TN/AG/49  
TN/AG/SCC/17  
 
13 July 2021  
(21-5491) Page: 1/5 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton    
 
 
15TH DEDICATED DISCUSSION OF THE RELEVANT  
TRADE -RELATED DEVELOPMENTS FOR COTTON  
28 MAY 2021 
Report1 by the Chair person , Ambassador  Gloria ABRAHAM PERALTA  
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 15th Dedicated Discussion of the Relevant 
Trade-Related Developments for Cotton  (the Dedicated Discussion)  took place on 28 May 2021 . The 
Dedicated Discussion was  held back -to-back with the 3 5th Round of the Director -General's 
Consultative Framework Mechanism on Cotton  (DGCFMC) dealing with the development assistance 
aspects of cotton .  
2.  In my introdu ctory remarks , I provided an update on the state of play in the agriculture 
negotiations with a focus on cotton . I noted that the facilitator -led process initiated in 
October  2020 would end soon, and referred to the report made by the two  cotton f acilitators , Sergio 
CARVALHO from Brazil and Emmanuel OUALI from Burkina Faso , during the CoA Special 
Session  (CoA-SS) meeting  that took place three days prior to this meeting.  
3.  I noted that while cotton is recognized by many Members as an important  element of an MC12 
agricultural package , in view of its critical role  for development and for the livelihood s of people in 
many LDC Members , the topic  - in particular trade distorting cotton support – was to  be considered 
as part of the overall agriculture negotiations, especially as part of negotiations on domestic support 
overall.  In this context, Members ha d expressed their willingness to explore ways to improve cotton -
related transparency in a targeted manner, with due account of the fact that cotton already benefits 
from a specific enhanced transparency mechanism through th e biannual Dedicated Discussions.  
4.  I noted that s ome suggestions  were made  in this regard , such as  incorporating the cotton 
questionnaire in the G/AG/2 transparency requirements : the facilitators  observed an appetite for 
discussing  a well-defined and substantiated proposal  on this , which may take some time but was 
doable  in their view. I took the  oppor tunity to urge all Members  to intensify their efforts in the 
coming weeks  to work o n such potential transparency -related inputs  that would effectively add some 
value to the mechanisms currently in place.   
5.  On the way forward, I  noted that the report made by  the facilitators would be  circulated in writing 
shortly , and that I would also circulate my own report summarizing my assessment of the state of 
play in the negotiations , including on cotton . I indicated that I would  conven e a Cotton Quad Plus 
meeting at Heads of Delegation level in the coming weeks to take stock of the situation.  In addition , 
I reminded Members of the  Cotton Development Assistance  component , which is complementary to 
the trade track  and is also of great impo rtance . This component would be addressed in the context 
of the  Director General's Consultative Framework Mechanism on Cotton . 
 
1 This report is circulated under the Chair's own responsibility.  
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 . TN/AG/49 • TN/AG/SCC/17  
 
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  6.  Under the agenda item " General Statements from Members ", Burkina Faso , on behalf of the 
Cotton -4 (C-4)4, underlined the severe impact of  the COVID -19 pandemic on the cotton sector , 
including income losses and slowdown of economic activities . The C-4 expressed concern about the 
post-pandemic recovery measures taken by some countries that have led to an increased level of 
domestic support to cotton. In this regard, t he C-4 reiterated that reduc tion or the phasing out of 
trade -distorting domestic support remains  their priority and urged Members to find a solution to this 
problem .  
7.  The C-4 called on Members to be more transparent about  the measures they have taken in 
response to COVID -19 in the cotton sector, as well as about  the implementation of the ir Nairobi 
commitments on market access and export subsidies for cotton.  On market access, the C-4 
encouraged Members to make greater  efforts to extend duty-free and quota -free access to their 
markets  for all cotton products originating in LDCs. The C-4 also stressed the importance of 
transparency in relation to the removal of all restrictive trade measures that may have a negative 
impact on cotton . Finally, the C-4 made the following two request s: (1) inclusion of a new standing 
agenda item on COVID -19 and cotton in the Dedicated Discussion ; and (2) preparation of an 
information note by the Secretariat to assess the impact of COVID -19 on the cotton sector in the C-4 
countries and other LDCs.  
8.  Mali described the devastating harm brought  by COVID -19 to its cotton sector , noting that the 
health crisis had  resulted in the following effects: a drastic price fall for cotton and cotton seed ; a 
slowdown in cotton transportation; excessive accumulation of cotton stocks in factories and ports;  
difficulties for cotton companies in honor ing the commitments made to financial partners and 
suppliers; a decrease in cotton production ; and waste  of fertilizers  and pesticides . Those trends  had 
led to  a significant drop in  cotton  producers' income s, a fall in the turnover of all economic players  
operating in the cotton production and processing  sectors , and a significant reduction in the country's  
earnings from cotton export s, taxes and duties.  Mali stated that  it had established an action plan to 
deal with the lasting harmful effects of the pandemic , and to revive  its cotton sector . Mali supported  
the request s made by Burkina Faso on behalf of the C-4 and asked the Secretariat  to expedite  the 
study on  COVID -19 so that its results could help the C-4 mobilize resources at MC12 to support 
cotton development . 
9.  Nigeria, on behalf of the African Group, underlined that it was crucial to address food and 
livelihood security in Africa  and to develop cotton value chains so as to unlock the economic potential 
of cotton -producing developing countries . The Group maintained its position that  cotton-related  
development assistance should be demand -driven in order effectively to address Africa's  livelihood 
difficulties . The group further called on development partners and donors to consider favourabl y the 
development assistance requests submitted by Benin, Burkina Faso, Cameroon, Mali, and the  C-4 
as a group.   
10.  On cotton negotiations, the African Group echoed  the C-4's statements . Stressing that  the 
product -specific cotton subsidies  provided by large economies erode LDC  cotton producers ' 
competitiveness both in international and domestic market s, the group called on Members  to support 
the C -4 proposal and to work towards an outcome at MC12 on the elimination of any use of Final 
Bound AMS as product -specific cotton subsidies.  On market access, while thanking the Members 
that had grant ed duty-free and quota -free market access for cotton produced a nd exported by LDC s, 
the group pointed out that these preferences continu e to be  eroded by non -tariff barriers, such as 
SPS and TBT measures , as well as by some preferential arrangements and tariff escalation . The 
group observed that these constitute signi ficant barriers to LDC cotton exports  and regretted the 
lack of progress in discussions on the SPS, TBT and agreement -specific Special and Differential  
aspects of the G-90's proposal . 
11.   On export competition, the African Group indicated that it would prefer that Members improv ed 
their compliance with existing transparency commitments , including  those made under  the Nairobi 
Decision , rather than  exploring  additional requirements  that would pose difficulties for Members of 
the group due to resource and capacity constraint s. The group noted that , under the Nairobi 
Decision , developing countries  are required to submit their responses to the Export Competition 
Questionnaire (ECQ) by 2021 , and the appropriate first step in this pillar should be the collation and 
analysis of all replies to the ECQ, including those being returned in 2021. On the basis of the  
 
4 Benin, Burkina Faso, Chad, and Ma li.  TN/AG/49 • TN/AG/SCC/17  
 
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  information  gap identified through the analysis, Members can thereafter engage in discussions on 
how to improve existing transparency obligations to bridge the gap.  
12.  Chad, on behalf of the LDC Group , supported the C-4 and African Group's call to remove 
non-tariff barr iers such as SPS and TPT measures so that the duty-free and quota -free preferences 
granted by countries to LDC cotton exports would not be eroded. The group also supported enhanced 
monitoring and improved transparency in the implementation of the Nairobi Decision on Export 
Competition. On domestic support, the group echoed the C-4's call to address trade-distorting 
support.  
13.  The European Union  (EU) noted its interest in continued discussion o f Members' experience in 
the cotton sector in this forum,  in parti cular in the context of the COVID -19 pandemic. The EU 
reaffirmed its commitment to the Joint Statement adopted at ministerial level during  the World 
Cotton Day (WCD)  launch event on 7 October  2019, which called for an intensification of discussions 
on factors negatively impacting cotton trade and markets , as well as enhancement of transparency 
and monitoring of  cotton trade -related measures . Looking towards MC12, the EU  considered 
improvements on transparency an d monitoring of cotton as a possible  outcome.  The EU referred to 
its suggest ion during the CoA -SS that the cotton questionnaire  be included in the G/AG/2 guidelines , 
and indicated its readiness to discuss this proposal as well as any other practical ideas which would  
improv e transparency  without increasing the administrative burden on Members.  
14.  Brazil voiced its commitment to  working towards  an outcome  on cotton  at MC12  and beyond . 
Brazil noted that , although its priority remained trade -distorting support, it considered  cotton-related  
transparency  as an incremental confidence -building step that would prepare the way for future 
negotiations on domestic support.  
15.  The United States, while acknowledging t he importance of this topic for many Members, 
stressed that an outcome on cotton had to be considered in the context of the broader agriculture 
negotiations.  The US shared its view that  transparency  is the most likely outcome for MC12  in 
agriculture  but ca utioned against seeking an outcome on cotton for the sake of an outcome. The US 
underlined that any outcome should address actual concern s and noted that if a transparency 
element is considered useful for cotton , there will be a good chance that the same element would 
be useful for other commodities as well . 
16.  China reaffirmed that eliminating AMS entitlements beyond de minimis  is its  priority . It 
supported further analysis  on cotton production, trade and policies that may help  bridge different 
positions in the negotiations. China also called for realistic approaches to improve existing 
information requirements.  Finally, China recalled its efforts to provide development assistance  to 
the C-4 and other LDCs , including  its investments in the cotton sector and its support for knowledge  
transfer  in Africa.  
17.  The International Cotton Advisory Committee (ICAC)5 updated Members  on the latest 
developments in the global cotton market , including trends in world cotton production, consumption, 
stocks , and trade,  as well as evolution of global assistance to cotton production . ICAC also presented 
on the impact of the COVID -19 pandemic on the textile and apparel sector and the resulting effects 
on demand for cotton.   
18.  The presentation elicited great interest among  Members. Côte d'Ivoire asked ICAC which type 
of assistance to cotton production, out of the six that it had listed in its presentation, was considered 
to have  the most harmful effects on the sector. ICAC responded that it w as difficult to compare the 
magnit ude of support among the different types of measures used by different countries . There were 
also some methodological questions  such as whether measurement  should be based on overall 
support or support per farmer.  
19.  In relation to the negative correlation be tween support to cotton and cotton prices, China 
enquired if ICAC could provide a more detailed analysis , including supporting data by country  or 
 
5 ICAC's presentation can be found on  
https://www.wto.org/english/tratop_e/agric_e/agenda_item_3_i_a_icac_presentat ion.pdf . TN/AG/49 • TN/AG/SCC/17  
 
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  region . ICAC  referred to its annual publication on global assistance to cotton production , which would 
be rele ased in November, and noted that cotton prices drive subsidies and not the reverse.  
20.  Chad pointed to the  disruption that the COVID -19 pandemic had caused to the cotton sector , 
and asked ICAC if it considered that the recovery of the sector could be realized in 2023 . Chad also 
stressed the importance of research and diversification for the cotton sector and enquired if cotton's 
market share w ere at risk of  being crowded out by man-made fibre s such as polyester. Chad also  
asked ICAC how technology tran sfer could help Africa n cotton farmers taking fully advantage of  the 
development of digital trade illustrated by the surge of online purchases of garments . In a last 
question, Chad wondered whether the production of  organic cotton in Africa constituted  a promising 
way forward  to raise farmers' incomes  in view of the current market trends.  
21.  ICAC expressed the view  that market could be at a turning point in the competition between 
cotton and polyester. S ynthetic fibre  had gained more market share over the last 20  years , reducing 
cotton's share to approximately  25%. However,  the world has changed dramatically in the recent 
years  and t here is growing awareness o f environmental  issues such as climate change  and 
sustainability . In this regard, cotton may be favoured by some consumers as it is more  
environment ally sustainable  including in relation to climate -change  than synthetic  fibre. Younger 
people  in particular are likely to take this into consideration when purchasing  garme nts. W here and 
how cotton is grow n also matters.  
22.  ICAC also considered that Africa ha s great potential in  the production of  organic cotton , due to 
the following reasons: (1) while the market represents only about 1% of total cotton consumption 
there is risi ng demand for organic cotton; (2) African farmers  do not use much  pesticide and fertilizer  
due to cost considerations for smallholder farmers , and the transition  from conventional  to organic 
cotton is therefore facilitated on the continent . ICAC also shared the view that i t is important to 
ensure  that higher price for organic cotton  effectively result s in higher revenue for  farmers. 
ICAC finally considered  that while the use of natural inputs would reduce costs of production, the 
key issue in Africa is how to increase  organic cotton yields after the transition period . ICAC  underlined 
its ongoing work with other organizations  on this question . 
23.  ICAC also noted that limited internet access and high cost of downloading data , a problem 
encountered by ICAC it self when disseminating its cotton mobile applications for farmers,  are 
hampering the development  of digital trade  on the continent  and noted that this problem  deserve s 
a lot of attention . 
24.  The Secretariat introduced the revised background paper6 and addenda7. The background 
paper compile s 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 ca ptures Members' latest responses to the questionnaire on 
cotton  policy developments, as well as relevant information on cotton markets and policies included 
in Trade Policy Review reports . The Secretariat in its presentation announced an upcoming IT projec t 
that would  enable Members to submit replies to the cotton questionnaire  online,  and to search and 
download cotton -related data  reports .  
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 circulated 
by the Secretariat. I invite d all Members  – and in particular key cotton actors - to contribute to th e 
document and to be more forthcoming in sharing information on recent policy developments.  I 
welcome d the upcoming IT project in this regard  which w ould significantly contribute to improved 
transparency in a cost-effective  manner.  
26.  Brazil, the C-4, Côte d'Ivoire and the EU took the floor and welcomed th e Secretariat's 
IT initiative . Brazil referred to the discussion of transparency improvements in the negotiations and 
noted that those discussions could be coordinated with the Secretariat's efforts to ensure Members 
provide updated and timely information for inclusion in the background paper . The EU drew 
 
6 The presentation can be found on 
https://www.wto.org/english/tratop_e/agric_e/agenda_item_3_i_b_presentation_of_gen34r14.pdf . 
7 Documents  TN/AG/GEN/34/Rev. 14 - TN/AG/SCC/GEN/13/Rev. 14, TN/AG/GEN/34/Rev. 14/Add.1  - 
TN/AG/SCC/GEN/13/Rev. 14/Add.1 and TN/AG/GEN/34/Rev. 14/Add.2  - TN/AG/SCC/GEN/13/Rev. 14/Add.2,  
dated 17 May 2021.  TN/AG/49 • TN/AG/SCC/17  
 
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  Members' attention to the importance of the questionnaire as a source of additional information and 
invited Members that have not yet replie d, especially  key cotton players , to respond to  the 
questionnaire. Côte d'Ivoire  encouraged all Members to contribute to improved transparency.  
27.  The International Trade Centre (ITC)  made a presentation8 on the Cotton Portal . 
ITC summarized the main features  of the portal and shared some statistics  on its use across the 
world.  In order  to continu e enhanc ing the portal, ITC introduced  a user survey  which it had 
developed jointly with the WTO Secretariat , to assess the needs and expectations of potential users . 
ITC noted that the portal would be updated and adapted as necessary based on the results of the 
survey.  
28.  I noted that the success  of the survey  in identify ing how the portal could be improved will 
depend on the number and quality of replies , and encouraged  all Members to diss eminate the survey  
to cotton stakeholders in their respective  network s, including to non-governmental stakeholders.  
The C-4 supported my call.   
29.  In my concluding remarks , I reminded Members of the second anniversary of World Cotton 
Day that would be  held o n 7 October this year  at the request of the C-4. As no Member had object ed 
to either of the two requests made by the C-4, I announced  that COVID -19 and cotton will be 
included as a standing item in the agenda starting with the next dedicated discussion in November . 
I also invited the Secretariat to start preparing a background study on the impact of COVID -19 on 
the cotton sector  in LDCs , and to report on the progress of the study at the next meeting.  
 
 
__________  
 
8 ITC's presentation can be found on 
https://www.wto.org/english/tratop_e/agric_e/agenda_item_3_i_c_itc_presentation.pdf .