TN/AG/39  
TN/AG/SCC/10  
 
18 September 2018  
(18-5754) Page: 1/3 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton    
 
 
NINTH DEDIC ATED DISCUSSION OF T HE RELEVANT  
TRADE -RELATED  DEVELOPMENTS FOR COTTON  
19 JUNE 2018  
Report1 by the Chairman , Ambassador John Ronald Dipchandra (Deep) Ford  
1. Pursuant to the Bali Ministerial Decision on Cotton  of 7 December 20132 and the Nairobi 
Ministerial Decision on Cotton  of 19 December 20153, the 9th Dedicated Discussion of the Relevant 
Trade-Related Developm ents for Cotton  took place on 19 June 2018 . The Dedicated Discussion was  
held back -to-back with the 29th Round of the Director -General's Consultative Framework Mechanism 
on Cotton  (DGCFMC), de aling with  the development  assistance aspects of Cotton . 
2. In my introductory remarks , I highlighted  the importance of the Dedicated D iscussion s and 
of Cotton  negotiations  for Least Developed  and African countries. I noted that the Dedicated 
Discussion, although not a negotiation forum, provides a unique opportunity to advance awareness 
and understanding  of Members' Cotton  trade -related policies from a WTO perspective and to have a 
constructive exchange of information on the global Cotton  market , helping Members to lay the 
foundations for negotiations and pave the way to success.   
3. As is customary, I  reported on the state of play in Cotton  negotiations based on consultations 
held since I took office. I noted that several Members, including the Cotton 4 (C4): (1) regrette d the 
absence of an outcome on Cotton  at MC11 and acknowledged the critical importance of Cotton  
Domestic Support in the negotiations; and (2) reaffirmed their preparedness to work i ntensively and 
collectively on Cotton , including possibly as a stand -alone issue, while referencing past propos als 
and positions.  
4. I also noted that there was broad agreement among Members on the need for updated 
information and data to inform Cotton  negotiations . I myself stressed once again the crucial role of 
up-to-date data on Members' policies and support level s in the negotiation, especially in terms of 
Domestic Support , and called for Members' efforts in th at regard.  
5. I noted that several Members had stressed the need to approach the negotiation process in a 
more flexible and pragmatic manner, for instance, thr ough an incremental approach or small steps . 
I cautioned, however, that this should not affect overall ambition and the fundamental goal of 
creating a more competitive market environment that fosters higher levels of development.   
6. Under the agenda item " General Statements from Members ", Benin , on behalf of the C4 
stressed  the vital eco nomic and social importance of Cotton  to African LDCs . The C4 noted that  a 
large number of households , represent ing 5% of the population in Sub -Saharan Africa , are employed 
in the sector. Although the income  generated by Cotton  in Africa  is significantly smaller than in other 
major Cotton  producin g countries, the C4 noted that Cotton  contribute d to job creation, food 
security, and the integration of African Cotton -producing and  exporting countries into the multilateral 
trading system .  
                                              
1 This report is circulated under the Chair's own responsibility.  
2 Document WT/MIN(13)/41 – WT/L/916, dated 11 December 2013 . 
3 Document WT/MIN(15)/46 – WT/L/981, dated 21 December 2015 . TN/AG/39 • TN/AG/SCC/10  
 
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  7. The C 4 regretted the lack of  an outcome on Cotton  at MC11,  a topic under negotiat ion for over 
15 years. Recalling the Hong Kong  Ministerial agreement  to treat Cotton  ambitiously, expeditiously 
and specifically , the C4 urged all Members to work towards  a substantive and measurable outcome 
on Cotton  by MC12, in particular on domestic suppor t, where no results ha d been achieved thus far. 
To th at end, the C4 noted the imp ortance of having a comp rehensive  analysis of the  impact of 
domestic support to Cotton  with updated information by category of support ( boxes ), as well as 
information on Cotton  value of production.   
8. The C4 further noted the importance of implementing  the Bali and Nairobi  Ministerial 
Decision s, as instructed by C4 Ministers at the 2017 Cotonou Ministerial Conference.  In that context,  
the C4  invited both developed and developing Members to update their schedules by incorporat ing 
their commitments on DFQF access for Cotton and Cotton -related  products as well as  export 
subsidies entitlements elimination.  The C4 also invited Members to collectively  discuss to what extent 
the scope of DFQF regime c ould be extended to cover more Cotton -related  products . 
9. Togo ec hoed the C4 statement  and reiterated the importance o f Cotton  for African  econom ies, 
noting that Cotton  was a driver of investment in Cotton -producing  areas given the diversity of its 
products, its potential for transformation and value  addition . Togo noted that Cotton  account ed for 
nearly 40%  of its export earnings , contribut ing significantly to its GDP. Togo noted that it was 
active ly searching for solutions  at the sub -regional level for its Cotton  producers. The 11th meeting 
of the Regional Program for Integrated Cotton  Production in Africa (PR -PICA) had been  held in Togo 
in April 2018 to take stock of the 2017 -2018 Cotton  season and strengthen the partnership between 
producers and Cotton  companies  from Benin, Burkina Faso, Ivory Coast, Mali, Senegal  and Togo.  
10. On Cotton  negotiations, l ike the C4, Togo regretted th e absence of results at MC 11 and noted 
that Cotton  should be a priority for MC12. Togo also underlined the need to effectively implement 
the Nairobi Ministerial Decision and called for a gr adual reduction of domestic support and improved 
market access for LDCs.  
11. Other Members  took the floor to support  the C4's call to address th e long-stand ing Cotton  
issue. Brazil and Pakistan noted that an outcome  could be achieved through small and incremental 
steps . Pakistan , however , still support ed the C4's proposal as the most comp rehensive  solution in 
the long term.  Brazil specified that it was working on possible ideas , including  a possible stand -alone 
MC12 Cotton  result.  
12. Pakistan noted that Cotton was a major contributor to its economy.  Due to heavy distortions 
in the global market, its Cotton  farmers , who  did not receive any public assistance , continued to 
face income losses . Pakistan noted that  the distortions also affect ed farmers' decision s to cultivate 
crops other than Cotton . While  the percentage of Cotton  receiving direct assistance in the 
international market and the amount of Cotton -specific support had declined in 2016/17  compared 
to 2015/16  due to higher prices , the estimated total amount of subsidies wa s still significant . In 
addition to domestic support , Pakistan noted that border restrictions  mainly in the form of import 
tariffs were also detrimental to Least -developed and developing countries' Cotton  exports . Pakistan  
reaffirmed it s commitment to the MC10  mandate to pursu e reforms on Cotton  in all three  pillars, 
stress ing that negotiations on Cotton  should not be linked to overall agriculture negotiations.  
13. India noted that it provide d DFQF access to LDCs for  over 90% of Cotton  tariff lines and that 
imports  from LDCs account ed for nearly 23% of  its total Cotton  import s. India encouraged other 
Members who did not provide DFQF access to do so in accordance with the Nairobi Decision. India 
also highlighted various technical assista nce activities it is carrying out to help African Cotton  farmers 
improve productivity and participate in the Cotton  value chain. On Cotton  Domestic Support 
negotiations, India suggested to focus on AMS support beyond the de minimis  level.     
14. The EU  noted that despite  its marginal  role in Cotton  produc tion, trad e and subsidi zation , it 
had cosponsored a proposal on domestic support before MC11 which targeted the most trade -
distorting support for Cotton . The EU  regretted Members' fail ure to reach an agreement  at MC11 
and called for re alistic and balanced approaches to address th e issue.  TN/AG/39 • TN/AG/SCC/10  
 
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  15. The International Cotton  Advisory Committee (ICAC)  made a detailed presentation  on 
recent developments in the Cotton  market .4 ICAC noted that world Cotton  consumption was 
expected to continue growing in 2018 -19 while Cotton  production was expected to fall. Cotton  prices 
had remained relatively high  and the level of Cotton  subsidies as measured by ICAC had increased 
in 2017 -18 in comparison to the previous season . A challenge faced by the Cotton  sector remain ed 
the compet ition from man-made fibres in the long term , and ICAC stressed the need to explore new 
markets to secure a strong future for the Cotton  sector.  
16. The WTO Secretariat presented its revised backgroun d paper  and addenda5 which compile d 
factual information and data from Members' notifications and other submissions to the WTO on 
Export Subsidies, Domestic Support and Market Access, including both tariff and non -tariff 
measures. The paper also include d Members' latest responses to the questionnaire on Cotton  policy 
developments, as well as relevant information on Cotton  markets and policies included in Trade 
Policy Review reports .  
17. I reiterated the importance of the quality and timeliness of Members' notif ications and 
submissions to the WTO, including replies to the questionnaire circulated by the Secretariat, 
stressing that the quality of the informatio n contained in the Secretariat paper  was fully dependent 
on that information. I call ed on  Members, partic ularly key Cotton  actors, to be more forthcoming in 
sharing information  on recent policy developments.  
18. Members welcomed the revised paper and many  echoed my call to  improv e the responsiveness  
to the Secretariat's questionnaire , noting  the current low response rate . The C4 again invited 
Members to provide update d information on their Cotton  policies and support.   
19. Members also welcomed ICAC's detailed presentation and expressed gratitude towards ICAC's 
contribution to th e Dedicated  Discussions . Benin re quested ICAC to provide a  breakdown of support 
to Cotton  by Member and by type of support . Mali asked whether ICAC ha d statistics regarding intra-
African Cotton  trade . ICAC promised to  circulate the requested information through the WTO 
Secretariat.  
20. The International Trade Centre (ITC) updated Members on the new features introduced to the 
Cotton  Portal  including: (1) new ICAC page w ith historical data on Cotton  supply /use, harvested 
area, production, consumption, trade and stocks  by country ; and (2) n ew export potential map 
application which helps identify products, markets and suppliers with untapped export potential as 
well as opportunities for export diversification. A new video on the MC11 Cotton  Portal launch was 
also presented to  participants. ICAC committed to share more information in contribution to th e joint 
effort towards a more transparent Cotton  market, both for policy makers and private actors.  
21. I commended the work undertaken to further develop th at excellent tool which contribute d to 
a more efficient Cotton  trading system. I echoed the Director -General 's remarks at MC11  that the 
Cotton  Portal was an important addition to efforts helping the Cotton  community achieve their 
development goals by gathering all the relevant information. It also facilitate d the monitoring of the 
implementation by Members of the Market Access paragraphs contained in the MC10 Cotton  
Decision .  
22. Noting the importance of statistical data in negotiations, the C4 welcomed th ose 
improvements and requested ITC and WTO to hold a training on the Portal on the margins of the 
next Cotton  day.  
23. In my  concluding remarks , I underlined the importance of Cotton  to many economies , 
especially LDCs. I commended Members' commitment to findin g a solution to this long-standing 
issue and called on all Members  to further increase their engagement in that regard . I also urged 
Members  to demonstrate flexibility and creativity in search of new paths and to be more forthcoming 
in information s haring.   
__________  
                                              
4 This presentation can be uploaded at: 
https://www.wto.org/english/news_e/news18_e/cdac_26jun18_e.htm . 
5 Documents TN/AG/GEN/34/ Rev.8 – TN/AG/SCC/GEN/13/Rev.8, TN/AG/GEN/34/Rev.8/Add. 1 – 
TN/AG/SCC/GEN/13/Rev.8/Add.1, and TN/AG/GEN/34/Rev.8/Add.2 – TN/AG/SCC/GEN/13/Rev.8/Add.2, dated 
8 June 2018.