TN/AG/55  
TN/AG/SCC/20  
 
13 December 2022  
(22-9267) Page: 1/5 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton    
 
18TH DEDICATED DISCUSSION OF THE RELEVANT  
TRADE -RELATED DEVELOPMENTS FOR COTTON  
9 November 2022  
Report1 by the Chairperson  
1.  Pursuant to the Bali Ministerial Decision on Cotton of 7 December 20132 and the Nairobi 
Ministerial Decision on Cotton of 19 December 20153, the 18th Dedicated Discussion of the Relevant 
Trade -Related Developments for Cotton (the Dedicated Discussion) took place on 9 November 2022. 
The Dedicated Discussion was held back -to-back with the 38th Round of the Director -General's 
Consultative Framework Mechanism on Cotton (DGCFMC) dealing with the development assistance 
aspects of cotton and a Roundtable on the market for fertilizers and viable alternatives for cotton 
production.4 
2.  In my introductory remarks, I congratulated the Food and Agriculture Organization of the United 
Nations (FAO) for successfully hosting the 2022 edition of the World Cotton Day (WCD).  I drew 
Members' attention to the signature of the Memorandum of Understan ding (MoU) between the WTO 
and FIFA on 27 September 2022  which will explore opportunities to include cotton from the C -4 and 
least-developed countries in value chains of FIFA's official merchandise. I also welcomed a pledge , 
announced during the 2nd editio n of the of the Partners' Conference held at the WTO on 27 July  2022,  
by the African Export and Import Bank (Afreximbank) to provide up to USD 300,000 as grant -
matching funds to support the preparation of cotton value chain development projects in African 
countries from 2023 to 2024 .  
3.  I noted that these recent initiatives demonstrated how the WTO could concretely help cotton 
producers in developing and least developed countries (LDCs). I underscored the importance of 
simultaneously furthering work on the tr ade track alongside the development track and that the 
Dedicated Discussion serves as a forum to inform negotiations through enhanced transparency and 
monitoring in relation to the trade -related aspects of cotton.  
4.  In my report on the state of play in the agriculture negotiations , I noted that while the WTO 
had successfully adopted timely responses to current challenges include food insecurity, Members 
had unfortunately not been in a position to agree on a work plan for agriculture negotiations, 
including f or cotton . I referred to the previous Chairperson's report5 shared at the CoA Special 
Session meeting of 21 July 2022. The report underlined the low level of engagement characterizing 
the discussion on cotton -specific trade -distorting domestic support and little progress on this issue 
despite the mandate to addres s cotton "ambitiously, expeditiously, and specifically, within the 
agriculture negotiations" .  
5.  The former chairperson had therefore called in her report for Members to adopt a fresh approach 
that might require a candid exchange and a better understanding o f the existing state of play 
regarding cotton support,  including through presentations on domestic policies as well as  
 
1 This report is circulated under the Chair's own responsibility.  Ms. Marième  Fall from the WTO 
Secretariat chaired the meeting  in the absence of a designated Chairperson of the CoA Special Session.  
2 Document WT/MIN(13)/41 - WT/L/916, dated 11 December 2013.  
3 Document WT/MIN(15)/46 - WT/L/981, dated 21 December 2015.  
4 The repor t on the Roundtable is contained in WT/CFMC/70.  
5 JOB/AG/237 refers.   TN/AG/55 • TN/AG/SCC/20  
 
- 2 - 
 
  complementary analytical work to better inform negotiations.  I noted that the need to approach the 
agriculture negotiations with fresh th inking, building on the  post MC12 renewed momentum had also 
been the spirit of the agricultural retreat held on 24 October  at the WTO .  
6.  Finally, I informed Members that the new Chairperson of the CoA Special Session has not yet 
been appointed as the consul tations initiated in September by the Chair of the General Councill were 
still ongoing.  
7.  Under the agenda item "General Statements by Members ", Chad, on behalf of the C -4 
highlighted the socio -economic importance of cotton that represented 12% of the gross domestic 
product, 40% of total export earnings, 70% of agricultural value in African countries and LDCs 
producers and exporters of cotton, wi th more than 80% of the active population employed along the 
cotton value chain. The C -4 underscored the WTO's mandate to deal with cotton ambitious ly, 
expeditious ly, and specific ally in the context of the agriculture negotiations. The C -4 regretted the 
absence of outcome at MC12 despite its efforts and show of flexibility. The C -4 called for an outcome 
on cotton at MC13 and highlighted the need to avoid diluting the specificity of cotton within a broad 
agricultural package .  
8.  Australia echoed the C -4's view  that cotton plays a crucial role in the livelihoods of cotton 
producing countries. As a cotton producer and exporter, Australia highlighted its own interest in the 
sector and its contributions to cotton production technical assistance provided through a v ariety of 
means, including in African and South Asia. Underscoring the high level of trade -distorting subsidies 
on cotton and that an outcome on this topic was long overdue, Australia  reaffirmed its support, along 
with the Cairns group to the C -4's call fo r progress on this issue by MC13. Australia also underscored 
the importance of improved transparency in cotton, including through the fulfilment of notification 
obligations, as stressed by the C -4 and many other Members.  
9.  The European Union (EU) underlined  the important supply chain disruptions affecting cotton 
exports from LDCs caused by the COVID -19 pandemic and further disrupted by the war in Ukraine. 
The EU also underlined the dramatic surge in food, fertilizer and energy prices, and increased 
uncertain ty and price volatility, that not only jeopardized world food security and nutrition but also 
impacted markets such as cotton. In this context, the EU echoed the calls made during the 
agricultural retreat to advance work on cotton, and supported efforts to  limit trade -distorting Amber 
Box support to cotton. Work should also be continued on the duty -free, quota -free access for cotton 
products which remained as unfinished business in the EU's view. As for transparency, the EU 
reiterated the need for improveme nts and called on Members to provide up -to-date information on 
cotton -related policies through timely notifications and replies to the cotton questionnaire. The EU 
expressed interest to discuss improvements in transparency without creating unnecessary 
administrative burdens. Finally, the EU voiced support for the work on cotton development 
assistance which in its view was crucial and complementary to the trade component.   
10.  Japan echoed the EU's statements on the situation in Ukraine in the context of food s ecurity 
and distribution of agricultural products. Japan condemned the Russian Federation's attack of 
Ukraine and underlined its continued support to Ukraine in cooperation with the international 
community.  Brazil  noted the urgency of resuming discussions on cotton after MC12 to ensure 
sufficient time to address the long overdue outcome on cotton.  Brazil reminded Members of the joint 
statement6 issued at the WCD 2019 launch event by the C -4, Cote d'Ivoire, Brazil, China, the EU, 
India, and the United State s (US) which committed to "intensify discussions on factors negatively 
impacting cotton trading markets and continue efforts aimed at enhancing transparency and 
monitoring of cotton -related trade measures affecting the global market". Brazil stressed that the 
issues of transparency and trade -distorting support should be addressed in parallel, and that a cotton 
outcome at MC13 should also take into consideration the necessary responses to the effects of the 
pandemic, climate change and international conflict  and the objectives of food security, 
sustainability, promotion of development and trade liberalization .  
11.  China highlighted its active engagement in cotton development assistance in C -4 and other 
African cotton producing countries both bilaterally through technical assistance and multilaterally 
through cooperation with the FAO, notably through South -South Cooperation projects. In terms of 
cotton negotiations, China joined previous speakers to underscore the importance of addressing 
trade-distorting cotton d omestic support and reiterated that reducing cotton -specific AMS should be 
 
6 JOB/AG/165  - TN/AG/SCC/GEN/21 . TN/AG/55 • TN/AG/SCC/20  
 
- 3 - 
 
  the priority. China also echoe d the calls for increased transparency , building  on the already -
established solid foundation of notification s and data collection , to undertake  further analysis to 
better understand the situation and inform the  cotton negotiations . China emphasized its support to 
the agriculture negotiations, in particular on cotton, and suggested the following elements for a 
possible way forward: (1) Me mbers should undertake further technical analysis on cotton production 
and trade; (2) to this end, develop realistic approaches to improve transparency, including 
compliance with notification obligations, with the consideration of special and differential treatment 
for developing Members and LDCs; (3) Members should continue to support cotton -related 
development assistance to improve the production capacity of developing Members and their 
competitiveness in the international market; and (4) Members should b etter understand the effects 
of subsidies, including on cotton exports.  
12.  The US stressed the importance of cotton for the livelihoods of farmers throughout developing 
countries, including LDCs, particularly in the current challenging climate of continued s upply chain 
disruptions. Along with the EU  and Japan , the US highlighted that the war in Ukraine had exacerbated 
the situation, leading to rising prices of key inputs in agricultural productions such as energy and 
fertilizers. The US reiterated its support  for evidence -based discussions to better understand the 
impacts of supply chain disruptions and developments in the cotton sector. The US also underlined 
the need to seize the opportunity of leveraging innovation and science to provide farmers with the 
necessary know -how to improve productivity, sustainability, and resilience.  
13.  The International Cotton Advisory Committee (ICAC)7 provided updates to Members on 
world cotton production and trade trends, with an outlook of the global cotton market for the 202 2-
2023 season focusing on production, consumption, stock levels, prices, trade and government 
subsidies.  
14.  Following a question by myself , ICAC noted minor diversification in the destination of exports 
by West African countries and anticipated a possible in crease in intra -African trade over the next 
few years as some African countries were expected to expand their cotton consumption through 
textile development. ICAC also referred to its data portal dashboard8 where global cotton statistics 
are available.  
15.  The FAO presented their study9 entitled "the C -4 countries in the context of the global cotton 
market situation short - and medium -term outlook".10 It was underlined that the focus of the analysis 
was the cotton sector's potential to advance the livelihood o f households in developing countries.  
16.  Chad raised the following questions: (1) could the FAO suggest  solutions to address the  
challenges caused by parasites  which were one of the main causes for the drop in cotton production 
in Africa ; (2) Did the FAO had a mechanism in place to support cotton producers facing financial 
difficulties and prevent them from ceasing cotton production ; (3) Could the FAO provide some 
forecast on when the cotton demand could rebound following the expected fall as a result of the 
poor overall economic situation ; (4) Could the FAO enlighten the participants on the role of the 
traders in the cotton market and on how to ensure that the most vulnerable cotton growers are not 
negatively impacted by some trading practices . 
17.  Benin echoed Ch ad's concern regarding the risk s faced by the cotton sector in C -4 countries , 
and asked the FAO  about the  possibility to protect cotton growers from natural climatic disasters 
such as excessive rainfalls and offset the risks through insurance  schemes. Benin also asked whether  
the FAO considered risk management  tools as a promising way forward to help vulnerable cotton 
producers in developing count ries face market risks and whether FAO was able to provide technical 
support in this regard.  
 
7 ICAC's presentation can be found here. 
8 ICAC's cotton data portal can be found on https://icac.shinyapps.io/ICAC_Open_Data_Dashboaard/ .  
9 FAO's presentation can be found here.  
10 The study can be found on  
The Cotton -4 (C-4) countries in the context of the  global cotton market: Situation and short - and 
medium -term outlook (fao.org) . TN/AG/55 • TN/AG/SCC/20  
 
- 4 - 
 
  18.  Cote d'Ivoire questioned the FAO regarding the assumptions used in its  10-years outlook model 
on the evolution of cotton production and exports, notably regarding the subsidies to the cotton 
sector and the crises  increasingly faced by the sector.  
19.  The FAO agreed that climate change had an impact on all agricultural commodities including 
cotton, as confirmed by the ongoing discussions taking place at the 27th United Nations Climate 
Change conference  of parties. Insurance schemes were indeed one of the options to adapt to climate 
change. The FAO referred to some past work undertaken internally on insurance programme for food 
products which could also be applied to cott on. The FAO also highlighted the possibilities for 
developing countries to benefit from funding for climate change adaptation through the UN Climate 
Fund. The FAO also underscored that more efforts were required on climate change mitigation.  
20.  In terms of as sistance to smallholders, the FAO made reference to the Plus Cotton project 
implemented in Latin America in collaboration with Brazil to address the constraints, impeding 
smallholders from fully achieving their potential cotton production and exports by he lping them 
adopt new ways of operating and increase productivity. The FAO also noted the importance of 
addressing challenges related to pests and diseases. Brazil added that it would provide further details 
of the project at the 38th Round of the DGCFMC on  10 November 2022.  
21.  The FAO further noted that one of the major lessons of the recent crisis was the need to diversify 
sources of supplies which would benefit many importers. The C -4 was in this regard in a good position 
to take advantage of the new trend toward diversification. The FAO also emphasized its willingness 
to continue working with Members and other partners on these issues.  
22.  Regarding the assumptions used in its outlook model, the FAO explained that it was based on 
current policies and subsidies . It would be possible however to make simulations with this model 
with different hypothesis.  
23.  The Secretariat introduced the updates and highlights contained in the Revision of the  
background paper11 and addenda.12 The background paper compiles up -to-date information and 
data from Members' notifications and other submissions on export subsidies, domestic support, and 
market access, including both tariff and non -tariff measures. The background paper also captures 
Members' latest responses to the questionnair e on cotton policy developments, as well as relevant 
information on cotton markets and policies included in Trade Policy Review reports.  
24.  The Secretariat reminded in its presentation that, the four Members with  export subsidy 
reduction commitments for cott on had certified  their new schedule s pursuant to the Nairobi Decision 
on Export Competition eliminat ing their entitlements to cotton export subsidies . The Secretariat 
therefore intended to  streamline the report. It would stop updating the tables on export subsidies 
notified in Supporting Table ES: 1 and continue with  the tables  listing cotton export subsidies notified 
in Supporting Table ES:2 pursuant to Article 9.4 of the Agreement on Agriculture  till the end of 2023  
for developing country Members , and till  the end of 2030 for LDCs and NFIDCs. The Secretariat 
confirmed that should any  new use of export subsidies for cotton be notified by Members it would 
continue to be reported in the background paper.  
25.  I reiterated that the quality of the background paper relied on the quality and timeliness of 
Members' notifications and submissions to the WTO, including replies to the questionnaire. I invited 
all Members – and key cotton actors – to be more forthcoming in sharing information  on recent 
policy developments.  
26.  Chad underscored the importance of up -to-date notifications to help Members understand the 
developments in the global cotton market and noted the lack of updated information in the area of 
domestic support. In terms of marke t access, Chad asked  whether the Secretariat has carried out 
any analysis on the potential obstacles to market access for products from the C -4 countries .   
27.  The Secretariat noted that the background paper compiles market access information available 
at the  WTO including tariffs, use of tariff quotas and special agricultural safeguard provisions. 
 
11 The Secretariat's presentation can be found here. 
12 Documents TN/AG/GEN/34/Rev.17 - TN/AG/SCC/GEN/13/Rev.17, TN/AG/GEN/34/Rev.17/Add.1 - 
TN/AG/SCC/GEN/13/Rev.17/Add.1, TN/AG/GEN/34/Rev.17/Add.2 - TN/AG/SCC/GEN/13/Rev.17/Add.2, dated 
28 October 2022.  TN/AG/55 • TN/AG/SCC/20  
 
- 5 - 
 
  Information on cotton -related non -tariff measures is also available despite technical challenges to 
retrieve such information from the I -TIP database. The Secretari at confirmed that the background 
paper does not report any major challenges in the context of market access for cotton products from 
the C -4 based on this thorough overview of cotton related information available in the WTO 
Members. The Secretariat echoed my comments that the quality of the background paper is fully 
dependant on Members' inputs and underscored the importance of notifications and information 
sharing to help Members identify any possible challenges in this regard.  
28.  Cote d'Ivoire, on behalf of the C -4 welcomed the "COVID -19 and Cotton " agenda item which 
provides the opportunity to jointly assess the situation of cotton and places the C -4's concern 
regarding the disruptions on the value chains caused by the pandemic on  the multilateral agenda. 
Cote d'Ivoire also expressed the group's appreciation of the Secretariat's study on the on the impacts 
of COVID -19 on cotton and its value chain in key cotton producing LDCs  as well as the information 
session on supply chain disru ptions affecting cotton exports from LDCs. The C -4 reiterated its 
concerns regarding the severe disruptions brought by the COVID -19 pandemic both directly and 
indirectly  to the cotton sector in the C -4 countries and other cotton producing LDCs, including t he 
congestion of harbours and ports and increases in shipping and warehouse costs, as confirmed both 
in the study and the information session.  
29.  The C -4 underscored the necessity to pursue the monitoring of the effects of the pandemic on 
the production and marketing of cotton. The C -4 renewed its appeal for support from development 
partners for finding sustainable and structural solutions to the concerns related to cotton production 
and trade in LDCs and urged Members to quickly implement the recommendations  made by the 
study and the information session such as increasing investment in local processing facilities, 
assistance in setting up alternative technological solutions including the use of local fertilizers, 
promoting sustainability standards at all leve ls, including the mobilization of more financial and 
technological resources for the improvement of productivity, strengthening the participation of 
women and young people in the cotton value chain, as well as strengthening the viability of the 
cotton indu stry. 
__________