TN/AG/SCC/W/19  
WT/CFMC/45  
 
30 August 2013  
(13-4593)  Page: 1/9  
Sub-Committee on Cotton    
 
 IMPLEMENTATION OF THE DEVELOPMENT ASSISTANCE ASPECTS OF THE  
COTTON-RELATED DECISIONS IN THE 2004 JULY PACKAGE AND  
PARAGRAPH 12 OF THE HONG KO NG MINISTERIAL DECLARATION 
ITEM 2C - COHERENCE BETWEEN TRADE AND DEVELOPMENT ASPECTS:  
UPDATE ON THE DEVELOPMENT ASPECTS OF COTTON 
Report of the 19th Round of the Director-General's  
Consultative Framework Mechanism on Cotton1 
21 June 2013 
  
1  INTRODUCTION 
1.1.  Pursuant to paragraph 12 of the Hong Kong Ministerial Declaration, this is the Fifteenth 
Secretariat Progress Report to the Sub-Committ ee on Cotton on the Development Assistance 
Aspects of Cotton. Since the last Progress Report, there have been several developments. First, on 
21 May 2013, the Director-General circulated the 15
th version (WT/CFMC/6/Rev.14) of the 
Evolving Table on Cotton Development Assistance and the 7th version (WT/CFMC/21/Rev.6) of the 
Table on Domestic Cotton Sector Reforms, under cover of his letter addressed to Ambassadors and 
Permanent Representatives. Second, the 19th Round of the Director-General's Consultative 
Framework Mechanism on Cotton (DGCFMC) took place on 21 June 2013. Finally, WTO Members have maintained an active interest on all aspects of the cotton dossier, as mandated in the 
1 August 2004 General Council Decision and in the 2005 Hong Kong Ministerial Declaration. 
2  NINETEENTH ROUND OF THE DIRECTOR -GENERAL'S CONSULTATIVE FRAMEWORK 
MECHANISM ON COTTON  
2.1.  The Chairman (DDG H.V. Singh) welcomed all participants to the 19
th Round of the DGCFMC, 
in particular the focal points of the C4 countries, Ambassador Vokouma, Permanent Representative 
of Burkina Faso and C4 Coordinator, and other C4 participants, as well as Ambassador John Adank, 
Chairman of the Committee on Agriculture in Sp ecial Session (CoA SS) and of its Sub-Committee 
on Cotton (SCC). 
STATEMENT BY THE C4 COORDINATOR REPRESENTATIVE 
 
2.2.  Ambassador Vokouma of Burkina Faso, speaking on behalf of the C4 countries and other 
cotton-producing countries from Africa, LDCs and ACP, underscored that since the Eighth 
Ministerial Conference (MC8), in December 2011,  no progress had been registered on the trade 
aspects of cotton, failing to respect the instructions  by Ministers in that regard at MC8.  He urged 
all stakeholders on the cotton issue to show flexibility in order to achieve consensus and signalled 
that the C4 was working to include the issue in th e LDC package for the Bali Ministerial (MC9).  He 
also referred to the upward trend of cotton production registered in the last season in the C4 countries and the continuation of the positive trend for the 2013/14 season. He paid tribute to 
Director-General Pascal Lamy, the Chairman and the Secretariat for their commitment and efforts, 
even if the results reached did not reflect the initiatives and actions undertaken.  He also thanked Ambassador John Adank for his role as Facilitator amongst the different stakeholders. 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  2.3.  The representative of Nepal, on behalf of  the Group of LDCs, mentioned that on 30 May 2013 
the LDC Group submitted a package of LDC delivera bles for MC9 in which cotton was an important 
element.  He underlined that a significant ga p existed between the needs expressed by cotton-
producing countries and the commitments made by development partners. He also stressed that 
the gap between commitments and disbursements in  the Evolving Table should be bridged. He 
said the LDC Group thanked the developing countries involved in the development and strengthening of South-South cotton co-operation and encouraged other Members to also engage 
in this co-operation for its further enhancement. 
2.4.  The representative of Uganda, on behalf of COMESA, said that notwithstanding the potential 
benefits and comparative advantage of Africa in developing the cotton-to-clothing value chain, 
very few African countries had managed to assert themselves in the world market.  As a result, 
the Continent remained a net importer of textiles and clothing in spite of being a net exporter of 
cotton. He pointed to the high cost of cotton production in Africa, which was mainly due to: high input costs; poor farm practices, extension and marketing services; lack of market information; 
inadequate credit programmes; weak farmer orga nizations, and lack of co-operation between 
farmers and ginners. He considered that the DGCF MC was one of the major achievements on the 
management of support to the cotton sector in th e last decade, helping improve the exchange of 
information and coordination of aid between the donor community and recipient countries. He 
stressed that COMESA was developing a Regional Strategy for the cotton-to-clothing industry, 
involving all stakeholders along the value chain and aligned to the Comprehensive Africa Agricultural Development Program (CAADP). He highlighted that the Regional Strategy could help 
improve donor coordination and the identification, monitoring, reporting and evaluation of support 
interventions, enhancing cotton production and farmers income, improving competitiveness in the production of cotton, textiles and clothing, increasing value addition and value creation across the 
value chain that included cotton by-products, and developing a regional and global partnership 
conducive to expanding regional and international trade in the cotton-to-clothing value chain products. 
2.5.  The representative of Zimbabwe associated himself with the statements made by the C4 and 
COMESA.  In particular, he considered that the latter's Regional Strategy could induce employment 
creation and greater export earnings, with positive poverty alleviation consequences. He expressed concern that Zimbabwe and other African countries had not benefitted much from cotton 
development assistance, but was hopeful that the COMESA Regional Strategy might unlock 
opportunities for support to the cotton sector and promote regional integration and international trade. 
2.6.  The representative of Nigeria reiterated hi s full support to the demands and positions of the 
C4 and other LDC countries and shared the view that cotton was a vital component of the Doha 
Round agriculture negotiations and a central outstanding issue. He stressed that Nigeria 
supported, and remained fully engaged in, the DGCFMC. 
2.7.  The representative of Cameroon highligh ted the importance of taking into account the 
regional dimension of development assistance to the cotton sector and reaffirmed the need to 
consolidate and enhance the DGCFMC. 
2.8.  The representative of Cuba noted that, ev en if some progress had been registered on the 
cotton issue, concrete action was needed to finding a definitive solution to the problem faced by 
cotton-producing countries, particularly in Africa, as set out in the 2005 mandate of the Hong Kong 
Ministerial Conference. 
TRADE POLICY ASPECTS OF COTTON 2.9.  The Chairman of the CoA SS and of its Sub-Committee on Cotton, Ambassador John Adank of 
New Zealand, provided an overview of the state of play on the agriculture negotiations, making 
reference to the three proposals tabled recently  by the G-20 and the G-33, which constituted a 
positive development for the negotiating process. He said that progress had been made towards framing the debate appropriately and identifying, on an incremental basis, elements of possible 
convergence. He underscored that with regard to the state of preparations for the Bali Ministerial, 
he would continue informal consultations aimed at narrowing differences and identifying potential landing zone options. TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  2.10.  Referring specifically to cotton, he said that cotton would in no doubt be an element of the 
discussions to be held on the way to MC9.  The cotton issue was one of the four areas in the package for the Bali Ministerial that the LD C Group had tabled on 31 May 2013 in document 
TN/C/W/63.  He noted that the C4 would be subm itting a proposal, consisting of an updated MC8 
proposal which, on the trade side, asked for the elimination of export subsidies, the 
implementation of DFQF market access and a standstill on trade-distorting domestic support for cotton.  The C4 had assured him that the updated and reasonable proposal would take into 
account changes that had occurred since 2011, namely: cotton world prices, current Farm Bill 
discussions and other recent world cotton market developments. He said it was worth noting that a number of changes in current US cotton support pr ogrammes were part of the draft new Farm Bill 
and, therefore, those discussions would have to be followed with attention as they would affect the 
discussions on the trade policy aspects of cotton. He  reaffirmed that there was a need for on-going 
dialogue and engagement between all key cotton players in the context of the new dynamic created by the recent proposals tabled in the agricultural negotiations group. 
2.11.  He concluded by commending the work of the DGCFMC, underlining that the collaboration 
between the development and the trade tracks of  cotton had been exemplary since 2004, and that 
it was in large part due to the able and inclusive leadership of DDG H.V. Singh. 
2.12.  The representative of Brazil, speaking on behalf of the G-20 reaffirmed the Group's 
solidarity with the C4 countries and its commitments to work with them in finding an agreement in 
accordance with the mandate agreed at the 2005 Ho ng Kong Ministerial Conference. In that vein, 
he informed that the elimination of export subsidies for cotton was included in the G-20 proposal 
on export competition for an early harvest at the Bali Ministerial Conference. 
2.13.  Speaking in his national capacity, the representative of Brazil highlighted his country's 
disappointment at the lack of progress in the cotton dossier. He noted that the current situation of 
low subsidies levels to cotton may prove elusive, as it corresponded to the current world price 
situation rather than to effective reforms of cotton policies in developed countries. When the boom years of high prices came to an end, the resumption of distorting support programmes should not 
be repeated again, recalling the grim situation of the early 2000s with negative repercussions, in 
particular, for African cotton producers. Brazil was following with great attention discussions in Washington on a new Farm Bill, and was concerned that certain pieces of legislation under consideration may maintain important distortions for cotton producers worldwide. 
2.14.  The representative of Togo, on behalf of WAEMU countries, mentioned that the DGCFMC 
was the ideal framework to improve the exchange of information and coordination of aid to the 
cotton sector between the donors' community and beneficiary countries. She considered that the 
progress realized in the DGCFMC should be sustained, deepened and capitalized.  WAEMU Member 
States believed that development assistance to the cotton sector was essential but not a substitute to a trade solution, which remained fundamental for the future and sustainability of their cotton 
and textiles industries. 
2.15.  The representative of Morocco expressed hi s appreciation for the information provided by 
Ambassador Adank and supported the statement by the C4, ensuring the latter of his full support 
in searching a long-lasting solution to the cotton issue. 
2.16.  The representative of India said that her country was of the view that the Bali Ministerial 
Conference provided an important opportunity for developed countries to deliver on their 
commitments regarding the cotton issue.  She called upon Members to engage effectively and 
constructively towards achieving a meaningful and substantive outcome on cotton, aimed at 
eliminating all forms of export subsidies and achieving an ambitious reduction in trade-distorting domestic subsidies for cotton production, as well as DFQF market access for cotton exports 
originating from LDCs, as per the 2005 Hong Kong mandate. 
2.17.  The representative of Australia considered that given the significant contribution of the 
agriculture sector in many developing countries, reducing distortions in world markets should 
remain a critical goal. She underscored that her country supported the need to having agriculture 
elements in the Bali deliverables and urged Members' engagement on all agriculture issues. TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  2.18.  The representative of China said that his country was pleased to see that cotton was one 
component in the LDC proposal for MC9 and reiterated that the cotton issue should be finally 
resolved in accordance with the mandate stipulat ed in the 2005 Hong Kong Ministerial Declaration. 
2.19.  The representative of Pakistan fully associated herself with the statements made by the 
G-20 and the C4 Coordinator. Subsidies in developed countries were detrimental for small cotton 
farmers in developing countries and she hoped that there would be a solution to the cotton issue soon. 
2.20.  The representative of the United States said that his delegation was having consultations 
with Members to better understand the best way to move forward on the cotton issue.   
2.21.  The representative of Cuba intervened to su pport the statement made by Brazil on behalf of 
the G-20 and thanked Ambassador Adank for his de tailed summary of the state of play of the 
agriculture negotiations. 
2.22.  The representative of Burkina Faso mentioned that, based on the statements just 
expressed, he felt confident that all stakeholders would be able to fulfil the 2005 Hong Kong 
mandate.  He stressed that the DGCFMC was the mo st interesting platform to debate on the cotton 
issue and called upon all participants to contribute to its functioning and to the improvement of its efficiency. 
COTTON PRODUCTION AND TRADE TRENDS 
2.23.  The Executive Director of the International Cotton Advisory Committee (ICAC), 
Mr. Terry Townsend, made a detailed presentation on  the state of play of world cotton production 
and trade trends. He said that world cotton prices  were forecasted to remain above average and 
even to rise moderately in the next season. He pointed out that one of the reasons for that was 
the record levels of world cotton stocks due, in particular, to China's accumulation of cotton in its national reserve since 2011, in order to stabilize prices.  That, however, had resulted in reduced 
mill use in China, creating in turn market opportunities for textiles producers in other countries. 
Mr. Townsend stressed that when China decided to release its cotton reserves, world trade would inevitably slow down, given the importance of  China as the world's number one producer and 
importer of cotton, bringing uncertainty in the markets.   
2.24.  Focusing on the situation in Sub-Saharan Africa, he underscored that cotton production had 
declined as a consequence of the economic cr isis and ensuing recession, but it had been 
recovering lately, and the forecast for the region in the 2013/14 season was pointing to both 
production and export growth. In percentage terms, cotton exports from Sub-Saharan countries 
were expected to account for 15% of world trade in the next season. 
2.25.  He highlighted that production growth in  the 40 cotton-producing countries in Sub-Saharan 
Africa was due exclusively to increased area and not as a result of better yields. Compared to the 
average yield worldwide at 750 kg/ha, cotton yield in the CFA zone was only 380 kg/ha, whereas in Sub-Saharan countries it was even lower at 300 kg/ha. He emphasized that the main reason for 
those low yields was the ability of farmers to apply the optimal level of fertilizers. He believed the 
technology package employed by African farmers was good and extension was fair, but the biggest 
problem was the availability of inputs. He explai ned that, on average, Sub-Saharan African cotton 
producers were using around 40 to 50 kg of nitrog en per hectare, compared to three to four times 
that amount used in major exporting countries, stressing that the underlying factor for low yields 
in Africa was the poor access to inputs. 
2.26.  He referred to aspects that could facilitate  cotton trade, showing some practical examples of 
very voluminous documentation required to comp ly with current administrative procedures. He 
signalled that there were 34 different phytosanitary certificates in the world, and underscored that cotton exporters could benefit from simplified and harmonized procedures, such as using a 
standard electronic phytosanitary certificate that the FAO was finalizing.  He also suggested that 
cotton exporters should start handling and getting familiar with electronic documents, and using a world bale numbering system.  TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  2.27.  He underscored that cotton had become more expensive than polyester, its traditional 
competitor, and that world cotton production was roughly half of that of polyester.  The share of cotton in the world fibre market, which had been declining in the past years, was at 31%. He mentioned that climate change would inevitably affect cotton production in many countries in the 
future, not only with regard to extreme climatic ev ents, but also in terms of insect contamination. 
He finally referred to targeted chemistry and biotechnology Bt cotton as the best ways to fight pests affecting cotton production. 
2.28.  The representative of China commented that his country, as the biggest producer and 
importer of cotton in the world, thought important to have stable prices and avoid large 
fluctuations such as the markets had witnessed in recent years. He underlined that price liberalization for China's internal cotton market was important, not only for producers but also for 
the textile industry. He highlighted that his country's imports of cotton were on the increase, in 
particular, from the C4 and other African countries, and he expected that trend to continue in the future. 
2.29.  The representative of Pakistan affirmed th at the volatility of prices had been harmful for 
poor cotton farmers and that the textile industry in her country had benefitted from China's policy 
to stabilize cotton prices. 
2.30.  The representative of Benin said that there were two additional elements to consider in 
cotton production, namely post-harvest pests and severe climatic conditions.  He suggested 
exploring the possibility of setting up a risk management mechanism to ensure the sustainable production of cotton in African countries. 
2.31.  The representative of the United States referred to the high prices of cotton which were 
beneficial to producers, but was concerned with the prospects of price fluctuation in the future, 
particularly in relation to the high level of stocks held by China and the negative impact on the 
markets when those stocks were to be released. He also stressed that his country would be 
interested in addressing the trade facilitating aspects and encouraged Members to explore avenues 
on how best to harmonize procedures. 
2.32.  The representative of the European Union made reference to similar constraints in the value 
chain from cotton to textiles and apparel as highlighted in the framework of the preparations for 
the 4th Global Review on Aid for Trade, namely: access to finance, infrastructure and availability of 
inputs, so she said it was interesting to listen to some concrete suggestions to address those 
issues. 
2.33.  The Chairman said that international markets had benefitted from cotton price stability, but 
some careful management of stocks and prices woul d be required in the future.  He also requested 
Mr. Terry Townsend to make available on the ICAC's website or provide a link to participants all 
relevant information on the performance of the cotton sector by individual countries, particularly in Africa, in relation to production, yields, exports and imports.  Furthermore, he believed it would be 
useful to indicate suggestions to facilitate documentation processing and other practical guidelines 
to harmonize and accelerate procedures. He stressed that the future scope of work in the DGCFMC should include making concrete proposals and suggestions in that regard, looking at some case studies which may help identify practical and pragmatic solutions, and areas where immediate 
action may be undertaken. 
DIRECTOR-GENERAL'S EVOLVING TABLE ON COTTON DEVELOPMENT ASSISTANCE 2.34.  The Chairman, in introducing item 5 of th e agenda, made reference to the fifteenth version 
of the Evolving Table (ET), circulated to Memb ers by the Director-General on 21 May 2013 and 
contained in document WT/CFMC/6/Rev.14.  He invi ted Ms Annet Blank, Head of the LDC Unit in 
the Development Division, to highlight the key points of the last revision of the ET. 
2.35.  Ms Annet Blank underscored that the last version of the Evolving Table had been prepared 
on the basis of inputs from Brazil, the European Union and several of its member States (France, 
Germany and the Netherlands), Japan and the United States.  Inputs had also been received from several multilateral organizations, namely: the CFC, FAO, IMF, ITC, UNIDO and the World Bank. TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  2.36.  She pointed out that in Part I of the ET , under the ongoing activities of cotton specific 
development assistance, the total value of commitments had increased, amounting to 
US$365 million, whereas the total value of disbursements stood at US$131 million.  She highlighted that an improvement in the ratio of total disbursements to total commitments had 
been registered, to 36%, but emphasized th e importance to keep the momentum and the 
necessity to reduce the gap even further.  As rega rds Part II, concerning ongoing activities in the 
framework of agriculture and infrastructure-r elated development assistance, the value of 
commitments had increased markedly from the pr evious version, thanks mainly to the World 
Bank's reporting, to reach US$5.43 billion.  The total value of disbursements had increased similarly to attain US$1.59 billion and the ratio total disbursements/total commitments also improved to 29%. 
2.37.  With respect to information on completed activities, she reported that the total value of 
commitments in Annex 1, listing activities under specific cotton development assistance, was US$340 million and the actual disbursements related to those activities amounted to 
US$321 million.  Turning to the completed activities  in Annex 2 under the framework of agriculture 
and infrastructure-related development assistance, the total value of commitments had more than doubled to reach US$775 million, whereas the to tal value of disbursements had risen to 
US$773 million.   
2.38.  She highlighted that the discussions on the qualitative dimension were having a positive 
effect on the ET, not only because the gap between commitments and disbursements had diminished, but because there were also fewer cells  in blank in the Table, showing that reporting 
had improved. She added her voice to the Chairman's in requesting donors to continue the positive 
trend and enhance yet further their reporting in order to close the gap more meaningfully. 
2.39.  Regarding the notification of National Cotton Sector Focal Points, she stated that their 
number had reached the double-digit number of 10, but more submissions were needed and 
therefore urged cotton proponents to communicate  the names and coordinates of their national 
focal points to improve the information channels with assistance providers.   
2.40.  Speaking on the question of the qualitative assessment of assistance, she stressed it was 
essential that, on the one hand, all stakeholders endeavour to enhance their inputs to provide the 
most accurate quantitative picture of all the projec ts listed in the ET, and, on the other hand, that 
participants deepen the end-results' analysis of the activities reported in a qualitative dimension, 
in order to enrich the numerical values. 
2.41.  The representative of the European Union encouraged other Members which were providing 
significant assistance to the cotton sector to report their activities in the ET. She introduced a 
colleague from the Development and Cooperation Directorate General in Brussels, who made 
reference to previous assistance to cotton by the EU and to a new Programme worth €11 million which had begun in 2013, with the FAO and ITC as implementing partners, under the umbrella of 
the Action Framework for the EU-Africa Partnership on Cotton.  He stressed that the objective of 
the programme was to improve the institutional envi ronment, internal organization, efficiency and 
competitiveness of cotton value chains in Africa.   
2.42.  The representative of the United States mentioned that the C4 countries had expressed 
interest in meeting US' producers and that encount er could yield positive results. He referred to 
Part II of the ET, relating to infrastructure-related development assistance, and underscored that the DGCFMC should look at the concrete results of the activities on the ground in a qualitative 
dialogue between donors and recipients. 
2.43.  The Chairman agreed with the statement by the US and with some comments made by 
Uganda earlier. There was scope to enhance th e ET further by exploring the possibility of 
organizing a half-day activity to focus on the implementation of the various programmes from 
multiple perspectives, taking into account case studies, including success stories, delays and other constraints, and also more broadly looking at policies, which had a bearing on the operational status of the activities. 
2.44.  The representative of Togo, on behalf of the WAEMU countries, highlighted that the 
configuration of the sub-region had made it indisp ensable to have a shared regional approach in TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  order to strengthen and complete national initiatives. WAEMU had decided, with the financial 
assistance of the EU and the technical assistance of the ITC, to give impetus to its cotton sector by creating a new regional strategy for the development of the cotton-textile industry aimed at improving the productivity and quality of cotton;  sustaining the development and promotion of 
cotton and textiles in the region and international markets; and developing the local 
transformation of the cotton fibre.  She was conv inced that the regional strategy for cotton would 
favour the harmonization of donors' initiatives with the priorities of the regional stakeholders, 
operationalize commitments and plan and monitor activities. She invited development partners to 
align their regional interventions with the st rategic priorities set out by WAEMU through a 
coordination structure which had been put in place to guide, adjust, capitalize and optimize activities. With respect to the Evolving Table, she signalled the double counting of certain activities 
which were financed by donors, but were also listed under the multilateral agencies in charge of 
the implementation and technical support in the field. She finally requested how the commitments 
under the IMF and the World Bank in favour of certain WAEMU countries could be mobilized for the 
cotton sector.  
2.45.  The representative of Burkina Faso suggested that the EU's Project "Syprobio – 
Improvements in incomes and food security of producers through diversified organic production 
systems FOOD/2007/144-063" on page 2 of the ET, in  Part I, for €2,959,120 in favour of Burkina 
Faso, be transferred to Part II, as it concerned agriculture and infrastructure-related development 
assistance. He also suggested that listing the coordinates of focal points from donor countries as well as the beneficiaries could foster a more interactive dialogue between interested parties.  
2.46.  The representative of Mali requested the US to submit information on the disbursement 
status of various projects entitled "Millennium Challenge Corporation Board" in Part I in favour of 
several countries. She also proposed that, following the example of Brazil, other South-South 
cotton co-operation partners, namely China and India, submit details of their assistance to be 
reflected in the Evolving Table. 
2.47.  The representative of Benin mentioned that  the authorities in his country did not have any 
information concerning the project from the Netherla nds registered on page 3 of the ET in Part I, 
for €4,960,000 in favour of Benin and with €3,720,000 disbursed, so he asked for clarification.  Likewise, he said that the project from the World Bank on page 13 in Part III – ongoing activities, 
for US$9,607,494 had been completed in 2011 and should therefore be moved to Annex 3. 
2.48.  The representative of the United States sa id comments from recipient countries in relation 
to focal points and trying to make assessments of the situation on the ground were very 
encouraging.  He stressed that given the very larg e amounts available in Part II on infrastructure, 
he considered it useful to look at how and whether infrastructure-related assistance was indeed 
having an impact on the cotton sector or not, and thought it pertinent to conduct such analysis in an informal way. 
2.49.  The representative of the FAO specified that she expected disbursements in relation to 
FAO's project in Part I of the ET for US$3,300,000 to reach between 16% and 20% by the end of 
the year. 
2.50.  The Chairman, in reference to a point rais ed by the representative of Togo on double 
counting of certain activities on the ET, highlighted that the Secretariat had discussed the issue 
specifically with the European Union, because while funding was in fact provided by the donor, the activities were implemented through certain multilateral agencies. The idoneous method the 
Secretariat had followed was to mark with an asterisk all the projects falling into this category, 
keeping them listed under the multilateral agencies concerned with an explanatory footnote in the summaries of Part I and Annex 1, in order to reflect in the ET the useful information of identifying 
the implementing agency. On the question of focal points, he pointed to the inquiry points 
registered in SPS and said there could be a possib ility to use a similar kind of format to improve 
the communication channels.  He praised the improv ement in donors' reporting on their activities 
in the ET and on disbursements.   
2.51.  He considered useful to make a more in-depth assessment of how the activities in the ET 
were monitored and implemented, and evaluate the positive role of infrastructure-related 
assistance to clarify the situation in the field, analysing concrete results and proposing solutions to TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  address constraints.  He would be holding consultations to explore the most pertinent framework 
to move forward on the issue, not necessarily in a formal setting.  He ended the discussions under item 5 by underlining the importance of the participation of the focal points from the C4 countries in the meeting, which had been made possible by the much appreciated financial assistance from 
China. He highlighted there were still challenges to be addressed collectively, including the 
necessity to bridge the commitment/disbursement gap and for all cotton proponents to identify 
their focal points.   
SOUTH-SOUTH COTTON COOPERATION 
2.52.    The representative of Brazil made a de tailed presentation on his country's technical co-
operation activities in Latin America, the Caribbean and Pacific region, and Africa.  He said that in 
2012, more than 40 countries had benefitted from Brazil's South-South co-operation activities. He 
referred, in particular, to the project "Support to the Development of the Cotton Industry in the C4 
Countries" and two other related regional projects planned in Southern Africa (in Malawi and Mozambique) and East Africa (in Burundi, Kenya, Tanzania and Uganda).  He made available to 
participants his presentation in the three WTO official languages.  He underscored that Brazil was 
not to be considered as a donor, but rather as a South-South Co-operation partner. 
2.53.  The representative of India updated participants about India's Cotton Technical Assistance 
Programme (C-TAP) launched in March 2012 aimed at providing technical assistance on cotton 
growing and extension management in the C4 countries, Malawi, Nigeria and Uganda. The C-TAP had also created a database of stakeholders to build a regional synergy amongst participating countries. He said that future planned activities included technical assistance for setting up a bio-
pesticide laboratory in Uganda, a regional cluster and training centre on post-harvest and ginning 
technology, the development of an ICT-based pe st and disease surveillance system, training 
programmes for farmers and skills enhancement in the textiles sector to promote upstream and 
downstream activities. 
2.54.  The representative of Chad endorsed all the statements made by the C4 Coordinator and 
paid tribute to the Director-General and the Se cretariat for their commitment and involvement in 
the work of the DGCFMC.  He expressed his appreciation to South-South Cotton Co-operation 
partners, in particular Brazil, China and India for all their efforts. 
2.55.  The Chairman underlined that South-South Cotton Co-operation had emerged as a 
substantive component of the development dimens ion of the rules-based multilateral trading 
system embodied by the WTO.  He encouraged other Members in a position to do so to extend that 
kind of co-operation. 
DOMESTIC COTTON SECTOR AND OTHER REFORMS / NATIONAL FOCAL POINTS 
2.56.  The Chairman introduced the item making reference to the seventh version of the Table on 
Domestic Cotton Sector Reforms for Enhanced De velopment Assistance which had been circulated 
on 21 May 2013 as document WT/CFMC/21/Rev.6, with new inputs from Benin and Mali and the 
continuation of the prevailing initiatives in Burkina Faso and Chad. 
2.57.  The representative of Benin underscored the importance of the cotton sector in his country, 
which represented 75% of its export revenue and 14% of its GDP.  He said reforms undertaken 
since the previous year had contributed to a sign ificant production growth. In the 2012-13 season 
cotton production had reached 240,000 tonnes, whereas for the 2013-14 season production was 
estimated at 612,000 tonnes. He explained that reforms had revolved around control, quality and classification of cotton, as well as the provision of inputs, and the organization and restructuring of 
cotton marketing in Benin.   
2.58.  The focal point of Chad mentioned that cotton production was the first source of export 
income in the country, but cultivated areas had significantly declined in the past years. He said 
that was the result of unfair competition biased by subsidies and the negative effects of cotton 
price fluctuations. He underlined that the Cotontchad, the national company managing cotton production and marketing in Chad, had been di ssolved and a new company called "Cotton Tchad 
Société Nouvelle (Cotontchad S.N.)" had been created. The government's reforms were aimed at 
increasing cotton productivity and competitiven ess, enhancing the producers' income on a TN/AG/SCC/W/19 • WT/CFMC/45 
 
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  sustainable basis, developing production consistent with environmental protection and 
maintenance of soil fertility, and establishing an efficient partnership between producers and the new cotton company. He stressed that the company had a five-year business plan ranging from 2012 to 2016, to increase gradually cotton seed production to reach 300,000 tonnes, 
professionalize producers and their organizations,  and develop the inter-professional management 
skills. 
2.59.  The focal point of Mali said that following the tender process for the privatization of the 
Compagnie Malienne pour le Développement des Textiles (CMDT) launched in February 2010, 
which was declared unsuccessful, the transition government had promised to launch a new cotton tender. In that regard, a letter of intention had been elaborated, putting emphasis on the clarification of the relations between the CMDT and the union of cotton producers, the analysis of 
different experiences of reforms in neighbouring  countries and the improvement of accountability 
and management.  A timetable had been set, by the end of which a report would be presented to the authorities to follow further developments in the process. He informed that cotton production 
was expected to reach 522,000 tonnes in the 2013/14 season, that the basic purchase price for 
cotton had been fixed at 250 CFA/kg, and that the government had provided subsidies to farmers to obtain agricultural inputs. 
2.60.  The focal point of Burkina Faso said that his country was pursuing measures for the reform 
of the cotton sector to improve its competitiveness. He stressed that, despite the negative 
consequences of climate change and exogenous shocks such as fluctuations on world prices and exchange markets, cotton production in the 2012/13 season had attained 630,000 tonnes. 
A support fund for cotton inputs had been set up, under the responsibility of the Inter-professional 
Association of Cotton, and managed by a special legal stance.  The expected optimal resources from the fund were around CFA 30 billion, of which CFA 10 billion had been mobilized in 
February 2013 by the Government. He underlined that the fund would start functioning at the 
beginning of the 2014/15 season. 
3  CONCLUSION 
3.1.  The Chairman concluded the meeting by sa ying that the discussions had been useful and 
emphasized that the Secretariat would keep as sisting the process in the Director-General's 
Consultative Framework Mechanism and continue to monitor and report to Members on new updates regarding activities in the Evolving Table. Similarly, progress shall continue to be 
monitored as regards the implementation of dome stic cotton sector reforms. The Consultative 
Framework shall pursue and amplify the dynamics started in its review of the qualitative dimension of activities listed in the ET. He emphasized that South-South Cotton Cooperation had emerged as 
a key aspect of the implementation of the mand ate on the development-assistance aspects of 
cotton and that there was wide recognition of that important dimension of the work in the DGCFMC. The significant contributions of Brazil, China and India were acknowledged with 
appreciation by all participants. He underscored that the Secretariat would prepare a report on 
cotton for the forthcoming Ninth Ministerial Conference in Bali, taking into account that the subject was an integral part of the package that the LDC Group was proposing for MC9.    
3.2.  He highlighted that over the past eight years participants had managed to move forward on 
the development aspects of cotton by forging a solid collaborative process, where all parties had 
engaged constructively and in partnership, enha ncing the dialogue, improving the exchange of 
information, monitoring the numerical values of assistance allocated to the cotton sector and 
making the process a vibrant evolving example of  constructive engagement in the development 
dimension of the work in the WTO. On behalf of the Director-General, he thanked participants in the DGCFMC for their openness, engagement and posi tive attitude to help move the consultations 
forward. He said he was sure the new Director-General and his new team would continue that 
trend and keep the cotton issue high on their agenda  priorities.  He suggested that the next round 
of consultations take place before the last General Council meeting prior to MC9 and said the Secretariat would consult with regard to the specific dates. 
 
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