TN/AG/GEN/53  
TN/AG/SCC/GEN/25  
 
10 November 2023  
(23-7588) Page: 1/4 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton  Original: French  
 
 
 
  
NEGOTIATIONS ON COTTON AT THE WTO  
Communication from the Co -Sponsors of the Sectoral Initiative  
on Cotton1 and Côte d'Ivoire  
The following communication, dated 8 November 2023, is being circulated at the request of the 
delegation of Chad on behalf of the co -sponsors of the Sectoral Initiative on Cotton (C -4) and 
Côte d'Ivoire . 
 
_______________  
 
 
DRAFT MINISTERIAL DECISION ON COTTON  
The Ministerial Conference,  
 
Recognizing  the critical importance of cotton to the econom ies of certain producing countries, in 
particular those  of least developed countries (LDCs), as well as the structural constraints of the 
cotton sector exacerbated by the COVID -19 pandemic and the difficult international context,  
 
Taking into account the need  to empower women and young people in rural areas, combat 
poverty and achieve the Sustainable Development Goals (SDGs),  
 
Underscoring the fact that  non-conventional domestic support and subsidies for cotton continue 
to seriously distort world cotton price s and that one of the main consequences of this disruption is 
the significant loss of income suffered by  millions of people in cotton -producing and -exporting 
developing countries and LDCs,  
 
Having regard  to Article 20 of the Agreement on Agriculture, whic h recognizes the importance of 
conducting a fundamental  reform of the agricultural sector,  
 
Recalling  the mandate and the principles set forth in paragraph 13 of the Doha  Ministerial 
Declaration ( WT/MIN(01)/DEC/1 ), and expressing concern at th e lack of progress in the negotiations 
on domestic support for cotton due to the lack of will and genuine commitment on the part of certain 
actors  regarding  the trade component of this vital issue since 2003, when the Sectoral Initiative in 
Favour of Cotto n was submitted to the World  Trade  Organization,  
 
Recalling  that the C -4 has constantly stressed the need for progress as regards the commitment 
of the trade Ministers of WTO Member countries and has shown its goodwill in seeking to build a 
broad consensu s through negotiation s on the issue of domestic support for cotton,  
 
Referring  to the Decisions adopted on cotton and contained, respectively, in the Package of 
July 2004 ( WT/L/579  of 2 August  2004), which aimed to address cotton "ambitiously, expeditiously , 
and specifically", the Hong Kong Ministerial Declaration ( WT/MIN(05)/DEC  of 22  December  2005), 
in particular paragraphs 11 and 12 on cotton, and the Bali Decision ( WT/MIN(13)/41  - WT/L/916  of 
11 December  2013),  
 
 
1 Benin, Burkina Faso, Chad and Mali.  TN/AG/GEN/53 • TN/AG/SCC/GEN/25  
 
- 2 - 
 
  Recalling  the Decision on Cotton adopted at the Tenth WTO Ministerial Conference in Nairobi 
(WT/MIN(15)/46  - WT/L/981 ), which emphasizes that more efforts remain to be made by Members 
to attain the ultimate objective of tota l elimination of all forms of distorting support for cotton on 
the international market,  
 
Recognizing  the incremental progress achieved on issues relating to market access, export 
competition and the development component at the Tenth WTO Ministerial Confe rence held in Nairobi 
in December  2015,  
 
Recalling  UN General Assembly Resolution A/RES/75/318 of 30 August 2021 underscoring the 
historical importance of cotton as a global commodity and the vital role that cotton plays in several 
Member States by providi ng livelihoods and as a subsistence crop for millions of people, and its 
broader economic and social impacts around the world,  
 
Confirming  that Members genuinely recognize that the issue of domestic support for cotton remains 
to be handled effectively, and  that concrete, substantial and measurable results in this area are 
important, and  
 
Without prejudice to the conclusion of the negotiations on agricultural reform,  
 
Decides as follows:  
 
A.  TRADE COMPONENT  
1  DOMESTIC SUPPORT  
1.1  Aggregate Measurement of Support (AMS)  
1.1.1   Limits on the Aggregate Measurement of Support (AMS)  
The Aggregate Measurement of Support (AMS) to cotton2 shall be limited, as a first step, according 
to the following modalities:  
 
(a) i.  Where the Final Bound Total AMS is greater than USD  2 billion , or the equivalent in the 
monetary terms in which the binding is expressed, the reduction shall be "40%";  
 
 ii.  Where the Final Bound Total AMS is greater than USD  1 billion and less than or equal to 
USD 2 billion, or the equivalent in the monetary terms in which the binding is expressed, the 
reduction shall be "35%";  
 
 iii.  Where the Final Bound Total AMS is less t han or equal to USD  1 billion, or the equivalent 
in the monetary terms in which the binding is expressed, the reduction shall be "30%".  
 
(b) The reduction of the AMS for cotton applicable to developing country Members that have made 
commitments regarding the F inal Bound Total AMS shall be two thirds (2/3) of the reduction 
applicable to developed country Members, pursuant to the provisions of paragraph (a) above.  
 
(c) The reduction percentages foreseen in paragraphs (a) and (b) are applied to the base value 
of suppo rt calculated as the arithmetic average of the amounts notified by Members for cotton.  
 
1.1.2   Implementation period and modalities  
AMS cotton commitments shall be implemented over five (5) years, starting from 1 January 2025, 
according to the following schedule:  
 
- Where the Final Bound Total Aggregate Measurement of Support (AMS) is greater 
than USD 2  billion, or the equivalent in the monetary terms in which the binding is 
expressed, the reduction shall be "40%".  
 
 
2 This is the average amount of Aggregate Measurement of Support notified by Members over the 
past three years.  TN/AG/GEN/53 • TN/AG/SCC/GEN/25  
 
- 3 - 
 
  • 8% each year over a period of five (5) years, starting from 1 January 2025 until 
31 December  2029.  
 
- Where the Final Bound Total AMS is greater than USD 1  billion and less than or equal 
to USD 2  billion, or the equivalent in the monetary terms in which the binding is 
expressed, the reduction sha ll be "35%".  
 
• 7% each year over a period of five (5) years, starting from 1 January 2025 until 
31 December  2029.  
 
- Where the Final Bound Total AMS is less than or equal to USD 1  billion, or the 
equivalent in the monetary terms in which the binding is expressed, the reduction 
shall be "30% ". 
 
• 6% each year over a period of five (5) years, starting from 1 January 2025 unt il 
31 December  2029.  
1.2  De minimis  
(d) Developed and developing Members shall refrain from granting cotton producers a cumulative 
amount of AMS support and support falling within the scope of Article 6.5 of the Agreement 
on Agriculture that exceeds the monetary l imit that would result from the application of the 
de minimis  entitlements  under Article 6.4 of the Agreement on Agriculture.  
 
1.3  Blue Box support  
The level of reduction of Blue Box support for cotton is set at 2/3 of the average level of support for 
this category over the past three (3) years.  
 
1.4  Green Box: surveillance, notification and transparency  
Further to Article 20 and Annex 2 of the Agreement  on Agriculture, WTO Members shall not provide 
support in favour of cotton producers that meet the criteria indicated in paragraphs 5 to 13 of 
Annex  2 of the  Agreement on Agriculture. Green Box support measures granted to cotton shall have 
minimal or no di storting effects on the cotton production and export market.  
 
Members are encouraged to ensure effective surveillance of Green Box support measures and are 
urged to respect their notification obligations as part of requisite transparency.  
 
1.5  Transfer of support from one box to another  
Members shall avoid granting supp ort for cotton with distorting effects under a category of support 
that is intended to have minim al or no effect s, as this practice is likely to impede a clear assessment 
and evaluation of the types of support for which reduction commitments shall be made.  It is noted 
that Green Box support that should have minimum or less trade -distorting effects nevertheless 
remains trade -distorting in different respects, and should thus be categorized as Blue or Orange  Box, 
depending on the type of activity for which thi s support is granted. Least developed country (LDC) 
Members shall not be required to undertake  reduction commitments.  
 
2  MARKET ACCESS AND EXPORT COMPETITION  
Members agree to fully implement the provisions set out in paragraphs 14, 15 and 16 of the 
Nairobi  Ministerial Decision ( WT/MIN (15)/46  - WT/L/981 ) and plan, where appropriate, to continue 
the negotiations on market access and export competition on the basis of the information provided, 
in particular in relation to duty -free and quota -free market ac cess for LDCs.  
 
B. DEVELOPMENT  COMPONENT  
Without prejudice to any consensual revisions that Members may adopt, development -related 
aspects of cotton shall be addressed as provided for in paragraph 12 of the Hong Kong Ministerial TN/AG/GEN/53 • TN/AG/SCC/GEN/25  
 
- 4 - 
 
  Declaration ( WT/MIN(05)/DEC ) and paragraphs 10, 11, 12 and 13 of the Nairobi Ministerial Decision 
(WT/MIN(15)/46  - WT/L/981 ). 
 
Members reaffirm their commitment to the rules -based multilateral trading system, which 
strengthens the possible synergies between trade in cotton, productive investment and development 
assistance for LDCs. They recognize the need for an inclusive p artnership that makes cooperation 
and negotiation the preferred instruments for finding the most appropriate solutions to the 
considerable systemic and cyclical challenges faced by cotton -producing and -exporting LDCs, in 
particular the C -4 countries.  
 
Members underscore the central role of the WTO Director -General's Consultative Mechanism on 
Cotton as an international forum of reference bringing together the various stakeholders of the global 
cotton community (public and private sectors, and multilateral a gencies) and as a true multilateral 
consultation platform for the development of cotton -producing and -exporting LDCs. As such, they 
agree to coordinate cotton development assistance interventions, follow -up on completed and/or 
ongoing projects, and use th is platform to attract and mobilize further investment with a view to 
promoting and supporting the production, processing and marketing of cotton and its by -products 
in LDCs.  
 
 
__________