WT/GC/187  
WT/CFMC/DG/8  
WT/MIN(17)/5  
 
22 November 2017  
(17-6388) Page: 1/9 
    
 
 
DEVELOPMENT ASSISTAN CE ASPECTS OF COTTON  
EIGHTH PERIODIC REPO RT BY THE DIRECTOR -GENERAL1 
TABLE OF CONTENTS  
1   INTRODUCTION  ................................ ................................ ................................ ..........  2 
2   CONTEXT  ................................ ................................ ................................ .....................  2 
3   IMPLEMENTATION  ................................ ................................ ................................ ....... 2 
4   EVOLUTION OF COTTON DEVELOPMENT ASSISTAN CE ................................ .................  3 
5   SOUTH -SOUTH COOPERATION ON  COTTON  ................................ ................................ . 5 
6   DOMESTIC COTTON SECT OR REFORMS  ................................ ................................ ........  5 
7   CONCLUSION ................................ ................................ ................................ ...............  6 
ANNEX  ................................ ................................ ................................ .............................  7 
A. COTTON TRADE  ................................ ................................ ................................ .........  7 
B. COTTON AREA  ................................ ................................ ................................ ...........  8 
C. COTTON PRODUCTION  ................................ ................................ ................................  8 
D. COTTON YIELDS  ................................ ................................ ................................ .........  9 
E. COTTON PRICE  ................................ ................................ ................................ ..........  9 
 
 
 
 
  
                                                
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 . WT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  1  INTRODUC TION  
1.1.  Since my last Periodic Report to the membership on the Development Assistance Aspects of 
Cotton, in November  20152, four Rounds of the Director -General's Consultative Framework 
Mechanism on Cotton (DGCFMC) have been held, bringing the total number of such rounds held 
since 2004 to date to 28. The 28th Round of Consultations was held on 17  November 2017.  
1.2.  During the same time period, the Evolving Table on Cotton Development Assistance (ET), our 
unique tool to monitor trends and trace the evolution of development -assistance projects 
supporting the cotton sector in beneficiary countries, has been revised four times, including the 
latest update which was shared with the membership on 7 November 2017.3 
1.3.  I would like to particularly commend all the Members w ho have provided updates for the 
latest four revisions of the ET: Australia, Brazil, Canada, the European Union (and some of its 
Member States) Japan, Switzerland and the United States.  
1.4.  I would like to highlight the importance of the specific platform of S outh-South Cooperation 
for Cotton -Sector Development, which exists and operates owing to the efforts of Brazil, China and 
India. The support and engagement of all these Members in the DGCFMC provides crucial  
foundations to our work on cotton development as sistance.    
1.5.  Several multilateral and regional agencies have also been actively participating in this 
process, including in particular: the Common Fund for Commodities (CFC), the Food and 
Agriculture Organization (FAO), the International Cotton Advisory Com mittee (ICAC), the 
International Monetary Fund (IMF), the International Trade Centre (ITC), the United Nations 
Conference on Trade and Development (UNCTAD) and the World Bank.   
2  CONTEXT4 
2.1.  World cotton production, consumption and trade registered important ch anges from 
season  2015/16 to season 2016/17, recording positive developments in terms of overall 
production volumes, productivity, consumption and average international prices.  
2.2.  Global cotton production increased by 7% across the two seasons under review, r eaching 
23.1 million tonnes in 2016/17. African countries accounted for 7% of global cotton output 
in 2016/17 (1 .5 million tonnes); this represents a 19% increase against the previous season. 
World cotton production is projected to further increase in the season 2017/18, rea ching an 
estimated volume of 24. 6 million tonnes.  
2.3.  The world average cotton yield per hectare also increased significantly from season 2015/16 
to season 2016/17. The most significant increases in productivity were recorded in Brazil, Indi a, 
Pakistan and the United States. Average yields increased also in French -speaking Africa in the 
season 2016/17, reaching an average of 383 kg/hectare (an increase of 11% against the previous 
season's average).  
2.4.  World cotton consumption has remained stable  in 2015/16 and 2016/17, slightly above 
24 million metric tonnes. Consumption patterns have experienced some changes at the regional 
level, with Chinese consumption declining significantly in the season 2015/16 and increasing again 
in the subsequent season . The forecast of cotton consumption for the season 2017/18 supports a 
potential increase in consumption, which would approach the 25 million metric tonnes.  
3  IMPLEMENTATION  
3.1.  The mandate for our work on the development assistance aspects of cotton was agreed 
in 20045, and reaffirmed with further specifications at three WTO Ministerial Conferences: 
Hong Kong (2005)6, Bali (2013)7 and Nairobi (2015)8. 
                                                
2 Document WT/GC/175 - WT/CFMC/DG/7 - WT/MIN(15)/8, dated 18 November 2015.  
3 Document WT/CFMC/6/Rev.23, dated 7 November 2017.  
4 Data source: International Cotton Advisory Committee  (ICAC) . WT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  3.2.  Accordingly, the Development Assistance Aspects of Cotton are advanced through the work of 
the DGCFMC, which mee ts twice a year and reviews support being provided by bilateral donors 
and multilateral agencies to cotton -specific and cotton -related agricultural sectors in developing 
countries.  
3.3.  At the DGCFMC, discussions are held on the basis of the Director -General's Evolving Table on 
Cotton Development Assistance ( also called the "Evolving Table" - ET) and the Table on Domestic 
Cotton Sector Reforms.9 These documents are unique commodity -specific tools for implementing 
the mandate on cotton development assistance and ensuring its transparent monitoring.  
3.4.  The ET lists development cooperation projects in cotton and cotton -related agricultural 
sectors. The first version of the Table was published in 200 5. It provides information on donors, 
project titles and beneficiaries,  as well as detailed figures on project -specific disbursements and 
commitments. The latest version of the ET can be found in Document WT/CFMC/6/Rev.23 dated  
7 November 2017.  
3.5.  An important development in the administration of the ET occurred in 2016. I ndeed,  
Members  agree d to modify the structure of the ET, so as to give the ET a clearer focus on 
committed resources related to the cotton sector. This has helped to make this monitoring tool 
even more useful in tracking and reviewing development assistance for cotton.  
3.6.  In 201 7, a major development in the work of the DGCFMC was Members'  agreement to add a 
new standing  agenda  item on "Cotton Development Assistance Projects". Under this item, a t the 
28th Round of the DGCFMC on 17 November 2017,  the Cotton 4 presented for the firs t time a 
detailed project proposal related to the project "Cotton Roadmap", which can be found in 
Document WT/CFMC/W/72  dated 11 April 2017 . The presentation was followed by  comments and 
feedback from various potential development assistance partners .  
3.7.  Finally, it should be noted that Members are highly appreciative of the very informative 
presentations made by ICAC at DGFCMC meetings, showing trends in world cotton production and 
trade and other key data of specific interest for the development of the cott on sector in developing 
and least developed countries (LDCs). ICAC collaborates closely with the WTO Secretariat in 
relation to technical and statistical matters. Moreover,  ICAC representatives often make 
suggestions on practical ways to facilitate cotton trade.  
4  EVOLUTION OF COTTON DEVELOPMENT ASSISTAN CE 
4.1.  Over the past four revisions of the ET, which were shared with the membership respectively 
on 15 June 201610, 2 November 201611, 27 June 201712 and 7 November 201713, the total value of 
active development assi stance projects in the cotton sector shows stability in both Part I of 
the ET on "Cotton Specific Development Assistance", and Part II, on "Agriculture and 
Infrastructure -Related Development Assistance" (Chart 4.1).  
                                                                                                                                                  
5 Gener al Council Decision of 1 August 2004 (Document WT/L/579).  
6 Hong Kong Ministerial Declaration (Document WT/MIN(05)/DEC).  
7 Bali Ministerial Decision (Document WT/MIN(13)/41).  
8 Nairobi Ministerial Decision (Document WT/MIN(15)/46).  
9 Latest revision contained in Document WT/CFMC/21/Rev.14 of 7 November 2017.  
10 Document WT/CFMC/6/Rev.20.  
11 Document WT/CFMC/6/Rev.21.  
12 Document WT/CFMC/6/Rev.22.  
13 Document WT/CFMC/6/Rev.23.  WT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  Chart 4.1 – Total value of active projec ts, ET Rev.20 -23 (1,000US$)  
 
4.2.  Of the total amount  of active projects recorded in the latest four revisions of 
the ET (Chart  4.1), the value of Part I active projects principally targeted at the C4 went from US$ 
70,767,149 in Rev. 20, to US$ 61,611,920 in Rev. 23. For Part II of the ET, the value of active 
projects principally targeted at the C4 went from US$ 275,889,701 in Rev. 20, to US$ 
109,223,424. The relevant trends across these four revisions of the ET are reported in Chart  4.2.  
Chart 4.2 – Total val ue of active C4 -specific projects, ET Rev.20 -23 (US$)  
 
 
4.3.  Over the past four revisions of the ET, the ratio of disbursements to commitments, as well as 
the total number of projects, trended as shown in tables 4.1 and 4.2, respectively.  
Table 4.1 – Ratio of  total disbursements to total commitments, ET Rev.20 -23 
 Rev.20  Rev.21  Rev.22  Rev.23  
Disbursements to commitments  
Part I - Active  39% 36% 54% 55.8%  
Disbursements to commitments  
Part II - Active  51% 46% 44% 51.8%  
 
WT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  Table 4.2 – Total number of active projects, ET Rev. 20 -23 
 Rev.20  Rev.21  Rev.22  Rev.23  
Total number of active  projects - Part I  37 35 27 26 
Total number of active projects - Part II  46 67 61 63 
 
4.4.  Having regard to the number and origin of beneficiaries, the relevant developments from 
Rev. 20 to Rev. 23 of the ET, Part I and Part II, are reported in Tables 4.3 and 4.4, respectively.  
Table 4.3 – Total number of beneficiaries, Part I, active, ET  Rev.2 0-2314 
 Rev.20  Rev.21  Rev.22  Rev.23  
Individual African beneficiaries  21 18 17 17 
Individual beneficiaries other than individual African beneficiaries  8 13 13 13 
Table 4.4 – Total number of beneficiaries, Part II, active, ET  Rev.20 -2315 
 Rev.20  Rev.21  Rev.22  Rev.23  
Individual African beneficiaries  29 29 28 21 
Individual beneficiaries other than individual African beneficiaries  0 0 0 6 
  
4.5.  The figures in the latest version of the ET dated 7 November 2017 show that progress has 
continued in providing development assistance to the cotton sector. There has been, in particular, 
an improvement in the ratio of disbursements to commitments in Part I ("Cotton Specific 
Development Assistance"), while the number of projects in their implementation phase remains  
stable. As regards Part  II ("Agriculture and Infrastructure -Related Development Assistance"), there 
has been an increase in both the overall number of beneficiaries and the ratio of disbursements to 
commitments. I would encourage providers of assistance a s well as beneficiaries to pursue this 
positive trend.  
5  SOUTH -SOUTH COOPERATION ON  COTTON  
5.1.  Brazil, China and India have continued to provide significant support to LDCs in cotton and 
cotton related sectors. The contribution of these Members is particularly r emarkable as a form of 
cooperation based on solidarity and the shared goal of increasing the productivity, inclusiveness 
and sustainability of the cotton sector. The platform for South -South Cooperation in the cotton 
sector is a solid example of a consolid ated partnership between WTO Members, also involving an 
active and important role by relevant multilateral agencies.  
6  DOMESTIC COTTON SECT OR REFORMS  
6.1.  The 15th version of the Table on Domestic Cotton Sector Reforms (WT/CFMC/21/Rev.14), 
circulated on 7 November 2017, reflects new updates from Burkina Faso, Chad and Mali. The Table 
on Domestic Cotton Sector Reforms is prepared based on a decision made by  participa nts at the 
9th Round of the DGCFMC (TN/AG/SCC/W/9, 14 December 2007). Domestic cotton sector reforms 
has been a standing item on the agenda of the DGCFMC from the start of the implementation of 
the mandate in 2004 (WT/L/579, para. 1(b) and Annex A, paras. 4-5).  
6.2.  Under this item, the exchange of views has deepened the constructive engagement and 
development dialogue between development partners (providers and recipients) on cotton 
development assistance. As a consequence, I would like to encourage all the be neficiaries of 
cotton -specific and cotton -related development assistance to continue to be  forthcoming in 
communicating developments in their domestic cotton sector reforms.  
                                                
14 The beneficiaries counted in this table are only the individual countries expr essly named in the 
relevant column of the Evolving Tables under observation. Unspecified beneficiaries or regional institutions are 
not counted.  
15 The beneficiaries counted in this table are only the individual countries expressly named in the 
relevant col umn of the Evolving Tables under observation. Unspecified beneficiaries or regional institutions are 
not counted.  WT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  7  CONCLUSION  
7.1.  Cotton is of undeniable systemic importance for LDCs in general, and fo r the 30 African 
countries that produce and trade cotton, in particular. For this reason, and pursuant to the 
WTO mandate for transparency and continued monitoring of cotton development assistance 
projects and initiatives, cotton remains a dossier of central importance at the WTO, and I hope to 
see further progress in the advancement of this dossier, including in the context of MC11.  WT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  ANNEX  
COTTON SECTOR DEVELO PMENTS1 
A. COTTON TRADE  
1. The volume of world cotton trade was estimated at 7.55 million tonnes at the end of the 
season 2015/16, and increased to 8.15 million tonnes in season 2016/17. In 2017/18, exports are 
projected to decrea se slightly, to 7.93 million tonnes.  
2. A closer look at the price trends of season 2016/2017 shows world cotton prices at 
particularly high levels. According to the Cotlook A Index, the world price averaged 
US$ 82.77  cents per pound in 2016/17, significa ntly above the average of 70 cents per pound 
recorded during the previous season. In general terms, cotton prices were also remarkably high 
in 2016/2017 vis à vis  competing crops. At the same time, polyester prices for the 
season  2016/2017 remained low, le ading analysts to foresee further potential decreases in the 
share of cotton in the textile fibre market at the conclusion of season 2017/2018.  
 
3. As shown in the chart below, world cotton consumption has remained stable from 2015/16 
to 2016/17, i.e. slig htly above 24 million metric tonnes. Consumption patterns experienced some 
changes at the regional level, with Chinese consumption  declining significantly in the 
season  2015/16 and increasing again in the subsequent s eason. The projection of cotton 
consump tion for the season 2017/18 supports a potential increase in consumption, which would 
approach the 25 million metric tonnes . 
 
 
Data source: ICAC World Cotton Database.  
 
4. Africa experienced important changes in production volumes from 2015/16 to 2016/17.  
After a general drop in production in the season 2015/16, which affected  the whole African 
continent, cotton production increased again significantly in the season 2016/17, with total cotton 
output reaching 1 .5 million tonnes at the end of that season. Pr oductivity was, however, subject to 
significant variations across African regions: the planted area in French -speaking Africa, for 
example, increased significantly in the season 2016/17, reaching 2.9 million hectares. Production 
thus increased to 1 .1 milli on tonnes in that region (from 1  million in the previous season).  
                                                
1 Data source:  International Cotton Advisory Committee.  
23200234002360023800240002420024400246002480025000Consumption -1000 MT
Consumption -
1000 MTWT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  5. The top 10 cotton exporters and importers in the 2016/17 season are shown in the table 
below.  
Top 10 World cotton exporters and importers  
2016/2017 season  
Total of global cotton exports  (in thousand tonnes): 7,873   
Total of global cotton imports (in thousand tonnes): 7,949   
Exporter  Export volume  
(Thousand Tonnes ) Importer  Import volume  
(Thousand Tonnes ) 
USA 3,157  Bangladesh  1,412 
India 909 Viet Nam  1,239  
Australia  704 China  1,057  
Brazil  610 Indonesia  721 
Uzbekistan  337 Turkey  704 
Mali 247 Pakistan   581 
Burkina Faso  247 India  475 
Greece  209 Thailand  255 
Turkmenistan  178 Mexico  230 
Benin  142 Korea, Rep.  of 229 
 
6. The African export performance in 2016/17 has been positive vis à vis  previous seasons. 
Increases in cotton production and yields have had their reflection in increased exports from 
French -speaking Africa, for example, with an increment of 4 % against the previous season 
(reaching 1 .3 million tonnes or about 16 % of world exports in the same season).  
7. Other cotton producing regions in Africa also experienced increases in export volumes from 
season 2015/16 to the next: Algeria, Egypt, Morocco, Sudan and Tunisia, as a group, saw their 
cotton exports growing from 48,00 0 tonnes to 54,000 tonnes; Angola, Congo D.R, Ethiopia, 
Ghana, Kenya, Malawi, Mozambique, Nigeria, South Africa, Tanzania, Uganda, Zambia and 
Zimbabwe, as a group, also experienced minor increases in their exports of cotton, from 
223,000  tonnes of the seas on 2015/16, to 235,000 tonnes of the subsequent season.  
8. The following Table lists the top 10 African cotton exporters in 2016/17:  
Top 10 African cotton exporters  
2016/17 season  
Country  Export volume  
(thousand tonnes ) 
Burkina Faso  247 
Mali 247 
Benin  142 
Côte d'Ivoire  138 
Cameroon  111 
Tanzania  53 
Chad 42 
Zambia  40 
Mozambique  37 
Uganda  32 
 
B. COTTON AREA  
9. In the context  of the overall price decline of cotton competing crops, world cotton planted 
area declined by 4 % in the season 2016/17, to a total of 29 .4 million hectares. India, the United 
States, China, Pakistan and Uzbekistan were the top five countries per cotton planted area of that 
season, followed by Brazil, Burkina Faso, Mali, Australia and Turkmenistan. In  Africa, the cotton 
area increased by 9 % in the season 2016/17, reaching 4 .3 million hectares. For the season 
2017/2018, world planted area  is projected to increase to 32. 1 million hectares.    
C. COTTON PRODUCTION  
10. With the exception of China, cotton pr oduction in major cotton producing countries 
increased between  season 2015/2016 and season 2016/2017. Global cotton production increased 
by 7% across the two seasons under review, reaching 23.1 million tonnes.  WT/GC/187 • WT/CFMC/DG/8 • WT/MIN(17)/5  
 
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  11. The overall increase in production agains t a general decline in cotton planted areas in the 
season 2016/17 can be explained, inter alia , by overall increases in productivity, as discussed in 
the next sub -section.  Cotton production increased significantly in the United States from season 
2015/16 t o the next, reaching 3 .7 million tonnes  (an increase of 33 % against the previous 
season). Equally remarkable has been the increase in production in Australia (53 % up from the 
previous season, reaching 960,000 tonnes ), Brazil (18 % up from the previous season, reaching 
1.5 million tonnes ), and Pakistan, where 2016/17 production was estimated at 1 .7 million tonnes  
(8% up from the previous season). African countries accounted for 7 % of global cotton output in 
2016/17 (1 .5 million tonnes); this represented a 19 % increase against the previous season. World 
cotton production is projected to further increase in the season 2017/18, reaching an estimated 
volume of 24 .6 million tonnes . 
D. COTTON YIELDS  
12. The world average cotton yield per h ectare increased significantly between season 2015/16 
and season 2016/17. In many countries, the increase in productivity per hectare has offset the 
decrease in planted areas for the same season. The world average yield per hectare increased by 
12% in 2016 /17, against the previous season, reaching 786 kg/hectare. The most significant 
increases in productivity were recorded in Brazil, India, Pakistan and the United States. Average 
yields increased also in French -speaking Africa, reaching 383 kg/hectare , an increase of 11 % 
against the previous season's average.  
E. COTTON PRICE  
13. World cotton prices increased significantly in the season 2016/17, averaging 82.77 US$ 
cents per pound. While this is above the average of 70 US$ cents per pound reported in the 
following graphic, the forecast for the season 2017/18 remains highly uncertain.  
 
Data source: Cot ton Outlook Ltd.  
 
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020406080100120140160180
2008
2009
2010
2011
2012
2013
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2017Season average US Cents/poundCotlook A Index
Cotlook A Index