TN/AG/GEN/34/Rev.8/Add.1 
TN/AG/SCC/GEN/13/Rev.8/Add.1  
8 June 2018 
(18-3483) Page: 1/63 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton   
 
  
COTTON  
BACKGROUND PAPER BY THE SECRETARIAT1 
Addendum  
This addendum refers to and must be read in conjunction with 
document  TN/AG/GEN/34/Rev.8  - TN/AG/SCC/GEN/13/Rev.8. It  showcases in particular: 
Members' replies to the questionnaire on new or updated  cotton -related policy developments  
(Annex 4) ; and information on cotton markets and policies from  the trade policy review 
mechanism  (Annex 5) . 
 
_______________  
 
 
 
 
 
 
  
                                                
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO. 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 on in relation to any measure listed in this document.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  ANNEX 1  
NOTES ON TARIFF RATE QUOTA  COMMITMENTS FROM CHINA'S SCHEDUL E 
1. Tariff quotas indicated in the third column are volumes for calendar year 2001. Tariff quota 
concessions will be implemented according to the date specified in the "implementation" 
column. The implementation column indicates the date (referring to 1 January of the year 
indicated) when the final quota quantity will be achieved. The tariff quota concessions are 
subject to equal annual adjustments (occurring on 1 January of each year), unless otherwise 
specified in the last column ("Other terms and conditions").  
2. The People's Republic of China (hereinafter referred to as "China")  shall maintain its in -quota 
applied and bound rates (and, upon removal of the tariff -quota, its applied and bo und rates) 
for HS 1514 (rape or colza (canola) oil and its fractions, whether or not refined, but not 
chemically modified) at a level equal to that for HS 1507 (soya -bean oil and its fractions, 
whether or not refined, but not chemically modified) and for H S 1205 (rape or colza (canola) 
seeds, whether or not broken).  
3. The growth rate for the TRQ volume for canola (rapeseed) oil shall be no less than the growth 
rate for the TRQ volume for soybean oil.  
4. An entity granted a tariff quota allocation (quota -holder) may engage in importation through 
state-trading enterprises and/or through entities possessing the right to trade other than 
state-trading enterprises, including direct importation by the quota holder, as indicated on 
documentation issued with the allocati on or reallocation of the tariff quota quantities.  
5. Application: All applications for an allocation of the tariff -quota will be submitted to the State 
Development and Planning Commission (SDPC). Specific condi tions for applying for a 
tariff-quota allocation  will be published in the official journal one month in advance of the 
application period, which will be from 15 October to 30 October.  
6. Allocation:  
a. The entire tariff -quota quantity established in Section I -B shall be allocated to end users 
by 1 January eac h year. Inquiries regarding tariff -quota allocations can be made to the 
SDPC, with responses provided within 10 working days. Any additional requirement for 
importation will be automatic under the terms of the Agreement on Import Licensing 
Procedures. Chin a shall equitably distribute allocations within each portion of the tariff -
quota to ensure complete tariff -quota utilization and to establish a tariff -quota system 
that is open, transparent, fair, responsive to market conditions, timely, minimally 
burdenso me to trade and reflects end user preferences.  
b. In the first year, allocations to end users by the SDPC of the tariff -quota reserved for 
importation through state -trading enterprises shall be based on a first -come, first -served 
system or the requests of the  applicants and their historical import performance, 
production capacity, or other relevant commercial criteria, subject to specific conditions 
to be published one month in advance of the opening of the application period so as to 
ensure an equitable distr ibution and complete tariff -quota utilization. In the first year, no 
less than 10% of the tariff -quota reserved for importation through state -trading 
enterprises will be allocated to new quota -holders.  
c. In the first year, allocations to end users by the SDP C of the tariff -quota reserved for 
importation through entities other than state -trading enterprises shall be based on a 
first-come, first -served system or the requests of the applicants and their historical 
import performance, production capacity, or othe r relevant commercial criteria. No less 
than 10% of the tariff -quota reserved for importation through entities other than 
state-trading enterprises will be allocated to new quota -holders. This tariff -quota will be 
limited to entities that do not receive an y special or exclusive rights or privileges, and 
will include allocations to joint ventures, wholly foreign -funded enterprises, and private 
enterprises.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  d. Except in cases where tariff -quota is allocated on a first -come, first -served basis, and in 
accordance with China's Schedule of Concessions and Commitments on Goods, a 
quota -holder that has imported under a tariff -quota shall, upon application, receive an 
allocation of the tariff -quota in the following year for a quantity no less than the quantity 
imported the previous year. For all methods of allocation, a quota -holder that does not 
import its full allocation under a tariff -quota will receive a proportional reduction in the 
tariff-quota allocation in the subsequent year unless the quantity is returned to th e 
SDPC  prior to 15  September. A quota holder that has failed to import its full allocation in 
two consecutive years and has returned that unused portion by 15 September shall have 
its quota allocated in the following year on the basis of its fill rate in t he most recent 
year, and will not benefit from any additional reallocations until and unless there are no 
other applications. The means of calculating the penalty will be included in the TRQ 
regulation in force and publicly available, and will be applied i n a consistent and 
equitable manner.  
e. Allocations will be established for commercially viable shipping quantities and provisions 
will be made for partial shipments against a single tariff -quota allocation. All commercial 
terms of trade, including product sp ecification, pricing, packaging, etc., will be at the 
sole determination of the importer and the exporter taking into full account the demands 
of the end user. Tariff -quota allocations will be valid for any item or mixture of items 
subject to the same tari ff-quota.  
f. Inquiries on the entities which received the allocation can be made to the SDPC which 
shall provide the information within 10 days.  
7. Term: The tariff -quota for each product will be opened on 1 January each year, unless 
otherwise specified in the S chedule. Tariff -quota allocations will be valid for the calendar year.  
8. Reallocation:  
a. In any year, if a quota -holder has not contracted for the total quantity by 15 September, it 
shall return the unused portion of the tariff -quota quantity to the SDPC for r eallocation.  
b. Applications for reallocation of the tariff -quota will be accepted by the SDPC from 
1 September to 15 September and new allocations shall be assigned by 1  October. Specific 
conditions for applying for reallocation of tariff quotas will be publ ished in the official 
journal one month in advance of the application period. Such allocations, which shall be to 
new applicants and to entities other than those returning quotas under sub -paragraph 8.A. 
above, will be assigned on a first -come, first -serve d basis. Quota -holders allocated a share 
of the tariff -quota reserved for importation through entities other than state -trading 
enterprises may import through any entity that has a right to trade in any product as 
specified in Section 5 of China's Protocol  of Accession.  
c. Inquiries on the entities which received the reallocations can be made to the SDPC which 
will provide the information within 10 days.  
d. In situations where goods have been shipped from their port of origin before 31 December 
of any year, but a re entered after 31 December of that year, China shall extend the 
validity of the tariff quota documents and shall count such shipments against the tariff 
quota allocation for the year in which the tariff quota was initially allocated.  
Consultations:  
 
9. With a view to maintaining a transparent and open tariff quota system, upon request from 
any WTO Member, China shall consult with the Member on the administration of the tariff 
quota to ensure that the tariff quota will be allocated in a transparent, equit able and 
non-discriminatory manner and that the tariff quota will be fully utilized.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  Notes:  
 
1. The share of the tariff -quota reserved for importation through state -trading enterprises is 
specified in column 7 of Section I -B. The remainder of the tariff -quota  quantity is reserved 
for importation through any non -state trading enterprise possessing the right to trade in any 
product as set forth in Section 5 of China's Protocol of Accession.  
 
In any year, if the quantity of the tariff -quota reserved for importati on through state -trading 
enterprises has not been contracted for by 15 August, quota -holders will have the right to 
trade or to import through any entity with the right to trade any product under Section 5 of 
China's Protocol of Accession.  
 
2. China shall ens ure that the applied duty for soybean oil, rapeseed oil, palm oil, peanut oil, 
cottonseed oil, sunflower seed oil, and corn oil is no greater than the applied duty for any 
one of these oils or for any other vegetable oil. Of the vegetable oils subject to t ariff quota 
(i.e., soybean oil, rapeseed oil, and palm oil), if the tariff -quota for any one oil is 
autonomously increased, the tariff -quotas for the other two will be increased 
commensurately. Beginning 1 January 2006, China will remove soybean oil, rapes eed oil 
and palm oil from Annex 2A of the Protocol of Accession and will grant the right to trade 
such oils to all individuals and enterprises.  
 
3. All quota holders, that have already fully used or contracted their tariff -quota allocations in 
any year by 15 September shall also be eligible for reallocation of tariff -quota from other 
quota holders that have returned their allocations.  
 
_______________  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  ANNEX 2  
CHAPTER NOTES CONCERNING TRQ COMMI TMENTS FOR COTTON FROM THE US SCHEDULE  
"CHAPTER 52  
 
COTTON  
 
Additional US Notes 1/  
 
1. Under regulations prescribed by the Secretary of the Treasury, the staple length of cotton 
shall be determined for all customs purposes by application of the Official Cotton Standards of the 
United States  for length of staple, as established b y the Secretary of Agriculture and in effect when 
the determination is to be made.  
 
5. There shall be permitted entry an aggregate quantity of cotton, entered under the provisions 
of additional US notes 6 through 11, inclusive, to this chapter, of not less  than the total quantity 
specified below.  
 
 Quantity (metric ton nes) 
1995 41,926.8  
1996 48,850.4  
1997 55,773.9  
1998 62,697.5  
1999 69,621.0  
2000 and thereafter  76,544.6  
 
An additional aggregate quantity of 10,000 metric ton nes is reserved for Mexico under this note.  
 
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es) issued by the Secretary of Agriculture.  
 
1/ Note 1 and additional US notes 2, 3 and 4 to this chapter are omitted from this  section and are 
in section II of this schedule. Additional US notes 5 through 11, inclusive, to this chapter are not in 
the Harmonized Tariff Schedule of the United States . 
 
6. There shall be permitted entry an aggregate quantity of cotton, not carded or combed, 
having a staple length under 28.575 mm (1 -1/8 inches) (except harsh or rough cotton, having a 
staple length under 19.05 mm (3/4 inch)), entered under subh eading 5201.00.14 during the 
12-month period beginning September 20 in any year, of not less t han the total quantity specified 
below.  
 
 Quantity (metric ton nes) 
1995 8,495.05 * 
1996 10,837.45*  
1997 13,179.85*  
1998 15,522.25*  
1999 17,864.65*  
2000 and thereafter  20,207.05*  
* Of the quantitative limitation provided for in this note, access levels are reserved as follows for entry under 
the provisions of this note:  
 
 Quantity 
(kg)  Quantity 
(kg) 
Egypt & Sudan (aggregate)  355,532  Honduras  341 
Peru 112,469  Paraguay  395 
India & Pakistan (aggregate)  908,764  Colombia  56 
China  621,780  Iraq 88 
Brazil  280,648  British East Africa  1,016  
Union of Soviet Socialist 
Republics  215,512  Indonesia & Netherlands New Guinea 
(aggregate)  32,381  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 6 - 
   Quantity 
(kg)  Quantity 
(kg) 
Argentina  2,360  British West Indies (except Barbados, Bermuda, 
Jamaica, or Trinidad and Tobago)  9,671  
Haiti 107 Nigeria  2,438  
Ecuador  4,233  British West Africa (except Nigeria and Ghana)  7,259  
 
The quantitative limitations established by this note may be administered through regulations 
(including licen ces and reallocation of unfilled quotas) issued by the Secretary of Agriculture.  
 
7. There shall be permitted entry an aggregate quantity of harsh or rough cotton, not carded or 
combed, having a staple length of 29.36875 mm (1 -5/32 inches) or more but under 34.925 mm 
(1-3/8 inches) and white in colo ur (except cotton of perished staple, grabbots and cotton 
pickings), entered under subheading 5201.00.24 during the 12 -month period beginning 1 August 
in any year, of not less than the total quantity specified below.   
 
 Quantity (metric ton nes) 
1995 900.0  
1996 1,000.0  
1997 1,100.0  
1998 1,200.0  
1999 1,300.0  
2000 and thereafter  1,400.0  
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es) issued by the Secretary of Agriculture.  
 
8. There shall be permitted entry an aggregate quantity of cotton, not carded or combed, 
having a staple length of 28.575 mm (1 -1/8 inches) or more but under 34.925 mm (1 -3/8 inches) 
(except harsh or rough cotton, not carded or combed, having a staple length of 29.36875 mm 
(1-5/32 inches) or more and white in colour ) but including cotton of perished staple, grabbots and 
cotton pickings, entered under subheading 5201.00.34 during the 12 -month period beginning 
1 August in any year, of not less than the total qua ntity specified below.  
 
 Quantity (metric ton nes) 
1995 5,200.0  
1996 6,460.0  
1997 7,720.0  
1998 8,980.0  
1999 10,240.0  
2000 and thereafter  11,500.0  
The quantitative limitations established by this note may be administered through regulations 
(including  licences) issued by the Secretary of Agriculture.  
 
9. There shall be permitted entry an aggregate quantity of cotton, not carded or combed, 
having a staple length of 34.925 mm (1 -3/8 inches) or more, entered under subheading 
5201.00.60 during the 12 -month  period beginning August 1 in any year, of not less than the total 
quantity specified below.  
 
 Quantity (metric ton nes) 
1995 25,500.0  
1996 28,420.0  
1997 31,340.0  
1998 34,260.0  
1999 37,180.0  
2000 and thereafter  40,100.0  
The quantitative limitations established by this note may be administered through regulations 
(including licen ces) issued by the Secretary of Agriculture.  
 
10. There shall be permitted entry an aggregate quantity of card strips made from cotton having 
a staple length under 30.1625 mm (1 -3/16 inches), and lap waste, sliver waste and roving waste 
of cotton, all the foregoing the product of any country or are includ ing the United States , entered TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  under subheading 5202.99.10 during the 12 -month period beginning 20 September in any year, of 
not less than the total quantity specified below.  
 
 Quantity (kg)  
1995 1,835,427*  
1996 2,135,427*  
1997 2,435,427*  
1998 2,735,427*  
1999 3,035,427*  
2000 and thereafter  3,335,427*  
* Of the quantitative limitation provided for in this note, access levels are reserved as follows for entry under 
the provisions of this note:  
 
 Quantity 
(kg)  Quantity 
(kg) 
United Kingdom  653,695  Japan  154,917  
Canada  108,721  China  7,857  
France  34,385  Egypt  3,689  
India & Pakistan (aggregate)  31,582  Cuba 2,968  
Netherlands  10,317  Germany  11,540  
Switzerland  6,711  Italy 3,215  
Belgium  5,830    
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es and reallocation of unfilled quotas) issued by the Secretary of Agriculture.  
 
11. There shall be permitted entr y an aggregate quantity of fib res of cotton processed but not 
spun, entered  under subheading 5203.00.10 during the 12 -month period beginning 11 September 
in any year, of not less than the total quantity specified below.  
 
 Quantity (kg)  
1995 1,000  
1996 1,300  
1997 1,600  
1998 1,900  
1999 2,200  
2000 and thereafter  2,500  
The quantitative limitations established by this note may be administered throu gh regulations 
(including licenc es) issued by the Secretary of Agriculture. " 
 
_______________  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  ANNEX 3  
EXCERPT FROM  ANNEX 1 TO G/AG/N/US A/2/ADD.3 AND G/AG/N/USA/34/ADD.1  
NOTES FROM THE HARMO NIZED TARIFF SYSTEM OF THE UNITED STATES  
"36/ Short staple cotton  
 from Additional US Note 5 to Chapter 52 of the HTSUS:  
 
5. The aggregate quantity of cotton, not carded or combed, the product of any country or area  
including the United States , having a staple length under 28.575 mm (1 -1/8 inches) (except harsh 
or rough cotton, having a staple length under 19.05 mm (3/4 inch)), entered under subheading 
5201.00.14 during the 12 -month periods from 20 September 1999, th rough 19 September 2000, 
inclusive, shall not exceed 17,864.65 metric ton nes or from 20 September  2000, through 
19 September 2001, inclusive, shall not exceed 20,207.05 metric to nnes (articles the product of 
Mexico shall not be permitted or included in the  aforementioned quantitative limitation and no 
such articles shall be classifiable therein).  
 
Of the quantitative limitations provided for in this note, the countries listed below shall have 
access to not less than the quantities specified below:  
 
 Quantity (kg)  
Argentina  2,360  
Brazil  280,648  
British East Africa  1,016  
British West Africa (except Nigeria and Ghana)  7,259  
British West Indies (except Barbados, Bermuda, Jamaica, Trinidad, Tobago)  9,671  
Chine  621,780  
Colombia  56 
Ecuador  4,233  
Egypt & Sudan (aggregate)  355,532  
Haiti 107 
Honduras  341 
India & Pakistan (aggregate)  908,764  
Indonesia & Netherlands New Guinea (aggregate)  32,381  
Iraq 88 
Nigeria  2,438  
Paraguay  395 
Peru 112,469  
Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, 
Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan (aggregate)  215,512  
Other than as provided for in the country allocations above, articles the product of countries or 
areas who are not members of  the World Trade Organization shall not be permitted or included in 
the quantitative limitations set forth in this note.  
37/ Harsh or rough cotton  
 from Additional U S Note 6 to Chapter 52 of the HTSUS:  
 
6. The aggregate quantity of harsh or rough cotton, n ot carded or combed, the product of any 
country or area including the United States , having a staple length of 29.36875 mm 
(1-5/32 inches) or more but under 34.925 mm (1 -3/8 inches) and white in colour  (except cotton 
of perished staple, grabbots  and cotton pickings), entered under subheading 5201.00.24 during 
the 12 -month periods from 1 August 1999, through 31 July 2000, inclusive,  shall not exceed 
1,300.0  metric ton nes or from 1 August 2000, through 31 July 2001, incl usive, shall not exceed 
1,400.0 metric ton nes (articles the product of Mexico shall not be permitted or included in the 
aforementioned quantitative limitation and no such articles shall be classifiable therein).  
 
Articles the product of countries or areas who are not members of the W orld Trade Organization 
shall not be permitted or included in the quantitative limitations set forth in this note.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  38/ Medium staple cotton  
 from Additional U S Note 7 to Chapter 52 of the HTSUS:  
 
7. The aggregate quantity of cotton, not carded or combed, the product of any country or area 
including the United States , having a staple length of 28.575 mm (1 -1/8 inches) or more but 
under 34.925 mm (1 -3/8 inches) (except harsh or rough cotton, not carded or combed, having a 
staple length of 29.36875 mm (1 -5/32 inches) or more and white in colo ur) but including cotton of 
perished staple, grabbots and cotton pickings, entered under subheading 5201.00.34 during the 
12-month periods from 1 August 1999, through 31 July 2000, inclu sive, shall not exceed 
10,240.0  metric ton nes or from 1 August 2000, through 31 July 2001, inclusive, shall not exceed 
11,500.0  metric ton nes (articles the product of Mexico shall not be permitted or included in the 
aforementioned quantitative limitation and no such articles shall be classif iable therein).  
 
Articles the product of countries or areas who are not members of the World Trade Organization 
shall not be permitted or included in the quantitative limitations set forth in this note.  
 
39/ Long staple cotton  
 from Additional US Note 8 to  Chapter 52:  
 
8. The aggregate quantity of cotton, not carded or combed, the product of any country or area 
including the United States , having a staple length of 34.925 mm (1 -3/8 inches) or more, entered 
under subheading 5201.00.60 during the 12 -month per iods from 1 August 1999, through 
31 July 2000, inclusive, shall not exceed 37,180.0 metric ton nes or from 1 August 2000, through 
31 July 2001, inclusive, shall not exceed 40,100.0 metric ton nes (articles the product of Mexico 
shall not be permitted or incl uded in the aforementioned quantitative limitation and no such 
articles shall be classifiable therein).  
 
Articles the product of countries or areas who are not members of the World Trade Organization 
shall not be permitted or included in the quantitative l imitations set forth in this note.  
 
40/ Cotton waste  
 from Additional US Note 9 to Chapter 52 of the HTSUS:  
 
9. The aggregate quantity of card strips made from cotton having a staple length under 
30.1625 mm (1 -3/16 inches), and lap waste, sliver waste and roving waste of cotton, all the 
foregoing the product of any country or area including the United States , entered under 
subheading 5202.99.10 during the 12 -month periods from 20 September 1999, through 
19 September 2000, inclusive, shall not exceed 3,035,4 27 kilograms or from 20 September  2000, 
through 19 September 2001, inclusive, shall not exceed 3,335,427 kilograms (articles the product 
of Mexico shall not be permitted or included in the aforementioned quantitative limitation and no 
such articles shall be classifiable therein).  
 
Of the quantitative limitations provided for in this note, the countries listed below shall have 
access to not less than the quantities specified below:  
 
 Quantity (kg)  
Belgium  5,830  
Canada  108,721  
China  7,857  
Cuba 2,968  
Egypt  3,689  
France  34,385  
Germany  11,540  
Italy 3,215  
India & Pakistan (aggregate)  31,582  
Japan  154,917  
Netherlands  10,317  
Switzerland  6,711  
United Kingdom  653,695  
Other than as provided for in the country allocations above, articles the product of  countries or 
areas who are not members of the World Trade Organization shall not be permitted or included in 
the quantitative limitations set forth in this note.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  41/ Cotton processed but not spun  
 from Additional US Note 10 to Chapter 52 of the HTSUS:  
  
10. The aggregate quantity of fibres  of cotton processed but not spun, entered under 
subheading 5203.00.10 during the 12 -month periods from 11 September 1999, through 
10 September 2000, inclusive, shall not exceed 2,200 kilograms or from 11 September 2000, 
through 10 September 2001, inclusive, shall not exceed 2,500 kilograms (articles the product of 
Mexico shall not be permitted or included in the aforementioned quantitative limitation and no 
such articles shall be classifiable therein).  
 
Articles the product of countries or areas who are not members of the World Trade Organization 
shall not be permitted or included in the quantitative limitations set forth in this note. " 
 
_______________  
 
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  ANNEX 4  
MEMBERS' REPLIES TO THE QUESTIONNAIRE  ON NEW OR UPDATED  
COTTON -RELATED POLICY DEVEL OPMENTS  
1. Since the second dedicated discussion of the relevant trade -related developments for cotton 
of 28  November 2014, Members agreed that, in order to complement the revised background 
paper to be prepared by the WTO Secretariat  and in advance of each dedicated discussion , a 
questionnaire would be sent to Members to seek updates, on a voluntary basis, on their recent 
cotton -related policy developments  across the three pillars of Market Access, Do mestic Support 
and Export Competition .1 Members were also invited to provide an assessment of the impact (or 
anticipated impact), if available, of those new or updated policy developments.  
 
2. Seven questionnaires were circulated, on 4  February 2015, 17 September 2015, 
22 February  20162, 13 September 2016 , 28 March 2017 , 10 October 2017  and 24 January 2018  
respectively. The following table lists Members who have replied  to those questionnaires. The 
replying Members  who are among the 32  Members identified in paragraph s 12 and 13  of this paper  
as markets of interest to LDCs  are identified in bold : 
 
Members who replied to the previous questionnaire s 
circulated on 4 February 2015 , 17 September 2015 , 
22 February 2016 , 13 September 2016 , 28 March 2017  
and 10 October 2017  Members who replied to the questionnaire 
circulated on 24 January 2018 
Argentina ; Australia; Benin ; Brazil; Burkina Faso; 
Chad; China ; Colombia; Costa Rica; Egypt; Ecuador; 
European Union; Hong Kong, China; Israel ; Macao, 
China; Mali;  Mauritius; Morocco; New Zealand ; 
Pakistan; Peru; Russian Federation; South Africa;  
Chinese Taip ei; United States  and Uruguay  Argentina ; Brazil; Burkina Faso;  Colombia ; 
Costa Rica; Ecuador; European Union ; Israel; 
Macau, China; New Zealand ; Peru and 
United  States  
 
3. Some  Members p rovided a "n il" reply, i.e. they did not report any new  or update d policy 
development  across the three pillars of Market Access, Domestic  Support and Export Competition . 
These Members are listed in the  table below.   
 
Members with a nil reply to the previous questionnaire s 
circulated on 4 February 2015 , 17 September , 
22 February 2016 , 13 September 2016 , 28 March  2017 
and 10 October 2017  Members with a nil reply to the questionnaire  
circulated on 24 January 2018  
Australia;  Ecuador;  European Union;  Costa Rica; Hong 
Kong, China; Macao, China; Mauritius; New Zealand; 
Pakistan;  Peru;  Chinese Taipei , Russian Federation; 
Uganda  and Uruguay  Burkina Faso;  Costa Rica; Ecuador; Israel; 
Macau, China and New Zealand  
 
4. Non-nil replies are reproduced below . In cases where a Member has replied to more than 
one questionnaire, only the response to the latest questionnaire is listed. Responses to earlier 
questionnaires can be found in previous versions of the Secretariat's background paper.  
 
 
                                                
1 Paragraph 12 of the Chairperson report on the second dedicated discussion of the relevant 
trade -related developments for cotton (TN/AG/29 and TN/AG/SCC/3).  
2 The French and Spanish versions of the questionnaire were circulated on 8 March 2016.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
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  Reply from Argentina to the questionnaire circulated on 24 January 2018 (original reply 
in Spanish)   
 
1. In order to achieve sustainable cotton production in our country, the Ministry of 
Agroindustry is continuing, through Law No. 27.233, to promote the es tablishment of new plant 
health agencies and to build up the existing agencies so that producers can be involved in the fight 
against cotton boll weevil ( Anthonomus grandis, Boheman ). In addition to the plant health 
agencies already set up in the province of Santiago del Estero, new ones have been created in the 
provinces of Chaco and Santa Fe and their legal status is currently being processed.  
 
2. As mentioned before, the national Government supports the elimination of the export tax on 
cotton fibre. At t he same time, in keeping with policies aimed at improving the quality of the 
country's products, further efforts are being made to incorporate the Cotton Fibre Quality 
Improvement Assistance Programme (PROCALGODON), created pursuant to Resolution 
No. 537/2 008, in the Better Cotton Initiative (BCI) certification. This should help to improve the 
quality of Argentine cotton and to achieve the commercial standards that the major textile brands 
require.  
 
3. Also worth stressing is the progress made in the tracea bility programme and the High 
Volume Instrument (HVI) laboratory network set up to identify the quality and origin of the fibre, 
thereby facilitating access to international markets in keeping with the previously mentioned 
efforts.  
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 13 - 
  Reply from Brazil to t he questionnaire circulated on 24 January 2018  
 
With regard to the Director of the Agriculture and Commodities Division 's invitation to Members, 
on the 24th January 2018, to provide updates cotton -related policy developments in view of the 
forthcoming ninth dedicated discussion, Brazil submits the following information (concerning the 
period between May 2017 and March 2018):  
 
- Market Access:  
 
Of the three tariff lines in heading 5201 (cotton, not carded or combed), the tariff line 
5201.00.10 (not ginned ) had its applied duty rate maintained at 6%.  
 
The tariff line 5201.00.20 (merely ginned) had its applied duty rate kept at 6% as of 
1 August. A zero duty TRQ of 75 thousand ton nes was established for the period from 
18 February 2017 to 31 July 2017.  
 
The tariff line 5201.00.90 (others) had its applied duty rate maintained at 6%.  
 
- Domestic Support: from May 2017 to March 2018, there has been no domestic support 
provided to Brazilian cotton producers.  
 
- Export Competition: from May 2017 to March 2018, no ex port subsidies have been granted 
to cotton.  
  
 
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 14 - 
  Reply from Colombia to the questionnaire circulated on 24 January 2018 (original reply 
in Spanish)  
 
The WTO questionnaire requests information on any new or updated cotton -related 
policy  developments.  
 
Market access : In addition to the duty -free treatment granted by Colombia to its main 
cotton -supplying trading partners, the Colombian Government considered it viable to grant 
a 15,000 tonne import quota for 2018, at a zero tariff rate, for uncarded and un combed cotton 
under tariff subheading 5201.00.30.00 for third countries with which trade agreements have not 
been concluded.  
 
The quota was opened to help supply domestic industry in the quantities required for 
industrial consumption in 2018, even though the fibre included in this subheading is not 
produced in the country's cotton regions. This measure is pending approval and regulation.  
 
Domestic support : Owing to the good performance of the cotton market and the high prices 
recorded in 2016 -2017, the Col ombian Government does not envisage implementing any support 
programme for producers, nor does it have any new or recent cotton -related instruments.  
 
Export competition : Colombia did not apply any export competition measures.  
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 15 - 
  Reply from the European Unio n to the questionnaire circulated on 24 January 2018  
 
In reply to the questionnaire of the WTO Secretariat of 24 Januar y 2018 on new or updated 
cotton -related policy developments in advance of the ninth dedicated discussion on cotton, you will 
find in the  table below the data on direct payment expenditures for cotton granted in accordance 
with Article 6.5 of the Agreement on Agriculture. No other cotton -related policy developments 
occurred in in the EU during the reporting period.  
 
Description of 
Measure  2008 2009  2010  2011  2012  2013  2014  2015  2016  
Payments based on 
fixed area and yields: 
Cotton (Title IV,  
Chapter 1, Section 6 of 
Regulation (EC) No 
73/2009; from  
2015, Title IV, 
Chapter  2 of Regulation 
(EU) No . 1307/2013)  216.9  221.7  247.3  245.8  242.3  231.8  244.0  243.9  233.8*  
 
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 16 - 
  Reply from Peru to the questionnaire circulated on 24 January 2018 (original reply in 
Spanish)  
 
I. MARKET ACCESS  
During the analysis period, Peru made no changes to its cotton -related policies concerning market 
access.  
II. DOMESTIC SUPPORT  
 
(a) Cotton Financing Programme  
1  DESCRIPTION OF THE P ROGRAMME  
Funding programme consisting of the provision of repayable loans to eligible cotton producers 
in the coastal region.  
2  OBJECTIVE  
Provision of loans to finance cotton farming for the purcha se of  inputs  (seed, fertilizers and 
agrochemicals), machinery, labour, administrative costs and technical  assistance.  
3  BENEFICIARIES  
Cotton producers on the Peruvian coast, through producer organizations (formally established 
cooperatives and/or  association s), which, in addition, provide services relating to business 
management and technical assistance.  
4  DURATION  
April 2017 -December 2017  
5  FORM OF BENEFIT  
The Temporary Funding Programme for Agricultural Inputs, financed with resources from 
the AGROPERU Fund thr ough AGROBANCO, is intended for producer organizations in the Piura 
region, for the purchase of inputs (seed, fertilizers and agrochemicals).  
AGROBANCO continued its funding programme at a preferential rate for cotton producers (Annual 
Effective Rate of  12%). The programme covered a farming area of 856 hectares and 
393 beneficiaries, and served areas producing mainly the Pima, IPA 59 and Hazera cotton 
varieties.  
In light of the unforeseen rains caused by the El  Niño Costero phenomenon, AGROBANCO modified 
its funding plan in the department of Piura.  
Funding is estimated to amount to S/4,000.00  per ha, with a maximum of 4  ha per producer 
(up to 6 ha for returning clients), and the total of loans is approximately S/2.55 million, distributed 
as follows:  
Categor y Amount (in soles)  
Inputs and services: seed, fertilizers, agrochemicals   2,390.00  
Labour   1,500.00  
Technical assistance   110.00  
Administrative costs   
Total 4,000.00  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 17 - 
  III. EXPORT COMPETITION  
 
Peru does not provide export subsidies for agricultural products, including cotton.  
Reply from the United States  to the questionnaire circulated on 24 January 2018  
 
In March 2018, USDA announced an ad hoc program: the Cotton Ginning Cost -Share (CGCS) 
program, which provides a cost -share assistance payment to co tton producers for ginning costs. 
Through the CGCS program, eligible producers can receive a cost share payment in 2017/ 2018, 
which is based on a producer's past historical planting and 20 % of the average ginning cost in 
each of the four production regions . The program is limited in scope by payment limits and other 
eligibility requirements for producers.  
 
US cotton producers have faced four straight years of financial stress due to high input and 
infrastructure costs, leaving them more financially leverag ed compared to other commodities. 
Cotton ginning is a necessary requirement for producers to market the lint for fiber and the seed 
for oil or feed. While the CGCS program makes payments to cotton producers for a portion of the 
cotton ginning costs, the be nefits of the program will be felt by the broader rural communities and 
the cotton -related industries that depend on ginning.  
 
The program estimates payments based on historical cotton plantings and is not connected to 
either current or future production. Sign-up for the US producers will begin 12 March 2018 and run 
through 11 May 2018.  
 
The CGCS program will be notified as part of our notification for marketing year, 2017/ 2018, which 
will be submitted once data are complete.  
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 18 - 
  Reply from Angola to the ques tionnaire circulated on 28  March 2017  
 
In response to the Secretariat questionnaire, Angola is giving the following information:  
 
(1) Market access  
 
Cotton production in Angola is insignificant. In 2016, the production of cotton fibre ( lint) was 
640 tonnes. For 2017, cotton fibre production is estimated at 68 tonnes. Projected cotton fibre 
production for 2018 is 480 tonnes.  
 
Prior to the rehabilitation of the national textile industry, the cotton produced was exported to 
Bangladesh. After the rehabilitation o f the textile industry, the cotton produced in the country 
started to sell in the domestic market.  
 
The national textile industry, composed of three spinning and weaving factories, has imported 
cotton from Greece and India to meet its needs. This picture w ill be change with the full re -launch 
of cotton production in the country. The estimated yearly need of the national textile industry is 
estimated at 24.000 tonnes of cotton fibre.  
 
(2) Domestic support  
 
In 2017 the Ministry of Agriculture took the first step towards the sustainable re -launch of cotton 
production in the country. This year 212 hectares of land were cultivated. The Ministry of 
Agriculture provided seeds and inputs and assisted with the preparation of land.  
 
Banks in Angola are available to financ e the cotton value chain, provided entrepreneurs submit 
feasible investment projects.  
 
The Angolan Executive is committed to mobilizing financial resources for the relaunch of the cotton 
value chain.  
 
(3) Export competition  
 
Angola does not apply any export co mpetition measures.  
 
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 19 - 
  Reply from Burkina Faso to the questionnaire circulated on 28  March 2017 (original 
reply in French)  
 
There have been no particular changes across the three pillars of market access, domestic support 
and export competition since the 26th round of the WTO Director -General's Consultative 
Framework Mechanism on Cotton. Burkina Faso's cotton -related policy developments are 
summarized in the following table:  
 
Pillars  Cotton -related policy 
developments  Comments  
Market Access  Nothing to report  Nothing to report  
Domestic Support  Nothing to report  Nothing to report  
Export Competition  Nothing to report  Nothing to report  
 
By way of general comment on Burkina Faso's cotton sector, it is important to point out that for 
this 2017/2018 cotton season, the cotton will be grown from 100% conventional cotton seed.  
 
 
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 20 - 
  Reply from Benin to the questionnaire circulated on 13  September 2016 (original reply 
in French)  
 
Eager to bring about a significant expansion of the cotton sector in the framework of  a 
public -private partnership, the Council of Ministers decided to revive the Framework Agreement 
between the State and the Cotton Trade Association (AIC). Accordingly, the agreement, which had 
been suspended on 23  September  2013, was renewed on 28  April 2016. A number of reforms 
undertaken by the Beninese Government have had a direct or indirect impact on the cotton sector 
through the three pillars of agriculture, i.e. market access, domestic support and export 
competition.  
 
(1) Market access  
 
One of the aims of the amending finance law adopted in July  2016 and the preliminary draft 
finance law of 2017 is to promote measures to stimulate private investment. Accordingly, since 
July 2016, the registration formalities for the following documents are taxed at 0% : 
 
 deeds for transfer of movable and immovable property, in connection with the 
improvement of the business climate;  
 credit agreements, in order to reduce the cost of credit transactions.  
Measures were also taken to reduce harassment along the trunk roads.  
 
Similarly, in connection with the transport of seed cotton from the self -managed markets to the 
processing plants, the Government decided to remove the rehabilitation of rural roads from the 
responsibilities relating to critical functions. The rehabilitatio n of dirt roads used for cotton is now 
the responsibility of the State.  
 
(2) Domestic s upport  
 
In connection with domestic support, the following new measures have been taken:  
 
 Revival of the Framework Agreement between the State and the AIC. The introduction of 
domestic price support mechanisms for producers  is now the responsibility of the 
sectoral trade associations in cooperation with the Ministry.  
 Production and agricultural research capacity -building through the introduction, in July  2016, 
of an agricultu ral research contribution charged on exports of cotton seed and fibre and raw 
cashew nuts, at a rate of CFAF 10 per kilogram exported.  
 Suspension by the Government of cotton subsidies (particularly in relation to inputs) as from 
the 2016 -2017 season.  
(3) Expor t competition  
 
The introduction of a framework conducive to agro -industry is at the centre of the interim budget 
for 2016. A public/private partnership law will help to promote the processing industry and in 
particular the cotton spinning mills.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 21 - 
  Reply fro m Mali to the questionnaire circulated on 13  September 2016 (original reply in 
French)  
 
The following noteworthy developments have occurred since July  2016:  
 
(1) Market access  
 
Awareness -raising missions along major roads to reduce the number of checkpoints;  
 
Fact-finding mission to assess the opportunities offered by Mauritania's Autonomous Port . 
 
(2) Domestic support  
 
Signing of a performance contract with the Compagnie Malienne des Textiles (COMATEX  SA) for 
the sourcing of raw materials on preferential terms;  
 
Payment of VAT abolished (exemption) on the purchase price of cotton seed for the 
crushing  plants;  
 
"1,000 tractors" programme: facilitated access to tractors in order to boost domestic production;  
 
Signing of a protocol between the National Oil  Mill and Cattle Feed Federation  of Mali (FENAPHAB) 
and stakeholders in the livestock meat subsector in order to provide better access to oil cake and 
other cattle feed.  
 
(3) Export c ompetition  
 
Mali does not grant any cotton export subsidies.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 22 - 
  Reply from Australia to t he questionnaire circulated on 22  February 2016  
 
Cotton Research and 
Development  Research into improvements 
in cotton production  $A 7.729 million for 
2014-15 Australian Government 
Department of Agriculture, 
Water Resources (DAWR)  
 
 
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 23 - 
  Reply from Israel to the questionnaire circulated on 22  February 2016  
 
With regard to the Chairman 's requests on cotton Israel would like to inform the Members of the 
following:  
 
No new or updated cotton -related policy developments occurred in Israel in 2015 . 
 
(1) Market access  
 
No changes in tariffs related to cotton were made during 2015.  
 
(2) Domestic support  
 
Israel's budgetary outlay for cotton in both thousand  US$ and thousand tonnes (marketing year, 
1 October -30 September) for 2015 was zero.  
 
Market price support, non -exempt dir ect payments, other product -specific support , 
product -specific EMS and product -specific AMS for cotton during 2015 were also zero.  
 
(3) Export competition  
 
Export subsidies for cotton were zero in 2015.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 24 - 
  Reply from South Africa to the questionnaire circulated  on 22  February 2016  
 
(1) Market access  
 
No changes were made to market access related policies in recent years.  
 
All tariffs for co tton at the applied level are zero, with the exception of the following lines:  
 
Product code  Product  Tariff  
5201 0020  Ginned, but not further processed  ZAR 1.60/kg  
5201 0090  Other  15% 
5203 00  Cotton, carded or combed  15% 
 
On the above tariff lines, a preference tariff of zero is applied for cotton origination in SADC 
countries and the EU in accordance with relevant Free Trade Agreements.  
 
In recent years, an average in access of 90% of South Africa's cotton imports originates from 
SADC countries. The suppliers of cotton in this regard are, in the main, LDCs.  
 
(2) Domestic support  
 
No changes were made to Domestic Support policies.  
 
No AMS has been used on cotton for more than 15 years. Cotton production might indirectly 
benefit from Green Box expenditure.  
 
(3) Export competition  
 
No changes were made to EC policies.  
 
South Africa did not make use of export subsidies since  the year  2000.  
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 25 - 
  Reply from Chad to the questionnaire circulated on 4  February 2015 (original reply in 
French)   
 
The Permanent Mission of the Republic of Chad to the World Trade Organization (WTO) presents 
its compliments to the WTO Secretariat and, further to the Secre tariat's correspondence of 
4 February  2015 on relevant trade -related developments for cotton, has the honour to transmit 
herewith details of new cotton -related policy developments that have occurred in Chad since 
January 2014 in relation to the following t hree pillars:  
 
(1) Market a ccess 
 
Chad has adopted an action plan with a view to substantially increasing production in its cotton 
sector. This will enable the country to boost exports to the main consumer countries, most notably 
Bangladesh, India, Indonesia, Portugal and Germany.  
 
(2) Domestic support  
 
Despite a difficult budgetary situation, due to the fall in oil prices which has spread to other raw 
materials and which has played a significant role in slowing down the country's economic growth, 
the Chadian State  has fought to maintain its cotton sector, which is of considerable economic and 
social importance for millions of Chadians. This support, which has a significant impact on priority 
sectors such as education and health, clearly demonstrates the Government' s determination to do 
everything possible to ensure that this important sector does not disappear - something that would 
have disastrous consequences for Chad and its population. This support is consistent with 
Article  6.2 of the Agreement on Agriculture.  
 
(3) Export competition  
 
Chad continues to suffer the severe financial consequences of falling cotton prices due to the unfair 
competition that we are continuously denouncing at the WTO. If all cotton -producing countries 
were on an equal footing in the interna tional market, Chadian cotton would be more competitive 
and the cotton sector would be making a profit instead of the successive losses recorded in recent 
years.  
 
This is a moral issue within the WTO, and as WTO Members we are all responsible for finding a  
solution to this situation, which is unacceptable to countries like ours.  
 
The Permanent Mission of the Republic of Chad to the World Trade Organization takes this 
opportunity to renew the assurances of its highest consideration to the WTO Secretariat.  
 
Access to international markets  
 
The Société Cotonnière du Tchad (COTONTCHAD) exported 31,700 tonnes of fibre in 2014 and 
envisages export production of 52,000 tonnes of fibre in 2015, i.e. an increase of almost 50%. 
This significant increase is linked to t he creation of a business plan that envisages a gradual 
increase in production to 120,000 tonnes of fibre by 2018.  
 
This business plan was adopted by the Board of Directors, which includes representatives of the 
various Ministers responsible for agricultural policy in general and the development of the cotton 
sector in particular.  
 
The increase in production has been p ossible thanks to the support the State has provided by 
selling inputs (fertilizer, insecticides and various other materials) to farmers to increase crop 
yields, and the increase in the purchase price paid to cotton farmers, which is set at 240 CFAF/kg 
for high-grade cotton.  
 
Cotton is of considerable economic and social importance to Chad. The Chadian government has 
spared no effort to provide financial support to increase cotton production, since this sector 
provides a livelihood, both directly and indire ctly, for almost 3 million people. The cotton sector is 
the only sector that brings large quantities of fresh capital into producing regions. It helps to settle 
the population, and COTONTCHAD SN, which is in charge of purchasing, ginning and marketing, 
funds village associations with a view to the construction of classrooms and family health clinics.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 26 - 
  3756CFAF 20 billion in cash was distributed to farmers in 2014 for the purchase of seed cotton, 
and the company plans to provide CFAF 31 billion in 2015. In an ticipation of the increase 
in production in the next two to three years, the Chadian State has committed itself, 
via the Development Bank of Central African States (BDEAC), to a long -term loan of approximately 
CFAF 30 billion for  COTONTCHAD SN, so as to en sure the renewal and strengthening of logistics 
and industrial infrastructure.  
 
Due to the lack of cotton processing infrastructure at national and regional level, COTONTCHAD SN 
exports 98% of its production abroad. The main consumer markets are Asian and European 
countries. Although there are no particular restrictions affecting Chad directly, certain domestic 
policies implemented by wealthier countries distort competitiveness. This means that certain mills, 
while appreciating the intrinsic qualities of Ch adian cotton, refrain from buying our cotton when 
they compare its price with the local prices of their own production, which are driven down 
artificially. However, given the much appreciated quality of Chadian cotton, our sales remain 
steady, despite the fall in prices.  
 
Listed below are the main consumers of Chadian cotton in 2014 and 2015:  
Exports o f Chadian Cotton By Country  
COUNTRY  QUANTITY (TONNES)  
2014  Projection for 2015  
Germany  1,500  3,500  
Portugal  2,550  5,200  
Spain  700 1,300  
Italy 200 900 
India 8,300  9,500  
Indonesia  3,380  5,800  
Bangladesh  11,415  18,220  
China  1,850  3,800  
Malaysia  180 680 
Thailand  500 600 
Viet Nam  1,125  2,500  
Total  31,700  52,000  
 
State Domestic Support  
 
In 2014, the Chadian State budgeted 6.9 billion to support farmers by subsidizing fertilizer. 
For 2015, it budgeted 6.69 billion. Of the amount for 2014, COTONTCHAD SN received 3.5 billion, 
although nothing has yet been paid out under the 2015 budget due to the country's current 
economic and financial situation, w hich is particularly difficult.  
 
This support is consistent with the provisions of Article 6.2 on special and differential treatment for 
the promotion of agriculture and rural areas in low -income countries and the fight against poverty.  
 
Despite a difficul t budgetary situation, due to the drop in oil prices which has spread to other raw 
materials and which has played a significant role in slowing down the country's economic growth, 
the Chadian State has fought to maintain its cotton sector, which is of cons iderable economic and 
social importance for millions of Chadians. The State's actions, which have had an important 
impact on priority sectors such as education and health, clearly demonstrate the Government's 
determination to do everything possible to ensu re that this important sector does not disappear - 
something that would have disastrous consequences for Chad and its population.  
 
Cotton plays a pivotal role in our country's development. It is competitive. And yet it suffers from 
the effects of the massi ve cotton subsidies provided by certain countries, which have the effect of 
driving down prices on the international market.  
 
For Chad, the time has come to move on from general statements and engage constructively in 
substantive discussions on the cotton issue. This belief forms the basis of its commitment and 
determination to continue negotiating with other C4 members at the WTO. Chad remains open to 
any initiatives that might help to find an acceptable solution to the cotton issue.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 27 - 
  Export Competition  
 
The massive support provided to farmers in the form of both production and operating subsidies 
by countries such as the United States and China and by the European Union constitute unfair 
competition and have been denounced for several years now by the C4 countries within the WTO 
framework. The least developed countries (LDCs) continue to suffer the severe financial 
consequences of falling cotton prices. If all cotton -producing countries were on an equal footing in 
the international market, African cotton w ould be more competitive and the cotton sector would be 
making a profit instead of the successive losses recorded in recent years.  
 
Countries such as the United States and China have introduced mechanisms to help 
the C4 countries with a view to repairing t he harm they have suffered, but these interventions 
amount  to very little when compared with the hundreds of millions of dollars paid to their 
respective  producers.  
 
What is being demanded by the C4 countries in general, and by Chad in particular, is compl iance 
with the WTO rules that condemn unfair competition and the artificial driving down of prices, 
rather than the rules on subsidies, which are already well defined and should be limited in terms 
of volume.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 28 - 
  Reply from China to the questionnaire circula ted on 4  February 20153 
 
First, China supports C -4's position and their request to solve their problem according to the 
Ministerial Decision on Cotton of December 2013 adopted at MC9. We also support the approach to 
solve the problem of cotton on the basis  of the Agriculture Modalities of 2008  (TN/AG/W/4/Rev.4 ). 
We would continue to work together with all Members to find the solution to this issue.  
 
Second, China's cotton sector is subsistence farming.  
 
China is among the largest cotton producers in the wo rld. However, China's production is based on 
small -scale and subsistence farming, and the average acreage of cotton is 0.3 hectare per 
household. Moreover, China's cotton production is located remotely in the resource -poor and 
underdeveloped ethnic minorit y areas, serving as the only instrument for local livelihood security 
and poverty reduction.  
 
After joining the WTO, China's cotton production has shown a declining trend; the cotton acreage 
has diminished from 4.8 million hectares in 2001 to 4.3 million hectares in 2013. The main reason 
for such a decline is the high production cost compared to the lower price of cotton caused by 
subsidies of the developed Members.  
 
Third, China's cotton subsidies are at minimal low level.  
 
China's agriculture support too lbox is short supplied compared to other WTO Members. It has no 
AMS including on cotton, no development box. China is only entitled to de minimis , for which the 
level is also lower than for other developing Members (8.5% versus 10%).  
 
China's cotton suppor t remains lower both in absolute terms and per capita terms. In absolute 
terms, China's cotton support is US $480 million. In per capita terms per cotton farmer, China's 
cotton support is only just US $16. 
 
Fourth, China's cotton subsidy policy is a passive response.  
 
China has been the victim to the cotton subsidies by the developed Members. Since its accession 
into the WTO, China's cotton imports surged from 113,000 tonnes to 4.2 million tonnes, while the 
cotton acreage actually diminished.  
 
China's poor s ubsistence cotton farmers are over 30 million in household, and they will be forced 
out of jobs if the Government does not take the necessary actions. Therefore, the Chinese 
Government has no choice but to subsidize its poor cotton famers to offset the sub sidies and 
safeguard the livelihood of those poor famers.  
 
Fifth, China's cotton subsidy policy does not distort international trade.  
 
China's temporary cotton reserve policy is designed to offset the turbulence of the volatile 
international market caused by the subsidies of developed Members. This policy does not create 
production distortion or trade distortion. On the production side, China's cotton production does 
not increase in a significant manner. On the import side, China's cotton import continues t o 
increase from 2.8 million tonnes in 2010 to 4.2 million tonnes in 2013. If the import on cotton yarn 
is included, the cotton import will be increased from 4.1 million tonnes to 6.5 million tonnes, which 
provides strong incentives for all cotton producers  and the developing ones in particular in the 
context of depressed global cotton prices. In addition, the cotton in stock is intended for domestic 
textile industry rather than for export, thus producing no distortion on international cotton market.  
 
In the  meantime, exports of Chinese textiles are still subject to tariff peaks, tariff escalations and 
other protectionist measures of developed Members, which the developed Members intend to 
ignore through the so -called recalibration exercise.  
 
Sixth, China has  made significant contribution to resolving the cotton issue.  
 
                                                
3 This reply was provided after the circulation of the second revision of this background paper and is 
included i n document TN/AG/GEN/34/Rev.2/Add.1 – TN/AG/SCC/GEN/13/Rev.2/Add.1.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 29 - 
  China has been the largest cotton importer, and its share in the global cotton import has been 
consistently more than 50%, which creates a lot of market access for the export developing 
Members . 
 
China has been extensively importing a large amount of cotton from African cotton -producing 
Members, including the C -4. During the period 2001 to 2013, China's cotton imports from Africa 
increased from 3,700 tonnes to 442,000 tonnes.  
 
On the development  assistance side, China has been committed to providing technical and 
financial assistance to the C -4 to enhance their production and export capacity. China signed 
cooperation Communiqués with the C -4 members in 2011 and 2013, respectively, which cover the  
supplies of agriculture inputs, training courses, technology transfer, etc. In addition, China has 
also been providing various cotton -related assistance to the C -4 through bilateral channels.  
 
On the allocation of the cotton TRQ  
 
Regarding the allocation  of TRQ of cotton, it is consistent with China's WTO commitment. Another 
related question is about the import exceeding the import qu ota. In addition to the 
894,000  tonnes, we import more than the TRQ subject to the sliding duties.  
 
On China's domestic support notification  
 
Regarding the notification, China has just updated its domestic support notification up to 2010, 
and preparation for new notifications is underway.  
 
On China's cotton stock  
 
Regarding China's cotton stock, the stock is real, as we hav e imported more cotton than our 
obligation. We import cotton for textile processing, but we are facing a lot of difficulties in the 
textile sector as just mentioned. The other reason for the huge stock is that the price for cotton is 
distorted by the subsi dies from developed Members.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 30 - 
  Reply from Egypt  to the questionnaire circulated on 4  February 2015  
 
1. Applied tariffs on cotton versus bound tariffs (2015)  
HS Description  Applied tariff 2015 
% Bound 
Tariff %  
5201.00  Cotton, not carded or combed  Free 5 
5202.00  Cotton waste (including yarn waste and garnetted stock)    
5202.10  - Yarn waste (including thread waste)  5 5 
 - Other:    
5202.91  -- Garnetted stock  5 5 
5202.99  -- Other  5 5 
5203.00  Cotton, carded or combed  5 5 
 
2. Egyptian cotton trade  
 2012  2013  2014  
Quantity  
(tonnes)  Value  
(US$ million)  Quantity  
(tonnes)  Value  
(US$ million)  Quantity  
(tonnes)  Value  
(US$ million)  
Exports  86,775.62  197.07  67,097.50  136.69  37,313.53  89.90  
Imports  16,412.16  44.47  4,833,833.36  170.41  76,436.45  175.94  
 
3. Egyptian cotton production (in metric cantars, 1 metric cantar = 50 kg)  
 
Year 2011 -2012  2012 -2013  2013 -2014  2014 -2015  
production  3,685,927  2,164,949  1,880,564  2,482,198  
 
_______________  
 
 
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 31 - 
  ANNEX 5  
INFORMATION ON COTTO N MARKETS AND POLICIES FROM  
THE TRADE POLICY REVIEW MECHANISM1 
1.1.  At the second dedicated discussion of the relevant trade -related developments for cotton, 
Members agreed that, in order to complement the revised background paper to be prepared by the 
WTO Secretariat , the Secretariat would compile information related to cotton markets and policies 
contained in the most recent T rade Policy Review (TPR)  reports.2 
1.2.  The Secretariat searched  the most recent  TPR reports available by Governments  and by  the 
WTO Secretari at for the 32 Members identified in paragraphs 12 and 13 of this paper . Information 
that met the following  two criteria has been  included in this Annex:  (1) information relevant to 
cotton markets and policies ; and (2) information not presented elsewhere in  this background 
paper . 
1.3.  No relevant information was found  for the following fourteen  Members :3 Bahrain, Kingdom of 
(April  2014); Canada (June 2015);  Hong Kong, China (November 2014) ; Iceland (October  2017); 
Japan (March 2017 ); Kenya (November 2012)4; Korea, Republic of (October  2016); Malaysia 
(February 2018); Mexico (April 2017); New Zealand (Ju ly 2015 ); Russian Federation 
(September  2016) ; Norway ( June 2018); Switzerland (May 2017 ) and Chinese  Taipei 
(September  2014) .5 
1.4.  For the remaining  18 Members, the relevant i nformation found is presented below by 
Member. The date of the most recent TPR report available, as well as the type of report and the 
document symbol for the report , are indicated next to  each Member. Except for Bangladesh and 
the United States , no relevant information was found in  the most recent Government reports 
available for these 18  Members .  
1.5.  Information is listed along with the headings of the chapters from which it is extracted , and 
"…" represents information left out from a table, a paragraph or a chapter.  
1.6.  Information not directly linked to cotton markets and policies but which provides context for 
understanding the above -mentioned information may have also been included  based  on the 
Secretariat's own judgement and is without prejudice to information excluded from this Annex.  
                                                
1 The purpose of the Trade Policy Review Mechanism ("TPRM") is to contribute to improved adherence 
by all Members to rules, disciplines and commitments made under the Multilateral Trade Ag reements and, 
where applicable, the Plurilateral Trade Agreements, and hence to the smoother functioning of the multilateral 
trading system, by achieving greater transparency in, and understanding of, the trade policies and practices of 
Members. Accordingl y, the review mechanism enables the regular collective appreciation and evaluation of the 
full range of individual Members' trade policies and practices and their impact on the functioning of the 
multilateral trading system. It is not, however, intended to  serve as a basis for the enforcement of specific 
obligations under the Agreements or for dispute settlement procedures, or to impose new policy commitments 
on Members (Annex 3 (A)(i) of the Marrakesh Agreement).  
2 Paragraph 13 of the Chairperson's report of the second dedicated discussion of the relevant 
trade -related developments for cotton (TN/AG/29 and TN/AG/SCC/3).  
3 The date in brackets is that of the most recent TPR report available.  
4 Joint Trade Policy Review of the East African Community (EAC).  
5 The Secretariat report for the 2014 TPR (WT/TPR/S/302) is being revised therefore the report from the 
previous TPR (July 2010) was used and no relevant information was found.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 32 - 
  AUSTRALIA (MARCH 201 5) - SECRETARIAT REPORT ( WT/TPR/S/312 /REV.1 ) 
"4. TRADE POLICIES BY SECTOR  
4.2 Agriculture, Livestock, and Fisheries  
4.2.2 Main policy developments  
4.2.2.2 Domestic support measures  
 
Under its Carbon Farming Futures Program (2011 -2017), Australia has implemented a Filling the 
Research Gap, Action on the Ground, Extension and Outreach Program, and related offset 
incentives.6 
 
APPEND IX TABLES  
Table A1. 1 Merchandise exports, by product groups, 2010 -2013 
  2010  2011  2012  2013  
Total exports (US $ billion)  212.5  270.1  256.6  253.7  
Total exports ( $A billion)  231.1  261.7  247.8  262.0  
 (% of total)  
Total primary  products  77.3 79.8 79.0 80.4 
Agriculture  13.9 14.3 15.5 15.8 
… … … … … 
Agricultural raw material  2.5 3.0 3.0 3.0 
2631  Cotton (other than linters), not carded or combed  0.5 1.0 1.1 1.0 
… … … …  … 
Source:  WTO Secretariat calculations, based on data provided by the Australian authorities in SITC four -digit 
classification.  
                                                
6 … Under the Action on the Ground funding programme, farmers and land managers u ndertake on -farm 
trials of abatement technologies, practices and management strategies to measure and demonstrate how they 
can reduce agricultural greenhouse gas emissions of methane and nitrous oxide or increase the sequestration 
of carbon in soil while m aintaining or improving farm productivity. By March 2014, 89 multi -year grants worth 
up to $A 44.29 million had received funding; these projects were trialling a diverse range of on -farm practices 
and management strategies, on more than 530 properties acro ss the country. By  April 2013, 24  projects 
valued at $A 21.3 million were funded under the Extension and Outreach program supporting sector -specific 
projects, including the livestock, dairy, horticulture, cotton and grains industries (Department of Agricul ture 
online information. Viewed at: http://www.daff.gov.au/about/current -grants; and Productivity Commission, 
2013d).  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 33 - 
  BANGLADESH (OCTOBER 2012)  - GOVERNMENT REPORT (W T/TPR/G/270)  
"II. RECENT ECONOMIC PERFORMANCE  
Table 6. - Composition of Bangladesh' s import  
Commodity  2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 
Total import (c.i.f.)  14,746  17,157  21,629  22,507  23,738  33,657  
Of which:         
… … … … … … … 
16. Raw cotton  5.0%  5.0%  5.6%  5.7%  6.1%  8.0%  
… … … … … … … 
Source:  Bangladesh Economic Review, 2012 . 
 
III. TRADE POLICY DEVELOPMENT  
 
Since  2011 the Government has imposed export tax on bricks, tobacco and cotton waste in order 
to discourage production of tobacco and bricks on health and environmental reasons and 
discourage export of cotton waste to safeguard interests of growing local indust ry." 
 
Secretariat Report (WT/TPR/S/270/Rev.1)  
III. TRADE POLICIES AND PRACTICES BY MEASURE  
 
(1)  Measures Directly Affecting Imports  
 
(iv)  Tariffs and other charges  
Table III.2  - Tariff structure, 2005/06 and 2011/12  
  MFN applied  SAFTA  
2005/06  2011/12  2011/12  
… … … … 
Memo:     
WTO agriculture  18.0 17.8 13.1 
… … … … 
Cotton  4.0 3.3 1.9 
… … … … 
Source:  WTO Secretariat calculations, based on data received by the Bangladeshi authorities.  
 
(2)  Measures Directly Affecting Exports  
 
(ii)  Export taxes, charges, and levies  
In 2010/11, export duties were applied to tobacco and tobacco products (10%), cotton waste 
(25%), and ceramic building bricks (25%) in order to discourage production of these products.  
According to the authorities, brick production is n ot environmentally friendly and tobacco 
production occupies land needed for essential crops.  Duty on the export of cotton waste is 
intended to encourage the use of cotton waste in Bangladesh.  
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 34 - 
  IV. TRADE POLICIES BY SECTOR  
 
(2)  Agriculture  
 
(b) Food security  
Table IV.4  - Developments in domestic support to agriculture, 2002 -07 
(US$ million)  
 2002/03  2004/05  2006/07  
Total domestic support (I+II+III)     
… … … … 
II. Measures exempt from the reduction commitment - "Green Box"  
General services  52.4 95.5 75.1 
(i) Research and development of non -rice crops, (fruit, 
vegetables, spices) except sugar cane, jute, cotton, and tea  9.32 10.9 23.6 
… … … … 
(iv) Research and development of cotton  0.35 0.36 0.2 
… … … … 
Source:  Notification from Bangladesh, G/AG/N/BGD/3, 4 May 2011 covering FY2002/03, 20 04/05 
and 2006/07.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 35 - 
  BRAZIL (JULY 2017 ) - SECRETARIAT REPORT ( WT/TPR/S/ 358) 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.4 Domestic support  
4.1.4.1 Agricultural/rural credit  
4.1.4.1.1 Minimum price guarantees  
 
During the review period, Brazil maintained unchanged its 1966 policy of guaranteed minimum 
prices (PGPM), an important pillar of its agricultural policy. The basic element of this policy 
remains the regionally -set minim um guaranteed prices which cover a broad range of crops from 
rice, wheat, maize, cotton, and soybeans, to regional crops like cassava, beans, açaí, guaraná, and 
sisal, as well as a few livestock products like cow and goat milk and honey (Table 4.6).7 On th e 
basis of these minimum guaranteed prices, the government implements several price support 
mechanisms (Table  4.6), including direct government purchases (AGF); premiums to commercial 
buyers who pay minimum prices to supply producers (PEP, VEP); and public  and private options 
contracts backed by private risk premium options (COV, PROP, PEPRO).  In addition to these 
programmes, producers receive various reduced -interest marketing loans which enable them to 
withhold the sale of a product in anticipation of a h igher market price (FPPG, FEPM  and FEE 
below). The state -owned CONAB (Section 4.2.2) operates both the AGF set by the MAPA Secretary 
of Agricultural Policy (SPA) for commercial and small -scale farms, and the equivalent programme 
set by the SEAD for small -scale agriculture (PAA, Section 4.2.4.3) as well as the minimum prices 
programme for family farms (PGPAF programme). …  
Table 4.6 Price support programmes, 2014/2015 and 2015/ 2016 
Price support programme/description  Use/cost  
Policy of Guaranteed Minimum Prices (PGPM)   
Regulated by Decree No. 57,391 of 12 December 1965 and Decree -
Law No. 79 of 19 December 1966. The PGPM fixes minimum 
guaranteed prices annually for some of Brazil's main crops. Prices are 
promulgated by the National Monetary Council (CMN) t hrough 
Portarias. Portaria No.  854 of 20 August 2014 fixes minimum prices 
for a number of products for the 2014/15 summer harvest. When 
determining minimum prices, the CMN takes into account production 
costs in the different regions, as well as several fac tors affecting 
domestic and international market prices. The PGPM is implemented 
through credit lines (EGF and LEC); and commercialization 
instruments (AGF, PEP, VEP, PEPRO, COV and PROP; see below).  Products benefited by PGPM in the 
2014/15 were cotton, corn, orange 
and edible beans.  
The only product benefited by PGPM 
in 2016 was wheat.  
… … 
Premium for Product Outflow (PEP)   
The CONAB grants an equalization premium to wholesalers who agree 
to pay farmers a reference price. The premium is determined in public 
auctions and generally reflects the difference between the reference 
price and the market price. In addition to guarante eing minimum 
prices for producers, the PEP is used to shift the supply of agricultural 
products across regions, so as to avoid shortages and prevent the 
accumulation of stocks. In theory, all products included in the PGPM 
can participate in the PEP; howeve r, the programme has been used 
for only a few products so far, mainly cotton, corn, wheat, sisal, 
beans, rice, and wine.  The programme did not support any 
products in 2014/15 crop year. The 
programme supported only wheat 
in 2016 (47,791 tonnes, 
R$8.8  million). 
Agricultural Products' Sale Option Private Premium (PEPRO)   
This scheme offers producers and cooperatives the possibility to sell 
their product at a premium, equal to the difference between reference 
and market prices, fixed through an auction. In contrast to the PEP, 
premiums are paid directly to producers.  In the 2014/15 crop year, the 
programme supported only cotton 
(R$2.4  million and 905,278 tonnes), 
corn (R$256 million and 
5,803  million tonnes) and oranges 
(R$47.1  million and 
850,383  tonnes). I n 2016, the 
programme supported only wheat 
(404,886 tonnes, R$108  million)  
                                                
7 OECD (2016), Agricultural Policy Monitoring and Evaluation 2016 , 16 June. Viewed at: 
http://www.oecd -ilibrary.org/agriculture -and-food/agricultural -policy -monitoring -and-evaluation -
2016_agr_pol -2016-en; USTR (2016), 2016 National Trade Estimate Report on Fore ign Trade Barriers . Viewed 
at: https://ustr.gov/about -us/policy -offices/press -office/reports -and-publications/2016/2016 -nationa l-trade -
estimate . TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 36 - 
  With 9% and 8.7% inflation in 2015 and 2016 respectively (Table 1.2), regional minimum 
guaranteed prices were kept constant between 2014/15 and 2015/16 for basic and domestic 
wheat, cotton, Arabica coffee, maize, sorghum, jute, rubber and cocoa.8 They were increased by 
about 7% for cassava, ... In 2016/17 minimum guaranteed prices were raised as follows: 9% for 
rice; 18% for cotton…  
Table 4.7 - PGPM operations, 2013 -16 
(R$ million)  
  2013  2014  2015  2016  
Disbursement (purchase)  
AGF Total 79 84 0 0 
… … … … … 
COV Total 1,395  0 0 0 
… … … … … 
PEP Total 0 0 0 9 
… … … … … 
PEPRO  Total 484 631 15 69 
Cotton  0 244 0 0 
… … … … … 
Total  1,958  715 15 78 
 
Table 4.8 - Budget allocated to family farming programmes and measures, harvest year 
2012/13  
Programme  Description  Budget  
…  … … 
Price Guarantee 
Programme for 
Family Farming 
(PGPAF)  An indexation of the credit taken out by family farmers under the 
PRONAF, through which the price is fixed when the credit is 
granted. Upon repayment of the PRONAF's credit, if the price of 
the product financed has decreased, the farmer benefits from a 
discount from the amount due, equivalent to the difference 
between the product's mark et price and the price set in the 
programme's index. The limit for the PGPAF bonus per farmer is 
R$7,000 each year. The programme covers 49 products, including 
corn, cotton, rice, milk, and oranges.  R$90 million 
…  … … 
Total budget   R$35.3  billion  
 
…
                                                
8 OECD (2016), Agricultural Policy Monitoring and Evaluation 2016 , 16 June. Viewed at: 
http://www.oecd -ilibrary.org/agriculture -and-food/agricultural -policy -monitoring -and-evaluation -
2016_agr_pol -2016-en. TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 37 - 
  CHINA (JULY 2016 ) - SECRETARIAT REPORT ( WT/TPR/S/342 /REV.1)  
Summary  
… 
 
Government -set prices are currently applied to refined oil products, natural gas, certain medicines, 
and some services. Products classified as important central reserve materials (grain, cotton, sugar, 
filature silk, crude oil, processed oil, and chemical fertilizers) are no longer subject to government -
set prices….  
… 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.3 Export prohibitions, res trictions, and licensing  
Table 3.11 Products subject to export quotas and licensing, 2015 -16 
Products  Type of management  Comment  
Goods subject to quota and 
licensing    
Rice, maize, wheat, cotton, coal  Export quota (licensing)  The quota is allocated by the NDRC and MOFCOM  
The licence is issued by MOFC OM 
… … … 
Source:  MOFCOM GACC Joint Announcement No. 76 of 2015. Viewed at: 
http://wms.mofcom.gov.cn/article/zcfb/g/201512/20151201225345.shtml  (in Chinese only); and 
information provided by the Chinese authorities.  
3.3 Measures Affecting Production and Trade  
3.3.5 State trading and state -owned enterprises  
3.3.5.1 State trading  
 
In 2015 China submitted a new and full notification regarding state trading enterprises to the 
WTO.9 The legislation regulating state trading has not changed since 2014, nor have the reasons 
for maintaining this practice or the products subject to it. Sta te trading remains in place to: ensure 
a stable supply and price of the products concerned; safeguard food security; and protect 
exhaustible and non -recyclable natural resources, and the environment.  
Imports subject to state trading administration compris e: grain (including wheat, maize, and rice), 
sugar, cotton, chemical fertilizers, tobacco, crude oil, and processed oil (Table  3.17). They can be 
imported (and  exported) only by authorized enterprises, in accordance with Article 11 of the 
Foreign Trade Law . ... Non -state trading enterprises that have obtained trading rights through 
registration may engage in the importation of part of the quota of products subject to tariff -rate 
quotas (grain, cotton, sugar, and certain chemical fertilizers), and of crude a nd processed oil. 
The NDRC (in the case of grains and cotton) and MOFCOM (for the other products) issue on a 
yearly basis the criteria for an enterprise to acquire trading rights for these products, the volumes 
they can import and the allocation method. No  information was provided on the quantities 
imported under state trading.10 
Table 3.17 Imports under state trading, 2013 -15 
Product  HS Code  Percentage of TRQ 
allocated to state -trading 
enterprises  
2013  2014  2015a 
… … … … … 
Cotton  5201.00.00; 5203.00.00  33 33 33 
… … … … … 
a Provisional.  
Source:  WTO documents G/STR/N/10/CHN -G/STR/N/15/CHN, 19 October 2015; and data provided by the 
authorities.  
                                                
9 WTO documents G/STR/N/10/CHN -G/STR/N/15/CHN, 19 October 2015.  
10 WTO documents G/STR/N/10/CHN -G/STR/N/15/CHN, 19 October 2015.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 38 - 
  Exports subject to state trading and the enterprises in charge of trading these products also 
remain unchanged since the last Review. In 2015, exports subject to state  trading were rice, 
maize, cotton, coal, crude and processed oil, tungsten ore and produc ts, antimony ore and 
products, silver and tobacco (Table 3.18) . According to the authorities, the volume of exports 
subject to state trading is determined taking into account market signals and so are export prices; 
there is no government intervention.11 According to the authorities, export allocation amongst 
state-trading enterprises is also based on market principles.  
Table 3.18 Export products subject to state -trading arrangements, 2014 -15 
Product  (HS code)  Enterprises  
… … 
Cotton   
5201.00.00; 
5203.00.00  Chinatex Cotton Import & Export Corporation; Xinjiang Uygur Autonomous Region Cotton and Jute 
Import & Export Co; Xinjiang Yin Long International Agricultural Co. Ltd (since 2012); and China 
National Cotton Reserve Corporation.  
… … 
a MOFCOM online information. Viewed at: 
http://www.mofcom.gov.cn/aarticle/b/c/200404/20040400210082.html .  
b State Council online information. Viewed at: 
http://www.gov.cn/gongbao/content/2004/content_62767.htm . 
c China reserves the right to use state trading.  
d MOFCOM online information. Viewed at: 
http://www.mofcom.gov.cn/article/b/e/200411/20041100306546.shtml . 
Source:  Information provided by the Chinese authorities and WTO  documents 
WT/STR/N/10/CHN -WT/S TR/N/15/CHN, 19 O ctober 2015.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.3 Policy instruments  
4.1.3.1 Border measures  
4.1.3.1.1 Measures affecting imports  
 
… 
 
… In-quota and out -of-quota rates have not changed; they are both ad valorem , with the 
exception of the out -of-quota rate for a type of cotton (HS 52.01.00.00). Out -of-quota imports of 
this type of cotton may be subject to a sliding duty that depends upon the price of cotton, but that 
cannot exceed 40% (i.e. the bound rate for cot ton). Under this system, China fixes a threshold 
price (RMB 15/kg in 2015). If the price of imports is equal to or higher than the threshold price a 
specific duty of RMB 0.57/kg is levied; if the import price is lower than the threshold price, an 
ad valore m rate based on the formula applies.12 Out-of-quota rates for other products are in most 
cases equal to bound rates.  
The NDRC is responsible for allocating TRQs for grains and cotton, and MOFCOM allocates the rest. 
Some products subject to TRQs (i.e. grains , cotton, sugar, and chemical fertilizers) are also 
subject to state trading. In these cases, part of the quota is allocated to state -trading enterprises 
and another part to other enterprises. Historically, the fill rate of TRQs has been low; however, this  
changed in 2013 and 2014 for products such as sugar, wool and cotton (Table 4.2).  
Table 4.2 Tariff rate quotas and their utilization, 2013 -14 
(Tonnes, unless otherwise indicated)  
Products  Out-of-quota 
rates (%)  In-quota rates 
(%) Tariff quota 
quantity  In-quota 
imports (2013)  In-quota 
imports (2014)  
… … … … … … 
Cotton (2 lines)  40 1 894,000  894,000  894,000  
Note:  Number of tariff lines in brackets refers to the 2015 tariff schedule.  
Source:  WTO document G/AG/N/CHN/30, 2 February 2016; and Ministry of Finance (2015), Customs Tariff of 
Imports and Export of the People's Republic of China , 2015.  
                                                
11 WTO documents G/STR/N/10/C HN-G/STR/N/15/CHN, 19 October 2015.  
12 The variable rate is calculated according to a formula, which may be viewed in: Ministry of 
Finance  (2015), Customs Tariff of Import and Export of the People's Republic of China 2015  (The Legal Texts), 
Beijing, p. 442.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 39 - 
  4.1.3.2 Internal measures  
4.1.3.2.1 Support measures  
 
… 
 
…The Subsidy for Promoting Superior Strains and Seeds scheme introduced in  2002 to improve 
the quality of seeds and livestock covers: cotton, maize, rice and wheat throughout China, and 
soya beans, rapeseed, cotton, potatoes, highland barley and peanuts, in specific areas of the 
country….  
… 
 
4.1.3.2.2 Price controls and marketing   
 
… 
 
In 2014, China stopped its stockholding programme for cotton. This programme resulted in an 
increase in the domestic price of cotton paid to farmers to above international prices, and led 
farmers to sell most of their production to the State.13 As a result, state re serves increased to 
levels beyond annual domestic demand, which triggered a reform of the policy. The former system 
was replaced, on a pilot basis in the Xinjiang Autonomous Region, by a mechanism that sets a 
target price for cotton; this price was RMB 19, 800 per tonne in 2014 (RMB 19,100 per tonne 
in 2015).14 Through the new mechanism, if the market price falls below the target price, the 
central government provides a subsidy to cotton farmers, the amount of which depends on the 
land farmed (which is given a weight of 60% in the calculation of the subsidy) and the amount of 
cotton sold for processing in the domestic market (a weight of 40%).15 In 2015, the cotton subsidy 
was extended to nine other provinces.16 However, it is not clear what form of subsidy appl ies in 
these provinces, it seems that a target price has also been established.17  
 
… 
                                                
13 Imports and exports of cotton are subject to state trading.  
14 Cotton Target Price Reform Pilot in Progress. Viewed at: 
http://www.sdpc.gov.cn/zcfb/zcfbtz/201404/t20140415_607179.html . 
15 The Interim Measures on Administration of Fund for Xinjiang Cotton Target Price Reform Pilot 
Subsidy. Viewed at: 
http://www.xjjh.gov.cn/zwgk/xzfxxgkml/czxx/cdxm/f59e4d28_2d31_4af8_8efd_3693 0fff8166.htm.  
16 These are: Shandong, Henan, Hebei, Hubei, Hunan, Jiangsu, Jiangxi, Gansu, Anhui and Tianjin. 
Viewed at: http://www.cncotton.com/sy_59/gnmh_1388/rdxw/201511/t20151120_554754.html . 
17 Henan online information. Viewed at: http://www.1633.com/policy/zhuanti/view -10680508 -1.html ; 
Hebei online information. Viewed at: http://www.tuliu.com/read -11746.html ; Hubei online information. Viewed 
at: http://www.texindex.com.cn/Art icles/2015 -3-24/330704.html ; Hunan online information. Viewed at: 
http://www.hn315.gov.cn/business/htmlfiles/hnzjj/s42/201510/32546.html ; Jiangsu online information. 
Viewed at: http://www.jscz.gov.cn/pub/jscz/xxgk/gkml/201505/t20150528_75680.html ; and Jiangxi online 
information. Viewed at: 
http://www.jxdpc.gov.cn/departmentsite/jmc/tztg/gztz/201502/t20150205_115865.htm . TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 40 - 
  COLOMBIA (JUNE 2018 ) - SECRET ARIAT REPORT (WT/TPR /S/372 ) 
SUMMARY  
… 
 
…Colombia promotes the use of Price Stabilization Funds (FEPs) in order to deal with fluctuations 
in world prices for certain agricultural products. The resources for these funds come from 
parafiscal charges, mainly charges levied on producers which remain outside the national budget 
and are reinvested by the private sector in programmes of benefit to the activity from which they 
are sourced. In 2017, there were FEPs for cotton, sugar, cocoa, meat, milk and products thereof; 
and palm oil.  
 
… 
 
3 TRADE POLICIES AND  PRACTICES BY MEASURE   
3.1 MEASURES DIRECTL Y AFFECTING IMPORTS  
3.1.3 TARIFFS  
3.1.3.5 TARIFF CO NCESSIONS  
 
… 
 
Given the insufficient level of domestic cotton production and in order to boost the textiles and 
clothing sector, through Decrees No.  2.530 of 12  December  2014 and No.  1.347 of 
22 August  2016 the Government temporarily authorized the use of  zero tariff quotas on cotton 
imports for a specified number of tonnes according to industry needs. …  
 
… 
 
4 TRADE POLICIES BY SECTOR  
4.1 AGRICULTURE, FOR ESTRY AND FISHERIES  
4.1.3 DOMESTIC SUPPO RT, SUBSIDIES AND OT HER SUPPORT SCHEMES   
 
… 
Colombia makes use of price stabilization mechanisms in order to deal with fluctuations in world 
prices for certain agricultural products. The Price Stabilization Funds (FEPs), created by Law 
No. 101 of 1993, are intended to guarantee producers' incomes, r egulate domestic production, and 
prevent price speculation, in addition to promoting agricultural exports. The resources for these 
funds come from parafiscal charges: these are charges levied on producers which remain outside 
the national budget and are re invested by the private sector in programmes of benefit to the 
activity from which they are sourced. In 2017, there were FEPs for cotton, sugar, cocoa, meat, 
milk and products thereof; and palm oil.18 Each FEP has a Steering Committee, composed of 
producers  and officials from the National Government, which establishes the methodology for 
calculating a reference price based on the most representative international market quotation for 
each product. Producers and/or exporters make "transfers" to the respective  FEP when the market 
price falls below the reference price, or receive compensation from the FEP when the price is above 
the reference price.  
… 
Pursuant to Article 7 of Law No.  101 of 1993, the Government may provide selective and 
temporary incentives or s upport to producers, for agricultural production, protecting rural income 
and maintaining peace. In this context, the Guaranteed Minimum Price  (PMG) scheme for cotton 
protects Colombian farmers' incomes from fluctuations in international prices by offering  
                                                
18 The FEP for cotton, which is managed by the Colombian Cotton Confederation (CONALGODON); the 
FEP for centrifugal sugars, mo lasses obtained by extracting or refining sugar, and sugar syrups, managed by 
the Colombian Sugar Cane Growers' Association (ASOCAÑA); the FEP for cocoa, managed by the National 
Federation of Cocoa Growers (FEDECACAO); the FEP for promoting the export of m eat, milk and products 
thereof, managed by the Colombian Cattle Breeders' Federation (FEDEGAN); and the FEP for palm kernel oil, 
palm oil and fractions thereof, managed by the National Federation of Palm Oil Producers (FEDEPALMA).  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 41 - 
  compensation for the price differential between market prices (New York Exchange) and a 
minimum guaranteed price per tonne of lint. In 2016, the MADR allocated Col$8,920  million of 
resources to protect growers' incomes by granting indemnities to cotton fa rmers in respect of the 
two harvests in 2016, for a total of 12,968 tonnes of lint marketed. The PMG policy agreed with 
the Government expired in 2017 and the scheme ceased to operate. …  
4.1.4 FINANCING AND INSURANCE  
4.1.4.5 OTHER FINANC ING SCHEMES  
 
In addition to the loan programmes implemented by FINAGRO and the support given by the FAG, 
the sector is supported by other schemes, too, such as the Agricultural Development Fund and the 
Agricultural Solidarity Fund (FONSA).  
FONSA, created by Law No.  302 of 1996, partially amended by Law No.  1.731 of 2014, is an MADR 
fund, administered by FINAGRO, whose purpose is to provide economic support to small -scale 
agricultural producers and fishermen to tackle and partially or fully alleviate their debts when in 
the course of their activities they encounter crisis situations which severely affect crops or the 
quality, volume and marketing of agricultural products. Law No.  1.694 of 2013 and its regulations 
in Decree No.  355 of 2014 expanded the scope of the Fund to enc ompass instances of significant 
and sustained variations in prices of agricultural products or inputs that cause severe and 
sustained falls in income for producers. Up to 2017, producers of cotton, cocoa, coffee, sugar 
cane, bulb onion, beans, milk, maize,  oil palm and potatoes benefited from FONSA on account of 
falling prices.19 
… 
                                                
19 Under Law No.  1.731 of 2014, for the purposes of FONSA small producers are considered to be 
natural persons: (a) whose total assets do not exceed 250 SMLMVs; (b) no less than two thirds of whose 
income stems from agricultural and/or fishing activity or who have at least 75% of t heir assets invested in the 
agricultural sector. Medium -sized producers for FONSA purposes are natural persons with total assets not 
exceeding 700 SMLMVs. MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacion -control -
gestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE%2 0LA%20REPUBLICA/Memorias_al_Congreso_de_la
_Republica_%202016_2017.pdf . TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 42 - 
  EGYPT (FEBRUARY 2018 ) - SECRETARIAT REPORT ( WT/TPR/S/ 367) 
SUMMARY  
… 
 
…It has also discouraged the production of crops that use water intensively, such as cotton and 
sugar. … 
 
… 
 
3 TRADE POLICIES AND  PRACTICES BY MEASURE   
3.1 MEASURES DIRECTL Y AFFECTING IMPORTS  
3.1.5 ANTI -DUMPING, COUNTERVAIL ING, AND SAFEGUARD M EASURES  
3.1.5.3 SAFEGUARDS   
 
… 
Since its last TPR in 2005, Egypt has initiated 14 safeguard investigations, imposed prov isional 
measures in all of them and final safeguard measures on three products: blankets, steel rebar, 
cotton and mixed yarns (Table 3.19). Although few final measures were adopted, the application of 
provisional measures could have acted as a deterrent to  trade.  
Table 3.19 Safeguard measures imposed, 2005 -June 2017  
Product  Countries 
concerned  Domestic 
legal 
instrument  Imposed duties 
(c.i.f. basis)  Notification  Situation as at 
30 June 2017  
… … … … … … 
Cotton and 
mixed yarns 
(other than 
sewing 
threads)  All Ministerial 
Decree 
No. 19/2009  25% of c.i.f. value for 
a period of one year 
or not less than 
US$1/kg   Duties 
eliminated by 
Decree 
336/2009  
Woven cotton 
or mixed yarns  All Ministerial 
Decree 
No. 20/2009  25% of c.i.f. value for 
one year period or not 
less than US$1/kg   Duties 
eliminated by 
Decree 
336/2009  
… … … … … … 
Cotton and 
mixed yarns 
(other than 
sewing 
threads)  All Ministerial 
Decree 
736/2011  
(provisional) 
Ministerial 
Decree 
No. 589/2012 
(definitive ) 3.33 LE/ kg for 
200 days (provisional)  
LE 3.48 kg from 
18/7/2012 until 
30/12/2012, and 
LE 3.13/kg from 
31/12/2012 until 
30/12/2013, and 
LE 2/kg from 
31/12/2013 until 
30/12/2014  G/SG/N/6/EGY/5,  
5 December 2011;  
 
G/SG/N/7/EGY/5/Suppl .1, 
24 September  2012 
 
G/SG/N/7/EGY/4 
G/SG/N/11/EGY/4,  
9 January  2012 
 
G/SG/N/6/EGY/6 
G/SG/N/7/EGY/5 
G/SG/N/11/EGY/3,  
5 March 2012  
 
G/SG/N/8/EGY/6 
G/SG/N/10/EGY/6 
G/SG/N/11/EGY/5, 
20 July 2012 
 
G/SG/N/8/EGY/6/Corr.1 
G/SG/N/10/EGY/6/Corr.1 
G/SG/N/11/EGY/5/Corr.1,  
8 August 2012  Duties expired 
on 30/12/2014  
Woven cotton 
or mixed yarns  All Ministerial 
Decree 
No. 116/2012 
(provisional)  10% of c. i.f. value 
and not less than 
LE 3.33/kg  G/SG/N/6/EGY/5,  
5 December 2011  
G/SG/N/7/EGY/5/Suppl.1, 
24 September  2012 
 
 Duties 
eliminated by 
Decree 
693/2012  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 43 - 
  Product  Countries 
concerned  Domestic 
legal 
instrument  Imposed duties 
(c.i.f. basis)  Notification  Situation as at 
30 June 2017  
G/SG/N/7/EGY/4 
G/SG/N/11/EGY/2, 
9 January 2012  
 
G/SG/N/6/EGY/6 
G/SG/N/7/EGY/5 
G/SG/N/11/EGY/3, 
5 March 2012  
 
G/SG/N/8/EGY/6 
G/SG/N/10/EGY/6 
G/SG/N/11/EGY/5, 
20 July 2012 
 
G/SG/N/8/EGY/6/Corr.1 
G/SG/N/10/EGY/6/Corr.1 
G/SG/N/11/EGY/5/Corr.1, 
8 August 2012  
… … … … … … 
Source:   Ministry of Trade and Industry and WTO notifications.  
 
4 TRADE POLICIES BY SECTOR  
4.1 AGRICULTURE AND FISHERIES  
4.1.1 AGRICULTURE  
4.1.1.1 MAIN FEATURE S  
 
… 
Table 4.2 describes land use by crops between 2005 and 2016. The use of land for the production 
of wheat has increased, by some 12%, and so has the use of land for the production of maize, by 
14.4%, while for sugar beet it has risen by more than 235% . On t he other hand, land dedicated to 
the production of sugar cane has remained stable, while there has been a decline in areas used to 
grow rice mainly in order to rationalize the use of irrigation water. The land use for cotton has also 
declined.  
Table 4.2 Land use by crop, 2005 -16 
(Thousand feddansa) 
Crop  2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  2016  
… … … … … … … … … … … … … 
Cotton  657 536 575 313 284 369 520 333 287 369 241 131 
a 1 feddan is equivalent to 0.42 hectares.  
Source:  Information provided by the authorities.  
Table 4.3 describes the evolution of the production of the most important agricultural crops in 
Egypt between 2005 and 2016. As can be seen, the production of sugar beet has almost 
quadrupled during the period; the production o f wheat has increased by 15%, and the production 
of meat, fruit and vegetables has also followed an upward path. However, during the period, Egypt 
has experienced a decline in the production of some traditional crops such as cotton and rice.  
Table 4.3 Agricultural outputs, 2005 -16 
('000 tonnes)  
  2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  2016  
… … … … … … … … … … … … … 
Cotton lint  202 602 222 364 95 137 181 109 94 113 160 114 
… … … … … … … … … … … … … 
Source:  Information provided by the authorities  
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 44 - 
  Table A3. 1 Egypt's notifications to the SPS Committee, 2005 -November 2017  
Agency 
responsible  Legal basis  Description  Date  Notification  
… … … … … 
CAPQ   Import requirements of cotton lint  5 January 2011  G/SPS/N/EGY/42  
… … … … … 
Note:  GOVS stands for General Organization for Veterinary Services; CAPQ stands for Central 
Administration of Plant Quarantine; EOS stands for Egyptian Organization for Standardization; MALR 
stands for Ministry of Agriculture and Land Reclamation and NFSA  stands  for National Food Safety 
Authority.  
Source:  Ministry of Trade and Industry and WTO notifications.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 45 - 
  EUROPEAN UNION (JULY 2017 ) - SECRETARIAT REPORT ( WT/TPR/S/ 357) 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1 Trade  
4.1.2 Agricultural policies  
4.1.2.1 Domestic support  
4.1.2.1.1 Direct payments  
Voluntary coupled support  
… 
In addition to voluntary coupled support, the EU provides for payments for cotton in Greece, 
Spain, and Bulgaria ( Table 4.5).20 
Table 4.5 - Crop -specific payments for cotton  
 Area  
ha Fixed yield  
tonne/ha  Payment  
€/ha  
Bulgaria  3,342  1.2 2015: 584.88  
   2016 and onward: 649.45  
Greece  250,000  3.2 234.18  
Spain  48,000  3.5 362.15  
Source:  Regulation (EU) No. 1307/2013, Article 58.  
                                                
20 Regulation (EU) No. 1307/2013 also provides for payments in Portugal but there is no production in 
Portugal, and no payments are made.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 46 - 
  INDIA (JUNE 2015)  - SECRETARIAT REPORT ( WT/TPR/S/313 /REV.1 ) 
 
2 TRADE AND INVESTMENT REGIME  
2.2 Trade Policy Formulation and Objectives  
2.2.2 Trade policy goals  
 
… 
 
… During the period 3 July 2009 and 31 March 2013 export restrictions were placed on wheat flour 
and exports of cotton were subject to prior registration of contracts with DGFT. …  
… 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting  Imports  
3.1.5 Other charges affecting imports  
 
Table  3.5 Summary analysis of India's import charges, 2014 -15 
   Effective applied rates 
(MFN)  Total duty rate, incl. 
extra chargesa 
No. of lines  Average 
(%) Range  
(%) Average 
(%) Range  
(%) 
Total  11,481  13.0 0-150 28.3 0-537.5  
HS 01 -24 1,609  37.7 0-150 46.2 0-537.5  
HS 25 -97 9,872  9.0 0-100 25.3 0-186.1  
By WTO definition       
Agricultural products  1,496  36.4 0-150 46.1 0-537.5  
… … … … … … 
Cotton  11 2.7 0-30 3.3 0-36.1 
… … … … … … 
Note:  Calculations exclude specific rates and include the ad valorem  part of alternate rates.  
Source:  WTO calculations, based on data provided by the Indian authorities; and Big's Easy Reference 
Customs Tariff, 2014 (35th edition).  
 
3.1.9 Import prohibitions, r estrictions, and licensing  
3.1.9.3 Import surveillance  
 
India does not maintain any mechanism to monitor imports of items that are considered to be 
sensitive; such a mechanism  was discontinued  by April 2012.21  
 
3.2 Measures Directly Affecting Exports  
3.2.4 Export prohibitions, restrictions, and licensing  
3.2.4.2 Export licensing and quotas  
… 
 
On 8 December 2014, the previous requirement that exports of cotton and cotton yarn required an 
export authorization registration certificate (EARCs) issued by t he DGFT was abolished.22  
… 
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1 General policy framework  
4.1.1.3 Internal measures  
 
                                                
21 At the end of March 2012, there were 415 sensi tive items (based on HS eight -digit classifications). 
These included milk and milk products, fruits and vegetables, pulses, poultry, tea and coffee, spices, food 
grains, edible oils, cotton and silk, marble and granite, automobiles, parts and accessories o f motor vehicles, 
products produced by small -scale industries, and other products (bamboos, cocoa, copra, and sugar).  
22 DGFT Notifications Nos. 102 and 103, 8 December 2014.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 47 - 
  Table  4.3 Minimum support prices, 2010 -15 
(Rs per quintal)  
Minimum support prices (MSPs)  2010 -11 2014 -15 
… … … 
Cotton (medium staple)  2,500  3,750  
… … … 
Source:  Directorate of Economics and Statistics online information. Viewed at: 
http://eands.dacnet.nic.in/msp/MSPStatement(2014.29.10).pdf ; and information provided by the 
Indian authorities.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 48 - 
  INDONESIA (APRIL 201 3) - SECRETARIAT REPORT ( WT/TPR/S/278/REV.1)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures directly affecting imports  
3.1.6 Contingency measures  
3.1.6.2 Safeguard measures  
 
Table 3.10 Safeguard activity, 2007 -12  
Product  Investigation 
initiation  Investigation outcome  
… … … 
Cotton yarn (other than sewing 
thread)  25.06.2010  Imposition on 06.06.2011 of safeguard measures for 
three years:  Rp 40,687 per kg (06.06.2011 to 
05.06.2012);  Rp 38,144 per kg (06.06.2012 to 
05.06.2013);  and Rp 35,601 per kg (06.06.2013 to 
05.06.2014).  Certain tariff lines as well as 105 
developing countries are excluded from the safeguard 
measure  
Woven fabrics of cotton  25.06.2010  Imposition on 23.03.2011 of safeguard measures for 
three years:  Rp 116,800 per kg (23.03.2011 to 
22.03.2012); Rp 109,500 per kg (23.03.2012 to 
22.03.2013); and Rp 102,200 per kg (23.03.2013 to 
22.03.2014)  
… … … 
Source:  Notifications to the WTO Committee on Safeguards; and additional information provided by the 
authorities.  
 
APPENDIX TABLES  
Table A1.4  Merchandise imports by product group, 2007 -11 
(US$ million and %)  
  2007  2008  2009  2010  2011  
Total imports (US $ million)  74,473.4  129,244.1  96,829.2  135,663.3  177,435.6  
 (% of total)  
Total primary products  47.4 38.1 34.6 35.3 39.2 
 Agriculture  14.1 10.3 11.7 11.5 12.6 
 … … … … … … 
 Agricultural raw material  3.5 3.0 2.8 3.1 3.2 
 2631 Cotton (other than  
 linters), not carded or  
 combed  1.1 0.9 0.8 0.8 1.0 
 … … … … … … 
Source:  UNSD Comtrade database, SITC Rev.3.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 49 - 
  MAURITIUS (OCTOBER 2 014)  - SECRETARIAT REPORT ( WT/TPR/S/304/REV.1)  
APPENDIX TABLES  
Table A1. 3 Merchandise imports by product group, 2007 -13 
(US$ million and %)  
 2007  2008  2009  2010  2011  2012  2013  
Total (US $ million)  3,901  4,670  3,725  4,402  5,159  5,772  5,398  
(%) 
Total primary products  40.7 45.9 40.7 43.4 46.9 45.5 47.0 
Agriculture  21.3 23.5 23.9 23.1 24.2 23.5 24.2 
… … … … … … … … 
Agricultural raw material  2.5 2.6 2.4 2.2 3.0 2.0 2.2 
2631 Cotton (other than linters), not 
carded or combed  0.9 1.2 0.9 0.8 1.5 0.8 0.8 
… … … … … … … … 
Source:  UNSD Comtrade database, SITC Rev.3.  
Table A3. 1 VAT-exempt supplies, 2013  
Item  
… 
Cotton of headings 52.01, 52.02 and 52.03  
… 
Source:  Value Added Tax Act 1998 (Consolidated Version with amendments to 1 September 2013), First 
Schedule. Viewed at: 
http://mra.gov.mu/download/VATAct_Proclamation_38_2013.pdfhttp://mra.gov.mu/download/VATA
ct_Proclamation_38_2013.pdf .  
  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 50 - 
  MOROCCO ( FEBRUARY 2016 ) - SECRETARIAT REPORT ( WT/TPR/S/329 ) 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and agro -industry  
4.1.1 Overview  
Table 4.2 Main imports of agricultural products, 2008 -2014  
(US$ million)  
Products  2008  2009  2010  2011  2012  2013  2014  
Total imports  42,322  32,882  35,379  44,263  44,790  45,186  46,035  
Agriculture  5,191  3,809  4,197  5,797  5,773  5,042  5,811  
 % of total 12.3 11.6 11.9 13.1 12.9 11.2 12.6 
Main products         
… … … … … … … … 
HS 5201 Cotton, not carded or combed  76 49 71 123 79 71 73 
… … … … … … … … 
Note:  Agriculture by WTO definition.  
Source:  WTO Secretariat calculations based on data from the UNSD Comtrade database; statistics from the 
Moroccan Foreign Exchange Board for 2014.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 51 - 
  PAKISTAN (MARCH 2015 ) - SECRETARIAT REPORT ( WT/TPR/S/311 /REV.1 ) 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Directly Affecting Exports  
3.3.1 Registration, do cumentation, clearance, inspection, and minimum prices  
 
The Trade Development Authority of Pakistan (TDAP) under the Ministry of Commerce succeeded 
the Export Promotion Bureau (EPB) in 2006 and has pursued a more holistic strategy with respect 
to global trade development compared to its predecessor. …  
… 
 
Export contract registration with TDAP remains a requirement for export of cotton. …  
 
3.3.3 Export prohibitions, restrictions, and licensing  
3.3.3.2 Export licensing and restrictions  
 
Table 3.8 Exports subject to certain conditions  
 HS Code  Item/goods  Condition/procedure/formalities  
… … … … 
10 5201.0000  Cotton  
 (i) Export contract registration with TDAP and classification 
certificate issued by the Pakistan Cotton Standards Institute  
… … … … 
Source : Export Policy Order 2013, Ministry of Commerce.  
4 TRADE POLICIES BY SECTOR  
4.2 Agriculture  
4.2.3 Key sub -sectors  
4.2.3.1 Crops  
Table 4.2 Area and production of important crops, 2009 -14  
(Area "000" hectares and production "000" tonnes)  
Crops  2009/10  2010 /11 2011/12  2012/13  2013/14   
Area  
 
Production  
 
 
Area  
 
Production  
 
 
Area  
 
Production  
 
 
Area  
 
Production  
 
Area  
 
Production  
… … … … … … … … … … … 
Cottona 3,106  12,913  2,689  11,460  2,834.5  13,595.0  2,878.8  13,030.7  2,805.7  12,769.0  
… … … … … … … … … … … 
a Cotton production is in thousand bales (375 lbs per bale).  
Source:  Pakistan Bureau of Statistics.  
4.2.3.1.4 Cotton  
Pakistan is the fourth largest cotton producer in the world. Cotton is cultivated by around 
1.6 million farmers, mostly with smallholdings of less than five hectares. Yields have been largely 
stagnant for the last several years. Cotton is exported as a raw  material, but also provides an 
essential input to the domestic textiles industry.  
The Pakistan Central Cotton Committee (PCCC), a semi -autonomous body in the Ministry of Textile 
Industry has as an objective to improve the sector's productivity. Its annua l budget of PRs  500 to 
600 million is funded by a cess payable by the mills. Support pric es for cotton were abandoned 
in 2008. Export contracts on cotton must be registered, with exports being subject to mandatory 
quality inspection and certification.  
Exports of raw cotton  amounted to US $217 million in 2013, whereas exports of cotton  yarn 
amounted to US $2.2 billion. Pakistan also imports high -quality cotton, to blend with domestic 
cotton and to produce quality fabrics; imports amounted t o US$757 million of  raw cotton and TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 52 - 
  US$151 million of cotton yarn in 2013. The average MFN tariff on cotton imports is 3.8%, with 
tariffs ranging from 1% to 10%.  
APPENDIX TABLES  
Table A1.2  Pakistan's merchandise imports by group of products, 2007 -13  
(US$ billion and %)  
  2007  2008  2009  2010  2011  2012  2013  
Total imports (US $ billion)  32.59  42.33  31.58  37.54  43.58  43.81  43.78  
 (% of total)  
Total primary products  43.2 53.1 47.2 51.2 53.7 53.9 52.2 
Agriculture  13.9 16.8 15.6 17.9 16.9 14.9 14.5 
… … … … … … … … 
2631 Cotton (other than linters), not carded or 
 combed  2.7 2.8 1.5 2.0 1.9 1.3 1.7 
… … … … … … … … 
Source:  UNSD, Comtrade database (SITC Rev.3).  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 53 - 
  PERU (NOVEMBER 2013)  - SECRETARIAT REPORT ( WT/TPR/S/289/REV.1)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures affecting imports  
3.1.7 Anti -dumping, countervailing and safeguard measures  
3.1.7.2 Safeguards  
 
… 
During the review period, Peru initiated only one investigation, in 2009, with a view to the 
application of a general safeguard measure to imp orts of cotton yarn (HS  5205 and 5206)23, 
although this ended without any measure being applied.24 
… 
APPENDIX TABLES  
Table A1.2 Merchandise imports by product, 2007 -2012  
(US$ million and %)  
Description  2007  2008  2009  2010  2011  2012  
 (US$ million)  
Total  20,368  29,953  21,814  30,030  37,747  42,157  
 (% of imports)  
Total primary products  31.7 30.8 27.6 27.4 28.7 26.8 
Agriculture  12.0 11.4 12.4 12.0 11.9 11.4 
… … … … … … … 
Agricultural raw materials  1.6 1.4 1.4 1.7 1.7 1.4 
2631 Cotton (other than linters), not 
carded or combed  0.4 0.3 0.3 0.5 0.6 0.3 
… … … … … … … 
Source:  WTO Secretariat estimates based on data obtained from the Comtrade database (SITC Rev.3)  and 
the Peruvian authorities for 2012.  
 
                                                
23 WTO document  G/SG/N/6/PER/2 of 25  March  2009.  
24 WTO document  G/SG/N/9/PER/2 of 2  November  2009.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 54 - 
  SOUTH AFRICA (NOVEMB ER 2015 ) - SECRETARIAT REPORT  (WT/TPR/S/324 /REV.1 )25 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures affecting production and trade  
3.3.2 Competition policy and price controls  
3.3.2.2 Price control  
 
In general, prices in South Africa are market -determined. Guideline prices, for agricultural 
products subject to levies, continue to be determined under the Marketing of Agricultural Products 
Act (Act No. 47 of 1996), to ensure that the levy does not exceed 5% of the actual price. Guideline 
prices are determined for the wi ne industries, milk and dairy products, as well as cotton lint.  
… 
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.2 Policy  
 
… 
 
Levies continue to apply to the export and/or production of the following products: …, cotton, …  
 
                                                
25 Trade Policy Review of the Southern African Customs Union (SACU).  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 55 - 
  THAILAND (NOVE MBER 2015 ) - SECRETARIAT REPORT ( WT/TPR/S /326 /REV.1 ) 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.4 Other Measures Affecting Production and Trade  
3.4.4 Competition policy and consumer protection  
3.4.4.2 Price controls  
 
… Its Central Commission on Prices of Goods and S ervices (CCP) in the DIT has the authority to 
set out: the goods and services subject to price controls; controls for their sale or purchase prices; 
and, procedures and conditions relating to the display of prices. …  
… The CCP Monitoring List remains divid ed into three categories (Table  3.7): the Sensitive goods 
and services whose prices are monitored daily because they are expected to increase in the near 
future; the Priority Watch goods and services that are monitored twice a week; and the Watch 
goods and  services that are monitored twice a month. …  
Table 3.7 - Products and services subject to monitoring, April 2015  
List Products  
 Goods  
Sensitive  …  
Priority Watch  … 
Watch  … 82.  Absorbent cotton …161.  Cotton wool …  
 Services  
… … 
Source:  Department of Internal Trade online information. Viewed at: 
http://www.dit.go.th/en/backoffice/uploadfile/255610011351485115749.pdf  and 
http://www.dit.go.th/en/backoffice/uploadfile/255610011147057425749.pdf .  
4 TRADE POLICIES BY SECTOR  
4.2 Agriculture and Food Processing  
4.2.2 Trade  
 
… 
 
In value terms, major imports are soya bean oil cakes, soya beans, food preparations and cotton 
(Table 4.4). The main sources of soya bean oil cakes and soya beans are Brazil, Argentina and the 
United States; of food preparations, the United States, Singap ore and China; and of cotton, the 
United States, Australia, Brazil, and Mali. …  
Table 4.4 - Imports of selected agricultural products, 2008 -14 
HS code    2008  2009  2010  2011  2012  2013  2014  
… … … … … … … … … 
5201 - Cotton, not 
carded/combed  US$ million  715.3  484.6  729.6  1,120.0  748.9  734.2  676.3  
'000 tonnes  435.9  349.7  383.7  319.2  305.8  344.9  322.3  
… … … … … … … … … 
Note:  WTO definition of agriculture used.  
Source:  UNSD Comtrade database.  
 TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 56 - 
  TURKEY ( MARCH 2016 ) - SECRETARIAT REPORT ( WT/TPR/S/ 331) 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.8 Contingency measures  
3.1.8.1 Anti -dumping and countervailing measures  
 
… 
… One anti -dumping investigation has been initiated ex officio with respect to the United States on 
cotton.  … 
… 
Over the review period, there has been considerable anti -dumping activity. Since the beginning of 
2012, 25 new investigations have been initiated and 14 new measures have been imposed; many 
of these have affected more than one WTO Member (Table A3.2). Additionally, various existing 
anti-dumping measures have been extended (Table A3.3). Since 2012, a concern has been raised 
by the United States in a meeting of the Committee on Anti -Dumping Practices about Turkey's 
investigation on co tton.26 
Table A3. 2 - New anti -dumping investigations initiated and measures imposed or 
terminated, 2012 -15 
Products concerned  Exporter(s) affected  Status  
… … … 
Cotton (HS 5201)  United States  Initiation of investigation on 18  October 2014  
… … … 
Source:  WTO document WT/TPR/OV/W/9, 3 July 2015 and information provided by the authorities.  
3.1.8.2 Safeguard measures  
… 
Since the beginning of 2012, Turkey has launched five safeguard investigations. At mid -
October  2015, two of these were still ongoing, definitive safeguard measures had been imposed on 
another two, and one investigation was completed with no definitive measure imposed. Existing 
safeguard measures were extended in eight cases; and of these, one expired in 2014 (footwear) 
and two expired in  2015 (matches and motorcycles) (Table A3.4). On 31  December 2012, ahead 
of schedule, Turkey terminated the safeguard measure on cotton yarn. …  
Over the review period, Turkey has responded to questions posed by India in the WTO  Committee 
on Safeguards rega rding certain aspects of determination of serious injury in the context of 
Turkey's notifications on polyethylene terephthalate and certain types of cotton yarn.27 … 
… 
Table A3. 4 - Safeguard investigations initiated and measures imposed or extended, 
2012 -15 
Date original 
investigation published 
in the Official Gazette  Product(s) subject 
to investigation  Imposition of safeguard 
measure  Extension of safeguard 
measure  
… … … … 
21.10.2008  Cotton yarn  
Turkey terminated 
this measure as of 
31 December 2012.  15/7/2008 -14/7/2011  
Application of variable duty with 
liberalization annually:  
1st period: 20% max. US $1/kg-
min. US $0.35/kg;  
2nd period: 19% max. 
US$0.95/kg -min. US $0.33/kg;  
3rd period: 18% max. 
US$0.90/kg -min US $0.31/kg.  
Various developing countries 
excluded. 15/7/2011 -14/7/2014  
Application of variable duty with 
liberalization annually:  
1st period: 10% max. 
US$0.85/kg -min US $0.29/kg;  
2nd period: 9% max. 
US$0.80/kg -min US $0.26/kg;  
3rd period: 8% max. 
US$0.75/kg -min US $0.23/kg.  
Various developing countries 
excluded.  
… … … … 
Source:  Turkey's notifications to the WTO Committee on Safeguards.  
                                                
26 WTO document G/ADP/M/48, 6 August 2015.  
27 WTO documents G/SG/Q2/TUR/6/Rev.1, 11 May 2012 and G/SG/Q2/TUR/6, 4 May 2012.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 57 - 
  3.1.9 Standards and other technical requirements  
3.1.9.4 Controls at the border  
… 
In 2011, Turkey started pilot implementation of a risk -based trade control system, TAREKS, to 
carry out safety checks on imported and exported goods on the basis of risk. Consequently, since 
January 2012, conformity assessment of certain imported goods (toys, medical devices, 
telecommunication products, personal protective equipment, bat teries and accumulators, 
construction products, and shoes) and as of August 2012, transactions related to cotton controls 
have been taken under the scope of TAREKS. …  
TAREKS introduces a new risk assessment understanding and emphasizes the control of "risk y" 
products while leaving behind the era of checking each product at each arrival at customs. TAREKS 
reduces bureaucratic procedures as well as the number of documents to be submitted during the 
control process and replaces the paper documentation. It also  contributes to effective traceability 
and market surveillance schemes.  
Quality checks for agricultural products are also part of the control process pursuant to 
Communique No. 2015/21 on Commercial Quality Controls on Certain Agricultural Produce at 
Export and Import Stage. In accordance with the Communiqué No. 2012/25, cotton is also subject 
to commercial quality controls at export and import stages and in the domestic market as well. 
See Section 3.2.4.2 for details on the export quality control of agric ultural products.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.2 Production   
 
Hazelnuts are the largest earner for the fruit and nut category (Table 4.1).  
Table 4.1 - Major crop production, 2010 -14 
 Production value (TL million)  (% of total)  
2010  2011  2012  2013  2014 a 2010  2014a 
Crop production (total)  80,038  88,979  87,947  92,453  97,988  100.0  100.0  
          
…  …  …  …  …  …  …  …  
Raw materials used in textiles, of 
which:  2,642  4,883  2,758  2,941  3,467  3.3 3.5 
Cotton (raw)  2,642  4,883  2,758  2,941  3,467  3.3 3.5 
…  …  …  …  …  …  …  …  
a 2014 data is provisional.  
Sources:  Turkstat, Agricultural Structure (production, price, value) Publication; Turkstat, The Summary of 
Agricultural Statistics Publication.  
4.1.3 Trade  
4.1.3.1 Overview   
 
… 
 
Over the past five years, imports of raw materials and exports of processed goods have increased 
in parallel: as imports of cotton, wheat, and tobacco increased, exports of textiles, flour and 
confectionary, and tobacco products also increased. …  
… 
Table 4.3 - Exports of agricultural products, 2010 -14 
(US$ million)  
  2010  2011  2012  2013  2014  
 Total exports  113,979  134,915  152,537  151,803  157,715  
 Total agriculture exports  11,899  14,350  15,105  16,707  17,635  
 of which       
… … … … … … … 
1512 Sunflower -seed, safflower or cotton -seed oil  103 341 418 496 790 
… … … … … … … 
Source:  UNSD Comtrade.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 58 - 
  … 
Table 4.4 - Imports of agricultural products, 2010 -14 
(US$ million)  
  2010  2011  2012  2013  2014  
 Total imports  185,541  240,839  236,544  251,661  242,224  
 Total agricultural imports  9,865  13,477  12,599  13,398  14,554  
 of which       
5201 Cotton, not carded or combed  1,720  1,850  1,275  1,681  1,750  
… … … … … … … 
1512 Sunflower, safflower or cotton -seed oil  274 629 988 919 1,201  
… … … … … … … 
Source:  UNSD  Comtrade.  
The main source of imports also depends on the product: in 2014, the United States was the main 
supplier of cotton (HS 5201); … 
4.1.4 Support programmes   
Table 4.8 - Main measures of agricultural support, 2011 -14 
(TL million)  
 2011  2012  2013  2014  
Producer support estimate (PSE)  27,022.51  26,041.07  31,385.15  33,888.92  
… … … … … 
Deficiency payments:  2,434.49  2,736.55  2,639.91  2,689.09  
Cotton premium  792.27  1,123.69  1,037.21  1,075.23  
… … … … … 
Source:  OECD, PSE.  
5 APPENDIX TABLES  
Table A2. 1 - Turkey's Involvement in Dispute Settlement Cases, 1  January  2012  – 
1 December 2015  
Subject  Respondent/  
complainant/  
appellant  Request for 
consultation 
received  Status  
(as at 30  October 
2014)  WTO 
document 
series  
Panels  
Turkey as a respondent:  
Turkey – Safeguard Measures on 
Imports of Cotton Yarn (other than 
Sewing Thread)  Turkey/India  13-Feb-12 Consultations requested  WT/DS428  
… … … … … 
Source:  WTO Secretariat.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 59 - 
  UNITED STATES  (DECEMBER 2016 ) - SECRETARIAT REPORT ( WT/TPR/S/350 /REV.1)  
2 TRADE AND INVESTMENT REGIME  
2.3 Trade Agreements and Arrangements  
2.3.2 Preferential agreements  
2.3.2.2 Unilateral preferences  
2.3.2.2.1 Generalized system of preference (GSP)  
Under the GSP programme, the United States grants duty -free treatment to certain products 
originating in least developed countries (LDCs) and eligible developing countries. …  
The GSP Subcommittee reviews and amends the list of goods eligible for GSP treatment annually 
on its own initiative or following petitions. Only intereste d parties may submit petitions to modify 
the GSP product list.28 During the period under review, certain cotton, cotton products and travel 
and luggage goods made in LDCs29 have been added to the preferential list.30 … 
… 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Other charges affecting imports  
3.1.5.1.4 Agriculture fees  
The Animal and Plant Health Inspection Service (APHIS), part of the US Department of Agriculture 
(USDA),  collects Agriculture Quarantine Insp ection (AQI) fees  which it shares with CBP under an 
agreed allocation. In addition, fees are collected for veterinary and laboratory services (Table 3.4).  
… 
Table 3.4  - Agricultural fees , applicable from 28 December 2015  
Fee Legal reference  Reason  Amount of fee  
… … … … 
Cotton Imports 
Assessment  Cotton Research and 
Promotion Act of  1989 7 CFR 
1205 Cotton research, promotion, 
consumer information  Varies according to the 
product and HTS number  
… … … … 
Source:  CPB online information. Viewed at: 
http://www.cbp.gov/sites/default/files/documents/userfee0407_3.pdf  and 
https://www.aphis.usda.gov/aphis/ourfocus/business -services/user_fees/aqi_user_fees ; and 
information provided by the authorities.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1 Main features  
 
… 
                                                
28 An interested party is any party with a signific ant economic interest in the subject matter of the 
request, or any other party representing a significant economic interest that would be materially affected by 
the action requested, such as a domestic producer of a like or directly competitive article, a commercial 
importer or retailer of an article eligible for GSP or for which GSP eligibility is requested, or a foreign 
government.  
29 AGOA beneficiaries are also accorded preferences for such travel and luggage goods.  
30 USTR online information, "Results of the 2014/2015 GSP Limited Product Review" and "Outcomes of 
the 2015/2016 GSP Annual Review". Viewed at: https://ustr.gov/sites/default/files/Results -of-the-2014-2015-
GSP-Limited -Product -Review.pdf , and https://ustr.gov/sites/default/files/Outcomes -2015-2016-GSP-Annual-
Review.pdf . TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 60 - 
  Table 4.1 - Value of US production, 2008 -15 
(US$ billion and %) 
 2008  2009  2010  2011  2012  2013  2014  2015  % of totala 
Total  318.3  284.5  334.9  379.5  396.6  394.3  405.2  382.5b  
… … … … … … … … … … 
Cotton  3.0 3.8 7.3 7.0 6.3 5.2 5.1 3.9 1.0 
… … … … … … … … … … 
a Percentage of total for the year 2015, except for crops total (excl. horticulture) where the 
percentage is for the year 2014.  
b Provisional data.  
Source:  USDA National Agricultural Statistics Service Online.  
Viewed at: https://quickstats.nass.usda.gov/#A18C7854 -5C8F-360C-9973-AFC9D13A0EFA ; USDA 
National Agricultural Statistics Service online information, "Poultry - Production a nd Va lue", different 
bulletins.  
Viewed at: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1130 ; 
and OECD  Stats, Agriculture Policy Indicators, 2016 Monitoring and Evaluation: Reference Tables.  
The United States exports significant portions of its agricultural production, particularly of 
soybeans, maize, wheat, cotton, and chicken. …  
Table 4.2 - US and world production and trade of selected commod ities, 
2008/09 -2015/16  
('000 tonnes, unless otherwise indicated)  
 Marketing 
year 2008/09  2009/10  2010/11  2011/12  2012/13  2013/14  2014/15  2015/16  
… 
Cotton (thousand 480 lb. bales)         
Production  United States  12,825  12,183  18,102  15,573  17,314  12,909  16,319  12,870  
% of world  11.8 11.8 15.4 12.2 14.0 10.7 13.7 13.3 
Exports  United States  13,261  12,037  14,376  11,714  13,026  10,530  11,246  9,500  
% of world  43.8 33.8 41.3 25.5 28.0 25.7 31.7 26.3 
… 
Source:  USDA Foreign Agricultural Service, Production, Supply and Distribution database.  
Viewed at: http://apps.fas.usda.gov/psdonline/psdQuery.aspx  
 
4.1.2 The 2014 Farm Act  
4.1.2 .1 Overview  
… 
Table  4.4 - The 2014 Farm Act, main programmes  
 Programme title  Essential elements  
Commodity 
programmes  
Producers with 
base acres choose 
between PLC or 
county -based ARC 
for each covered 
commodity or 
farm-based ARC for 
all covered 
commodities on the 
farm … …  
Marketing Loan 
Program  Maintained  
 Coupled to current prices and production  
 Loan rates unchanged, except for potential downward 
adjustment of upland cotton loan rate  
Crop insurance  Federal Crop 
Insurance Program 
(permanently 
authorized)  Maintained; new  subsidized insurance programmes:  
 Supplemental Coverage Option (SCO)  
 Stacked Income Protection Plan for producers of upland 
cotton (STAX)  
Export credit 
guarantees  Export Credit 
Guarantee Program 
(GSM -102) Maintained; amendments include:  
 Maximum tenor reduced to 24 months  
 Flexibility given to the U S Secretary of Agriculture to 
adapt the programme pursuant to the 2014 Memorandum 
of Understanding Related to the Cotton Dispute 
(WTO/DS267) between the United  States and Brazil  
… … … 
Source:  WTO document WT/TPR/S/307/Rev.1, 13 March 2015; and information provided by the authorities.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 61 - 
  4.1.2.5 Crop Insurance  
 
… Today, the federal crop insurance programme allows participants to insure against losses on 
some 130 crops, including the five major crops (maize, cotton, grain/sorghum, soybeans, and 
wheat), minor crops, and specialty crops (fruit, vegetables, nursery crops, and tree nuts). …  
 
… 
 
4.1.2.6 Cotton  
 
The 2014 Farm Act does not authorize historical acreage planted with upland cotton to be enrolled 
in PLC or ARC. Instead, a new Stacked Income Protection Plan (STAX) provides coverage for losses 
of up to 20% of the expected county revenue. STAX may be purchased on its own or in 
conjunction with other crop insurance (companion policy).31 Indemnities are trigger ed under STAX 
when area revenue falls below 90% of the expected level and may increase to cover a maximum 
of 30% of the expected revenue or the maximum loss level under the companion policy. In 
addition, the grower may increase (or decrease) the effective coverage under STAX by choosing a 
multiplier (protection factor) that may range from 80% to 120%. The premium subsidy rate, i.e. 
the share paid by the Federal Government, is 80%. Nevertheless, cotton farmers have been 
reluctant to sign up to STAX.  
Althoug h upland cotton is excluded from the ARC and PLC, former upland cotton base became 
"generic acres" under the ARC and PLC programmes, and growers with generic acres have the 
option to plant those acres to other crops that are eligible for ARC and PLC. Thus far, some 
2.2 million generic acres planted to covered commodities have received ARC and PLC payments 
totalling US$149.3 million (by 20 May 2016), primarily for peanuts (US$87.6 million), maize 
(US$39.8 million), and long grain rice (US$14 million).  
4.1.4 Levels of support  
 
… 
Table 4.8 - Total producer support estimate and single commodity transfer values for 
selected commodities, 2008 -15 
 2008  2009  2010  2011  2012  2013  2014  2015a 
Producer support estimate          
US$ million  29,954  31,535  30,774  32,684  35,993  29,020  43,572  38,785  
PSE as % gross farm receipts  8.6 10.1 8.6 8.0 8.5 6.9 10.0 9.4 
Single commodity transfers          
… … … … … … … … … 
Cotton          
 US$ million  1,313  252 339 813 591 529 908 836 
 SCT as % gross farm receipts  30.1 6.2 4.4 10.4 8.6 9.4 15.2 17.2 
… … … … … … … … … 
Source:  OECD Stats.  
Among the main commodities tracked by the OECD, the highest single commodity transfers (as a 
percentage of gross farm receipts) are provided to sugar, milk, and cotton. … 
 
… 
                                                
31 Examples of such policies are Yield Protection, Revenue Protection, Revenue Protection with the 
Harvest Price Exclusion, and any Area Risk Protection insurance policy.  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 62 - 
  VIET NAM (SEPTEMBER 2013)  - SECRETARIAT REPORT ( WT/TPR/S/287/REV.1)  
4 TRADE POLICIES BY SECTOR  
4.2 Agriculture  
4.2.2 Trade  
Table 4.2  - Exports  and imports of agricultural, 2005 -11 
HS 
2002    2005  2006  2007  2008  2009  2010  2011  
… … … … … … … … … 
Imports  
 TOTAL (not including rubber)  2,404  2,850  4,066  5,819  5,757  7,849  10,052  
… … … … … … … … … … 
5201 Cotton, not carded or 
combed  '000 tonnes  106 176 202 291 295 349 320 
US$ million  163 214 259 456 385 661 1,037  
… … … … … … … … … … 
Source: UNSD Comtrade.  
4.2.3 Policies  
4.2.3.2 Domestic policies  
 
… 
Product -specific plans set out objectives and general policies for some crops and other agricultural 
products….32 Similarly, the Cotton Development Master Plan for 2015 -20 sets targets for areas (in 
this case, an increase in area planted) and states that assistance will be provided through low -
interest loans and improved infrastructure.33 
… 
APPENDIX TABLES  
Table A1.  2 - Merchandise imports by product group, 2007 -11 
(US$ million and %)  
  2007  2008  2009  2010  2011  
Total imports (US $ million)  62,764.7  80,713.8  69,948.8  84,838.6  106,749.9  
 % of total  
Total primary products  27.5 29.0 25.5 26.5 28.3 
 Agriculture  9.4 9.8 10.8 12.1 12.4 
… … … … … … 
 2631 Cotton (other than linters), not 
carded or combed  0.4 0.6 0.5 0.8 1.0 
… … … … … … 
Source: UNSD Comtrade database, SITC Rev.3.  
                                                
32 USDA Foreign Agricultural Service (2012a).  
33 USDA Foreign Agricultura l Service (2012b).  TN/AG/GEN/34/ Rev.8/Add.1 TN/AG/SCC/GEN/13/Rev.8/Add.1  
- 63 - 
  Table A3. 3 - Preferential tariff averages for selected product groups, 2013  
 No. of 
lines  MFN 
applied  ATIGAa AK 
FTAb AC 
FTAc AANZ 
FTAd AI 
FTAe AJ 
CEPAf VJ 
EPAg 
Description   (%) (%) (%) (%) (%) (%) (%) (%) 
Total  9,558  10.4 2.0 7.5 4.2 8.2 9.1 7.8 7.6 
HS 01 -24 1,594  17.4 2.8 10.5 4.7 13.5 15.5 14.3 14.5 
HS 25 -97 7,964  9.0 1.8 6.9 4.1 7.2 7.8 6.5 6.2 
By WTO category           
WTO Agriculture  1,298  17.4 3.4 10.4 5.4 12.6 15.1 13.8 14.0 
 …  …  …  …  …  …  …  …  …  … 
 Cotton  5 6.0 0.0 3.0 3.0 3.0 6.0 3.0 3.3 
 …  …  …  …  …  …  …  …  …  … 
a ASEAN Trade in Goods Agreement (Circular No. 161/2011/TT -BTC).  
b ASEAN -Korea Free Trade Agreement (Circular No. 163/2011/TT -BTC).  
c ASEAN -China Free Trade Agreement (Circular No. 162/2011/TT -BTC).  
d ASEAN -Australia New Zealand Free Trade Agreement (Circular No. 44/2012/TT -BTC).  
e ASEAN -India Free Trade Agreement (Circular No. 45/2012/TT -BTC).  
f ASEAN -Japan Comprehensive Economic Partnership Agreement (Circular No. 20/2012/TT -BTC).  
g Viet Nam-Japan Economic Partnership Agreement (Circular No. 21/2012/TT -BTC).  
Source:  WTO Secretariat calculations, based on data from the Ministry of Fi nance, Circular 
No. 193/2012/TT -BTC and Circular Nos. as in footnotes (a) to (g). 
__________