WORLD TRADE  
ORGANIZATION  WT/CFMC/DG/2* 
16 April 2008  
 
 (08-1783) 
  
  
IMPLEMENTATION OF THE DEVELOPMENT ASSISTANCE ASPECTS OF THE 
COTTON-RELATED DECISIONS IN THE JULY PACKAGE 
 
Second Periodic Report by the Director-General 
 
  
 
    
 
 
TABLE OF CONTENTS
  
 
 
Page  
 
I. INTRODUCTION ................................................................................................................... .2 
II. BACKGROUND: COTTON SE CTOR DEVELOPMENTS................................................3  
III. IMPLEMENTATION ACTION .............................................................................................5  
A. ACTION  BY THE  DIRECTOR-GENERAL/THE  CONSULTATIVE  PROCESS....................5  
B. ACTION  BY COTTON  PROPONENTS  AND  OTHERS..........................................................5  
C. ACTION  BY BILATERAL  DEVELOPMENT  PARTNERS.....................................................7  
D. ACTION  BY MULTILATERAL/REGIONAL  DEVELOPMENT  PARTNERS ....................10  
E. THE  INTEGRATED  FRAMEWORK  FOR  LEAST-DEVELOPED  COUNTRIES  (IF) .........13  
F. JOINT  INTEGRATED  TECHNICAL  ASSISTANCE  PROGRAMME  (JITAP).....................14  
IV. JOINT WTO/OECD TRADE CAPACITY BUILDING DATABASE..............................14  
 
    
 
    
 
________________  
 
* This document has previously been issued under the symbol WT/GC/97.This document has been prepa red under the Secretariat's own 
responsibility and without prejudice to the positions of Members and to their rights and obligations under the WTO WT/CFMC/DG/2 
Page 2  
 
 
I. INTRODUCTION  
1. The cotton sector is of considerable social and economic importance to a number of WTO 
Members, in particular to several low-income count ries. Four African Members, Burkina Faso, Benin, 
Chad and Mali, drew the WTO's attention to the co tton sector two years into the launch of the Doha 
Development Agenda (DDA).  They explained the cent ral role that the cotton sector played in their 
economies and the problems they experienced due to declining world prices. They proposed a 
Sectoral Initiative on Cotton.
1  
2. The cotton sector is of great importance to Africa.  Cotton occupies third place in terms of the 
total value of the continent's agricultural exports, after cocoa and coffee. A large number of African 
countries produce cotton, and 30 of them are exporters.2  The cotton sector plays an important role in 
other parts of the world as well, where a number of  other low to medium-income Members derive an 
important part of their GDP from cotton production and export. 
3. Cotton has undoubtedly become a priority issu e for the WTO in the context of the DDA, and 
the initiative on cotton is symbolic of the developm ent dimension of the Doha Round.  The initiative, 
which has a trade and a development dimension, has had my full support since I took office in 
September, and I have urged Members to continue to pursue it vigorously.  
4. Its trade policy aspects are being specifically a ddressed within the framework of agricultural 
negotiations, and form part  of the Single Undertaking. The negotiations encompass all trade-distorting 
policies affecting the cotton sector in the three pillars of the Agreement on Agriculture; namely, 
market access, domestic support and export competit ion. In the July Framework, Members undertook 
to achieve "ambitious results expeditiously" in  this particular area of the negotiations.3  
5. The July Framework also mandated WTO Members, the Secretariat and the Director-General 
to address the development assistance aspects of co tton, stressing the complementarity between the 
trade and development components of the cotton dossier. It instructed the Secretariat to work with the 
development community and to provide the General Council with periodic progress reports; instructed 
the Director-General to consult relevant organiza tions, including the Bretton Woods Institutions, the 
FAO and the ITC; and, encouraged Members to wo rk on development issues multilaterally and to 
continue their bilateral programmes.  All de veloped countries were urged to participate. 
6. My predecessor reported on the development assist ance aspects of the cotton dossier in a First 
Periodic Report.4  The intention of that report had been to  describe the consultative process that had 
just been launched with bilateral and multilatera l donors, as well as the proponents of the Cotton 
Initiative, and to report on the start of contributions .  This Second Periodic Report builds on the First, 
and is intended to demonstrate the progress that has been made.   
7. I am pleased that there is indeed progress to report. The total value of cotton development 
assistance commitments made to 14 beneficiary A frican countries has now reached approximately 
US$976 million. Commitments on cotton development assistance focussing on the "Cotton Four,"  
                                                      
 1 TN/AG/GEN/4: "Poverty Reduction – Sectoral In itiative in Favour of Cotton", 16 May 2003; and 
WT/MIN(03)/W/2: "Poverty Reduction – Sectoral In itiative in Favour of Cotton," 15 August 2003. 
 2 Angola, Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Congo (Dem. Rep. of), 
Côte d'Ivoire, Egypt, Ethiopia, Ghana, Guinea, Kenya, Madagascar, Malawi, Mali, Morocco, Mozambique, 
Niger, Nigeria, Senegal, Somalia, South Africa, Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia and Zimbabwe.   
3 WT/L/579, 2 August 2004. 
4 WT/GC/83, 3 December 2004.  WT/CFMC/DG/2 
 Page 3 
 
 
 Benin, Burkina Faso, Chad and Ma li, now totals around US$437 million.5 Specific commitments 
towards the cotton sector of Benin are approximately US$53 million, of Burkina Faso are US$93 million, of Chad are US$52 million, and of Mali are US$78 million. This demonstrates willingness of the development community to help low-income Members address the difficulties that 
they face. 
8. Various initiatives at the multilateral level ar e under way to address the concerns of low-
income cotton producers, and to assist them in implementing vital domestic policy reforms. I am 
pleased that the International Monetary Fund (IM F) has given strong support to a new Exogenous 
Shock Facility to provide conc essional financial assistance to cotton and commodity-dependent 
countries. The World Bank has also committed new r esources, within the framework of its assistance 
programmes, to the proponent countries. This assi stance is intended to bring about domestic policy 
reforms, including at the sectoral level. A number of organizations, such as the African Development Bank (ADB), the United Nations Industrial Deve lopment Organization (UNIDO), the International 
Trade Center (ITC), the United Nations Conferen ce on Trade and Development (UNCTAD) and the 
United Nations Food and Agriculture Organization (FAO), are all directing greater attention and 
resources towards cotton.    
9. The cotton proponents have welcomed the conso lidation that has taken place of various 
development assistance programmes, the design of new ones, and the general scaling-up of the level of assistance provided. I would like to underscore  that non-proponent African cotton producers have 
drawn my attention to their eligibility and need for development assistance, which they do not wish to 
see limited to the proponents of the cotton initiative.  I have conveyed, and w ill continue to convey, 
this message to donors, many of which have already confirmed the non-discriminatory and demand-
driven nature of the assistance they offer.   
10. It is important that the WTO continues to pursue all aspects of the cotton dossier in an 
ambitious manner.  Progress on cotton will be ess ential to fulfilling the aspirations of many WTO 
Members for the Doha Round to be a development round.  I would urge all Members to continue 
constructive engagement in the negotiations on the trade policy aspects of the cotton sector.  On the 
development aspects, I will continue to call on all relevant multilateral and b ilateral donors to enhance 
their coordination and the level of assistance that th ey provide.  I would be remiss not to mention the 
importance of fully implementing the results of rece nt Panel and Appellate Body rulings in the cotton 
dispute.  These rulings are an important component of the overall contribution that the WTO can make to improving the situati on of cotton-dependent developing  and least-developed countries. 
II. BACKGROUND: COTTON SECTOR DEVELOPMENTS
6 
11. The four main importers of cotton in the world today are China, Turkey, Pakistan and India; 
while the four main exporters are the United States, Uzbekistan, Australia and Brazil.  In terms of the 
ranking of the proponents of the Sectoral Initia tive on Cotton, in the 2004/05 season, Mali was the 
world's 5th largest exporter followed by Burkina Faso (7th), Benin (14th) and Chad (23rd).   
12. The Cotton Four , as a group accounted for 639,000 tons of cotton exports in 2004/05, and 
would have been the 3rd largest exporters behind the United States and Uzbekistan.  Africa as a whole 
accounted for 1.486 million tons of cotton expo rts in 2004/05 and would have been the 2nd largest 
exporter behind the United States. 
                                                      
5These figures include commitments  focussing on the Cotton Four but which also cover other 
beneficiaries, and cannot be disaggregated. 
6This Section draws on statistics from the Internatio nal Cotton Advisory Committee.  It also draws on 
various reports from the Executive Director of ICAC, Mr. Terry Townsend. WT/CFMC/DG/2 
Page 4  
 
13. The cotton sector has undergone many important changes due to its exposure to a competitive 
world economy. These changes have culminated in an  almost consistent downward trend in the price 
of cotton, a phenomenon that is common to many primary commodities. According to the International Cotton Advisory Committee (ICAC), in the first four seasons of the 1980s, the 
Cotlook A Index - an indicator of average world cotton prices - averaged 83¢ per pound.  Since then, 
it has declined.  In the first four seasons of the 1990s, the average world price fell to 69¢, and in this 
decade to about 56¢. The ICAC Secretariat estimates  that average cotton pri ces this decade are likely 
to be 10-20¢ lower per pound than the average of th e last thirty years, fluctuating between 50-60¢.
7 
Average production costs today are estimated at a bout 55¢ per pound, which makes profit margins 
slim.  
14. Some of the different factors that explain the fall in cotton prices include: 
• Technological Change : The world cotton industry is being radically transformed by 
technological advances, the most visible of which is genetic engineering.  Genetically engineered varieties account for 21 per cent of the world cotton area, and approximately one 
third of world production and trade. The main impact of genetically engineered cotton varieties is not higher yield, although higher yi elds are sometimes recorded, but is risk and 
cost-reduction, leading to larger areas of cotton production and an overall increase in the 
levels of production.  
There have been other technological advances such as in irrigation management, pesticide 
formulation and application, and crop rotati on. These changes have brought about gains in 
production, with corresponding decreases in prod uction costs. Global yield has risen from 
under 600 kilograms per hectare to more than 700 kilograms per hectare.  However, African 
cotton producers are yet to benefit from these a dvances. For instance, yields in Francophone 
Africa stood at 85 per cent of the world average in the mid-80s, 75 per cent of world average 
in mid-90s, and 64 per cent of world average in the last three seasons.
8  In other words, cotton 
productivity in certain parts of Africa has been dec lining  relative to the rest of the world.   
• New Industry Standards : To improve quality and increase sustainability, industry standards 
are being established for instrument testing and classing of cotton, instead of visual and 
manual testing.  These emerging industry standard s are yet to be applied in many of the 
concerned African countries.   
• Competition from Synthetic Fibers :  Although global cotton consumption has increased 
every year since the late 1980s, cotton has lost market share vis-à-vis other fibres, particularly because of competition from synthetic fibres, such  as polyester.  The market share of cotton 
declined from 39.2 per cent in 2003 to 38.8 per cent in 2004 vis-à-vis other fibres.  Polyester 
use continues to rise by approximately 4 per cent per year, while cotton use rises at an 
average rate of only 2.5 per cent per year.   
• Production in New Areas :  In various parts of the world, such as in Brazil, Turkey and 
certain parts of Africa, cotton is being grown in  new areas that are contributing to a rise in 
cotton production.  Production costs in Mato Gr osso, Brazil, are estimated to be well above 
world average and have climbed since the 1990s.  Due to the expansion of irrigation in East 
Turkey, cotton production has risen sharply since 1994/95. Furthermore, production in 
                                                     
 
 7 Terry Townsend, Executive Director of ICAC, "Competitiveness in the World Cotton Industry," June 
2004.  Since September 2005, daily cotton prices have oscillated between 52¢ and 55¢ per pound.  The seasonal 
average price has been estimated  between 58¢ to 60¢ per pound. 
8 In effect, if yields have fallen relative to world average in Francophone Africa and other parts of 
Africa, the revenue declines per hectare have been more strongly felt in lower income countries than in other 
cotton producing countries.  Report of the Executive Director to the 64th Plenary Meeting of the International 
Cotton Advisory Cotton Committee, Liverpool, UK, 25-29 September 2005: page 4.   WT/CFMC/DG/2 
 Page 5 
 
 
 Francophone Africa has approximately doubled since 1994.  Brazil, Turkey and Francophone 
Africa have contributed significantly to the rise in world cotton production. 
• Governmental Support:   Measures by governments to support farmers and domestic 
production have affected  the distribution of wo rld cotton supply, and the price of cotton over 
the long run.  Support measures can distor t price signals, encouraging over-production in 
certain parts of the world, and under-production in others.   
15. Globally, cotton consumption has increased by 70 0,000 tons in 2005/06, reaching a total of 
24.2 million tons, up from 23.5 milli on tons in 2004/05. Increased cons umption was concentrated in 
developing countries, particularly in Asia.  This  reflected strong expansion in cotton processing in 
China, India and Pakistan.   
16. Much discussion has taken place in various  fora on the development of market-based 
Commodity Price Risk Management mechanisms to  off-set losses from price declines and volatility.  
Some of the mechanisms that are under discussion include:  i) hedging schemes ,  ii) agricultural price 
risk insurance schemes and, iii) self-insurance schemes .  Cotton Futures Market Trading was 
developed lately.  Currently, there are two active cotton futures markets that operate globally, the 
New York Board of Trade and the Zhengzhou Exchange in China.  There are al so exchanges in India9 
and Brazil10.  Although traded volumes are low, they are rising.  Internet-based cotton trading also 
started in the year 2000. It has been successful in attracting a significant proportion of cotton trade.11   
17. The cotton proponents continue to call for an Em ergency Stabilization Fund.  However, there 
have been mixed views on the merits of such a fund.  Some consider it to be anti-competitive and 
worry that it may delay important reforms.  Others  recall that, historically, stabilization funds have 
been ineffectual.  Some have also argued that the fiscal burden on governments is unsustainable, and 
that multilateral financial institutions have  no resources for such arrangements.   
III. IMPLEMENTATION ACTION  
A. ACTION  BY THE  DIRECTOR-GENERAL/THE  CONSULTATIVE  PROCESS   
18. Five rounds of informal consultations on the development assistance aspects of cotton have 
been held so far.12 Overall, this process has engendered a constructive and interactive dialogue 
between the development community and the cotton proponents. Beyond the announced contributions 
of cotton-specific financial and technical assistan ce, there has been an objective acknowledgement of 
the shared responsibility between the development co mmunity and the cotton proponents.  There is a 
wider appreciation of the fact that the meani ngful use of the assistance provided will require 
accompanying policies to ensure effective utilization. 
B. ACTION  BY COTTON  PROPONENTS  AND  OTHERS   
19. In the consultative process, the cotton proponent s were requested to provide information on 
action taken or envisaged to:  (1) reflect cotton- sector priorities in their Poverty Reduction Strategy 
Papers (PRSPs); (2) prepare Diagnostic Trade Integr ation Studies (DTISs) to reflect their priorities, 
including on cotton; (3) prepare studies on their cotton sectors; (4) prepare cotton sector-specific 
projects; and (5) continue their cotton sector reforms.   
                                                      
9 India: National Commodity and Derivatives Exchange; the National Multi-Commodity Exchange; 
and, the Multi Commodity Exchange.   
10  Brazil: The Bolsa de Mercadorias & Futuros , Sao Paulo.   
11  World Cotton Trade 2005/2006.  International Cotton Advisory Committee, September 2005: 3-5.   
12 22 October and 18 November 2004; and, 25 April, 18 July and 28 October 2005.   WT/CFMC/DG/2 
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20. The cotton proponents have underlined the importance they attach to WTO Members meeting 
their commitments on the development-related aspe cts of the Cotton Initiative.  The African Group 
has stressed that all 33 African Countries that produce and trade in cotton should be eligible for any 
financial and technical assistance from the de velopment community.  The proponents (with the 
support of cotton stakeholders), have appealed fo r the establishment of an emergency support fund for 
cotton production. 
1. Benin 
21. In the consultative process, Benin confirmed that  cotton sector priorities are reflected in its 
PRSP.  Cotton is already an integral part of Beni n's agricultural sectoral study, where the sector has 
been reflected as priority.  A concept paper on cotto n had been finalized and forwarded to the United 
States as a basis for accessing possible funding from the United States Millennium Challenge 
Account (MCA).  A first version of a Strategic Framework document has also been prepared as a 
follow-up to the "European Union-Africa Cotton Part nership Forum", which took place in Paris, from 
5 to 6 July 2004.  It is currently being finalized. 
22. Cotton project proposals/activities for which Benin requested support were circulated to the 
development community on 18 August 2005. The purpose of these projects is to reinforce and 
strengthen the cotton industry.  In response, the Un ited States stated that many of the proposals by 
Benin were covered, in some form or another, under its current programmes.  Some examples were 
specified, namely: Project Proposal 1 (judicial system improvement to enhance investor attractiveness, by establishing arbitration centre); Project Proposal 5 (reconstruction and rehabilitation 
of rural feeder roads); Project Proposal 7 (soil fertility enhancement); Project Proposal 9 (testing 
phytosanitary protection methods); and Project Pr oposal 12 (port rehabilitation, port institutional and 
operational reforms, and agricu ltural products enhancement).
13  Benin also acknowledged the 
financial and technical assistance provided by the G overnment of Japan  in the areas of "irrigation 
infrastructure" and "human resource development."  On the domestic front, Benin has also undertaken 
a number of reforms in order to make its cotton sector more competitive.  SONAPRA, which is the 
state-owned cotton processing firm in Benin, is currently being privatized. 
2. Burkina Faso  
23. Burkina Faso confirmed that its PRSP reflected cotton-sector priorities.  Project proposals 
will be developed and fo rwarded to bilateral donor partners. On domestic reform, Burkina Faso 
informed the consultative forum that domestic co tton monopolies had been eliminated and that the 
industry had been opened to competition from the private sector.   
3. Chad 
24. In Chad's June 2003 PRSP, cotton is reflected as a priority under the Section on: "Sustainable 
Increase of Rural Production", which is in the Matrix  of Priority Actions of Phase I of the PRSP.  
Specific priority actions include: strengthening the cap acity of rural producers;  strengthening support 
services for the agricultural sector;  and, comp leting the reform of the rural sub-sector.14   
25. Chad has yet to provide information on its do mestic reform programme.  The World Bank, 
however, has provided information on reforms in th e cotton sector.  It has noted that, "In Chad, 
progress on cotton reforms has been somewhat limited.   This is due to the fiscal difficulties of the 
para-statal cotton processing company Cotonchad , and the slow pace of reform undertaken by the 
government.  In 1999, the Government of Chad adopt ed a sector reform program.  The objective of 
this was to improve the income of cotton farmer s and enhance the efficiency of production.... 
                                                      
13 Statement by the United States, 28 October 2005:  WT/GC/97 and Add.1. 
14 Chad: Poverty Reduction Strategy Paper, IMF Country Report No: 03/209, July 2003:  pages 99-100.  WT/CFMC/DG/2 
 Page 7 
 
 
 Developments over the last several weeks have b een encouraging as the Government of Chad seems 
to be moving on the reform and im plementation of the road map".15 
4. Mali 
26. Mali confirmed that its PRSP reflected cotton-sector priorities.  The country attached 
importance to reviving its textiles sector.  Mali has expressed interest in projects that would achieve 
synergies towards the creation of a regional cotto n market and regional infrastructure.  Specific 
project proposals would be prepared and forwarde d in due course. The World Bank has made the 
following statement:  "In Mali, the government has decided to postpone the privatization of the para-statal cotton company.  The Bank has, however, recently approved an Agricultural Competitiveness 
and Diversification Project ... with the Gove rnment of Mali which focuses on cotton and 
diversification of crops.  The French development agency is working with the producer organizations 
to build their capacity."
16 
5. Other African Countries 
27. Ivory Coast, Guinea, Senegal, Uganda and Zi mbabwe have actively participated in the 
consultative process. They have stressed their commercial and systemic interests, and have 
undertaken to reflect cotton-sector priorities in th eir PRSPs and to prepare project proposals.   
28. On 21 October 2005, Ivory Coast forwarded a doc ument entitled:  "Strategy for Reviving the 
Cotton Sector in Côte d'Ivoire." The document pr oposes a project for the revival of the cotton sector 
that is aimed at poverty reduction. The components of the project include: capacity building for research; technological improvement; the creation of  a funding mechanism; and the capacity building 
of stakeholders.  It was indicated that the document would be developed into a project proposal.  It 
has been circulated to the partic ipants in the consultative process, who would have the opportunity to 
comment at subsequent consultations. 
C. ACTION
 BY BILATERAL  DEVELOPMENT  PARTNERS   
29. In the consultative process, bilateral donors were  requested to provide information on action 
taken or envisaged to:  
• reflect cotton-sector priorities in their country  programmes or other relevant mechanisms;  
 
• provide financial and technical assistance to cotton sector projects; and,  
 
• coordinate amongst bilateral donors on assistance programmes.   
 
1. European Communities (EC) 
30. The basis for EC assistance is framed by the EC Council Conclusions, of April 2004 and the 
"European Union-Africa Cotton Partnership", agreed in July 2004.  The Conclusions and the 
Partnership have set the main orientations and prio rities for cotton development support.  Within this 
framework, support is being provided for relevant  African countries in seven areas of the Cotton 
Partnership, namely: (1) international trade; (2) national and regional cotton strategies; (3) policies 
and institutions; (4) technological innovation; (5) risk  management and finance; (6) chain integration; 
and (7) co-ordination.  The EC has stressed that th e implementation of reforms often takes five to ten 
years to complete.  
                                                      
15 Statement by the World Bank, 28 October 2005:  WT/GC/97 and Add.1. 
16 Statement by the World Bank, 28 October 2005:  WT/GC/97 and Add.1. WT/CFMC/DG/2 
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31. Preparation for an all-ACP capacity buildin g program on commodities has progressed well.  
This programme is meant to implement the act ion plans on commodities and cotton, with an 
indicative amount of €45 million, of  which €15 million is earmarked for cotton.  The programme will 
focus on capacity building in relation to strategy and policy development, risk management, facilitating transactions, and the empowerment of farm ers.  The programme will work at the "all-ACP 
level" and complement nationally funded initiatives.  A number of international organisations will be 
involved in its implementation (eg. the World Bank, FAO, ITC, UNCTAD and the Common Fund for Commodities) on the basis of their competitive strengt hs in assisting commodity-dependent countries.   
32. The EC is paying particular attention to risk management. A number of innovative risk 
management instruments are being developed.  Th ese have the potential to offer efficient means for 
responding to yield or price fluctuations, and to stabilize income.  The ACP Group has agreed to the 
EC proposal to earmark €25 million for the new Global Index Insurance Facility (GIIF), being 
developed by the World Bank. The EC has indicated that  part of its support could be used to subsidise 
initial insurance premiums for commodity-depende nt countries, including cotton producers. The 
programme is expected to be approved in the second half of 2006.   
33. At the regional level, support focuses on the regulatory environment affecting the cotton 
sector.  The EC regional programme for West Africa includes a project, implemented by UNIDO, for the expansion of rapid machine-based testing tech nologies and the introducti on of a cotton label for 
West-Africa. The regional dimension is prominent in the context of the EC/ACP negotiations on 
Economic Partnership Agreements (EPAs).  More broadly, the re gional support programmes include 
support to regional integration and trade facilitation,  with likely positive e ffects for cotton production 
and trade.   
34. Support at the national level is financed unde r the National Indicative Programmes of the 
various countries. As a result of the Mid-Term Re views of the national level programmes in 2004, 
new support has been mobilised specifically for cotton.  There is additional funding for Benin, Burkina Faso and Mali, totalling €35 million.  These countries are at various stages of preparation for 
accessing the funds. In addition, in a number of countr ies (Burkina Faso, Senegal, Côte d’Ivoire, and 
tentatively in Togo), unused Stabex balances were  allocated to cotton for a total amount of over 
€45 million. Furthermore, cotton-related debt-resche duling has been supported in Côte d’Ivoire in 
mid-2005 for an amount of €5.4 million. Finally, in a number of countries (rural) road programmes 
are being supported with a specific orientation to wards rehabilitation and maintenance of roads in 
cotton producing areas. The total value of the national level cotton support programmes by the 
European Union (EU) in West-Africa is currently around €100 million.   
35. The EC has indicated that two opportunities will arise in 2006: First, the End-of-Term 
Review, which allows for a revision of country en velopes under the 9th European Development Fund 
(EDF).  The revision can be upwards or downwar ds, based on country perfo rmance. The End-of-Term 
Review also allows for a reallocation of funds within national programmes on the basis of shifting 
needs and priorities; Second, the start of programming for the use of 10th EDF resources in the period 
2008-2012.  EU support is focused on few priority sectors. As in the past, the EU will respond to 
nationally identified priorities, expressed in nati onal PRSPs. It is therefore important for cotton 
producing countries to prioritise cotton in their deve lopment programmes and strategies, so that EDF 
funds can continue to be allocated for support to cotton.   
2. Japan  
36. The overall framework for Japan's assistance to Africa is the Tokyo International Conference 
on African Development – the TICAD process.  In the Director-General's consultative process, in 
April 2005, Japan informed participan ts of its intention to "double assistance to Africa over the next 
three years, with grant assistance as the central element".  Following this announcement, Japan invited  WT/CFMC/DG/2 
 Page 9 
 
 
 the cotton proponents to submit cotton projects for financial support, at the start of Japan's 2005 Fiscal 
Year.   
37. Japan announced a recently launched project  study on "WTO-Related Assistance in the 
African Region." In June 2005, Japan initiated the "Human Resource Development Cooperation 
Programme", based on the needs of developing countri es.  It described this as a two-step initiative, 
through which it could provide specific assistance, first concerning WTO agreement implementation, 
and second, concerning export promotion.  Japan inte nded to apply this progr amme not only to LDCs, 
but also to other African countries.  As a follow-up to this initiative, the Government of Japan would 
undertake a comprehensive survey of Kenya, Zambia , Senegal, Malawi, Mali and Rwanda in January 
2006.  Although only Mali, among the four Cotton-In itiative countries was presently being covered, 
Japan would consult with other governments in capita ls. Japan recalled its original first step with 
concrete support for Benin,17 immediately after the March 2004 WTO African Regional Workshop in 
Cotonou.  On infrastructure, Japan was exploring the assistance it would render for the construction of 
the corridor between Mali and Senegal, which would facilitate the transportation of cotton and related 
products from Mali to Senegal.  This project is underway.   
3. The United States  
38. The United States identified five central elem ents that underpin its development assistance 
support for the cotton proponents :  
• First, the G8 debt relief package to which th e United States contributed, which would free-up 
significant resources for the cotton proponents to allocate on the basis of domestic priorities;  
• Second, the Millennium Challenge Corporati on Account, with significant opportunities for 
countries to address long-term development obstacles, including in cotton;  
• Third, United States Aid for Africa, which h as been "doubled" for the period 2004-2010.  
This aid will include assistance to countries facing problems in their cotton sectors;  
• Fourth, the United States West Africa Cotton Development Programme, designed by USAID 
in specific response to the development assist ance aspects of the Cotton Initiative. This 
targeted programme was based on a public/priva te sector assessment of the cotton proponent 
countries in January 2005;18 
• Fifth, cotton-related activities such as the "Initiative to End Hunger in Africa." 
39. The United States recently launched the West Africa Cotton Improvement 
Program (WACIP), aimed at the cotton sectors of Be nin, Burkina Faso, Chad, Mali and Senegal, with 
an allocation of US$7 million.   
                                                      
17 First Periodic Report by the Director-Gener al, WT/GC/83: paragraph 46; and, letter from the 
Permanent Mission of Japan to the WTO Secretariat, 9 June 2004.   
18 It identified 15 areas of cotton sector intervention in West Africa:  strength ening private agricultural 
organizations; linking US and West African agricultu ral research organizations; improving the enabling 
environment for agricultural biotechnology, improving se ed production, quality, certification and utilization; 
improving tendering, quality assurance, and distribution of agrochemicals; expanding agricultural and rural 
credit; developing alternative approaches to technology generation and transfer for the cotton sector under the 
assumption of privatization; arresting soil degradation an d loss of fertility in cotton areas; expanding the use of 
good agricultural practices in cotton farming systems; reducing post-harvest losses and costs through better 
practices, handling and logistics; establishing a West African regional ginning school; reducing contamination 
in C4 seed cotton and lint; improving the quality of C4 cotton through seed cotton grading and lint classing; better managing critical risks confronting the C4 cotton sector; and improving competitiveness of selected C4 
textile and apparel enterprises. WT/CFMC/DG/2 
Page 10  
 
D. ACTION
 BY MULTILATERAL/REGIONAL  DEVELOPMENT  PARTNERS   
40. The consultative process focused on action taken or envisaged for:  
- designing new cotton-specific agency programmes;  - consolidating and implementing actual cotton sector projects; and,  - continuing efforts at horizontal coordination amongst relevant agencies.   
1. African Development Bank (ADB) 
41. The ADB has designed a "Multinational Progra mme to Enhance the Competitiveness of the 
Cotton and Textiles Sector".  The programme, in this  initial phase, is currently targeted at Benin, 
Burkina Faso, Côte d'Ivoire and Mali.  The progr amme is estimated at US$72 million, with the ADB 
already committing US$22.5 million of its own resources.   
42. The overall objective of the programme is to contribute to poverty reduction in cotton-
producing countries.  The programme will seek to secure and improve the sustainability of the 
incomes of cotton sector players and to boost the lo cal processing of cotton.  The specific objectives 
of the programme are: i) enhance the competitiv eness of seed cotton and cotton lint; ii) create an 
overall competitive framework for the cotton and tex tiles and clothing sectors; and, iii) strengthen and 
develop competitive activities in the area of textiles and clothing.   
43. This initiative follows the recommendations by the Ministers for Agriculture of West and 
Central African Countries (WCA), which met in Ab idjan, 25-26 June 2002, to  consider measures to 
enhance competitiveness in the cotton sector.  In d esigning the programme, account was taken of the 
common interests regarding cotton within the fra mework of the New Partnership for Africa's 
Development (NEPAD).  The programme is also d esigned to align with the goal set by the West 
African Economic and Monetary Union (WAEMU) of  processing 25 per cent of cotton lint by 2010, 
creating 50,000 direct jobs in the textiles and cl othing sector, and developing local know-how.   
2. International Monetary Fund (IMF)  
44. The IMF's contributions focus on two specific issues: (i) how developments in the cotton 
sector link into the overall economic environment; and,  (ii) the Fund's contribution to the mitigation 
of balance of payments (BOP) shocks.  The IMF has provided information on the existing flexibility 
for financing under the Poverty Reduction Growth Facility (PRGF).  The IMF focuses on the broader 
macro-economic picture and does not and cannot, purs uant to its mandate, provide sectoral support.  
Nevertheless, the IMF is sensitive to the needs, c oncerns and priorities of its low-income Members, 
including in respect of instruments to help Me mbers face shocks. The F und's support would aim to 
address the particular challenge faced by cotton-produc ing countries in Africa or similar challenges by 
other commodities-producing countries. 
45. In October 2005, the Board of the IMF expressed strong support for the establishment of the 
Exogenous Shock Facility (ESF).  The ESF provide s a new window, through which the Fund would 
be in a position to promptly assist cotton-de pendent countries and other commodity-dependent 
countries in the event of adverse price developmen ts.  The ESF complements existing instruments by 
offering timely concessional support to low-income  members, without a regular PRGF, which face 
shocks that have BOP impacts.  As announced, "C ompared to existing instruments, the ESF would 
cover the full range of exogenous s hocks experienced by low-income countries, and provide financing 
at a higher level of concessionality than traditiona l Emergency Assistance.  The new instrument is  WT/CFMC/DG/2 
 Page 11 
 
 
 expected to facilitate quick access to additiona l donor financing, while ensuring appropriate 
adjustment for the underlying shock."19   
3. The World Bank  
46. The World Bank has underlined its engagement in the implementation of the mandate on the 
development assistance aspects of the Cotton Initia tive. Overall, the Bank's contributions to the 
implementation of this mandate has been in thr ee areas, namely: i) support for domestic economic 
reform, including cotton sector reform; ii) technical  assistance and capacity building for market-based 
risk management instruments to hedge against exposu re to short-term price and weather-related risks; 
and, iii) support for trade facilitati on and expansion.  The Bank also responds to country priorities on 
a country-by-country basis, if those priorities are identified in their PRSPs.   
47. The Bank provided recent information on its support for domestic reform, including 
agricultural and cotton sector reform in the proponent countries to enhance efficiency and 
productivity. It has provided US$18 million in Benin; proposes a new Agricultural Diversification Project for US$35 million in Burkina Faso; proposes a Cotton Sector Reform Project for US$15 million in Chad; and, an approved Agricultu ral Competitiveness and Diversification Project 
for US$ 46.4 million in Mali.   
48. The Bank has informed participants in the consultative process that "The World Bank's 
Commodity Risk Management Group" provides techni cal assistance and training to build the capacity 
of developing country producers in using internationa l risk management instruments to hedge against 
exposure to short-term price and we ather-related risks.  The Bank, together with the United States and 
France, is also helping countries evaluate biotech cotton.  Among other things, the Bank is preparing a 
regional biosafety programme, which will provide f unding (largely via a GEF grant) to help the 
"Cotton Four" set up legislative and institutional fr ameworks for testing and,  possibly, developing 
biotech cotton.   
4. The United Nations Food and Agriculture Organization (FAO)
20  
49. The FAO is engaged in discussions with the EU to improve the competitiveness and 
sustainability of the cotton industry in West and Cent ral Africa, as part of the EU-Africa Partnership.  
The FAO stands ready to provide expertise in a number of areas. These include Integrated Production-
Protection Management (IPPM), strategy formulati on and risk management.  It will also include 
training and institutional capacity building. 
50. The FAO sub-regional programme for participat ory training in IPPM through Farmers Field 
Schools has been working since July 2001, with fu nding from the Netherlands.  This programme is 
active in Mali, Senegal and Burkina Faso. Other countries (Benin, Ghana an d Cape Verde) will be 
added to the program beginning in 2006.  The FAO is  working with farmers groups in a joint effort 
with the Direction Regionale de l’Agriculture des Haut Bassins, INERA, and other national 
institutions in Burkina Faso.  The thrust is to explore with farmers how new approaches to crop and 
soil management  could be adapted to local production systems.   
51. The FAO is implementing a "Good Agricultural Pr actices Initiative in W est Africa" (GAP).  
The objective is to contribute to the sustainability  of the cotton sector in Burkina Faso through 
improvements at the production level.   Activities in this area, coordinated by the FAO, have been 
undertaken since 2003, with support from the G overnments of the Netherlands and Norway. The 
                                                      
19 "Cotton Initiative – Update on Development Aspect s", Statement by the IMF, 28 October 2005 
(WT/GC/97 and Add.1).    
20 See statement by FAO, 28 October 2005, WT/GC/97 and Add.1. WT/CFMC/DG/2 
Page 12  
 
Investment Centre of FAO will assist the African Development Bank (ADB) in the preparation of the 
"Multinational Programme to Enhance the Competitive ness of the Cotton and Textiles Sector". This 
Programme will be initially implemented in four W est African countries (Ben in, Burkina Faso, Chad 
and Mali).    
5. International Cotton Advi sory Committee (ICAC)  
52. ICAC is contributing to th e delivery of development assistance for cotton. ICAC is 
sponsoring projects funded by the Common Fund fo r Commodities (CFC) dealing with sustainable 
cotton production and the adoption of instrument te sting systems for cotton in African countries. In 
addition, technical seminars organized by the ICAC are contributing to technology transfer in Africa, 
Asia and Latin America. Under the work program approved at the 64th Plenary Meeting of ICAC in 
Liverpool, United Kingdom, on 29 September 2005, the ICAC Secretariat will facilitate the 
development and encourage the implementation of best management practices that result in sustainable production of cotton with rising yields in developing countries, especially in Africa.   
6. International Trade Centre (ITC)  
53. ITC technical co-operation activities are demand-driven.  Its contributions were in four 
project areas, namely: i) the EU Capacity Buil ding Programme; ii) a Cotton Exporters Guide; iii) 
South-South Trade Promotion for Cotton made in Afri ca; and, iv) Malawi JITAP Module IV Project.  
The ITC had been included in the EU Capacity Bu ilding Programme to support the implementation of 
the EU Commodity Action Plan, including the EU-Africa Cotton Action Plan.  To this end, ITC will assist selected countries to develop cotton sector strate gies, and to develop cotton exports to the newly 
emerging markets of Asia.  A detailed outline has b een prepared for a Cotton Exporters Guide, based 
on an official request from Benin, on behalf of the "Cotton Four."   
54. After the expiry of the Agreement on Textiles and Clothing (ATC), there has been significant 
demand for cotton from Asia.  Against this bac kground, ITC is developing a technical assistance 
project for African cotton exporters, based on th e principle of "technical co-operation amongst 
developing countries."  The project is designed to  foster South-South partnership between African 
cotton exporters and Asian cotton importers.  Fi nally, under JITAP Module IV, ITC is assisting 
Malawi to develop a trade strategy for the cotton sector in 2005.   
7. United Nations Industrial Development Organization (UNIDO)  
55. UNIDO has confirmed cotton as a priority in its programmes and projects, including for 
quality assurance.  In the consultative process, it announced a "New Cotton Initiative for African 
Countries", based on a specifically designed progra mme for cotton sector development, value-added, 
and chain integration.  The programme estimat es stand at €20 million.  UNIDO has already 
contributed €800,000 of its own resources in order to initiate start-up activities.  Nine African 
countries have been selected for the initial phase of  the programme (Benin, Burkina Faso, Cameroon, 
Chad, Côte d'Ivoire, Mali, Nigeria, Senegal a nd Togo).  The WTO Secretariat has urged strong 
bilateral donor and wider deve lopment community support for this project.  A WTO-UNIDO Side 
Event is being organized at the Hong Kong Mi nisterial Meeting on 15 December 2005 to give 
stronger impetus and seek donor support for this project.  UNIDO has re-confirmed its earlier position 
to participate in the Action Plan of the EU-Africa Cotton Partnership.   
8. United Nations Conference on Trade and Development (UNCTAD) 
56. UNCTAD's work on commodities covers many areas of direct interest to the developmental 
areas of cotton.  Its analytical and policy work on commodities, undertaken on a thematic rather than 
commodity-specific basis, are applicable to th e cotton sector.  Cross-cu tting issues in UNCTAD's 
commodity work relevant for cotton are: i) commodity sector development and diversification to  WT/CFMC/DG/2 
 Page 13 
 
 
 achieve value-added; ii) innovative  financing for agriculture to increase funding for agriculture; 
iii) price risk management, where UNCTAD works in collaboration with other institutions such as the 
World Bank; and, iv) commodity exchanges. UNCTAD has paid special attention to the establishment 
of commodity exchanges in Africa.  UNCTAD ma intains the INFOCOM portal, which provides free 
and user-friendly data and links to sources of in formation for commodities, including cotton.   
57. UNCTAD has also implemented a project on: "Improving the sustainability of cotton 
production in West and Central Africa" in co-opera tion with the ICAC, and financed by the Common 
Fund for Commodities (CFC).  Specific recommendations emerged on: i) increasing capacities in the public sector; ii) improving the competitiveness of cott on fibre; iii) improving soil fertility; and, iv) 
strengthening research and dissemination.  Fo llow-up activities are under consideration.  UNCTAD 
would require funding.   
E. THE
 INTEGRATED  FRAMEWORK  FOR  LEAST-DEVELOPED  COUNTRIES  (IF)    
58. The principal objectives of the IF are to main stream trade priorities into LDCs' national 
development plans, such as the PRSPs, and to c oordinate the delivery of trade-related technical 
assistance and capacity-building.    
59. Benin  held a national workshop to discuss the pr iority actions identified in its Diagnostic 
Trade Integration Study (DTIS), which is the first st ep in the IF process, with a wide range of local 
stakeholders and development pa rtners, in October 2005.  It will consider approval of the 
recommendations by end November 2005.  If approv ed, the IF process will enter the implementation 
phase. The DTIS identifies the cotton sector as one  of the three major challenges facing Benin's 
international trade.21  The DTIS recommends actions to maxi mise income generated from the cotton 
sector, including:  (i) efforts to reduce developed c ountries' cotton subsides in the context of the WTO 
Doha Development Round; (ii) completion of the privatisation of the state-owned cotton company 
SONAPRA; and (iii) improved conditions for greater local processing of raw cotton.  The study notes 
that while pursuing more open world markets for co tton, the government must urgently address flaws 
in domestic reform.   
60. Burkina Faso  is at the stage of preparing its DTIS, with the main inter-agency mission 
planned for early 2006.  It is suppor ted in this process by the World Bank.  The terms of reference for 
the study are being defined, following a preliminar y mission in June 2005.  If the cotton sector is 
identified by the Government as one of the issues to be covered in the study, a sectoral analysis will 
be conducted as part of the DTIS preparation.  A ma in fact-finding mission, with the participation of 
IF agencies, is scheduled for early 2006.  When the DTIS is finalised, envisaged for the end of 2006, a 
national workshop will be held in early 2007 to discuss and finalise th e study before implementing the 
priority actions.   
61. Chad  held a national workshop in November 2005. The cotton component of the Chad DTIS 
will be updated to reflect the completion of a recent study by the World Bank by the end of November 
2005.  As the first priority of the four critical ar eas facing Chad's integration into the regional and 
global market,22 the IF study calls for actions to maximi ze income generated from the cotton sector.  
The bottlenecks impeding growth in the cotton sector identified in the analysis  include the need to 
pursue the on-going privatization of CottonChad (t he state-owned cotton producing company).  The 
study underlines the need to addr ess the inefficiencies related to hi gh transportation costs; and, the 
need to strengthen the currently in sufficient role of cotton producers organizations in Chad.  It notes 
the need to work with other countries such as Ma li, Benin and Burkina Faso to advocate for the 
                                                      
21 The other two challenges identified in the study include the rationalisation of transit and re-export 
trade, and diversification of  the country's export base. 
22 The other three priority areas id entified in the DTIS include: ener gy, customs and transport/transit. WT/CFMC/DG/2 
Page 14  
 
removal of distortions in the international co tton market.  The discussion on cotton during the IF 
national workshop held in November 2005 focused on  the identification of possible scenarios for the 
privatization of CottonChad.  Once finalised, the DTIS and the Action Matrix will enter the 
implementation phase.   
62. Mali's  DTIS was finalized in December 2004 and it has started implementing recommended 
actions arising from the study.  The DTIS describ es cotton as one of the products in which Mali can 
enhance export performance by capitalising on its comp arative advantage.  It is noted that Mali's 
ability to maintain its place in the world market de pends on its ability to resolve the problems of the 
national ginning company CMDT.  With the suppor t of the World Bank, a comprehensive reform 
programme for the cotton sector has been in place since 2001.  The reform programme includes the 
full privatisation of CMDT by 2008, the progressive  transfer of several key functions (such as 
provision of input credit, and supply of inputs) to the private sector and farmers organization, and 
enhanced support for institutional and capacity-bui lding activities.  Discussions on cotton at the IF 
national workshop held in December 2004 highlighted the need to maintain on-going reforms in the 
sector, encourage cotton processing for more value added, and to train cotton producers.    
F. JOINT
 INTEGRATED  TECHNICAL  ASSISTANCE  PROGRAMME  (JITAP) 
63. Three of the four cotton proponent countries (Benin, Burkina Faso and Mali) are JITAP 
beneficiaries.23  Although there is no specific chapter in the JITAP Programme document for cotton 
(or for any other product sector), there is a provisi on for any JITAP country to identify any product 
for which specific action is required.   
• Benin  has requested the JITAP to provide techni cal assistance for the strengthening of the 
country's negotiating capacity, with a focus on co tton.  It has asked for a cotton sector study 
on product and market diversification.  The st udy will better present the needs of Benin for 
assistance in the cotton sector by development agencies in the context of JITAP or other programmes.    
• Burkina Faso  has requested capacity-building for trade negotiators; and, the formulation of a 
"strategic vision" for priority sectors, includi ng the cotton sector.  Burkina Faso has also 
asked for a "needs assessment study" on product an d market diversification and identification 
of areas of assistance by donors and agencies.   
• Mali:   a Subcommittee on Cotton was created, involving all stakeholders from the public and 
private sectors. The subcommittee organized a workshop in Bamako in September 2004, facilitated by JITAP.  The Workshop contributed to the extensive information and education 
of farmers, traders and government officials on the WTO agreement on agriculture.  
64. In addition, a capacity building activity on agricu lture with a special emphasis on cotton took 
place in Dakar (Senegal)  in June 2005.  The Re gional Workshop, within the JITAP framework, was 
organized jointly by the WTO, UNCTAD and the IT C.  It focused on the Agreement on Agriculture 
and in particular cotton negotiations.  
IV. JOINT WTO/OECD TRADE CAPACITY BUILDING DATABASE 
65. Information exchange is necessary to enable  donors to coordinate their development 
assistance efforts, as well as to enable recipients to  obtain a better picture of the resources that have 
been mobilized.  The Joint WTO/OECD Doha Deve lopment Agenda (DDA) Trade Capacity Building 
                                                      
23 Chad is not a JITAP beneficiary. Benin and Burk ina Faso are due to "graduate" from the programme 
on 31 December 2005.   WT/CFMC/DG/2 
 Page 15 
 
 
 Database (TCBDB)  offers the international community an  important mechanism for information 
exchange.  However, for the TCBDB to be effec tive it will require accurate and timely reporting by 
bilateral donors.  Currently, the TCBDB includes a "Co tton Box" that is designed to shed greater light 
on the development assistance aspects of cotton, a nd in so doing, to complement the information 
gathering exercise launched in this consultative process.  WT/CFMC/DG/2 
Page 16  
COTTON DEVELOPMENT ASSISTANCE MANDATE 2004 
Development 
Community Programmes Projects/Activities Beneficiaries 
  Non-Cotton 
Specific Value Cotton 
Specific Value Non-Cotton 
Specific Value Cotton Specific Value   
BILATERAL 
DONOR                   
EU All ACP C/Building 
EU Commodity 
Action Plan € 45.000.000 EU/Africa 
Cotton 
Partnership    
        C4 + All African 
producers 
              National cotton 
sector strategy € 15.000.000 Mali 
              National cotton 
sector strategy € 10.000.000 Burkina Faso 
              National strategy 
reform and EDF € 10.000.000 Benin 
              Debt rescheduling € 5.400.000 Côte d'Ivoire 
  "Programme 
d'Appui Régional de 
l'Intégration" 
(PARI) € 3.000.000     
   Rapid machine 
testing technologies 
installation.  Cotton 
label promotion.   West Africa + SOFITEX in 
B/Faso 
  Stabex Balances Use           Road rehabilitation € 9.045.000 Burkina Faso 
              Rehabilitation of 
rural roads € 18.500.000 Benin 
    
          C/building, research, 
mechanisation € 25.000.000 Côte d'Ivoire 
              Cotton quality, 
diversification € 4.000.000 Senegal 
              Road improvement, 
warehouse support € 7.000.000 Togo 
  Multi Annual Food 
Security Programme (Food Security 
Budget Line) € 5.000.000         National Cotton 
Institute funding for extension TA 
projects executed by 
cotton concessionary companies   Mozambique 
 
  WT/CFMC/DG/2
 Page 17COTTON DEVELOPMENT ASSISTANCE MANDATE 2004 
Development 
Community Programmes Projects/Activities Beneficiaries 
  Non-Cotton 
Specific Value Cotton 
Specific Value Non-Cotton 
Specific Value Cotton Specific Value   
  Multi Annual Food 
Security Programme (Food Security 
Budget Line) € 1.550.000         National Institute of 
Cotton capacity-building, 
rehabilitation of 
testing laboratories, equipment and 
vehicle supply   Mozambique 
  Stabex Balances Use € 4.300.000        National Institute of 
Agriculture Research Support 
(identification, 
adaptation and multiplication of 
cotton varieties)  Mozambique 
US Millennium 
Challenge 
Corporation Acct. 
opportunity (non-cotton specific 
proposals for 
funding support requested by Benin, 
Burkina Faso, Mali 
and Senegal)               Benin, Burkina 
Faso, Mali and 
Senegal 
          Ministerial 
Conferences 
(2004&2005) on Science and 
Technology 
and Biosafety Training US$ 520.000     African countries 
  
   West African 
Cotton 
Improvement Programme US$ 7.000.000         C4 + Senegal 
 WT/CFMC/DG/2 
Page 18 COTTON DEVELOPMENT ASSISTANCE MANDATE 2004 
Development 
Community Programmes Projects/Activities Beneficiaries 
  Non-Cotton 
Specific Value Cotton 
Specific Value Non-Cotton 
Specific Value Cotton Specific Value   
  
           Cotton classing, soil 
management and entomologist 
programmes US$ 108.000 C4 + Senegal 
  Initiative to End 
Hunger in Africa (IEHA), includes 
support to CAADP US$ 200.000.000         Ag productivity and 
diversification, cotton, TBD   African countries 
  African Global 
Competitiveness Initiative US$ 200.000.000             African countries  
  ECOWAS - support 
to West Africa US$ 20.000.000         Ag Productivity, 
Markets, Trade Expansion   ECOWAS 
  USTDA 
Agribusiness and 
Rail Integration 
work in West Africa US$ 950.000         Cotton and Ag 
relevant   West Africa 
JAPAN TICAD. 
WTO-related Asst. for Africa Region 
(Japan announced 
significant opportunities for any 
cotton projects 
submitted)              African countries 
              Mali-Senegal road 
corridor.  Assist. to 
Benin and Chad undeclared Mali, Senegal, 
Benin, Chad 
  
  WT/CFMC/DG/2
 Page 19 
COTTON DEVELOPMENT ASSISTANCE MANDATE 2004 
Development 
Community Programmes Projects/Activities Beneficiaries 
  Non-Cotton 
Specific Value Cotton Specific Value Non-
Cotton 
Specific Value Cotton Specific Value   
MULTILATERAL 
AGENCY                   
World Bank Global Index 
Insurance Facility 
(GIIF) (part funded 
by EU) € 25.000.000 
            ACP countries 
  W/Bank + GEF 
Regional Bio-
safety Progr.: 
GM Crop Evaluation/Testing 
Framework (US + 
French AFD 
support)               C4 + Senegal 
      Cotton Reform 
Support US$ 18.000.000 
        Benin 
      Cotton Reform 
Support US$ 35.000.000 
        Burkina Faso 
      Cotton Reform 
Support US$ 15.000.000 
        Chad 
      Cotton Reform 
Support US$ 46.400.000 
        Mali 
IMF     Exogenous 
Shocks Facility  (25% of 
Member's 
quota)         C4 + Senegal 
  Multilateral Debt 
Relief Initiative (MDRI) Estimated at 
1.2% GDP;  8.8% exports 
(in NPV terms)             Benin 
  Multilateral Debt 
Relief Initiative (MDRI) Estimated at 
1.6% GDP;  17% exports (in 
NPV terms)             Burkina Faso 
  Multilateral Debt 
Relief Initiative 2% GDP;  7.9% 
exports (in             Mali 
 WT/CFMC/DG/2 
Page 20 COTTON DEVELOPMENT ASSISTANCE MANDATE 2004 
Development 
Community Programmes Projects/Activities Beneficiaries 
  Non-Cotton 
Specific Value Cotton Specific Value Non-
Cotton 
Specific Value Cotton Specific Value   
MULTILATERAL 
AGENCY                   
(MDRI) NPV terms) 
  Multilateral Debt 
Relief Initiative 
(MDRI) Not yet reached 
HIPC 
completion 
point             Chad - incomplete 
HIPC 
  PRGF arrangement US$ 13.248.000             Mali 
  PRGF arrangement US$ 35.784.000             Chad 
  PRGF arrangement US$ 34.193.600           Burkina Faso 
FAO                   
UNIDO 
    Cotton Sector 
Development/ 
Chain Integration € 20.000.000         C4 + Cameroon, 
Côte d'Ivoire, 
Nigeria, Senegal and Togo 
UNCTAD Commodity sector 
development                 
  Diversification                 
  Risk management 
(W/Bank partnership)                 
  Commodity 
exchanges                 
ITC EU Commodity 
Action Plan                  
  
    EU-Africa 
Cotton Partnership - 
ITC 
implementation for cotton sector 
strategy 
development and new markets US$ 1.000.000         African countries 
  
            Cotton Exporters' 
Guide  US$ 352.000 Cotton exporters 
 
  WT/CFMC/DG/2
 Page 21COTTON DEVELOPMENT ASSISTANCE MANDATE 2004 
Development 
Community Programmes Projects/Activities Beneficiaries 
  Non-Cotton 
Specific Value Cotton Specific Value Non-
Cotton 
Specific Value Cotton Specific Value   
MULTILATERAL 
AGENCY                   
              South-South 
Trade Promotion 
for African cotton US$ 220.000 Cotton exporters 
            Marketing 
improvement US$ 9.300.000 Uganda and 
Tanzania 
            Price-risk 
management US$ 2.200.000 Uganda, Tanzania 
and Zimbabwe 
ICAC (in partnership w/CFC and funded from 
EU-African Cotton 
Partnership resources)             Instrument testing € 2.500.000 Mali and Tanzania 
              Cotton 
contamination € 1.500.000 West Africa 
              Seed quality   € 1.500.000 African countries 
              Production 
technology € 1.000.000 African countries 
              Use of cotton by-
produce € 2.000.000 African countries 
              Research 
capabilities €1.500.000 African countries 
              AfriCot in Europe € 4.000.000 African countries 
Common Fund for 
Commodities (in partnership 
w/ICAC) 
            Various projects 
in ICAC partnership     Cotton exporters 
REGIONAL 
AGENCY                   
ADB (+ FAO + 
WAEMU in 
partnership)     Multinational 
Competitiveness 
Programme US$ 73.000.000         Benin, Burkina 
Faso, Côte 
d'Ivoire, Mali 
MULTILATERAL 
INSTRUMENTS                   
PRSPs                 C4/cotton reflected 
as PRSPs priorities 
Integrated 
Framework DTIS preparation, 
including cotton US$ 300.000 
US$ 1.000.000             Benin 
 WT/CFMC/DG/2 
Page 22 COTTON DEVELOPMENT ASSISTANCE MANDATE 2004 
Development 
Community Programmes Projects/Activities Beneficiaries 
  Non-Cotton 
Specific Value Cotton Specific Value Non-
Cotton 
Specific Value Cotton Specific Value   
MULTILATERAL 
AGENCY                   
sector analysis 
  DTIS preparation, 
including cotton 
sector analysis US$ 300.000 
US$ 1.000.000             Burkina Faso 
  DTIS preparation, 
including cotton sector analysis US$ 300.000 
US$ 1.000.000             Chad 
  DTIS preparation, 
including cotton 
sector analysis US$ 300.000             Mali 
JITAP             Cotton sector 
export strategy US$ 100.000 Malawi 
          Regional 
Ag. Workshop 
+ cotton US$ 120.000     Senegal 
 
  
  WT/CFMC/DG/2
 Page 23Grand total of cotton development assistance for 14 African 
beneficiaries + others US$ 975.643.058 
  
  
  
Grand total of cotton development assistance focussing on, but not 
limited to, C4 countries  US$ 437.396.683 
  
    
Cotton development assistance: Benin: US$ 52.602.250       
  Burkina Faso: US$ 92.747.683         Chad: US$ 52.084.000       
  Mali: US$ 77.475.000     
  
EXPLANATORY NOTES  
• Cotton development assistance is defined as both "Non-Cotton sp ecific" and "Cotton-specific" pr ogrammes and projects.  The no n-cotton specific programmes are those 
specifically announced by development assist ance providers as being linked to the cott on sector either thro ugh assistance provi ded to the agriculture sector, or through related 
infrastructure, or because the assistance prov ider has clearly indicated th at they expect such progra mmes or projects to be app lied to the cotton sector.  Examples include 
construction of feeder roads, railways, and sup port for the gamut of agricultural productivity. 
• Values entered include those announced proposed and approved.  Values entered have been checked  and verified with the assista nce providers. 
• The G8 has granted debt relief that will apply to Benin, Burk ina Faso, Mali, Uganda + others.  The considerable development g ains have been estimated in  this table by the IMF, 
but the monetary equivalents that will accrue  to individual countries are still being calculated and are, therefore, not yet ad ded to total and individual country cotton development 
assistance gains.  Assistance providers have stated that resour ces released from debt relief will be available for individual c ountries to be deployed acco rding to their identified 
areas of domestic priorities, such as cotton. 
• Notes on EU Contribution : 
- The sum of €15 million earmarked for the EU-Africa Cotton Partnership is drawn from (and therefore part of) the €45 million A LL-ACP Capacity Building Programme. 
- The EU is considering a contribution of EUR 25 million to th e Global Insurance Index Facility (GIIF). The World Bank will be helping organize it and providing technical 
support after it becomes operational. The amount of a potential IFC contribution is yet to be determined. 
 
__________