicators that measure the drivers of food 
security across both developing and developed coun tries", see: https://foodsecurityindex.eiu.com/ . Primary data 
sources are mostly provided by international governmental organizations such as the UN, the FAO, the WTO and 
the World Bank.  
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 17 - 
 
  Figure 4: Undernourishment was higher in the C -4 countries, Malawi, and in Mozambique 
over the 3 -year period 2018 -2020  
 
Source:  FAO: Suite of Food Security Indicators.  
 http://www .fao.org/faostat/en/#data/FS   
Notes:  Data not available for Tanzania and Zambia.  
 
1.6.  As a complement to these considerations, Box 1 provides an overview of information and data 
collected by the African Cotton Foundation (ACF) and Olam International from cotton value chain 
operators across two African countries, one of which is an LDC from the study's reference group.  
Box 1: Impacts on social indicators in Africa: study by the African Cotton Foundation  
(ACF) and Olam International  
The COVID -19 pandemic has undermined food security (access to and availability of food), 
nutrition, and children's rights. Indeed, restr ictive containment measures (restriction of people's 
mobility, closure of classrooms, closure of public spaces) have led to lower incomes and higher 
prices for some food items, making food unaffordable for many people, undermining the right to 
food, and sl owing progress towards the second Sustainable Development Goal  (SDG), in which 
world leaders committed to eliminate hunger and malnutrition by 2030.  
 
The study reveals that in Olam's cotton supply chain, involving two African countries, the decline 
in inco me was more pronounced among women than men: 63% of women (but only 52% of men) 
reported having less income in the last six months than they had had before COVID -19. 
Paradoxically, the survey seemed to suggest that men had been most affected by food insecu rity, 
with 82% of men having declared they had eaten less in the last 30 days than usual, compared 
to 75% of women. 78% of respondents (all sexes and countries) said they had eaten less 
nutritious food (meaning lower quality, less diversified or less nutri tious food) over the previous 
30 days, compared to the usual situation. This was because: i) in 65,5% of cases, food was stored 
in insufficient quantity at least once in the last 30 days; ii) in 53,5% of cases, stored food was 
spoiled at least once in the last 30 days; and iii) in 54,5% of cases, food was not available on the 
local market at least once in the last 30 days.  
 
Source:  Olam International and ACF response to data request, July 2021.  
 
1.7.  The negative impact of the COVID -19 pandemic on food security  is also confirmed by recent 
data from the World Food Programme (WFP), which estimates that 270 million people will face or 
will be at risk of food insecurity in 2021, compared to 135 million people before the pandemic.18 
 
18 See: https://docs.wfp.org/api/documents/56313869c89d4fec935bc41629c8ff5f/download/  and WFP 
chief calls for urgent funds to avert famine | World Food Programme  + references to latest WFP submissions to 
CoA. 
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 18 - 
 
  1.2  The cotton sector in African LDCs is negatively affected by climate change while 
having low environmental impacts  
1.8.  At the global level and similarly to other large crops, the cotton sector contributes to GHG 
emissions that exacerbate risks associated with climate change ((including increas ed mean 
temperatures, extreme weather events, etc.), but is also exposed to such risks.19 The ICAC notes 
that the major factors of climate change that relate to cotton are the production of greenhouse gases 
such as Co2, Methane and Nitrous Oxide leading to  temperature increase and changes in rainfall 
patterns.20  
1.9.  It appears, however, that both the contribution to climate change and the exposure to relevant 
risks vary across cotton producing countries and regions of the world.  
1.10.  For example, Cotton 2040 notes that "… around half of cotton growing regions will be expos ed 
to increased risk of meteorological drought by 2040. Water scarcity is set to be one of the most 
significant climate risks for the world's most productive cotton growing regions, adding extra 
pressure to a fibre already under scrutiny for its water foot print. Many cotton growing regions are 
set to experience insufficient rainfall, while others will experience extreme and more intense rainfall 
leading to flooding and crop failures. The highest climate risk overall is projected for two 
regions of the world ; north western Africa, including northern Sudan and Egypt, and 
western and southern Asia.  These pressures present enormous difficulties for farmers and other 
actors across the value chain. Coping with them will require a response that goes beyond incremen tal 
solutions to fundamental changes21. (emphasis added )" 
1.11.  Against this background, Error! Reference source not found.  illustrates  how climate 
change may impact  agricultural planning and worsen the working conditions of farmers in these 
countries, where average mean temperature has increased over the last 30 y ears. Besides constant 
increases in temperature, countries such Benin, Chad, Togo and Uganda also experienced significant 
temperature variation, whereas Malawi, Mozambique, Tanzania, Togo and Uganda experienced 
significant variation in total annual rainfal l. 
1.12.  Overall, Error! Reference source not found.  shows a trend of increasing mean temperature 
that may be associated with increased variation in total annual rainfall throughout the year over the 
last 30 years. Amongst the countries observed, there are clear cases of variability that complicate 
agricultural planning. However, it should also be noted that the C -4 countries show some resilience 
to droughts despite these changes: their score on the FAO 's Agricultural Stress Index (ASI), which 
represents the percentage of agricultural land affected by droughts, has decreased since 1984.22 
1.13.  On the other hand, as reported by the ICAC, in Africa cotton is a net sequester of CO2. Cotton 
is a "C3 plant", along  with 80% of the plants on the globe, which means that it is efficient in 
utilizing  CO2. These plants absorb CO2 and converts sunlight into sugar through photosynthesis. In 
addition, the cotton and textile sectors in African countries have the lowest envir onmental footprint 
from cotton -related operations amongst all cotton -producing countries. Cotton farms in African LDCs 
are rainfed, and energy consumption for irrigation, agrochemical usage and textile -related activities 
is negligible23. Cotton production in African countries should therefore have a role to play in the 
global climate change mitigation strategies.  
 
19 https://www.wri.org/insights/4 -charts -explain -greenhouse -gas-emissions -countries -and-sectors . 
20 See e.g., 
https://www.wto.org/english/tratop_e/agric_e /item_3_icac_climate_change__cotton_final.pdf . 
21 http://www.acclimatise.uk.com/wp -content/uploads/2021/07/WTW_9650_Cotton -
2040_May21_E xecSummary_GA_v9.pdf . 
22 Source for ASI:  
http://www.fao.org/giews/earthobservation/country/index.jsp?lang=en&code=BEN#  
https://www.ais.unwater.org/ais/pluginfile.php/548/mod_page/content/75/Session%203 -
%20Thematic%20presentation_%20Part2.pdf . 
23 See e.g. , 
https://www.wto.org/english/tratop_e/agric_e/item_3_icac_climate_change__cotton_final.pdf .  
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 19 - Figure 5: 3-Year moving average of temperature and total annual rainfall in the reference group of LDCs24 
Benin  
 
 Burkina Faso  
 
 
 
24 It should be noted that increased rainfall does not translate into increased wa ter availability: " By shifting the wind patterns and ocean currents that drive the world 's 
climate system, climate change will also cause some areas to experience decreased precipitation. In addition, higher temperat ures lead to more evaporation, so incre ased 
precipitation will not necessarily increase the amount of water available for drinking, irrigation, and industry". Source: https://w ww.epa.gov/climate -indicators/climate -change -
indicators -us-and-global -precipitation . 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 20 - Chad  
 Mali 
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 21 - Malawi  
 Mozambique  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 22 - Tanzania  
 Togo  
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 23 - Uganda  
 Zambia  
 
  
Notes:  Total mm, average temperature (Celsius) per year.  
 Data cover until December 2020.  
Source:  World Bank: Climate Change Knowledge Portal:  
 https://climateknowledgeportal.worldbank.org/download -data. 
Authors' calculations . 
 
1.3  The agricu lture and cotton sectors in reference LDCs  
1.3.1   Value addition in agriculture is especially important  
1.14.  In reference countries, value addition in agriculture, including forestry and fishing represents on average 25% of total GDP value added. Error! Reference 
source not found.  shows relevant trends for each country in the group. Whereas the services sector is clearly the main source of GDP value adde d in these 
countries, agriculture appears above the industry sector (which includes manufacturing and construction) in half of the  sample. In the C -4 countries, agricultural 
value added was lower in 2020 than in 2018 (except in Chad), but the decrease was only marginal.  
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 24 - Figure 6: Value addition in agriculture and other sectors in the reference group of LDCs  (percentage of GDP)  
Benin  
 Burkina  Faso 
 
 
Chad  
  
Mali 
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 25 - Malawi  
 
 
 Mozambique  
 
 
Tanzania  
 Togo  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 26 -  
 
 
 
 
Uganda  
 Zambia  
 
Notes:  Value added = value of output - value of input. All productive activities in between generating value are taken into acount. Industry includes manufacturing and 
construction sectors.  
Source:  World Bank: World Development Indicators.  
 
 
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 27 - 
 
  1.3.2   Cotton is an important engine of agricultural value addition  
1.15.  Cotton plays an important role in the creation of agricultural value added in the countries 
under observation. Figure 7 shows the contributi on that cotton export revenues make annually to 
value addition in the agricultural sector including forestry and fishing activities. The contribution by 
cotton in half of the reference countries in recent years is regularly above  5%, and for some of them 
regularly around  10%. This contribution is certainly under -estimated, because it excludes formal 
and informal revenue -generating activities linked to cotton production, transformation, and trade at 
the national level. These include, for example, local trans formation and marketing of cotton by -
products.25 
1.16.  For example, small women -led businesses appear to be predominant in all C -4 countries. Data 
collected by local experts shows that women set up businesses near the processing units that crush 
cottonseed for e dible oil, to obtain the black or white cake that results as waste from crushing the 
seeds. This cake is then used to produce soap, through a production process which is mostly 
artisanal. In Mali alone, these activities employ about 400 seasonal workers an d generate average 
annual revenues of over USD  262,000. Similar revenues are earned by women producing cotton 
soap in the other C -4 countries.26 
Figure 7: Value of cotton exports as a percentage of agricultural value added in 
refer ence  LDCs  
 
 
 
Source:  ITC Trade Map for cotton value of exports ( HS5201 and HS5202 ). 
 World Bank: World Development Indicators for agricultural value added.  
Authors' calculations.  
 
 
25 See e.g., https://trade4devnews .enhancedif.org/en/op -ed/how -cotton -and-its-products -can-help-
create -resilience -african -smallholders . 
26 See WT/CFMC/W/87.  
0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%
2016 2017 2018 2019 2020TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 28 - 
 
  1.3.3   Agriculture employs more than half of the labour force  
1.17.  Figure 8 shows that, although the share of people employed in agriculture in the reference 
group of  LDCs has decreased by ten percent from 2011 to 2019, agriculture stil l provides 
employment for more than 50% of the total employed labour force in these countries, ahead of 
services and industry. For instance, in 2019, Chad and Mali had more people working in agriculture 
than any other sector, with 75% of the total employed  labour force in Chad working in agriculture, 
62% in Mali, 38% in  Benin, and 26% in Burkina Faso.  
Figure 8: Average employment in agriculture, industry and services in reference LDCs 
(% of total employment) (modeled ILO estimate)  
 
Note:  Modeled ILO estimates.  
Source:  ILO. 
Authors' calculations.  
 
1.18.  As often reported by the C -4 countries27, a considerable share of their employed labour force 
in agriculture are cotton farmers. While it is extremely difficult to obtain precise and corroborated 
data on the number of farmers and smallholders in LDCs, Table 2 below provides an ICAC estimate 
of the number of cotton farmers per country and by gender in reference LDCs.  
Table 2: Estimated number of individual cotton farmers in reference LDC s 
Country  Male  Female  Total Farmers  
Benin  190,657  23,408  214,065  
Burkina Faso  313,625  11,375  325,000  
Chad  238,944  9,100  248,044  
Malawi  21,000  14,000  35,000  
Mali 161,655  1,100  162,755  
Mozambique  110,776  39,689  150,465  
Tanzania  394,021  224,393  618,414  
Togo  138,580  14,072  152,652  
Uganda  73,900  73,200  147,100  
Zambia  283,944  40,631  324,575  
Total  1,927,102  450,968  2,378,070  
 
 
27 See e.g., the C -4 statement annexed to document TN/AG/SCC/W/34 - WT/CFMC/W/82.  
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 29 - 
 
   
Source:  ICAC Cotton Databook 2021 . 
 
1.19.  Whereas the figures reported in Table 2 represent individual farmers in reference LDCs, the 
number of cotton farmers and value chain operators in Africa is arguably much higher. For ex ample, 
the C -4 reported at the Information  Session on Cotton and COVID -19 of 30 July 2020 , that more 
than 20 million cotton smallholder farmers in Af rica were already suffering from the effects of the 
pandemic at that point in time.28  
1.4  Cotton -specific COVID -19 impacts in reference LDCs  
1.20.  At a July 2020 WTO event, the C -4 highlighted that, as a result of the COVID -19 crisis, an 
average 70% of the fibre pr epared for export in 2020 remained in factories, transit hubs or ports, 
and that weather conditions also severely affected the quality of the fibre29. The group also 
emphasised that - beyond the impacts on cotton markets and production - the COVID -19 crisi s was 
affecting the economic sustainability and livelihoods of millions of farmers around the world, 
especially the smallest and most vulnerable.30 
1.21.  At the same meeting, ICAC reported that, in aggregate, most African cotton is typically 
exported to Asian co untries such as Bangladesh, China, Viet Nam, and Thailand. Because textile 
manufacturing in Asia was heavily affected by sharply declining demand from developed -country 
markets and logistic hurdles associated with the response to the COVID -19 pandemic, Afr ica's cotton 
exports also fell sharply.  
1.22.  This situation thus led to a net deterioration in Africa's terms of trade, as cotton exports and 
sales fell, unsold cotton stocks incurred unanticipated costs, logistic costs associated with cotton 
exports increased , and input costs for pesticides and herbicides rose in some countries.  
1.23.  This sub -section will present a detailed assessment of these trends, complemented by the 
LDC responses provided to the WTO -ICAC survey, as presented in Part II and Annex 1 of this stud y. 
1.4.1   Impact on cotton prices  
1.24.  World cotton prices are driven by demand and supply dynamics. The main driver of cotton 
fibre demand is the Textile and Apparel sector, which in turn reflects demand from consumers, and 
 
28 See TN/AG/SCC/W/34 - WT/CFMC/W/82 . 
29 See the report of the WTO Information Session on Cotton and COVID of 30 July 2020, organized at 
the request of the C -4 with the objective  of reaching a common understanding on the socio -economic impacts 
of the COVID -19 pandemic on cotton value chains: 
https://docs.wto.org/dol2fe/Pages/ SS/directdoc.aspx?filename=q:/TN/AG/SCCW34.pdf&Open=True . 
30 Idem.  
214,065325,000248,044
35,000162,755 150,465618,414
152,652 147,100324,5752,378,070
0500,0001,000,0001,500,0002,000,0002,500,000Number of Cotton Farmers 
Male Female Total FarmersTN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 30 - 
 
  is also influenced by price variations of other raw materials that can substitute for cotton, such as 
manmade fibres, or to a certain extent by price variations of competing crops in the same areas.  
1.4.1.1   Evolution of world cotton prices  
1.25.  ICAC reported in July 2020 that the "A index"31 – the international reference price for cotton 
– had fallen steeply due to COVID -19, although it had also been following a downward trend as a 
result of the tense international trade environment since 2018.  
1.26.  ICAC data in Figure 11, which shows the observed daily quotation for the Cotlook A Index, 
represents in the left -hand gray portion the 2018/19 crop season, and the 2019/20 crop season in 
the right -hand white portion of the chart. The red line represents the steep fall in the "A Index" since 
early March 2020, when the pandemic was declared, as well as the more gradual subsequent 
rebound.  
Figure 9: "A Index " fall in March -April 2020  
 
Note:  The graph s hows the observed daily quotation for the Cotlook. A Index, cents/pound ( to be updated 
after DD of 4/11/21).  
Source:  ICAC presentation at 30 July 2020 information session ( link) 
 
1.27.  ICAC's expectation at that time was that cotton prices were expected to remain under bearish 
pressure due to higher ending stocks in the current and following seasons and a weaker textile fibre 
demand from brands and retailers, with the demand for apparel due to take many months to 
normalize. ICAC also noted that price trends for manmade fibres could affect purchasing decisions 
taken by Textile and Apparel brands and retailers.  
1.28.  Later in 2020, apparel exports from China  and Bangladesh suffered an unprecedented drop 
due to the COVID -19 crisis.32 Bangladesh's apparel exports declined by 13%, while China's exports 
fell by 10%. The sharp decline in these exports in 2020 was due to order cancellations and lower 
demand from im porters of textiles and apparel ( Figure 10). 
 
31 The A Index is one of the commonly tracked prices for cotton and it is commonly accepted as one of 
the indications of the world price for cotton. Cotlook has been using merchant quotes to derive the A index 
since the mid -1960s. Cotlook quotations are estimated daily by the editorial staff of a private Liverpool -based 
company, Cotlook Ltd., and are intended to indicate the competitive level of offering prices. The average of 
these prices for ms the A Index, which is quoted in cents per pound and represents shipments to the Far East, 
where most of the world’s cotton is spun into yarn.  
32 PowerPoi nt Presentation (wto.org) . 
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 31 - 
 
  Figure 10: Effects of COVID -19 on Major Apparel Export Markets  
 
Source:  ICAC presentation at May 2 021 Dedicated Discussion on cotton ( link). 
 
1.29.  In line with the evolution of index A, Figure 11 shows that world cotton prices started declining 
in June 2018 from USD 2.15 per kg to around USD 1.5 per kg in mid -2019, before dropping further 
to USD 1.40 per kg in April 2020 and beginning to rise again in the second half of 2020 with observed 
price variation close to 10 cents, implying limited variability in prices ( Figure 11, right -hand graph). 
The upwa rd trend was confirmed in fall 2020 until July 2021 with prices reaching  levels above 
2 USD/kg in 2021.  
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 32 - Figure 11: Cotton price trends in 2018 -2021, in nominal USD/kg (left -hand graph); Price outlook (nominal USD/kg): Cotton 6 -month moving 
average price level and 12 -month standard deviation  
  
Source:  World Bank Commodities Price Data (The Pink Sheet).  
 https://www.worldbank.org/en/research/commodity -markets .  
Authors' calculations.  
 
1.4.1.2   Comparison between cotton prices and other crops  
1.30.  When expanding the observation and looking comparatively at the prices of cotton and other agricultural commodities, it is po ssible to observe that while 
there was a decreasing trend in cotton prices from spring 2018 until march -April 2020 before a rebound  thereafter, other main crops have been less affected by 
the COVID shock in the spring 2020 when looking at the 2018 -2020 period, and generally experienced a sharper increase than cotton in the following months 
with the exception of rice. This may be expla ined by the fact that cotton use is very dependent on textile demand while grains and soybeans are largely for food 
use. The price data in 2021 also shows a certain stabilisation or decreases of prices for grains and soybeans in the second h alf of the year  while cotton prices 
continued their upward trend. (Figure 12). 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 33 - Figure 12: World prices of cotton and other crops  
  
Note:   
* Nominal USD/weight unit; USD/metric tonne for all crops except cotton measured as USD/KG.  
** Index = 100 in January 2018 for graph on the right -hand side.  
Source:  World Bank Commodities Price Data (The Pink Sheet).  
 https://www.worldbank.org/en/research/commodity -markets . 
Authors' calculations.  
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 34 - 
 
  1.4.1.3   Situation in cotton producing African countries  
1.31.  As explained by ICAC, farmers' seed -cotton prices in many of the cotton -producing African 
countries in the FCFA zone are usually fixed at the beginning of the season by government cotton 
agencies and the organisations representing farmers. For example, prices  in Benin, Côte d'Ivoire 
and Senegal remained unchanged in 2020/2021 from the previous season, whilst prices were 
decreased in Burkina Faso, Mali, and Togo.33 
1.32.  Moreover, while experts expected international cotton prices to rebound in 2021 to over 
USD 2.00 per kg, seed prices in 2020/21 were expected  to decline in certain countries. For instance, 
prices of seed cotton in 2019/20 were USD 0.45 per kg in Mali and U SD 0.42 per kg in Cameroon, 
but were expected to fall by 30% and 12% respectively in the next season34 
1.33.  In Mali and other West African Franc Zone countries, cotton sowing decreased as a result of 
the fall of seed cotton prices. The lack of access to market price information, as well as uncertainty 
about future cotton demand and prices, had consequences for farmers' cotton production decisions. 
Indeed, many African farmers chose to plant food crops instead of cotton during the 2020/2021 
agriculture campaign, due to the order cancellations and associated price fluctuations in the textile 
and cotton value chains, as described above. Michigan State University reported, for example, that 
in Mali, from 365,450 hectares sowed with cotton in 2019/20, only 26,632 hect ares were sowed with 
cotton in June 2020 (equivalent to a 93% decrease on the previous season and 3% of the number 
of hectares typically devoted to cotton production in the country (i.e., 810,000 hectares)35. In South 
Africa, a similar situation was report ed.36 
1.4.2   Costs associated with cotton production and export from LDCs have increased, and 
logistics have become more complex  
1.34.  Besides the trends in international cotton prices and the way such trends are reflected and 
interpreted in LDCs' national contexts, an other key determinant of the export performance of LDCs 
is represented by the costs of agricultural inputs, and the logistic costs/requirements associated with 
exporting operations.  
1.35.  Regarding the costs of agricultural inputs, the costs of fertilizers start ed increasing in  2020 
and remained high at the international level in 2021, with easing expected in 202237. various LDC 
stakeholders who responded to the survey presented in Part II of this study reported a significant 
increase in such costs. The agricultu ral inputs associated with cotton cultivation include fertilizers 
and pesticides. According to data provided by the "Programme Régional de Production Intégrée du 
Coton en Afrique (PR -PICA) ", it appears that the costs of pesticides have increased significan tly in 
some countries, such as Benin and Burkina Faso, from season 2019/2020 to season 2020/2021. For 
example, the price for the insecticide treatment of a single hectare planted with cotton in Benin went 
from 3,500 FCFA to 7,000 FCFA from one season to th e next.  
1.36.  On the other hand, both changes in the costs of maritime freight and service disruptions in 
key African ports, as reported by various sources including from the private -sector38, deserve 
particular attention.  
1.37.  While specific cotton freight data are not easy to collect, some data on the evolution of bulk 
and containers freight may shed light on the current situation. The International Grains Council  (IGC) 
reported in October 2021 that the Grains and Oilseeds Freight Index, which is published by the IG C 
and spans five grains/oilseeds markets, seven key exporting origins and around 300 grains/oilseeds 
routes, was close to its highest level on record (the Index started in January 2013)39. 
 
33 Interview with ICAC economists, September 2021.  
34 * 2020-06_ICAC_Recorder_Edmonds.pdf (cirad.fr) . 
35 (https://www.canr.msu.edu/news/why -could -the-covid-19-cotton -crisis-lead-to-an-economic -and-
social -crisis-in-mali). 
36 (En Afrique du Sud, le coton ne fait plus recette | Commodafrica ). 
37 Fertilizer prices expected to stay high over the remainder of 2021 (worldbank.org) . 
38 See e.g. , Box 2. 
39 https://www.igc.int/en/markets/marketinfo -freight.aspx . TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 35 - 
 
  1.38.  More specifically about the situation of African ports and about co ntainer ships40, Professor 
Thanos Pallis reported at a UNCTAD seminar in April 2021 that container vessel calls decreased by 
close to 4% in total in African ports from 2019 to 2020. Within Africa, significant decreases were 
reported in Western African port s in the first and second quarter of 2020, yet that part of the African 
continent quickly recovered in the second half of 2020, bringing its percentage change on the 
previous year back to 0% in December 2020.41 
1.39.  According to the same source, the ports that recorded the most significant decreases in 
container vessel calls from 2019 to 2020 were those of Mozambique ( -28%), Mauritius ( -14%), 
Kenya ( -11%), Senegal ( -10%), South Africa ( -9%), Nigeria ( -9%) and Egypt ( -8%). In addition, 
overall freight rates more than doubled for the route Shanghai -West Africa in the course of 202042. 
1.40.  Finally, as explained by IGC, there is also a possible link between rice and cotton trade in 
West Africa. The IGC Secretariat explained that: " Rice volumes shipped to Benin (mostly fr om Asia) 
fell sharply in the late 2019 and early 2020, including only a nominal 29,374 t dispatched in 
Nov/Dec  2019 (compared to 573,441 t dispatched in the same months in 2018!) – this was due to 
the Nigerian border closure which restricted re -exports of rice across to Nigeria. […] a large 
proportion of rice exported to Benin is shipped in containers, so that sharp decline in rice imports 
would have also restricted the number of containers arriving in Benin. […] the drop in rice imports 
would have signific antly reduced container availability within Benin, which would have made cotton 
exports more challenging. [under this assumption] containers would have gone Asia -Benin with rice 
and then had a return leg of Benin -Asia with cotton. Although the Nigeria/Beni n border has now 
re-opened, more recently there have been significant disruptions in global container markets, 
including a shortage of containers at key rice exporters in Asia. Consequently, many buyers have 
been grouping together to secure a single bulk vessel, rather than importing using containers – and 
again, this would be restricting container availabilities within West Africa for cotton exports ."43 
1.4.3   Cotton production, harvested area, and productivity show resilience44 
1.41.  ICAC data indicates that the  area cultivated in reference LDCs decreased on average by 16% 
from 2019 to 2020. Although production dropped by 18% over the same period, the prospect for 
rapid recovery is promising, with an estimated 29% increase in area cultivated and a 41% increase 
in production volumes between 2020 and 2021 (Figures 13 and 14).  
1.42.  Reference LDCs were not affected equally by the COVID -19 pandemic, with cotton production 
contracting in Mali and Togo, while remaining constant or even rising slightly in Benin, Burkina Faso,  
Chad, Tanzania, and Uganda.  
1.43.  In Togo, production dropped by 14% in the 2019 -20 season and by 31% in 2020 -21, along 
with a reduction of planted area of around 45%, with no recorded changes for 2021/22. In Mali, on 
the other hand, both area cultivated and co tton production fell respectively by 78% and 79% 
in 2020/21. However, Mali is also estimated as the largest contributor to the 2021/22 recovery, with 
increases in area and production estimated at around 400% and 450% respectively.  
1.44.  In the case of Benin and Burkina Faso, although area decreased by 8% for Benin and 4% in 
Burkina Faso in 2020/21, production has slightly increased by 2% and 7% respectively, compared 
to the previous season.45  
1.45.  As Figure 15 shows, average lint yields while remaining below international averages, have 
increased year -on-year in the reference group from 2018 through to the 2021 estimates. This is 
mainly due to productivity improvements in Benin, Burkina Faso, Chad, and Mali, wi th Benin 
exceeding 500 kg per hectare in 2020 and 2021, and yields in the other 3 countries expected to 
 
40 ITC explains that container v essels are generally used for cotton shipments as containerized transport 
implies various advantages given the nature of cotton as a produc t. See: https://www.cottonguide.org/cotton -
guide/cotton -marketing -freight/  
41 https://unctad.org/system/files/non -official -document/tlb_20210415_webinar_thanos_en.pdf  
42 Idem.  
43 Excerpts from exchanges with IGC Secretariat, October 2021.  
44 2019 refers to the crop year 2019/20 and 2020 refers to the crop year 2020/21.  
45 Please note ICAC is currently trying to update its cotton data on Africa. All updates available will be 
included in ICAC presentation at the November 2021 WTO cotton meetings . TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 36 - 
 
  approximate 400 kg per hectare in 2021. Only Uganda has comparable yields among other African 
LDCs.  
Figure 13: Cotton Productio n in reference LDCs (thousand tonnes of fibre)  
 
Source:  ICAC Cotton Databook 2021.  
 
Figure 14: Harvested area (thousand hectares)  
 
Source:  ICAC Cotton Databook 2021 . 
 
Figure 15: Yield (Kg of lint/hectare)  
 
Source:  ICAC Cotton Databook 2021 . 
 
1.4.4   Adverse impacts on cotton exports46 
1.46.  COVID -19 adversely affected LDC cotton exports due to order cancellations, logistical 
breakdowns and greater uncertainty, as noted above. Imports of inputs also became more costly.  
 
46 Information on trade (values and quantities) is provided in calendars years (January to December).  
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 37 - 
 
  1.47.  The importance of cotton in reference LDCs' exports is apparent from Figure 16, which also 
shows a correlation between the volumes and value of cotton exported and the share of cotton in 
total merchandise exports.  
1.48.  From 2019 to 2020, the value  of cotton exports from the reference group of LDCs fell by 34%, 
a much sharper drop than the 9% fall in the level of exports from all cotton exporters in the world 
combined. This meant a net loss in export revenues of over 500 million USD for the whole gr oup 
from 2019 to 2020. Table 3 shows the considerable variation in the impact of COVID -19 at the 
country level, with export values and significance of cotton exports as a share of total export in 6  out 
of the 10 reference countries declining from 2019 to 2020, while increasing or remaining stable in 
Benin, Chad, Tanzania, and Uganda ( Figure 16 and Table 3). 
  
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 38 - Figure 16: Cotton export values, quantities and shares over total merchandise exports in reference LDCs  
Benin  
 
 Burkina Faso  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 39 - Chad  
 
 Mali 
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 40 - Malawi  
 
 Mozambique  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 41 - Tanzania  
 
 Togo  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 42 - Uganda  
 
 Zambia  
 
 
Notes:   
* ICAC Cotton Databook for quantity exported by Benin in 2019.  
 Product: HS5201 and HS5203  
 Original values are in US dollars (nominal)  
Source:  ITC Trade Map.  
Authors' calculations.  
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 43 - 
 
  Table 3: Value of cotton exports (USD millions) in reference LDCs and percentage 
change from 2019 -2020  
Exporters  2016  2017  2018  2019  2020  % Change 2019 -
2020  
World  11,173 14,236 16,681 15,717 14,306 -9% 
Total Reference Group of LDCs  1,117 1,081 1,505 1,511 997 -34%  
Benin  175 352 449 456 460 0% 
Burkina Faso  425 367 318 351 262 -25%  
Chad  31 20 10 1 6 307%  
Mali 263 132 469 421 49 -88%  
Malawi  10 3 6 4 2 -54% 
Mozambique  20 9 3 36 15 -57% 
Tanzania, United Republic of  46 36 68 30 109 256% 
Togo  51 72 88 97 39 -59%  
Uganda  31 50 44 58 34 -40% 
Zambia  63 37 48 53 17 -67%  
Source:  ITC Trade Map (HS5201 and HS5203).  
Note:  Figures and percentages shown in the table are rounded up.  
Authors' calculations.   
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 44 - 1.49.  Figure 17 shows that, exported year to year quantities and values globally follow a similar trend, with no apparent correlati ons with price fluctuations.  
Figure 17: In the C -4, the quantity of cotton exported and the value of expo rts followed similar trends during the period 2016 - 2020  
Benin  
 
 Burkina Faso  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 45 - Chad  
 
 Mali 
 
 
Source:  ITC Trade map data; ICAC data for quantity exported by Benin in 2019.  
Product:  HS5201 and HS5203.  
Authors' calculations.  
 
1.50.  Finally, monthly export data can also help having a better sense of the short -term effects of the COVID -19 pandemic on exports. As presented in Figure  18, 
the data available seem to indicate that the COVID -19 pandemic has affected monthly cotton exports from the C -4 countr ies differently.  
1.51.  Given that stocking capacity is very limited in West Africa and that cotton sowing in that sub -region takes place in June -July, cotton exports tend to pick 
up between January and June every year in the period following the harvest (i.e. i n October -November).  
1.52.  However, monthly data for the beginning of 2020 shows that the pandemic may have had impacts on monthly export flows in the C -4 countries.  
1.53.  In Benin, for instance, monthly cotton exports were characterized by a sharp decline in March -April 2020, which could be linked to the effects of the 
pandemic on maritime transport and logistics, followed by a recovery in the rest of 2020. Another steep drop can be observed from available data for 
December  2020 and January 2021, despite the full re covery projected by experts for the year 2021.  
1.54.  In Burkina Faso, monthly exports in 2020 seem to have followed patterns relatively similar to those in 2018 and 2019. Here ag ain, data presents negative 
tendances for the first months of 2021.  
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 46 - 1.55.  In Mali, the effects of the pandemic are more visible in the course of the whole year 2020, but with a significant recovery in the beg inning of 2021.  
Figure 18: Monthly cotton export data show impacts of the pandemic in the C -4 countries (t onnes)  
Benin  
 
 
 Burkina Faso  
 
 
 
050001000015000200002500030000350004000045000
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21Cotton Exports (per ton)
01000020000300004000050000600007000080000
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21Cotton Exports (per ton) 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 47 - Chad  
 
 
 
 Mali 
 
 
 
Notes:  Chad presented several missing data points, represented by "0" in the relevant graph.  
 Graphs were created based on ITC Trade Map data as main source and UN Comtrade Database and Trade Data Monitor as complementa ry sources (HS5201 and HS5203 
code).  
 Contrary to the annual data on quantities exported by the C -4 represented in thousand tonnes , the monthly data is depicted per ton for ease of interpretation.  
Source:  ITC Trade Map.  
 UN Comtrade Database.  
 Trade Data Monitor.  
Authors' calculations.  
 
05001000150020002500
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21Cotton Exports (per ton)
0100020003000400050006000700080009000
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21Cotton Exports (per ton) 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 48 - 1.4.5   New trade patterns and trade linkages emerged in 2020  
1.56.  As Figure 16 above shows, cotton exports have increased the most in Benin, Chad, and Tanzania, a phenomenon which is due to increased exports to 
Bangladesh, Pakistan, Indonesia and Germany (Figure 19). Exports to Bangladesh and Pakistan were particularly important for B enin and Tanzania, as imports 
fell in three of their top five export destinations during the first year of the pandemic (2020). Falling production in Pakis tan may also explain the country's 
significant import growth over the 2019 -2020 and 2020 -2021 cotton seasons.47  
1.57.  In the case of Benin exports of cotton to Bangladesh grew by 41% from 2019 to 2020, while the value of imports decreased in thre e out of the country's 
top five export destinations, with Benin's exports to Vietnam falling by 84%, those to China dropping by 21% , and those to Egypt falling by 50% .  
1.58.  Among LDCs, Bangladesh is the largest importer and consumer of cotton. From 2018 to 2021, the country accounted on average fo r 98% of total LDC 
imports, and 87% of total LDC cotton consumption. Despite the COVID -19 pan demic, the country's imports and consumption grew by 13% and 9% respectively 
in the 2020/21 season. The demand increase can be attributed to the country's pandemic response, which involved testing emplo yees, adopting health protocols, 
and restructuring con tracts with retailers . While Bangladesh's imports fell by 3% and its consumption dropped by 5% over the 2019/20 season, they also rapidly 
recovered48.  
1.59.  These preliminary data illustrate the differences between countries in terms of geographical export prof ile and highlight further the heterogeneity of the 
impact of the COVID -19 pandemic on supply and demand trends across countries and the evolution of these trade patterns may deserve further resear ch. 
 
47 Source: Pakistan Central Cotton Committee.  
48 Bangladesh: Cotton and Products Update | USDA Foreign Agricultural Service .  
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 49 - Figure 19: Selected LDCs' raw c otton exports by destination, in USD millions  
Benin  
 
 Chad  
 
 Tanzania  
 
 
Source:  ITC trade and market analysis.  
Notes:  (HS 5201 – neither carded nor combed).  
 
1.60.  It is interesting to notice that some of the other LDCs from the reference group that faced e a decrease in exports in the marketing year 2020, also 
experienced important shifts in trade patterns in the same year (Figure 20), such as an increase of exports to India from Tog o. 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 50 - Figure 20: Other LDCs' raw cotton export s by destination, in USD millions  
Burkina Faso  
 Mali 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 51 - Malawi  
 
 
 Mozambique  
 
 
Togo  
 Uganda  
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 52 - Zambia  
 
 
Notes:  (HS 5201 – neither carded nor combed).  
Source:  ITC trade and market analysis.  
 
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 53 - 
 
  1.4.6   The COVID -19 pandemic accelerated some trends in consumer preferences 
worldwide  
1.61.  As highlighted by ICAC, the preliminary data available tend to indicate that COVID -19 
pandemic changed and accelerated some trends in the fashion industry,  as consumers relied more 
on online shopping, and with some of them expressing greater concern for equity and social justice. 
In parallel, various brands and retailers sought to change the fashion industry by pursuing more 
sustainable business models.49 
1.62.  Euromonitor's report on consumer trends in 2021 indicates that consumers paid closer 
attention to companies' actions during lockdowns.50 Private sector representatives have also 
commented on these apparent trends ( Box 2). 
Box 2 – A private sector view on prices, logistics, and global market trends during and 
after 2020  
"Looking strictly at cotton, we highlighted in our last update in summer that pri ces had recovered 
particularly well from the lows observed in March 2020. Despite the sharp decline in cotton 
production linked to the closure of production facilities, consumption recovered relatively quickly, 
thereby bringing an end to the oversupply on the market.  
 
Furthermore, production conditions that were worse than expected and a particularly active 
hurricane season led to a fall in certain areas' production (USA, Pakistan). During this time, 
demand also changed structurally. Just as clothing consum ption fell significantly in 2020, this was 
replaced by the consumption of more common consumer goods such as home textiles, sofas, 
curtains and rugs, reflecting the fact that consumers were staying at home and carrying out 
renovations while they worked rem otely. All these products have much more of an impact in terms 
of gross consumption since they are 100% cotton and contain no synthetic materials.  
 
In the meantime, demand for clothing has recovered and almost returned to 2019 levels, leading 
to quite high  price levels today.  
 
However, this recovery has had a very significant impact on global logistics, and on maritime 
trade in particular. With economic activity rebounding fairly strongly across the planet, maritime 
companies had to redirect their fleets an d equipment (containers) to the most active (and most 
lucrative) flows. All countries, and particularly West Africa, were then significantly affected by 
steep increases in freight prices. In addition, the majority of shipping lines simply stopped going 
to certain African ports. Cotton companies and traders were stuck and could do nothing but wait 
until shipping lines decided to resume these routes. We were stuck and unable to embark for 
several months.  
 
The consequences were quite serious. Customers who had  purchased African cotton needed to 
receive their goods, otherwise they would be required to turn to other sources. Yet these sources 
faced the same situation. The entire value chain therefore majorly suffered, and this situation is 
still ongoing, although  it has slightly improved over the past few weeks.  
 
The pandemic has also accelerated the process of improving social and environmental 
responsibility in the cotton supply chain. With the bankruptcy of certain textile distributers due to 
the fall in consum ption, we have seen the emergence of a new type of consumer who buys online 
and is more concerned with how ethical their suppliers are. Certain regions have been singled 
out. Today, we are seeing many initiatives promoting greater transparency and sustaina bility in 
the value chain."   
 
Source:  Charles Jannet, Director , Ecom Agroindustrial Corp . Ltd, and President, Afcot, September 2021.  
 
 
 
49 Ref. to relevant ICAC presentation.  
50 Idem.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 54 - 
 
  2  RECOVERY AND RESILIENCE – MEASURES ADOPTED AND WAY FORWARD  
2.1.  The COVID -19 pandemic was accompanied by several restrictions that adversely affected 
several economic sectors in different ways. Specifically, restrictions on the free movement of people 
and lockdowns imposed in response to the pandemic negatively affecte d the agricultural sector as a 
whole and cotton in particular.  
2.2.  As Part I shows, cotton production, imports and exports in most reference LDCs were stifled 
by the pandemic and the measures taken to counter it. Meanwhile, reductions in the availability of 
human resources and the closure of some nodes of the supply chain set up further hurdles for these 
countries. It is therefore crucial that all cotton sector actors draw the necessary lessons from the 
pandemic and adopt their strategies accordingly.  
2.3.  Against  this backdrop, Part II of this study first gives an overview of development assistance 
flows specific to the cotton sector, and then focuses on responses from public and private cotton 
stakeholders from the reference LDCs to a survey jointly designed by t he Secretariats of the WTO 
and the ICAC, which was circulated between mid -July and mid -August 2021 to obtain first -hand 
information about COVID -19 impacts on the cotton sector and the ways forward suggested by 
LDC stakeholders.  
2.1  Cotton -specific development assistance flows decreased from 2020 to 2021  
2.4.  As shown in Figure 21, the total committed amount for active cotton -specific projects fell by 
17% between November 2020 and May 2021, as reported on the May 2021 revision of the WTO's 
"Evolving Table on Cotton Development Assistance ".51 This drop represents a decline by over USD  41 
million from the previous revision. Disbursements also fell to slightly over USD 63 million, comp ared 
to the USD 67 million of the previous revision. However, one additional active cotton -specific project 
was included over this period, bringing the total number of such projects up  to 27. Annex 3 contains 
an excerpt of the latest version of the Evolvin g Table, with details on specific projects and their 
operational status, as well as on donors and beneficiaries.  
2.5.  These preliminary data and the possible relationship with COVID -19 pandemic should be 
interpreted with caution, taking into account the normal  timelines followed in a project cycle. Main 
impact could be in relation to disbursements in the case of projects stopped as a result of the 
pandemic. Further work with the relevant development agencies may be welcomed to deepen this 
analysis.  
 
51 The Evolving Table on Cotton Development Assistance is the WTO's main document on this topic, and 
a unique monitoring tool. It lists cotton -related dev elopment cooperation projects and programmes, and is 
updated twice a year. The table provides information on donors and beneficiaries, as well as detailed data on 
disbursements and commitments. The latest trends presented in the table are discussed in the Cotton Days. 
The most recent version of the Evolving Table ( WT/CFMC/6/Rev.30 ) was circulated to Members in May 2021 . TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 55 - 
 
  Figure 21: overview of cotton -specific development assistance commitments, 
disbursements, and number of projects recorded in the Evolving Table (in USD, left axis)  
 
Source:  Authors' calculations based on relevant documents in the series WT/CFMC/6/*.  
 
2.2  Analysis of responses to the WTO -ICAC survey  
2.6.  The Secretariats of the WTO and the ICAC circulated a survey to LDC Members and Observers 
in the period 15 July - 15 August 2021. The purpose of this exercise was to collect first -hand 
information on the impacts of the pandemic on the cotton sector in 2020 and in 2021. A total of nine 
LDCs responded to the survey (Annex 1 reports detailed information on responding LDCs).  
2.7.  In essence, survey responses from LDCs suggest that the most severe impacts at the country 
level were recorded in both 2020 and 2021 in the areas of exports of fibre and availability of 
production inputs. LDC respondents provided no specific price -related information.  
2.3  Measures taken by LDCs at the national level  
2.8.  Question 5 of the sur vey asked respondents to describe any COVID -19 recovery policies that 
were initiated or implemented during the pandemic in support of the following: agriculture, textiles, 
trade, imports and exports.  
2.9.  Survey responses showed that policies implemented during  the pandemic for the agricultural  
sector  included COVID -19 economic relief programs or national COVID -19 response plans. Some of 
these took the form of economy -wide stimulus packages which also covered the agricultural sector, 
including those to revive ag ricultural marketing and production. Data collected also indicated that 
some governments facilitated access to agricultural inputs, including by subsidizing them. National 
agricultural development funds also provided support to the sector.  
2.10.  For policies on trade, exports, and imports, survey responses indicated that some countries 
gave financial support to importers and soft loans to garment and textile producers.  
2.11.  Other widespread policies aimed at promoting recovery included financial support for large 
scale farmers, extended deadlines for settling industrial tax, and industrial infrastructure investment 
programs.  
2.12.  Table 4 below summarises the measures reported by LDC survey respondents.  
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 56 - 
 
  Table 4: National pandemic response measures as reported by LDC survey respondents52 
Cotton -specific  Agriculture and infrastructure  
• Maintain the input and purchase prices of seed 
cotton during the 2020 -2021 crop year.  
• Prohibition of food crops microcredit to producers.  
• Maintain sales prices for seed cotton and purchase 
prices for inputs.  
• Cotton farms are allowed foreign exchange to 
import BT seeds.  
• Cotton users are allowed to import cotton during 
the supply of cotton, and if they produce more 
than enough cotton, they are allowed to export it 
to the market.  
• Increase in the purchase price of seed cotton from 
the producer; input subsidy.  
• Subsidies of the basic purchase price to producers 
and inputs for about 50 billion [FCFA] as well as the 
organ of the national cotton base for about 0.5 
billion [FCFA].  
• Loan provision to potential cotton growers.  
 • The fund  for support to agrarian development 
provides a credit line of 15 billion Kwanzas, for 
financing family and agricultural holdings, with an 
interest rate of no more than 3%.  
• Facilitation of access to agricultural inputs.  
• Providing sustainable market environ ments, input 
provision, efficient labour provision.  
• Government support for Seed, Pesticide and 
Fertilizer availability in the market.  
• Subsidies for agricultural inputs and basic purchase 
price to producers for about 50 billion [FCFA]; 
organization of natio nal cotton meetings for around 
0.5 billion.  
• Attribution of a 12 -month tax credit to companies, 
on the amount of VAT payable on the import of 
capital goods and raw materials that are used for 
the production of basic food basket goods.  
• Subsidies on agricultu ral imports such as tractors 
and other implements and inputs.  
• Financial support for economics and importers.  
• Adoption of fiscal measures and access to financing 
for the months of April to June 2020 (among 
others: i) exemption from VAT on the sale of 
produc ts used in the fight against COVID -19; 
ii) exemption from taxes and customs duties on 
pharmaceutical products, medical consumables and 
equipment falling within the framework of the fight 
against COVID -19; iii) suspension of on -site control 
operations with the exception of proven cases of 
fraud; iv) automatic remission of penalties and 
fines due; etc.);  
• Establishment of a solidarity fund for the benefit of 
actors in the informal sector, in particular for 
women, for the revival of vegetable and fruit trade 
activities, amounting to FCFA 5 billion  
• Chemical suppliers have also been provided with 
the necessary foreign exchange to obtain the 
required foreign exchange from the National Bank.  
• Admission of Franco -Valuta license.53 
• Extension of the deadline for  settlement of 
industrial tax.  
• Support from the national agricultural development 
fund. 
• Support for producers by setting up agricultural 
mechanization tools.  
• Financial support for large scale farmers (working 
capital)  
• Track construction program for about 4 00 billion 
[FCFA].  
 
 
52 In some cases, responses have been slightly edited and/or translated from the original where needed.  
53 A Franco -Valuta privilege (or licence) is a permission to import goods on which foreign exchange is 
not payable following the strict payment procedures implemented by banks and regulated by the National Bank 
of Ethiopia.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  Other measures  
• Adoption of a national COVID -19 response plan, amounting to CFAF 391 billion (this plan takes into 
account the health response, as well as the coverage of social and economic recovery measures).  
• Establishment of a COVID -19 Economic Recovery Fund, amounting to CFAF 100 billion.  
• Funding of research on infectious diseases and the production of pharmaceutical drugs for an amount of 
CFAF 15 billion.  
• Efforts have been made to collect the required demand  for the chemical and pass it on to the chemical 
suppliers so that they can get priority.  
• Industrial infrastructure investment program for around 48 billion [FCFA] . 
• Closing of borders and lock downs for periods ranging from two weeks onwards. Restricted mo bility within 
the country through curfews. 14 -day quarantine at points of entry.  
• Invest in formal small -holder farmers to produce food for the domestic economy. This will result in jobs 
being protected and create new avenues of government revenue.  
• Governm ent increased public health funding to local and community health centres to implement mass 
testing and increase the capacity to track and trace. Enforce social distancing and sanitation measures.  
• Vaccination of frontline staff and observance of physical d istance, sanitize, mask -up, avoid touching your 
mouth and nose and cough through your elbow.  
• Strict cross border testing, reverse suspension on international flights.  
• Increased government transparency.  
• Countering conspiracy theories.  
• Strict adherence and o bservation of non -pharmaceutical protocols.  
• 25% reduction in the license for the benefit of companies in the passenger transport, hotel and tourism 
sector.  
• Application of a reduced VAT rate of 10% to the Hotel and Restaurant sector.   
 
2.3.1   Recommendations from LDCs' public and private stakeholders for measures in 
support of recovery and resilience  
2.13.  Question 6 of the survey asked respondents to suggest some of the best approaches that 
could be taken by governments, the private sector, or both,  to enable a speedy recovery from the 
negative impacts of COVID -19 and build resilience to future shocks. Once again, it asked 
respondents to focus on policies related to agriculture, textiles, trade, imports and exports.  
2.14.  For the agricultural sector, respo ndents highlighted:  
• Digitalization: Survey responses showed  that, during the pandemic , it was essential 
for LDCs to digitalize  their input and supply system s, due to human resource shortages  
resulting from COVID -19 containment measures . Respondents also called for the 
introduction of virtual training platforms  for extension staff and farmers, the 
establishment  of e-payment services to farmers to enable them to avoid handling cash , 
and the development of technologies to boost cotton produ ctivity, as well as  the 
development of e -commerce platforms.  
 
• Agricultural Inputs: LDC survey responses underscored the importance of timely and 
affordable access to agricultural inputs such as quality seeds, the extension of input 
support programs to cott on farmers , and the provision of a formal certified seed supply 
system.  Respondents indicated that the COVID -19 pandemic has also meant cotton 
producers are now in greater need of support to help them afford agricultural tools and 
machinery,  as the prices of these goods has risen due to an increase in  the price of 
steel54. 
 
• Funding: LDC respondents  request ed economic recovery programs, including in 
particular in relation to access to inputs, stimulus support and subsidies to farmers for 
agricultural such inputs. Some respondents also suggested the creation of credit line s 
with subsidized interest rates to encourage access to  inputs  such as seeds, fertilizers, 
machinery and various equipment , in order to enhance  cotton prod uctivity  and promote 
economic well -being in rural areas.  
 
• Some respondents suggested increas ing warehousing  capacit y of cotton  ginning 
companies  to improve their competitiveness and create incentives  to improve cotton 
productivity  in smallholder farmer  cooperativ es. This would also ensure that ensure that 
the cotton quality is  not impacted in case of transport delays.  
 
54 Steel prices reportedly doubled  in 2020 and 2021, see e.g., https://fortune.com/2021/07/08/steel -
prices -2021-going -up-bubble/ . TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 58 - 
 
   
• Price stabilization : Among the survey respondents, some producers suggested  
maintain ing or increas ing the current purchase price of seed cotton , while some buyers 
favoured  a subsidy on the price of seed cotton.  
 
• Improved soil fertility and agricultural practices: Survey respondents emphasised 
the value of improved soil fertility management, adoption of supplemental irrigation 
systems, modernizatio n and mechanization. They also highlighted the implementation 
of climate change adaptation programmes and continuous training on good agronomic 
practices.  
 
• Policies for trade, exports and imports : the respondents called for streamlin ed 
regulatory import and export procedures ; exemption s or reduction  from export and 
import taxes for agricultural products  (including cotton);  an easing of trade in  farm 
inputs, machinery , and equipment , including through tariff reductions; and  relaxation 
of cross border restrictions, including international flight restrictions.   
 
• Textile s: Survey respondents suggested policies includ ing cutting  energy costs and 
subsidi es to encourage local processing and consumption. Survey responses also 
highlighted the importance of promoti ng and strengthening the processing  capacities of 
textile units and infrastructure to support textile processing while also promoting 
artisanal weaving by smallholder farmers in rural areas. Some respondents suggest ed 
that specific tax incentive packages could be created to attract domestic and foreign 
direct investment in the textile and clothing industry , and to remove tax on textile 
equipment  imports . Many survey replies proposed tha t second -hand clothing imports 
be banned, and that governments also  facilitat e access to finance and investment funds.  
 
2.15.  Other suggested policies included:  
• Increasing the number of processing plants.  
• Strengthening the capacities of the logistics chain and the transportation of goods.  
• Incentivising  public -private partnerships through commercial and industrial policies.  
• Creating a stabilization/management/investment fund for emergencies (climate and 
pandemic).  
• Scaling up extension and other support to the cotton sector.  
 
2.3.2   Brief overview of responses from non -LDC respondents  
2.16.  This section includes an overview of the main elements contained in responses from non -LDC 
respondents. Although this study focuses exclusively on LDCs, the examples of measures described 
below also provide readers with a wider perspective on the responses of the cotton and agricultural 
sector to the challenges posed by the pandemic.  
Summary of measures taken at the national level55 
 
For agriculture , some countries implemented COVID -19 recovery programs, as in LDCs. These 
included  funds and credit for farmers and the exemption of agricultural activities from lockdown 
measures. One respondent reported that the state cotton agency adjuste d its purchase of cotton at 
minimum support prices.  
 
For trade, imports and exports,  some countries  sought to provide relief to exporters during the 
COVID -19 outbreak by extending to six months the validity of advance authorizations and the export 
obligation period. Respondents indicated that a 12 -month tax credit had also been established on 
the amount  of VAT that companies have to pay on the import of capital goods and raw materials 
used to produce basic goods.  
 
On textiles,  some countries provided special measures to support the flow of liquidity to the textile 
sector, by introducing an option to rele ase partial subsidies against bank guarantees in order to 
facilitate the subsidy release process.  
 
 
55 In some cases, responses have been slightly edited and/or translated from th e original where needed.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 59 - 
 
  Other policies which have helped support the cotton and agricultural sector included  vaccination 
of the adult farming community, and the transfer of governm ent funds to help alleviate credit 
constraints and to increase investment in agricultural inputs and the extension of deadlines for 
settlement of industrial tax.  
 
Summary of recommendations for measures to support recovery and resilience56 
 
For agriculture , policy suggestions included:  
 
• Putting in place a cotton minimum support price.  
• Quality seeds, pesticide subsidies, training of farmers, and incentives for farmers to 
encourage better yields.  
• Income guarantee for agriculture activities . 
• Decentralized procurement of cotton  seeds.  
• Availability of contain ers and non -customs warehouses . 
• Develop local capacities and international cooperation to secure the supply of input s 
and seeds . 
• Building of storage facilities and establishment of funds to provide subsides that cushion 
rising production costs and fallingselling  prices.  
• Authorization of new genetically modified cotton varieties . 
 
For textiles : 
 
• Reduction of taxes and ensure energy supply . 
• Reduc tion in the cost of doing business . 
• Promote cotto n research and provide technical and financial support . 
• Policies to maintain jobs and cash flow of textile companies . 
• Promotion of production to reduce the cost of raw materials.  
• Secured loans with fiduciary schemes of inventories, lots and portfolio.  
• Develop local processing capacity.  
 
For trade, import, expor t: 
  
• Reduction in documentary procedures.  
• Innovative taxation measures to encourage exports and trade.  
• Develop storage facilities and set up funds to provide subsidies to cushion rising of 
production costs and falling of export prices.  
 
Other suggestions included:  
 
• Interstate movement of labo ur to be encouraged.  
• Build alert and information  mechanism s [on non -specified subjects]  for population both 
nationals and globally to enable a  rapid and appropriate reaction.  
• Curb inflation in the country . 
• Encourage  local consumption . 
 
2.4  Actions undertaken by the International Community  
2.17.  From the onset of the pandemic, many international and national institutions have made 
efforts to support the co tton industry and the agriculture sector at large. Table 5, Box 3 and Box 4 
below report examples of available projects and programmes for which information was publicly 
available on the internet at the time of drafting of this report.  
 
 
56 In some cases, responses have been slightly edited and/or translated from the original where needed.   
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 60 - Table 5: Other programmes enacted by international entities  
Name of 
Institution  Project/Programme/Initiative  Brief explanation of the project /programme/ Initiative  
African 
Development Bank  COVID -19 Response Facility  
 
https://www.afdb.org/en/news -keywords/covid -19-response -facility -crf Grants were provided to African Governments to ease the negative socio -
economic impacts of COVID -19, which formed part of government support 
to agriculture and other sectors of the econom y. 
Better Cotton 
Initiative  COVID - 19 Hub  
 
https://bettercotton.org/covid -19-hub/ Helping farming communities to leverage tools, resources, and partnerships 
to promote resiliency during this period.  
Biodiversity 
International  The Alliance's response to COVID -19 
(the Alliance of Bioversity International and CIAT)  
 
Alliance's response to COVID -19 (bioversityinternat ional.org)  The Alliance mobilized its resources and expertise to address immediate 
needs, including helping host countries meet short -term food security 
requirements, providing real -time information on COVID -19-driven shifts in 
food consumer behavior, and maintaining our global collections of seeds and 
germplasm ready for deployment to farmers fields across the globe.  
Fair Trade 
Foundation  Fairtrade secures funds to protect future cotton supply chains  
 
https://www.fairtrade.org.uk/media -centre/news/fairtrade -secures -funds -
to-protect -future -cotton -supply -chains/  Fairtrade received EUR 80,000 from Deutsche Gesellschaft für Internationale 
Zusammenarbeit (GIZ), the German development agency, to provide food 
and income security for smallholder cotton farmers fighting the impact of 
COVID -19 in India.  
Food and 
Agriculture 
Organization  Keeping food and agricultural systems alive - Analyses and solutions in a 
period of crises - COVID -19 Pandemic  
 
http://www.fao.org/2019 -ncov/analysis/en/  An FAO  analysis of past experiences and a compi lation of policy responses 
with their pros and cons for agricultural and food systems.  
Food and 
Agriculture 
Organization  FAO COVID -19 Response and Recovery Programme: Asia and the Pacific  
 
https://reliefweb.int/sites/reliefweb.int/files/resources/cb1515en.pdf  This is a paper which talks about addressing the impacts of COVID -19 in 
food crisis contexts . 
Gesellschaft für 
Internationale 
Zusammenarbeit 
(GIZ)   Rapid and local solutions for the coronavirus pandemic.  
 
Bulletin: rapid and local solutions for the coronavirus pandemic (giz.de)  Provision of support in the global fight against the coronavirus pandemic.   
The areas being supported include healthcare, agriculture, employment, 
technical assistance etc.  
Global Agriculture 
& Food Security 
Program.  
(GAFSP)  COVID -19 Response Plan  
 
COVID -19 Response | Global Agriculture and Food Security Program 
(gafspfund.org)  Provision of funds for countries to mitigate COVID -19's impact, and to work 
towards a quick recovery.  
International 
Cotton Advisory 
Committee (ICAC)  Capacity building in organic and conventional cotton during COVID times  ICAC in partnership with GIZ launched this project that aims at empowering 
cotton trainers in Cameroon and Burkina Faso with the latest knowledge on 
cotton production technologies for both conventional and organic growers, 
through trainings, manuals, and use of the Plant health  APP.  
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 61 - Name of 
Institution  Project/Programme/Initiative  Brief explanation of the project /programme/ Initiative  
International Food 
Policy Research 
Institute  COVID -19 Policy response portal.  
 
https://www.ifpri.org/project/covid -19-policy -response -cpr-portal  A portal set up to analyze the direct and indirect impacts of government 
responses in a comparative way. The  COVID -19 Policy Response (CPR) 
Portal  systematically captured throughout  2020 the policy responses 
pursued by governments, including population restrictions, social protection, 
trade, health, fiscal, and monetary measures.  
International 
Monetary Fund  COVID -19 Financial Assistance and Debt Service Relief  
 
IMF Financing and Debt Service Relief  The IMF is providing financial assistance and debt service relief to member 
countries facing the economic impact of the COVID -19 pandemic which will 
help all sectors of the economy including agriculture.  
This was in th e form of a rapid financing instrument and rapid credit 
facilities.  
World Bank  World Bank Group 's Operational Response to COVID -19 (coronavirus) - 
Project List  
 
https://www.worldbank.org/en/about/what -we-do/brief/world -bank-group -
operational -response -covid-19-coronavirus -projects -list Over 15 months, through June 2021, the World Bank Group is making 
available up to $160 billion in financing tailored to the health,  economic and 
social shocks countries are facing, including $50 billion of IDA resources on 
grant and highly concessional terms.  
World Bank  COVID -19 Debt Suspension initiative.  
 
https://www.worldbank.org/en/topic/debt/brief/covid -19-debt-service -
suspension -initiative  
 
(see world debt graph below ) COVID -19 has dealt a major blow to world 's poorest countries, causing a 
recession that could push more than  100 million people into extreme 
poverty.  
The World Bank and the International Monetary Fund urged G20 countries 
to establish the Debt Service Suspension Initiative. The DSSI is helping 
countries concentrate their resources on fighting the pandemic and 
safeguarding the lives and livelihoods of millions of the most vulnerable 
people. Since it took effect on May 1, 2020, the initiative has delivered more 
than $5 billion in relief to more than 40 eligible countries.  
World Business 
Council for 
Sustainable 
Development 
(WBCSD)  Regenerative fund to support leather, cotton, wool and cashmere farmers.  
 
Kering launches a new regenerative fund to support leather, cotton, wool 
and cashmere fa rmers - World Business Council for Sustainable 
Development (WBCSD)  A fund to support farmers and growers' transition 1 million hectares of 
current crop and rangelands into regenerative farming practices over the 
next five years – with individual grants ava ilable up to EUR 500,000.  
World Food 
Programme (WFP)  WFP's Socio -economic Response and Recovery Programme Framework – 
2020 
 
WFP's Socio -economic Response and Recovery Programme Framework - 
2020 | World Food Programme  The SERRF leverages WFP 's extensive operational f ootprint, strategic 
partnerships, and its expertise in food and nutrition assistance. WFP is 
uniquely positioned to support governments and other local partners to 
counter the socio -economic impacts of the COVID -19 pandemic and build 
back better  
World Hea lth 
Organization 
(WHO)  Strategic Preparedness and Response Plan.  
 
 
WHO's  Strategic Preparedness and Response Plan  The COVID -19 Strategic Preparedness and Response Plan (SPRP) for 2021 
and accompanying documents is a package aimed at guiding the coordinated 
action that must be taken at national, regional, and global levels to 
overcome the ongoing challenges in the response to COVID -19, addre ss 
inequities, and plot a course out of the pandemic.   
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 62 - Name of 
Institution  Project/Programme/Initiative  Brief explanation of the project /programme/ Initiative  
World Trade 
Organization 
(WTO)  COVID -19: Agricultural Measures  
 
https://www.wto.org/english/tratop_e/covid19_e/ag_trade_measures_e.htm  A list on trade and trade -related measures taken in the context of the 
COVID -19 crisis targeting agr icultural products, as defined in Annex 1 to the 
Agreement on Agriculture, has been compiled by the WTO Secretariat from 
official sources.   
World Trade 
Organization 
(WTO)  Information Session on COVID -19 and Agriculture — Transparency for Food 
Security  
 
https://www.wto.org/english/tratop_e/agric_e/info_sess_28jul20_e.htm  
 At the request of the Cotton -4, the WTO Secretariat organized an  
information session on the impact of COVID -19 on cotton. The purpose  of 
the session was to ensure a common understanding of the facts and  figures 
about the impact of the COVID -19 pandemic on cotton value  chains and to 
initiate a dialogue on possible solutions.  
United Nations 
Childr en's Fund  
(UNICEF)  
 
 The Cotton On Group and the Cotton On Foundation  
 
https://www.unicef.org/partnerships/cotton -on Cotton On joins forces with UNICEF to help to deliver the largest vaccination  
operation in history, supporting the delivery of COVID -19 vaccines to protect 
health -care workers, teachers and vulnerable people around the world. 
Through the Cotton on Foundation, the global retailer is helping to fund the 
equitable delivery and adminis tration of 1 million doses of a WHO -approved 
COVID -19 vaccines, supplied by the Global COVAX Facility led by Gavi, WHO, 
CEPI and UNICEF.  
 TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
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  Box 3: Better Cotton Adapts to COVID -19 Pandemic to Support Smallholder Farmers  
More than 250 million people worldwide depend on cotton farming for their livelihoods, and the majority of 
cotton is cultivated by smallholder farmers in lower income countries. Farmers sit at the heart of Better 
Cotton's work, and Better Cotton has remained committed to improving livelihoods and supporting cotton 
farming communities throughout the COVID -19 pandemic.  
 
The past year has brought serious health and safety risks for cotton farmers and w orkers, together with 
fluctuating market conditions, restriction of movement, and challenges with accessing farm inputs. The COVID 
crisis is adding to the threats that farming communities face in light of climate change – rural communities in 
low-income co untries are particularly affected, but this is also true for millions of disadvantaged rural 
communities in India, one of Better Cotton's largest cotton producing countries.  
 
To help keep farmers safe while also protecting and supporting their workers and partners, Better Cotton 
transformed the way they worked, so their on -the-ground partners could continue to implement the Better 
Cotton Standard System and build farmers' capacity to adopt better farming practices without risking their 
own or the farming co mmunities' health and safety in the process.  
 
Equipping their partners with tools and resources  
Better Cotton continued to support their on -the-ground partners in developing and reinforcing the skills and 
expertise they need to help Better Cotton Farmers,  prioritising online learning over in -person training.  
To offer the Better Cotton programme without any cost to smallholder farmers, Better Cotton organises 
farmers into "Producer Units" with a designated staff of local Field Facilitators who travel the f ields day in and 
day out to accompany smallholder farmers on their journey toward improving their farming practices. When 
in-person Field Facilitator training was hindered by the pandemic, it was essential to equip them with an 
alternative. Better Cotton d eveloped two online learning systems for approximately 3,900 Field Facilitators. 
They launched the system in India in September 2020, with all Field Facilitators there now able to access 
videos in six languages on topics including soil health, pest managem ent and the cotton growth cycle.  
 
Continuing verification and licensing activities  
Keeping Better Cotton verification activities going is vital to understanding whether farmers have grown their 
cotton in line with the Better Cotton standard and, ultimatel y, whether their cotton can be sold as Better 
Cotton. Therefore, Better Cotton sought to uphold their assurance processes – shifting to remote monitoring 
in light of travel restrictions and, in some cases, postponing activities that could potentially compr ise people's 
health and wellbeing. They successfully piloted remote assurance processes in Mozambique in early 2020, 
integrating the lessons learnt into their guidance for Better Cotton Teams and third -party verifiers in other 
countries, including Egypt, M ali, India and Pakistan. These innovations exposed many rural smallholder 
farming communities to video conferencing for the first time, getting them accustomed to tools they will 
increasingly be able to make use of to access farming knowledge, information and data. Greater participation 
in these activities will allow them to fast -track their adoption of online tools for implementing better farming 
practices.  
  
Leveraging the better Cotton farmers network to help keep communities safe  
Better Cotton's mission is to support the adoption of better farming practices by providing on -the-ground 
training. Through exceptional circumstances of the pandemic, they had the opportunity to raise funds and 
leverage their network to distribute emergency funding to pro gramme partners in India, Pakistan, 
Mozambique and Mali for additional support. The majority of the funding was used to provide information on 
preventing the virus and distributing face masks, soap and hand sanitisers to farmers, Field Facilitators and 
local communities. The masks were often made locally, including by women participating in groups designed 
to help them gain greater economic independence. Better cotton's local partners made remarkable efforts, 
investing both time and independent funds in sup port of the rural communities in which they operate. Learn 
more here [ https://bettercotton.org/covid -19-hub/]. 
 
Looking ahead  
Adapting to the COVID -19 pandemic has highlighted the need to accelerate th e use of appropriate technology 
to share farmer knowledge and access farms for verification activities for Better Cotton. To make the most of 
these learnings, they continue to expand access to remote partner training and verification processes, 
monitoring the situation in production countries and considering how remote activities could provide 
inspiration for future developments.  
  
Source: Better Cotton.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 64 - 
 
  Box 4: Enhancing safe trade in plants and plant products: the ePhyto solution  
• The current COVID -19 crisis constitutes an opportunity to permanently adopt solutions that improve 
business practices and advocate for an increased use of the ePhyto solution to achieve economies of scale, 
cost efficiencies and facilitate safe t rade. 
 
• The e -Phyto solution, developed through an innovative project funded by the Standards and Trade 
Development Facility (STDF)1 and implemented by the International Plant Protection Convention (IPPC), 
has accelerated the transition towards electronic  phytosanitary certificates that make trade between 
countries safer, faster and cheaper.  
 
• Trade in plants and plant products has traditionally relied heavily on paper phytosanitary certificates to 
provide assurances that exported plants and plant product s meet the phytosanitary requirements of 
importing countries. Launched in December 2016, the STDF -funded ePhyto project built and 
operationalized technical solutions allowing developing countries to exchange electronic phytosanitary 
certificates (ePhytos) globally2. 
 
• Specifically, the project developed a central server (referred to as the ePhyto "Hub") to facilitate the 
exchange of ePhytos between National Plant Protection Organizations (NPPOs). This helped address the 
difficulty for many countries to neg otiate bilateral agreements and access multiple existing national 
systems operated mainly by developed countries.  
 
• The project also developed a Generic ePhyto National System (GeNS) to enable the production, 
submission, and receipt of ePhytos. It provide s a cost -effective system that can be implemented across a 
wide range of countries with limited capacities, mainly LDCs.  
 
•  So far, the e -Phyto solution's implementation has been a resoundingly successful. Becoming fully 
operational in July 2019, 92 countries were connected to the Hub in April 2021. Of these, 50 were regularly 
exchanging ePhytos. The GeNS system was tested in 30 countries and moved into full operation in eight 
countries.  
 
• Of note, is the greater adoption and promise of ePhyto acceleration in African LDCs and lower middle -
income countries such as Benin, Cameroon, Ghana, Kenya, Madagascar, Nigeria, Rwanda, Uga nda and 
Zambia. These countries are either currently registered to the Hub and/or currently exchange ePhytos 
using the Hub and the GeNS system.  
 
• African cotton producers will particularly benefit from the ePhyto solution as there is often a requirement 
of phytosanitary certificates for cotton given its potential to introduce regulated plant pests. While there 
still needs to be far greater adoption of the ePhyto solution by large -scale cotton producing countries in 
the region such as Burkina Faso, Chad and  Mali, the current trend is very positive and points towards 
widespread registration to the Hub in a region that will benefit immensely from digitization.  
 
• The benefits of the ePhyto solution are apparent. These include: (i) improvements in security, inc luding 
the reduction of fraudulent certificates; (ii) reduction in costs and complexity of procedures; (iii) reduction 
in the use of paper resulting in a positive environmental impact; and (iv) increases in trade flows through 
border access for plants and plant products.  
 
• On the other hand, the main challenges for developing countries in implementing the ePhyto solution are: 
(i) weaknesses in existing paper -based certification systems; (ii) inadequate legislative frameworks; (iii) 
limited public -private c ollaboration; and (iv) lack of political will.  
 
• It is important to remember that the ePhyto solution will not solve systemic failures in national 
phytosanitary control systems. This technical solution is effective when countries already have an effective  
paper based phytosanitary certification systems, including functioning institutions and adequate 
legislation. It is thus important to first conduct a thorough analysis of current business processes before 
embarking into adopting the ePhyto solution.  
 
1 See: https://www.standardsfacility.org/  
2 See: https://www.standardsfacility.org/PG -504 
Source:  Standards and Trade Development Facility.  
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 65 - 
 
  CONCLUSIONS  
The COVID -19 pandemic and associated lockdowns have had a significant impact on the cotton 
sector in LDCs. Cotton is critical for development in these countries, but the COVID -19 pandemic 
has exacerbated other challenges the sector faces, inclu ding changing temperature and precipitation 
patterns associated with climate change. Revitalising the cotton sector in LDCs has the potential to 
generate employment, enhance productivity and competitiveness, and build resilience to future 
shocks.  
 
What ha ppened?  
 
• Cotton producing LDCs were hit hard by the COVID -19 pandemic in 2020, but impacts were 
heterogeneous. In 2020, GDP per capita decreased by 2.1% on average in the reference group 
of LDCs, while food security indicators also worsened in several coun tries. 
• Cotton production and exports from some LDCs declined sharply as a result. On average, the 
area planted with cotton in reference LDCs decreased by 16% and cotton production decreased 
by 18% from 2019 to 2020, with troughs reaching -79% in some count ries. Other countries 
in the same group nonetheless managed to increase their production and yields slightly in the 
same period.  
• These mixed agronomic performance results are mirrored in trade: while six countries 
experienced a sharp decline in their cott on exports from 2019 to 2020, others appear to have 
maintained previous export levels or even show improvements on those levels. In net terms, 
however, the reference group's cotton export value decreased by 34%.  
• World cotton prices started declining in Jun e 2018, falling from USD 2.15 per kg to USD 1.56 
per kg in mid -2019: they then fell further to USD 1.40 per kg in April 2020 (with a sharp 
decline as of March 2020, when the pandemic was declared). ICAC data indicates that cotton 
prices fell particularly s harply from March 2020, before rising again in September 2020.  
• Agriculture  remains critical for livelihoods and rural development especially in Africa, 
employing more than 50% of the total labour force in the countries studied. Furthermore, 
among the milli ons of cotton farmers in the C -4 and other LDCs, an estimated 450,000  are 
women . Women also add value to cotton, for example by producing soap from cotton ginning 
waste.  
 
What are the challenges and what can be done?  
 
• The COVID -19 crisis highlighted the im portance of ensuring the cotton sector is resilient to 
future shocks, including climate -related extreme weather events and changing temperature 
and precipitation patterns.  
• An important part of doing so will involve ensuring that policy responses help boost  
productivity sustainably and improve competitiveness in cotton and the agricultural sector.  
• Policy makers also need to consider how policy interventions will affect cotton value chains in 
their entirety, including the impact on the textile industry and o ther industries using cotton 
and cotton by -products.  
• This includes ensuring that the competitiveness of the cotton sector creates synergies with 
other vibrant parts of these countries' economies, including the services sector.  
• More broadly, a critical poli cy challenge for policy makers will be to situate the cotton sector 
within a broad vision of economic development for both rural and urban areas.  
• Doing so should be complementary to global efforts at the WTO to reduce trade distortions, 
including those ass ociated with trade distorting domestic support to cotton, and to eliminate 
various barriers to trade that hamper development in African cotton -producing LDCs.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 66 - 
 
  • C-4 countries are among those that have most effectively weathered the COVID -19 storm. 
This shoul d send important signals of confidence to international investors and donors.  
• However , even within the C -4 there have been different experiences, policy responses, and 
trade and market trajectories. This heterogeneity across LDCs means there are plenty of 
opportunities to learn lessons from success stories as governments and development partners 
lay the foundations for the recovery.TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 67 - 
 
  ANNEXES  
Annex 1 - WTO -ICAC Survey  
Responses: 104 in tot al, of which from LDCs:  
 
Total responses from LDCs  29 
Afrique de l'Ouest  1 
Angola  1 
Bangladesh  1 
Benin  7 
Burkina Faso  4 
Mali 6 
Mozambique  1 
Tanzania  2 
Zambia  6 
 
Summary of the survey results for 2020 and 2021 (calendar years) 
Question 2 of the survey was focused on the impacts of the COVID -19 virus on various aspects of 
the cotton sector during the calendar year of 2020. Figure 22 displays a summary plot of the results 
for the LDC 's. From this plot it is clear that all sectors of the cotton industry were impacted by 
COVID -19 on some level. The areas most heavily impacted (as mentioned above) were in cotton 
exports and the availability and transport of production inputs. In the LDC 's reporting, 76% of 
respondents noted at least some level of i mpact on cotton export, while 47% of the total respondents 
noted that cotton fibre exports were impacted at a moderate to high level. Seed availability was 
impacted with 41% of respondents indicating moderate to high impact. However, fertiliser and 
pestici de inputs were affected more heavily with 53% reporting moderate to high impact for both 
inputs. Interestingly, transport of production inputs were reported to have affected the LDC 's at a 
moderate to high level by 68% of respondents.  
Question 3 of the sur vey was focused on the impacts of the COVID -19 virus on various aspects of 
the cotton sector during the calendar year of 2021. Figure 23 displays a summary plot of the results 
for the LDC's. We can see a slight downward trend in the affects of COVID -19 fro m 2020 to 2021 
but the impacts are still substantial. The impact on cotton fibre export has moved from 47% of 
respondents noting moderate to high impact in 2020 to 42% in 2021. The availability of seed seems 
to have become more problematic in 2021 with 53%  of respondents indicating moderate to high 
impact, an increase of 12% over 2020. Impacts on fertiliser and pesticide inputs decreased from 
53% in 2020 to 50% of respondents in 2021 reporting moderate to high impact. The severe impact 
on the transportation  of inputs has decreased from 68% in 2020 to 56% of respondents reporting 
moderate to high impact in 2021.  
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 68 - 
 
  Figure 22: Summary plot of survey results for the LDCs (survey question 2)  
 
Note:  LDC countries reporting in the survey: Angola, Bangladesh, Benin, Burkina Faso, Ethiopia, Mali, 
Mozambique, Tanzania, Zambia.  
 
  
TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 69 - 
 
  Figure 23: Summary plot of survey results for the LDCs (survey question 3)  
 
Note:  LDC countries reporting in the survey: Angola, Ban gladesh, Benin, Burkina Faso, Ethiopia, Mali, 
Mozambique, Tanzania, Zambia.  
 
 
 
  TN/AG/SCC/W/40 • WT/C FMC/W/97  
 
- 70 - Annex 2 - Share of various agricultural products including cotton in total agricultural crops harvested area  
Share in percentage of various agricultural products including cotton in total agricultural crops harvested area  
Benin  
 
 Burkina Faso  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 71 - Chad  
 
 Mali 
 
 
 
  TN/AG/SCC/W/40 • WT/C FMC/W/97  
 
- 72 - Malawi  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 73 - Mozambique  
 
 
 
  TN/AG/SCC/W/40 • WT/C FMC/W/97  
 
- 74 - Tanzania  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 75 - Togo  
 
 
 
  TN/AG/SCC/W/40 • WT/C FMC/W/97  
 
- 76 - Uganda  
 
 
 
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 77 - Zambia  
 
 
Source:  FAO. 
 http://www.fao.org/faostat/en/#compare  
 http://www.fao.org/economic/the -statistics -division -ess/methodology/methodology -systems/crops -statistics -concepts -definitions -and-classifications/en/ . 
Authors' calculations.  
  
 
  TN/AG/SCC/W/40 • WT/C FMC/W/97  
 
- 78 - Annex 3 - Excerpt from the May 2021 WTO Evolving Table  
WTO DIRECTOR -GENERAL'S EVOLVING TABLE ON COTTON DEVELOPMENT ASSISTANCE  
PART I – ACTIVE COTTON SPECIFIC DEVELOPMENT ASSISTANCEa 
DEVELOPMENT 
COMMUNITY  Programmes/Projects/Activities  Value  Operational  
Statusb Disbursement  
Statusc Beneficiaries  
BILATERAL 
DONORS       
EUROPEAN UNION  Support for changes in the Cameroon cotton basin -ABC EUR 9,400,000  PFS 
2020-2025  Cameroon  
FRANCE  Support to integrated management of agricultural resources (ASGIRAP) – C2D 
with a specific component for the enhancement of productivity in the cotton 
sector  EUR 10,000,000  IP 
2014-2020 EUR 5,386,911  Cameroon  
 Support project for agro -ecological transition in the cotton zone  EUR 18,500,000  IP 
2019-2022 0 Mali 
 Agro-ecological transition project in cotton zones 2  EUR 10,000,000  IP 
2020-2024 0 Benin  
GERMANY  Support for changes in the Cameroon Cotton Basin - Rural Development Support 
Program (ABC -PADER) with the EU  EUR 10,000,000  IP 
2020-2024  Cameroon  
 Global Programme Sustainability and Value Added in the Agricultural Supply 
Chains -Cotton  EUR 11,959,000  IP 
2019-2023 - Burkina Faso, 
Cameroon, India, 
Uzbekistan  
 Sector Programme Sustainable Agricultural Value Chains and  Standards  EUR 1,000,000  IP 
2020-2023  Western; Central 
and Eastern 
African Countries  
 Initiative spéciale Formation et emploi, valeur ajoutée de la chaine du textile et 
production du coton bio  EUR 425,000  IP 
2020-2021 EUR 425,000  Senegal  
ITALY  The Egyptian Cotton Project (implemented  by UNIDO)  EUR 1,500,000  IP 
2017-21 EUR 1,450,000  Egypt  
 The Egyptian Cotton Project – II Phase (implemented  by UNIDO)  EUR 1,500,000  PFS  Egypt  
NETHERLANDS  Initiative Sustainable Trade (IDH): Cotton Value Chain Development  EUR 16,500,000  IP 
2016-20 EUR 8,792,538  China, India, Mali, 
Mozambique, 
Pakistan, Senegal, 
Tajikistan, Turkey  
SWEDEN  Conservation Cotton TechnoServe Programme: Support to farmers in Northern 
Uganda to become efficient producers of cotton and staple food crops 
(in cooperation with jeans manufacturer Edun)  EUR 256,213  IP 
2014-15  Uganda  
SWITZERLAND  Initiative Sustainable Trade (IDH): Cotton Value Chain Development  USD 780,000  
 IP 
2016-20 - Africa, Central 
Asia, China  
 Better Cotton Initiative (BCI): The Delta Project "Bridging the Gap in Measuring 
Real-Time Sustainability Performance"  USD 1,103,835  IP 
2018-21 - Global   
  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 79 - WTO DIRECTOR -GENERAL'S EVOLVING TABLE ON COTTON DEVELOPMENT ASSISTANCE  
PART I – ACTIVE COTTON SPECIFIC DEVELOPMENT ASSISTANCEa 
DEVELOPMENT 
COMMUNITY  Programmes/Projects/Activities  Value  Operational  
Statusb Disbursement  
Statusc Beneficiaries  
UNITED STATES  West African Economic and Monetary Union (UEMOA) Cotton Competitiveness 
(UCC) Activity  USD 1,200,000  IP 
2016-2020 USD 805,000  Benin, Burkina 
Faso, Chad, Mali, 
with results 
impacting all 
cotton -growing  
member States 
of UEMOA 
and ECOWAS  
SOUTH -SOUTH 
PARTNER       
BRAZIL  Programme for the development of the cotton sector in Africa (Benin, Burkina 
Faso, Chad, Mali, Togo, Mozambique, Malawi, Kenia, Tanzania)  USD 
34,250,195  IP 
2012-2022 USD 20,926,570  Cotton -producing 
countries in  
Africa (15 
countries)  
 Strengthening of the cotton sector through south -south cooperation  USD 
16,408,154  IP 
2012-2024 USD 
12,556,813  Argentina, Bolivia, 
Colombia, 
Ecuador, Haiti, 
Paraguay and Peru  
 South -South cooperation for the promotion of decent work in cotton -producing 
countries in Africa and Latin America  USD 6,946,395  IP 
2015-2021 USD 3,945,645  Mali, Mozambique, 
Tanzania, 
Paraguay and Peru  
 Support to small -scale cotton producers and public institutions in selected 
African countries in the production and commercialization of cotton by -products 
(such as oil and cottonseed meal) and products from other crops combin ed to 
cotton production (such as corn, sorghum and bean) - "Beyond Cotton " project  USD 7,420,630  IP 
2017-2023 USD 1,950,447  Benin, Kenya, 
Mozambique and 
Tanzania  
 Improved Effectiveness and Transparency of Pesticide Registration Systems in 
Latin America and Caribbean Countries.  USD 6,231,735  IP 
2019-2023 USD 396,685  Brazil, Colombia 
and Paraguay  
INDIA  Cotton Technical Assistance Programme  USD 2,848,809  IP 
2011-2018 FD Benin, Burkina 
Faso, Chad, 
Malawi, Nigeria, 
Uganda  
MULTILATERAL 
AGENCY       
CONVENTION ON 
BIOLOGICAL 
DIVERSITY (CBD)  +Seeds: More Biodiversity, More Sustainable Development, More Cotton. 
(Implemented by ALTER VIDA Paraguay, with FAO Technical support)  USD 26,100  IP  
2020–2020 0 Argentina; Bolivia, 
Plurinational State 
of; Brazil; 
Colombia; 
Ecuador; Paraguay 
and Peru   
  TN/AG/SCC/W/40 • WT/C FMC/W/97  
 
- 80 - WTO DIRECTOR -GENERAL'S EVOLVING TABLE ON COTTON DEVELOPMENT ASSISTANCE  
PART I – ACTIVE COTTON SPECIFIC DEVELOPMENT ASSISTANCEa 
DEVELOPMENT 
COMMUNITY  Programmes/Projects/Activities  Value  Operational  
Statusb Disbursement  
Statusc Beneficiaries  
ENHANCED 
INTEGRATED 
FRAMEWORK (EIF)  The Cotton by -Products Project: Unlocking the Hidden Value (Implemented by 
ITC, UNCTAD and WTO)  USD 204,694  IP  
2019–2020 USD 96,580  Benin, 
Burkina  Faso, 
Chad, Mali, 
Mozambique, 
Tanzania, Uganda, 
Zambia  
 The Cotton by -Products Project: Unlocking the Hidden Value (Implemented by 
ITC, UNCTAD and WTO)  USD 100,336  IP  
2021 0 Malawi, Togo  
FAO Competitiveness and sustainable strengthening of the cotton sector through the 
reinforcement of cotton farmers' capacities in the Integrated Production and Pest 
Management  USD 3,315,650  IP 
2012-16 USD 3,000,000  Burkina Faso, 
Mali, Senegal, 
Tanzania, Zambia  
ITC Supporting Indian Trade and Investment for Africa  USD 2,000,000  IP 
2015-20  Ethiopia, Kenya, 
Tanzania, Uganda  
OIC Countries – 
ITFC International 
Islamic Trade 
Finance 
Corporation)  The Egyptian Cotton Project (implemented  by UNIDO)  USD 75,000  IP  
2021 USD 0  Egypt  
a Part I contains development assistance provided specifically to the cotton sector.  
b Five operational implementation categories exist: PFS: project formulation stage; IP: in progress; C: completed; S: suspended ; D: discontinued.  
c FD reflects full disbursement.  TN/AG/SCC/W/40 • WT/CFMC/W/97  
 
- 81 - 
 
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