TN/AG/SCC/W/29  
WT/CFMC/57  
 
3 September  2018 
(18-5491) Page: 1/14 
Sub-Committee on Cotton    
 
IMPLEMENTATION OF TH E DEVELO PMENT ASSISTANCE ASP ECTS OF THE  
COTTON -RELATED DECIS IONS IN THE 2004 JUL Y PACKAGE AND  
PARAGRAPH 12 OF THE HONG KONG MINISTERIA L DECLARATION  
ITEM 2C - COHERENCE BETWEEN TRADE AND DE VELOPMENT ASPECTS:  
UPDATE ON THE DEVELO PMENT ASPECTS OF COT TON 
Report of the 2 9th Round of the Director -General's  
Consultative Framework Mechanism on Cotton1 
19 June 2018  
1  INTRODUCT ION 
1.1  The 2 9th Round of the Director -General's Consultative Framework Mechanism on Cotton  
(DGCFMC)  was held on 19 June 2018 , under the chairmanship of Deputy Director -General 
Ambassador Alan Wm. Wolff.  
1.2  The Chairman  welcomed , on behalf of the Director -General, all participants including expe rts 
from capital and the Cotton -42 (C-4), and noted  that the development assistance aspect of cotton 
was a dynamic area of WTO cooperation with a significant margin for expan sion. 
2  STATEMENT BY THE C-4 COORDINATOR  
2.1  The Ambassador of Benin , speaking on behalf of the C -4 and other cotton -producing 
countries, thanked the Chairman and the Agriculture and Commodities Division for the ir support of 
the development  assistance aspects of cotton and the various initiatives taken to  facilit ate more 
dynamic discussions at the DGCFMC.  
2.2  He reaffirmed the importance of promoting the African cotton sector  and the  interest of LDCs 
in the  framework mechanism  on cotton . He noted that the DGCFMC ha d embraced a new pace of 
work which  should be maintained.  Indeed, t he presence  of bilateral, regional, and multilateral 
donors/development assistance partners was a welcomed development in the work of the 
DGCFMC.  Discussions with partners  such as the  ACP, GIZ-Germany3, the E uropean Union as well 
as development b anks, was of great interest to the C-4 in supporting the development of value 
chain s and  enhancing cotton farmers incomes . 
2.3  He noted the longstanding and strategic interest of the C -4 for cotton and cotton -related 
products and stressed that policies supporting  those products  should  be in line with WTO rules. He 
stated  that the June 2018 Secretariat Symposium on agricultural policies landscape  had shed light 
on many  of the driving forces behind  the policies distorting cotton market s. He also noted that the 
Symposium had allowed Members to share information, experiences a s well as  good practices , and 
thus hoped that outcomes of the event w ould usefully inform  the cotton negotiations . 
2.4  He further called on all M embers to follow up on the 2005 Hong Kong Ministerial mandate  to 
address cotton "ambitiously, expeditiously and specifically " within the agriculture negotiations. He 
                                                
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.  
2 Benin, Burkina Faso, Chad and Mali . 
3 GIZ-Germany stands for Deutsche Gesellschaft für internationale Zusammenarbeit ; ACP: African, 
Caribbean & Pacific . TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  reiterated  the C-4 commitment to the multilateral trading system, and the ir faith in the WTO's 
ability to ensur e greater integration of the econom ies of LDCs and developing countries  into global 
value chains towards inclusive  trade and  the eradication of poverty. In this context, the C -4 
coordinator referred to  the multidimensional integrative project titled " Cotton  Roadmap "4.  
2.5  He noted  the Cotton Roadmap project  aimed at promoting cotton -to-textile  value chain s, 
competitiveness, inclusiveness and sustainability  under four  thematic goals: (i) improving 
production and productiv ity in cotton; (ii) improving quality and promoting cotton production in 
Western and Central Africa with a post -harvest programme; (iii) value addition  to cottonseed and 
lint in the region ; and (iv) promotion of investments in technology and knowledge transfer , 
particularly on a south -south basis . The C-4 urged technical and financial partners, both bilateral 
and multilateral, to support the implementation of the Cotton Roadmap Project.  
2.6  Finally, the C -4 coordinator  expressed gratitude  to China for the  financial support  granted to 
allow the effective participation of  the C-4 National C otton  Focal Points.  He noted  that the 
contributions made  by the focal points was crucial for the relevance and practical value of the 
discussions held at the DGCFMC.   
2.7  The LDC group Coordinator , thanked  the Chair man and the Secretariat for their tireless 
support for issues of interest to LDCs and stressed the significant economic and social role played 
by cotton in those countries. He stated that subsidies by some WTO Members distorted cotton 
prices and led  to poverty  for millions of people  in LDCs and particularly in C-4 countries . He further 
regretted in that regard the lack of  solutions on domestic support at MC- 11.  
2.8  He stated, however, that the LDCs group remain ed positive on the prospects of reach ing a fair 
and acceptable solution to all Members.  He enc ouraged M embers to show great er transparency by 
submitting up to date notifications  on their support to cotton . Furthermore , the LDCs group called 
on the main players in the cotton sector to  (i) contribute more to the substantive discussions  on 
cotton; (ii)  progress the work on cotton with a view to achieving  result s on this critical issue for 
LDCs; and in doing so, (iii) specifically target subsidies which dist orted  international cotton 
markets.  
2.9  The representative of Pakistan  stressed the importance of the cotton sector in reducing 
poverty in rural areas. He noted  that, as the 4th largest producer of cotton in the world, cotton was 
the backbone of Pakistan's  economy. Production of cotton and cotton -related products contributed 
to nearly 10% of GDP and were a major source of foreign exchange earnings. However, production 
was falling because of  climate change, unfavourable weather conditions, and distortions in  
international markets.  
2.10  He further noted th at heavily subsidized cotton in the world  affected  Pakistan farmers ' 
competitive ness on the international market , and called on Members to address distortions 
affecting cotton "ambitiously, expeditiously and speci fically ". 
2.11  The representative of C ôte d'Ivoire  noted the important role cotton played in reducing 
poverty in rural areas and the government's strategy to promot e industrialization and 
diversification of the national economy towards inclusive development. He  thanked  development 
partners including the European Union , the World Bank, the United States,  the Common Fund fo r 
Commodities, Canada and  France, for the support of various cotton projects in C ôte d'Ivoire.   
2.12  He stated that C ôte d'Ivoire ha d seen a good performance over the 2017/18 season with an 
increase in cotton production of 25.7% compared to the previous season . However, the sector was  
experiencing difficulties with yield s which ha d steadily decreased.  As such, C ôte d'Ivoire needed 
suppo rt, particularly for women and young cotton farmers , to help them integrate  the cotton -to-
textile value chains.  
2.13  The Chairman  welcomed the statement by the Ambassador of Benin, on behalf of the C -4, as 
well as the other informative statements made tha t help ed frame the discussions. He also 
welcomed  the various development assistance initiatives, pr ojects and programmes mentioned by 
                                                
4 Document WT/CFMC/W/72 dated 11 April 2017.  TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  different speakers under this agenda item, as  encouraging steps  towards the promotion of cotton 
value chains.  
3  COTTON PRODUCTION AND TRADE TRENDS  
3.1   The Chairman  introduced Agenda item 3 by inviting Mr. Kai Hughes, Executive Director of the 
International Cotton Advisory Committee  (ICAC ) to update  participants on recent  cotton trends 
and discuss the importance of ginning for the develo pment of regional cotton value chains in Africa 
as requested during the November 2017 meeting of the DGCFMC . 
3.2  The Executive Director of the ICAC, Mr. Kai Hughes  provided information on the estimated 
total number of cotton farmers in Africa, which stood at around 3.5 million cultivating about 4.2 
million hectares. Women represented an  estimated 12% of those farmers. Burkina Faso and Chad 
had some  300,000 cotton farmers  each, with Tanzania registering  the highest number of farmers 
involved in cotton farming , nearly 400,000 in total.  
3.3  He underscored that most cotton produced in Africa was exported, and that if African 
countries started spinning their locally -produce d cotton, the number of persons employed in the 
cotton sector would triple. He stated that while African cotton production had recorded significant 
growth since  2011, cotton mill use had not experienced the same growth rate. African yield s were 
flat since the 1990s, while during the same period world average yield s had risen by 40%. He 
added that the average African yield was 64% lower than the world average yield, thus showing 
great potential to increase productivity in Africa . He further  stressed the exis tence of untapped 
opportunities for African cotton, due to its very good quality and the purity of the fibres. He 
suggested for instance that the process of planting cotton seeds at regular intervals would be 
enough to dramatically increase yield s in many African countries.  
3.4  He noted the importance of carrying out appropriate ginning operations as a way forward to 
capture such untapped opportunities for African cotton fibres. As a matter of fact, ICAC w as about 
to launch a programme  of "Country Aud its" with several visits on the field to assess areas for 
improvement and produce audits for effective polic y recommendations.  
3.5   He provided updated statistics on Africa's  share of global cotton production which averaged 
around 6 to 6.9% in the last 20 years. Howe ver, increase s in production had  been observed over 
the last 3 seasons with a project ed further increase for 2018/19 to around 7.5%. He also noted 
that in many countries such as Mali and Cameroon, higher costs were usually associated with 
higher transportation and input costs.  
3.6  He noted that African cotton was of good quality and highly recognized all over the world. He 
further noted that production costs were extremely co mpetitive in Africa compared to  the rest of 
the world, and suggested that with an  increase  in production and yields combined with increased 
quality and reduced trade costs, Africa was ideally positioned to expand its exports, thus improving 
revenues and alleviating poverty.  
3.7  He highlighted several  factors affect ing cotton  quality  with a particular emphasi s on ginning 
technologies which were crucial  to the cotton economy. Th ose factors were (i) inadequate  ginning 
equipment; (ii) over use of cleaning equipment; (iii) timing of ginning which was key  as cotton 
possesses its highest fibre quality and best potential for spinning when the bolls are ma tured and 
freshly opened ; (iv) excess speed ; and (v) untrained operators .  
3.8  He shared some recommendations on standards needed for clean cotton, the importan ce of 
having institutes train ginning operators and the adoption of sampling system s by cotton 
producing countries . Governments should look into introducing a clean cotton system to ensure 
correct parameters for spinners and allow farmers to get a fairer p rice for their cotton.  
3.9  He finally informed Members o f (i) the upcoming ICAC Strategic Review ; (ii) the creation of a 
new application  Soil Health App  (in cooperation  with Cotton Incorporated USA , FAO and the Social, 
Environmental and Economic P erformance of  Cotton Committee)  for use by farm holders  to 
determine the type of inputs needed for their  soil; and (iii)  the next ICAC  Plenary Meeting 
scheduled to take place in C ôte d'Ivoire from 2 to 6 December 2018.  TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  3.10  Participants reacted with comments and questions to the intervention from ICAC, discussing 
technical and policy challenges and opportunities t o expand Africa's cotton sector , including global  
production and marketing approaches  and trade -distorting domesti c support . 
3.11  In response to questions from Burkina Faso, Benin, Pakistan  and the European Union, the 
representative of ICAC noted  that there should be some recognition for clean cotton in Africa. He 
explained the role of the government in encourag ing farmers to add weight to compensate the fact 
that they d id not  receive any premium for clean cotton . He also noted that ICAC could  potentially 
identify areas which need ed attention and liaise with institutions to provide  technical assistance.  
Finally, he referred Members to a recently published ICAC research paper on cotton value addition, 
which w ould be a central subject at the December 2018 P lenary Meeting  in Abidjan.  
3.12  The Chairman  concluded discussions under this agenda item  by thanking the  
ICAC representative  for a valuable and informative intervention . He noted that the ICAC "Co untry 
Audits" could  help target the assistance needed through  recommendations for improvement o f 
cotton production in specific Africa n countries .  
4  DIRECTOR -GENERAL'S EVOL VING TABLE ON COTTON  DEVELOPMENT ASSISTA NCE 
4.1  The Chairman  introduced  item 4 of the agenda  by recalling  the circulation on 8 June 2018  of 
the updated version of the Evolving Table  on cotton development a ssistance  ("ET"), in document 
WT/CFMC/6/Rev.24 . He invited the Secretariat of the Agriculture and Commodities Division to 
highlight the main updates in  the revised  version.  
4.2  Mr. Fabrizio Meliado started by mentioning that  the ET had been recognized by cotton industry 
experts as a unique transparency -enhancing tool in the world of commodities. He added that the 
ET had become a reference for monitoring cotton projects and programmes through quantitative 
information based on the submissions received from Members and multilateral agencies.  
4.3  He briefly summarized the content s of the ET in Part I (active cotton specific projects ), Part II 
(active agriculture and infrastructure -related projects ) and Part III (contact details of national 
cotton focal points in beneficiaries' countries ). He also noted that a ll completed projects were 
compiled in the Annexes of the ET . 
4.4  He reported that the latest update of the ET was based on contributions received from Brazil, 
Canada, Colombia,  the European Union , Germany, Japan, New Zealand, Switzerland, the 
United  State as well as from multilateral agencies such as the Common Fund for Commodities, the 
International Trade Centre  (ITC), the United Nations Conference on Trade and Development 
(UNCTAD) and the World Bank.  He noted that project -specific information was also availa ble 
through  the Cotton Portal website (http://www.cottonportal.org/cotton ). 
4.5  He presented data from the  latest revision of the ET which showed stability  over 2016 -18 in 
total commitments and number of projects in Part I of the ET with three  new projects notified and 
included. T he total value of committed amount for active projects stood at about 204 million 
dollars for Part I of the ET (cotton specific); and at 2.8 billion dollars for proj ects in Part II of the 
ET (agriculture -wide). However, the latter had seen a slight decrease in the total amount  due to (i) 
the completion of a number of projects ; and (ii) some projects ha ving mistakenly been notified 
and removed at the request of the relevant development assistance partners . 
4.6  He concluded his presentation by noting that Part III, where contact details of national cotton 
focal points in beneficiary countries  were listed , contained information for only 16 beneficiary 
countries. He rec alled the importance of having national focal points information as an entry point 
for cotton trade and encouraged all beneficiaries to share contact details of their national focal 
points  with the Secretariat . Any new  information  would be  published as part of  the next revision  of 
the ET . 
4.7  The representative of Chad  thanked the Secretariat for the presentation of the latest version 
of the ET , as well as  development partners, both under North -South and South -South cooperation , 
for their many forms of supports provided to the cotton sector in African countries and LDCs , 
particularly in C-4 countries. He pointed out that there had been significant changes in 
commitments for specific development assistance as shown in the ET.  TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  4.8  He also noted  the number of African countries benefiting from agriculture related -
infrastructure projects and stressed  that promoting market access particularly in the cotton sector 
required structured infrastructure with complementary approaches such as  the connectivity of 
rural-urban areas, logisti cal support , transfer  of knowledge and the sharing of best practices .  
4.9  He further called on Members to maximise  the tools made available within the WTO 
framework to strengthen LDCs cotton export capacit ies. He finally invited financial and technical 
partners to help the C-4 in implementing the integrated regional project contained in  the "Cotton 
Roadmap " initiative . 
4.10  The representative of Burkina Faso  expressed gratitude to the Secretariat and  technical and 
financial partners  for their continued support. He mentioned the role of cotton in contributing to 
improving the lives of millions of people in Africa and welcomed the considerable contributions to 
projects for development highlighted in the  ET. 
4.11  He also urged bilateral partners under  the South-South cooperation  platform of the ET , and 
other  developing -country  Members able to  do so , to continue their  development  assistance 
programme s in favour  of African cotton producing countries and particularly the C-4, with a view 
to further  combat ing poverty.  
4.12  The Chairman  thanked the representatives of the donor community who  had provided inputs  
to update the ET, and stressed the importance of transparency  in the work of the WTO  in general  
and in the DGCFMC in particular. He called upon all Members to find an effective way of collecting 
and sharing information for more transparency.  
4.13  He further encouraged all beneficiaries to share the contact details of their national focal 
points, as reported in Part III of the ET . He concluded by restat ing the special importance  that the 
Director -General attache d to the  WTO w ork on cotton , and asked  all Members, development 
partners and donors to explore ways to broaden  their involvement and deepen their contributions 
in funding much needed cotton development assistance projects.  
5  SOUTH -SOUTH COTTON C OOPERATION  
5.1  The representative of Pakistan  reiterated the strong commitment of h er country to provide 
technical assistance to cotton pr oducers in the developing world an d presented the recent 
Pakistan -C-4 experience -sharing and cooperation in relation to cotton production technologies . 
That capacity building  activity, which took place i n May 2018 in Pakistan, had been  provided to C-4 
Government Officials/Academia/Cotton Researchers in the field of cotton production technologies, 
research and textile industry.  
5.2  She reported that the main objectives for the training were (i) experience shar ing in cotton 
production including production technology and research; (ii) experience sharing in cotton value 
chains; and (iii) to identify areas for future collaboration.  She reported that th ose activities had 
been also very useful in terms of interactio ns with various  actors such as policy makers, 
regulators, private sector and associations involved in the cotton production technolog y process. 
Some institutional linkages had been  identified during the training such as collaboration with the 
Centre for Ex cellence and Molecular Biology , All Pakistan Textile Mills Association (APTMA) and 
textiles industries .  
5.3  She stated that th e training had been found to be very relevant to participants and would 
continue in coming years under a strategic cooperation framew ork between Pakistan and the C-4. 
In that regard , Pakistan had already started the "Look Africa Initiative  of Pakistan " under which a 
working group on trade and investment was established  with African countries to further enhance  
bilateral  cooperation.  
5.4  The representative of Mali  thanked  Pakistan , on behalf of the C -4, for the experience sharing 
and cooperation in relation to cotton production technologies. He noted that new stakeholders 
were increasingly involved in the cotton sector in African countries  and in the C-4 in particular. He 
also thanked  developing  countr ies such as Brazil, China, India, Pakistan and Turkey for their 
commitment to the development of the African cotton sector , and encourag ed further cooperation 
under the South -South platform.   TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  5.5  The representative of Burkina Faso  reiterated his country's  deep gratitude to development 
partners for their effective support through South -South cooperation in the cotton sector. He called 
on all donors to increase  support for the financing and technical  support of cotton value chains 
projects . He concluded by thanking China for the financial support which allowed the C-4 National 
Cotton Focal Points to continuously  participate in and contribute to  DGCFMC meetings.   
5.6  The representative of Benin  expressed deep gratitude to Pakistan for their continued support 
through technical assistance especially the recent training organized for experience sharing on 
cotton production technologies , research on crops /soils, and biotechnology , noting  that th ose 
experiences would help increase the value addition of cotton in C-4 countries . 
5.7  The representative of Brazil  reiterated the strong commitment of his country to provide 
technical assistance to cotton p roducers in the developing world and referred  to various ongoing 
and new projects with the cooperation of international organizations.  
5.8  He reported that Brazil ha d updated financial disbursement s in the framework of bilateral 
projects with African countries such as the C-4, Togo, Mozambique, Malawi, Kenya and Tan zania. 
He also informed that Brazil  had provided update d information on the cooperation with FAO on 
development projects in Argentina,  Bolivia  (Plurinational State of ), Colombia, Ecuador, Haiti, 
Paraguay and Peru. Some updates also included projects for th e promotion of decent work in 
cotton production in Africa (Mozambique, Mali and Tanzania) and South America (Paraguay and 
Peru) in cooperation  with the International Labour  Organization (ILO) . 
5.9  He also reported on a new project in partnership with the World  Food Programme (WFP) for 
developing market outlets for cotton by -products in Africa (Benin, Mozambique, Kenya and 
Tanzania). He noted that th at project was in its  early stage s with expected  disbursement s of over 
7 million dollars.  
5.10  He stated that Brazil ha d been further working on two new cotton projects of interest to 
the C-4, namely the  SONAP lint classification unit  project in Benin and the project on maintaining 
production potential for soil in Mali, with  technical mission s scheduled for August /Septembe r 2018 . 
5.11  He reported that the activities implemented under those projects had helped enhance cotton 
productivity per hectare and overall cotton production in the partner countries and had contributed 
to the strengthening of individual skills of technicians,  researchers, and cotton producers, while 
also helping  institutional capacity building.  
5.12  The representative of China  stated  that the partnership between China and African countries 
had further consolidated over recent years, with special focus on the cotton  sector. He confirmed  
China's support to C-4 countries to attend the DGCFMC. He said that China would also continue its 
support for cotton including training workshop s for C-4 technicians. He reported that  China had 
participated in two workshops and 28 tra inings  focused on various issues, including 
industrialization and agriculture modernization with special emphasis on cotton.  Examples of such 
programmes included training courses and the provision of agricultural machinery for cotton 
production in Western Africa.  
5.13   He reported  that Chinese experts would be sent  to Benin to train local personnel on cotton 
production, and referred to  a project started in November 2013 in Benin w ith experts provid ing 
technical assistance based on the achievement of the first phase of the project . The experts had 
carried out : in-depth supportive investigations on local production conditions ; select ion of high 
quality cotton seeds that fit local conditions ; and adjustments on the use of machineries to 
enhance applicability and p romote cotton production through the model of agricultural machinery 
cooperatives.  
5.14  Finally, h e informed Members that China w ould host a Summit on China -Africa cooperation in 
2018 in Beijing with the objective of deepening economic and trade ties between  China and Africa.  
5.15  The Chairman  thanked all the speakers  who provided updates,  and underlined that such 
updates enhanced the implementation , as well as reinforced , South -South cooperation. He also 
encouraged developing countries to continue to strengthen Sout h-South cooperation on cotton and 
recalled that the contributions made by  participants were re corded  and given official recognition, TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  particularly  through the Periodic Report on Cotton Development Assistance prepared under the 
responsibility of the Director General.5 
6  COTTON DEVELOPMENT A SSISTANCE PROJECTS  
6.1  The Chairman  introduced agenda item 6 by  briefly  recalling that th e item had been  added to 
the DGCFMC agenda  pursuant to  a request by the C -4, and endorse d by Members , to give a more 
pragmatic  imprint to the WTO's work on cotton development assistance. He highlighted that the 
inclusion of this item was also a mean to give effect to the 2015 Nairobi6 and 2013 Bali7 Ministerial  
Decisions on cotton development assistance . 
6.2  He recalled the two complementary objectives o f this agenda  item which were  (i) for 
beneficiaries to exploit th is unique forum, where donors and beneficiaries seat together, for projec t 
promotion purposes; and (ii) for donors and partners to exploit the potential of the Consultative 
Mechanism for sharing project results, lessons learned, and their vision on how to best support the 
cotton sector at all levels of the value chain.  
6.3  The representative of the ACP Secretariat  presented  an update of the "Pan African Cotton 
Investment Program (PACIP)" originally circulated  in document WT/CFMC/W/74 . 
6.4  She recalled that discussions held at the 23rd steering committee of the EU -Africa partnership 
on Cotton (COS -Coton) in November 2017, had  prioriti zed the need to  fight against poverty in 
African cotton areas by improving the competitiveness, value added and viability of cotton.  
6.5  She noted that the PACIP framework p rogramme aimed at promoting sustai nable 
development of African cotton value chains as one of the instruments for transforming agriculture, 
creating added value and increasing people's incomes, and promoting integration through trade, in 
consistency with the Malabo agenda. In terms of the v alue addition of the PACIP, she noted that 
the programme would  enhance the alignment to regional strategies, focus on the regional market 
and local dynamics and promote public private partnership for transformation.  
6.6  She further noted that the programme had  5 strategic focus areas : (i) increase producer 
income and cotton productivity, (ii) increase investment in processing of co tton and its by -
products, (iii)  improve the marketing and consumption of cotton and its by -products, (iv) develop 
capacities of inst itutions and professional organ izations of cotton -to-textile; and (v) reinforce the 
contribution of the cotton s ector to the implementation of the SDGs . She also noted that the 
programme mainly focused on improving processing capacity of cotton and by -products. As such, 
they intended to diversify resource mobilization bringing together a blending of public and private 
funds.  
6.7  She concluded by noting that PACIP had been  finalized and incorporated in the Framework 
Programme on Support for Agricultural Value C hain Development (FPAVCD)  which aimed at 
empowering family farmers , Micro, Small and Medium Enterprises (MSMEs) , women and youth  to 
participate in the transformation and modernization of the agricultural sector by linking them to 
the national, regional and  global value chains.  
6.8  The representative of the European Union  thanked the ACP Secretariat for the presentation 
and stated that PACIP  was in line with the needs identified in the sector and represented a 
continuation of projects already financed. She stated that discussions were ongoing with regards 
to funding and the type of project s to be financed.  
6.9  In reply to questions raised by the EU on the lessons learnt from previous  programmes, the 
representative of the ACP  Secretariat  stressed that  PACIP's  focus would be  on regional and 
economic communities and national governments in order to enhance the issue of ownership of 
member states.  
                                                
5 See for example, document WT/GC/187 – WT/CFMC/DG/8 – WT/MIN (17)/5 dated 22 November 2017.  
6 WT/MIN(15)/46, December 2015.  
7 WT/MIN(13)/41, December 2013.  TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  6.10  The representative of Benin  presented, on behalf of the C -4, an update of the "Cotton 
Roadmap " Project.  The comprehensive project proposal had been developed in partnership with 
the International Trade Centre (ITC), and circulated in  document WT/CFMC/W/73 dated 
23 February  2018. He  further noted  that the ACP Secre tariat and the C-4 had also been interacting 
on the pro ject. 
6.11  He showed photos to illustrate  the state of cotton in the C-4 and in other African producing 
countries and the needs to be addressed by  the Cotton Roadmap Project. He explained that the 
project was of a cross -regional nature, focussing on cotton value chains in Africa, and that  
productivi ty, infrastructure, logistics, business climate, lack of local transformation capacity, were 
amongst t he main gaps targeted by the project. Ultimately, the project would help support the 
development of strong regional value chains based on cotton -to-textile and cotton -related 
products processing.  
6.12  He highlighted the following  expected outcomes from the impl ementation of the project : 
creation of sustainable jobs and  poverty  alleviation , promotion of artisanal , semi-industrial and 
industrial cotton processing,  as well as  transfer of knowledge and technology.  
6.13  The representative of Mali  added  that the project w ould address a  wide range of value added 
activities , building on previous  achieve ments  of successful ly completed projects . Those actions 
would help identify and promot e the comparative advantage  and the potential to attract 
investments  of each of the C -4 countr ies. The measurable project outcomes included  job creation, 
increase in yield per hectare, improve ments  in local production processing rate,  and increased  
contribution of cotton to the GDP of beneficiary countries .  
6.14  The Chairman  thanked the represent ative of Benin  for his presentation of the Cotton 
Roadmap Project and welcomed the level of the ambition shown and the indication s of support that 
had been received.   
6.15  The representative of the European Union  thanked the C-4 for the clear presentation and 
noted that the EU remained extremely committed and supportive to proposals on the cotton sector 
because of the economic importance and the impact s on resilience, food security and employment.   
6.16  The representative of Brazil  thanked the C-4 for submitting the Cotton Roadmap Project to 
the consideration of the donor community. He noted that the current bilateral assistance provided 
by Brazil to the C-4 and to  other African countries' projects had already contributed to some of the 
objectives envisaged in the roadmap project , includ ing technology transfer for cotton, genetic 
improvement of the cotton plant, pest control, seeds production and rural extension techniques.  
6.17  He reiterated Brazil's  willingness to continue the dialogue with the C-4 to enhanc e 
cooperation for the development of the cotton sector through  technical assistance.  
6.18  The representative of Japan  thanked the C -4 for the presentation and reiterated the request 
for further clarifications with regards to the specificities of the proje ct and the value -added 
compared to other ongoing or completed projects. He also recalled Japan's  support of cotton in 
general , and of the roadmap project in particular , and called for further coordination in national 
development strategies and in the requests for support to be put forward by C -4 through bilateral 
channel s. 
6.19  He stated that he would report back to capital and to the relevant Japanese embass ies on 
the discussions held on the  roadmap project.  
6.20  The representative of Benin  thanked the European  Union, Brazil and Japan for the comments 
and suggestions and noted th eir longstanding partnership  on cotton . He appreciated the useful  
feedback received and looked forward to the technical and financial support of Members for the 
roadmap project which w ould have a key impact in combatting poverty and promoting sustainable 
value chains.  
6.21  The Chairman  thanked again the C -4 and all the delegations  that had intervened  and noted 
that he was hopeful t here would be  positive news on the project's funding by the next meeting  of 
the DGCFMC  in November 2018.  TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  6.22  The representative of GIZ-Germany  presented  the "Competitive African Cotton 
Initiative"(COMPACI), a project which had recently been marked as concluded in the Evolving 
Table , as well as the  "Sustainable ag ricultural supply chains"  project.  
6.23  He noted that COMPACI was part of the "Agricultural value chains programme"  which 
included different commodities such as Rice, Cashew, Cocoa and Groundnut.  COMPACI aimed 
specifically at enabling small -scale cotton farmers  to sustainably improve living conditions , and 
had reached more tha n 926,000 farmers in 12 countries.  The specific objectives were to : increase 
productivity and soil fertility, strengthen management capacities of farmers, empower women  
producers in cotton farming households , ensure safe use of agricultural chemicals and abolish 
hazardous child labour.  He reported that the project had benefitted from a combination of blending 
public -private financing and of technical assistance  such as harmonization and stan dardisation of 
trainings and material, organizat ion of financial contracts, etc . 
6.24  He highlighted that COMPACI had led to the creation of an "African Cotton Foundation" which 
aimed at (i) creating a partnership of the African cotton industry a round  smallholder cotton 
farmers, (ii) facilitating donor and governme nt resource mobilization, (iii)  coordinating and 
defining sustainable cotton standards, (iv) establishing codes of conduct and best practices and 
strength ening  policy advocacy  for smallholder s. He noted that 6 companies had already joined the 
foundation in Sub -Saharan Africa.  
6.25  He also referred to  the following upcoming projects: " Promotion of organic Cotton in 
Tanza nia" with the support of C&A Foundation  and the "Cotton  Expert House Africa"  project 
focusing of  training smallholder cotton farmers on ginneries.  Finally, he noted that  GIZ had been 
commissioned to prepare a new programme proposal to support cotton at the global level  with 
funding of  18 million euros . This was still at the f ormulatio n stage and was envisaged to benefit 
several countries including Uzbekistan, India, Burkina Faso and Cameroun.  
6.26  The representative of Benin  thanked  the representatives of GIZ -Germany for the 
presentation and the useful information shared with Members. He n oted that th e objectives of the 
"African Cotton Foundation" would help contribute to poverty reduction , and requested that 
relevant  documents and information be shared with  national actors (ministries of Agriculture, 
Environment and Trade) and with the Sec retariat.  
6.27  The representative of GIZ-Germany , in response to a question from Côte d'Ivoire , clarified 
that with regards to  the approach used in identifyi ng smallholder cotton farmers, select ion was  
based on:  due diligen ce standards, reputation amongst farmers, and a stated  intent  in improv ing 
livelihoods . 
6.28  The Chairman  congratulated GIZ on the success of COMPACI , and asked that the announced  
new projects be included in the ET . He also  invited GIZ to report back at the Novem ber cotton day.  
6.29  The representative of DG DEVCO of the European Commission  presented  on the "Strategies 
and new tools of DEVCO in supporting the cotton sector ". 
6.30  She highlighted th e economic importance of  cotton  and its high impact o n food  security at 
the local, national and regional level s. She noted that the main challenges usually faced by the 
cotton sector included price fluctuations, a low level of productivity, financing from the private 
sector, and a low level of inclusiveness of pro ducers.  
6.31  She recapped the longstanding EU support for cotton, from Stabex  in the 1990s  to the 
EU/ACP  Programme  (2010 -2018) , and noted that  support to the cotton sector in Africa contin ued 
to be among the EU's top prioritie s in fighting against poverty . Howe ver new forms of support 
were necessary to ensure  better impact , and the EU was collaborat ing with the African Union, the 
ACP and beneficiaries within that frame of mind . Those new forms of support included  (i) support 
to national  reform  strategie s, (ii) s upport to investments  in agricultural and agro-industrial 
production and (iii) cross -cutting aspects such as capitalization, exchange of knowledge, and 
technical support.  
6.32  In terms of support to national reform strategies, she noted that the most appropria te tool 
was budget support which many countries already received for their  agriculture and food security TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  sector s. She further noted that the "blending" investment appeared to be the best approach for 
promoting responsible and sustainable investments  especially in relat ion to agricultural and 
agro-industrial  production . Blending allowed countries to reduce the perception of risks and attract 
investment s from both the public and private sector s. She also referred to  the European External 
Investment Pla n and its three pillars namely (i) the European Fund for Sustainable Development 
aiming at mobilising investments and improving access to finance through guarantee fund ing and 
blending; (ii) technical assistance to help develop bankable projects and suppor t activities that 
could enhance  the business climate;  and (iii) enhance the investment climate t hrough:  improve d 
political and policy dialogue for economic reforms ; support of legal, institutional and regulatory 
frameworks ; and engage ment with the private sector.  
6.33  She reported that  while funds were available,  the EU had not yet received any relevant 
requests from potential beneficiaries . She noted that such requests needed to be  made through 
the African Union and the ACP  Secretariat  and asked  beneficiaries to share their priorities and 
needs for support through the available financing and support tools.  
6.34  The representative of Benin  thanked  the EU for the presentation and the useful information 
shared with Members. He emphasize d the need for the  territorial i ntegration of factor s of 
production in the cotton sector. He informed participants that the C-4 had already submitted 
requests through both the ACP and the EU Mission  in Geneva and th at discussions were ongoing . 
6.35  The representative of Chad  also thanked the representative of the EU for her outstanding 
presentation and noted that support to cotton would be most efficient if it were used as part of a 
response for a long-term vision for African cotton.  
6.36  The representative of Côte d'Ivoire  thanked  the EU for the presentation and noted that the  
fact that the EU were not receiving requests for projects were due to communication issue s. He 
noted that there were multiple needs for project -funding particularly about  cotton , and  called on 
greater informa tion sharing  and support to access  resources available under the EU external 
investment plan.  
6.37  The representative of Burkina Faso  also thanked  the representative of the EU for her 
presentation and information provided on financing opportunities. He noted th at Burkina Faso had 
several  cotton projects in the pipeline and would reach out to  the EU for possible support.  
6.38  The representative of DG DEVCO , in response to questions raised by Benin, Burkina Faso, 
Chad and Côte d'Ivoire , clarified that the current EU/ACP programme  (COS-Cotton) would end in 
2018 a nd that the new proposed programme w as under assessment. Regarding the  blending 
concept , it was reflective of the fact that  few financial institutions were willing to accept the higher  
risks inherent to  the agricultur al sector. She therefore encouraged  beneficiaries to approach 
financial institutions such as the African Development Bank , as well as  EU representations  in their 
respective countries for possible project  funding  and other relevant support and technical 
assistance . 
6.39  The representative of the European Union  noted that if Members need ed to support their 
capitals with deeper understanding, the EU was ready to organize technical sessions to explain the 
new instruments  it was  putting in place and, and answer any specific questions.  
6.40   The Chairman , in thank ing the representative of the EU DG DEVCO  for her presentation , 
highlighted  the longstanding EU role in support of the cotton sector in developing countries. He 
also suggested that DG-DEVCO consider inviting  relevant  international financial institutions to 
participate in upcoming  meeting s of the DGCFMC to further discuss various types of funding 
mechanisms .  
6.41  The representative of  the African Export -Import Bank ( Afreximbank ) presented on the Bank 
strategies for high er value addition in Africa n commodit y market s with a focus on support  
mechanisms for cotton.  
6.42  In his introductory remarks, he reported that the Bank possessed a substantial financial 
reserve with the mandate to transform Africa's trade.  He noted that various Exim banks had been  
created between 1980 and 2000 in developing countries, with a mandate to boost intra and extra TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  African trade.  He noted that the strategies of the Bank for the next five  years (2017 -2021) would 
focus on four broad areas : (i) Intra -African Trade, (ii) Industrialization and Export Development, 
(iii) Trade Finance Leadership and (iv ) Financial  soundness and performance.  
6.43  He noted that in 2012, the bank had launched the Africa Cocoa Initiative (AFRICOIN -Phase 
1) to prov ide an end -to-end solution to the African cocoa sector. The initiative aimed at  (i) 
facilitat ing production by supporting productivity improvement initiatives and technical assistance 
to cocoa farmers; (ii) support ing deeper integration of the African coco a economy into the global 
value chain  and (iii) promot ing consumption of cocoa products in Africa, Asia and the Middle -East.  
6.44  The initiative had helped  Côte d'Ivoire cocoa farmers boost processing capacit ies, making  the 
country one of the most efficient cocoa process or in the world . The bank had then expanded its 
activities into other commodities , includ ing Cotton , with many African countries fac ing export 
credit issue s, for instance  to import ginning machin ery. Furthermore, intra-African textile import s 
stood at  only 3% while total import s were at 30%. Hence , the Bank saw potential for significant 
increases in  intra-African trade . 
6.45  He noted that the Bank collaborated with stakeholders such as Cotton made in Africa  (CmiA) 
to increase cotton exports an d thus  improve the living conditions of African smallholders a s well as  
promote environmentally -friendly cotton production. He  also noted  that it was important to have 
commercially viable projects to boost value -chains within the sector and increase trade revenu es. 
6.46  He stressed that Africa's cotton sector could access financing through AFRICOIN 2 to support 
value -chain objectives including (i) plantation expansion and productivity; (ii) imports and/or 
domestic production of inputs; (iii) expansion and/or refurbish ment of existing 
processing/ ginning/manufacturing pl ants; (iv) establishment of new plants; and (v) promotion of 
finished and semi -finished cotton consumption in Africa and globally . 
6.47  The representative of Benin  thanked  the Afreximbank representative for hi s presentation and 
further enquired about AFRICOIN 2 in relation to  cotton value -chain s and the necessary 
procedures for submitting projects for financing  by the Bank . 
6.48  The representative of Chad thanked  the Afreximbank representative and noted  that banking 
institutions could help exploit the abundant  resources available in the region. He noted, h owever, 
that the criteria for small-scale producers to access financing were very complex and enquired 
about the mechanisms in place at the B ank to fac ilitate the access to funds to th ose farmers.  
6.49  In his reply, t he representative of the Afreximbank  noted  that C ôte d'Ivoire w as among the 
countries which had benefited from the Bank support on cotton seeds. With regard s to the 
mechanism in place for loans t o cotton projects financing , it was important that projects brought 
to the Bank be linked to commercial transactions objectives . He further clarified that  the Bank also 
provided loans  to local banks and economic operators which in turn could reach out to l ocal actors.  
6.50  The representative of the European Union  thanked the Afreximbank representative for his 
presentation and r eferred  to the EU External Investment  Plan and related funding criteria that  
project s be commercially viable and aim for public private partnership s. 
6.51  The representative of the Afreximbank  clarified  that the de -risking of projects w as of great 
importance to the Bank and that it  had various mechanisms geared towards  mitigat ing potential 
risks. He also noted th e interest of a possible  partner ship with the EU to finance projects on the 
continent through A FRICOIN based on the EU blending a pproach .  
6.52  In reply to a question from Burkina Faso  regarding  the Bank's interest rates compared to 
other  banks  and financial institutions , the representative o f Afreximbank  noted that the  interest 
rate depended on risks exposure.  
6.53  The Chairman  concluded discussions under this agenda item by welcoming the very useful  
interaction between donors and beneficiaries . He noted in particular the remarkable cooperative 
spirit which had been displayed , particularly in the effort to seek further information on projects 
and programmes and foster  a greater understanding of their value /impact . He encouraged 
participants to communicate with the Secretariat in between the Round s of the DGCFMC about the TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  projects that they would like to list under this agenda item, both for project promotion and for 
follow -up purposes.  
6.54  All presentations  made under this agenda item  are available on the WTO Cotton web page.  
7  DOMESTIC COTTON SECT OR A ND OTHER REFORMS/NAT IONAL COTTON SECTOR 
FOCAL POINTS  
7.1  The Chairman  introduced agenda item 7 by noting that the Secretariat had received updates 
on domestic cotton sector reforms  from Burkina Faso , as reflect ed in document 
WT/CFMC/21/Rev.15 . 
7.2  The National Cotton Focal Point of Burkina Faso  provided updated figures on  seed cotton  for 
the 2017/18 season, which stood at 613.371 tonnes, representing an increase of 13% over the 
previous season.  He noted that Burkina Faso was currently the second largest cotton producer in 
Africa behind  Mali. He also reported o n a projected improvement in producers' margins due to 
favourable prices and reduced  agricultural inputs  needed  per hectare.  However, there had been 
reduced yields in the productio n zone of SOFITEX due to climate  change and the spread of pests 
and whiteflies , while the remaining zone s (FASO COTON and SOCOMA) registered good 
performance s linked to favourable  rainfall . 
7.3  He described the national system to establish the price of seed co tton, which was based on a 
fluctuating 3 -year average of reference prices based on the two most recently concluded seasons 
and the price forecast for the forthcoming season (as provided by the New York futures market). 
He also referred to the national syst em for establishing the price of agricultural inputs, which was 
based on a decision taken by the " Association Interprofessionnelle du Coton du Burkina " (AICB).  
7.4  He concluded his intervention  by reporting on actions taken by cotton producers to combat 
the sp read of pests, and by sharing the forecast of 836.000 tonnes for the production of seed 
cotton for the season 2018/19, corresponding to a 37% increase over the previous season  and 
based on an expected improvement in productivity.  
7.5  The National Cotton Focal  Point of Mali  reported that cotton remained a  pillar of the Malian 
economy. She  noted that the sector was a catalyst to agricultural productivity and welfa re for 
about 4 million people. She  further highlighted the role of cotton as a cash crop in the coun try, and 
its contribution to food security due to the association between cotton and cereals farming.  
7.6  She explained that Mali's main priority was to revitalize the cotton sector to make it more 
competitive. The planned institutional reforms included a reor ganization of the CMDT (Compagnie 
Malienne du Développement des Textiles). She added that the government had initiated a new 
development policy to revamp the cotton sector through three strategic pillars : (i) a privatization 
scheme; (ii ) the industrializat ion of transformation in the cotton value -chain, and (iii) the 
consolidation of the achievements of national inter -professional entities such as the 
"Interprofession du Coton du Mali" (IPC) and the "Confédération des Sociétés Coopératives des 
Producteurs d e Coton  (C-SCPC)".  
7.7  She reported that for the 201 7/18 season, 728,644 tonnes of seed cotton had been  produced , 
representing an increase of 12.58 % from the previous season. Production was expected to further 
increase in  the 2018/19 season , mostly due to the engagement with cotton cultivation of local 
smallholders , and support schemes for agricultural inputs for small producers. She finally  stressed 
the need for multilateral actions to reduce trade -distorting domestic support to cotton  by 
developed countries, and thanked development assistance partners for their efforts and continued 
cooperation.  
7.8  The National Cotton Focal Point of Benin  reported that the government of Benin had 
re-established, in April 2016, the framework agreement between the " Association 
Interprofessionnelle du Coton  (AIC)" and the State of Benin, which had been suspended since 
2012. That reform had allowed rebuilding trust amongst the economic operators in the cotton 
sector. Additional benefits of that reform included the involvement of c otton growers in the price 
setting of seed cotton and timely payments to cotton producers, thanks  to the public -private 
management of the value chain. He highlighted that the reform had also led to an increase in the TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  number of hectares dedicated to cotton cultivation in the season 2016/17, and that production w as 
expected to increase from 451 .121 tonnes in 2016/17 to  597.986 tonnes for the season  2017/18 , 
with a forecast of 710.000 tonnes the following  season. Those developments had led to a 
Ministerial dec ision allowing the intervention of private investors in the national effort to increase  
ginning capacity in Benin.  
7.9  The government had  also put in place a capacity building initiative focusing on research and 
the regionalization of varieties in Benin with a  view to diversi fy fertilizers and improve yields . 
Finally, a third reform  had been put in place, in the form of a capacity building policy providing 
national agricultural research programme s with updated technologies to improve the level of 
development . 
7.10  The National Cotton Focal Point of Chad  explained that cotton offered  special opport unities  to 
increase agricultural  productivity . He recalled that cotton provided a livelihood to more than 3 
million people in Chad (25% of the population), and that it was cultivated in the most favourable 
economic zones of the region. Th ose factors had prompted the government to implement 
important r eforms in the cotton sector.  
7.11  He reported that  "COTONTCHAD Société Nouvelle " had set the objective of boosting 
production to 300.000 ton nes of seed cotton for the season 201 8/19. A tripartite committee had 
been created by ministerial decree on 19 April 2017  to set up a new national price fixing 
mechanism for cotton.  
7.12  He concluded his intervention by highlighting the importance of the WTO work on cotton and 
Chad's engagement in support of the C-4 initiatives.  He stressed that the Cotton Roadmap Project 
was an  important and promising project embracing the strategic vision of the C -4 to enhance 
productivity and create local value added.  
7.13  The Chairman  thanked  the National Cotton Focal Points  for their comprehensive contribution s 
and comments , which were highly rel evant  to the work of the DGCFMC  and urged other 
beneficiaries  to consider submitting inputs to the Secretariat for the next revision of the Table . 
Designation of National Cotton Sector Focal Points  
 
7.14  The Chairman  noted, with regards to  the focal points listed in Part III of the ET , that the 
Secretariat had received updates on the coordinates of National Cotton Focal Points from Benin, 
Burkina Faso, Chad and Mali. However, no new information ha d been received f rom other 
beneficiaries, an d the total number of Focal Points listed in Part III of the Evolving Table remain ed 
at 16 . He urged beneficiaries that were yet  to designate their national cotton sector focal points to 
do so as soon as possible.  
8  ANY OTHER BUSINESS  
8.1  The representative of Benin  thanked  the Chairman and the Agricultur e and Commodities 
Division team for all of the support to ensure a smooth running of the Cotton Day . He noted that 
DGCFMC meeting s had clearly increased in practical relevance and importance, and proposed to 
extend the duration of future DGCFMC meetings to two days, with one  day entirely devoted to 
development assistance aspects and another  to cover  the Dedicated Discussion  of the Relevant 
Trade -related Developments  for cotton .  
9  CONCLUSION  
9.1.  The Chairman  concluded the meeting by thanking all delegations  for their constructive 
participation and interactions. He welcomed  the C-4 proposal to ex tend the duration of future 
meetings on Cotton  given  the increased level of interactions and the related difficulty to finish 
meetings on time. Furthermore, the inclusion of private sector  participation and of other cotton 
development projects  in the future  would also justify the need for longer meetings . He noted that 
showed  the high level of interest in the cotton dev elopment assistance portfolio , and that he 
would, before the next cotton day, consult Members to confirm their support for the C -4 proposal 
to hold cotton meetings over two full days .  TN/AG/SCC/W/29 • WT/CFMC/57  
 
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  9.2.  The Chairman concluded the meeting by reiterating the importance that t he Director -General 
attache d to the Cotton File. He commended the C-4, the donor community as well as other 
beneficiaries of development assistance for their constructive role in taking forward the discussions 
based on the Director -General's Evolving Table .  
 
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