RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/AG/SCC/R/1  
18 March 2005  
 (05-1167) 
Sub-Committee on Cotton  
 
 
 
SUMMARY REPORT ON THE MEETING OF  THE SUB-COMMITTEE ON COTTON  
HELD ON 16 AND 28 FEBRUARY 2005  
 
Note by the Secretariat1 
  
1. The Sub-Committee on Cotton, which was esta blished by the Committee on Agriculture, 
Special Session at its formal meeting on 19 No vember 2004 in accordance with the instruction 
resulting from the decision on the Doha Work Pr ogramme adopted on 1 A ugust 2004 by the General 
Council (WT/L/579, refers), held its first meeting on 16 February 2005. 
2. The agenda as contained in WTO/AIR/2494 w as adopted.  Following some initial discussion 
and statements by Members, the meeting was susp ended, to allow the Chairman to consult with 
Members on a work programme, and was rec onvened and concluded on 28 February 2005. 
ITEM A:  ELECTION OF THE CHAIRPERSON  
3. Following ad-hoc consultations undertaken in  accordance with the "Guidelines for the 
Appointment of Officers to WTO bodies" (WT/L/ 31, para.2.4 refers), and as noted at the 19 
November 2004 meeting of the Special Session of th e Committee on Agriculture, consensus had been 
reached on the nomination of Ambassador Tim Groser of New Zealand for election as Chairperson of 
the Sub-Committee on Cotton.  Accordingly, the el ection of Ambassador Tim Groser of New Zealand 
to Chairman of the Sub-Committ ee was signified by acclamation. 
ITEM B:  ORGANIZATION OF WORK 
4. Under this agenda item the Chairman noted that  the Sub-Committee on Cotton was in effect a 
subordinate body of the Committee on Agriculture's Sp ecial Session.  As such, and as stated in the 
Decision establishing the Sub-Committee (TN/AG/13), the rules of procedure of the Special Session 
of the Committee on Agriculture (G/L/142) and worki ng procedures (G/AG/1) would be applicable as 
appropriate.  In other respects the Sub-Committee,  as a distinct body, would as necessary decide 
matters as it went along, case by case and by consensus, guided by Members. 
5. As far as reports on the proceedings of the S ub-Committee were concerned, the Secretariat 
would produce summary reports of the formal meetings of the Sub-Committee as it did for the Special Session meetings.  In addition, statements delega tions wish to place on record and to be made 
available with a minimum of delay to all participan ts could be circulated as working documents of the 
Sub-Committee.  Delegations who wished to have the full text of their statements circulated in that 
way were asked to indicate this to the Secretaria t before the close of meetings, and submit their 
statements in electronic format to the Secretariat. 
6. With regard to the requirement that the S ub-Committee report periodically to the Special 
Session of the Committee on Agriculture which in turn would report to the Trade Negotiations 
                                                     
 
1 This document has been prepared under the Secret ariat's own responsibility and is without prejudice 
to the positions of Members or to their rights or obligations under the WTO. TN/AG/SCC/R/1 
Page 2  
 
 Committee, the General Council and the next Mini sterial Conference (TN/AG/13, paragraph (e) 
refers), the Chairman's suggestion was that a re port under his responsibility should be made on each 
meeting, and that those reports should be short fact ual summaries, recording such matters as the dates 
of the meeting, the work done in terms of agenda  items considered, documents circulated and any 
decisions taken.    
7. On the issue of the actual work to be carried out in the Sub-Committee, the Chairman stressed 
that time was short and much work needed to be done.  The overa ll goal remained the objectives set 
out in the Doha Ministerial Declaration and the Agreed Framework which all Members had accepted 
as the basis for work.  The Chairm an further noted that successful negotiations on agriculture were 
key to a positive outcome on cotton, that flexibility was needed by all Members, that considerable 
progress had been made since Cancún with the Agreed Framework, and that serious progress was now 
needed in the Agriculture negotiations includi ng in particular with respect to cotton.  
8. The Chairman's intention was for the Sub-Co mmittee to get down to work as quickly as 
possible.  The basic task the Special Session of the Committee on Agriculture had conferred on the 
Cotton Sub-Committee was to conduct work on all trad e-distorting policies affecting the sector in all 
three pillars of market access, domestic support, a nd export competition, as speci fied in the Doha Text 
and the Framework Agreement.  Th is had to be within the genera l framework of the negotiations on 
agriculture.   
9. With those points in mind, the Chairman outli ned his suggested arrangements for work in the 
Sub-Committee on the following items: Nature and scope  of work;  Basis of work;  Organization of 
work; and  Sequencing of work and timetable . 
10. Regarding the timetable, Egypt noted that there had been quite a time lag since the start of the 
agriculture negotiations and given the aim of a fi rst approximation by July, the Sub-Committee had to 
consider accelerating its work thus  requiring a tighter time table than might have been foreseen in 
order to find a solution to the problems of the West and Central African (WCA) cotton producers.  
11. On the work programme, Egypt, echoed by Côte d'Ivoire, referred to paragraph (a) of the 
terms of reference of the Sub-Committee on Cotton and noted that the mandate was to address cotton 
and nothing else, in an ambitious, expeditious and sp ecific manner, within the agriculture negotiations 
under the three pillars of market access, domestic support and export competition.  Egypt also agreed 
with Benin on the need to quickly start work on the basis of proposals by WTO Members.  Egypt 
stated that the Sub-Committee could borrow the very  flexible and useful work methodology of the 
Special Session of the CoA.  Finally, Egypt mentione d the need to have more than one day meetings 
in view of the importance of the issue with possibly several sessions in each "cotton week". 
12. India, echoed by Egypt, Brazil, Argentina and Pakistan, noted, regarding the possibility of an 
"Other" item in the work programme under which Memb ers could raise issues of interest to them in 
relation to cotton, that it was hesitant to keep  an open-ended point under which any other matters 
could be raised.  Indeed, this Sub-Committee ha d a very specific mandate and was established to 
deliberate on a particular point and had strict terms of reference under the Special Session of the CoA 
with a strict reporting system.  
13. The representative of the European Communities noted on the question of the nature of the 
work of the Sub-Committee that there were many elements which required attention including an 
economic assessment of the world market for cotton and a better understanding why cotton prices 
plummeted in the cotton-growing regions.  Once th e problems were identified, then Members could 
look into identifying solutions. 
14.
 On the more general question of procedure a nd the responsibilities of the Sub-Committee, the 
representative of the European Communities suggested  to spend as little time as possible on the work  TN/AG/SCC/R/1 
 Page 3 
 
 
 programme and let the Chairman guide the discussions and enter in the substance matter of the trade 
aspects of cotton.  Far too much time had been lost w ith either political declarations or discussions of 
the work programme.  The Sub-Committee's mandate was to quickly start substantial discussions on 
the trade aspects of cotton while the Special Sessi on of the CoA had to integrate cotton in the overall 
negotiations under the three pillars.  The representa tive of the European Communities also suggested 
the possibility to have a dedicated session of one da y or so, within the "Agriculture Week", in the 
Special Session, on the cotton issue building on th e substantive discussions in the Sub-Committee on 
cotton. 
15. The representative of Japan, commenting on the "Other" item in the work programme 
proposed by the Chairman, noted th at the two main items of focus in the work of the Sub-Committee 
had to be agricultural issues and then sec ondly related development aspects of cotton. 
16. Following the submission of the draft work programme by the Chairman, Japan noted that the 
negotiations on agriculture were at the spearhead  of all the Doha negotiations.  Japan like the 
European Communities and the United States, regist ered its readiness to start work on substantive 
issues, leaving behind any confrontations on the work  programme.  In that regard, Japan also wished 
to thank Benin for the flexibility it had demonstrated. 
17. Uganda noted that back in July when the decision to establish a Sub-Committee on cotton was 
taken, the mandate of the Sub-Committee had clearly stated the need to expe ditiously handle cotton, 
the results of which had to be fed into agriculture. 
18. Uganda stressed that the amount of work awaiting the Sub-Committee was tremendous and 
time was short.  Therefore, it would be useful to  follow China's suggestion to start by identifying 
policies which affected trade in cotton and start exchanging ideas upon how to improve those policies. 
19. Paraguay, like several other delegations that pr eceded it, in particular Uganda, stressed that 
there was a considerable amount of work awaiting th e Sub-Committee and that time was short.  It was 
therefore important to begin work as soon as possibl e by identifying the international policies or 
measures that were distorting trade in cotton with a vi ew to finding rapid solutions in order to balance 
this issue under the three pillars of agriculture. 
20. China noted the marked improvements in th e revised work programme proposed by the 
Chairman. China, echoed by Brazil, proposed a minor rephrasing of the last words of paragraph 1(a):  
Nature and Scope of Work Programme, to read:  "work in depth on all trade-distorting policies 
affecting trade in cotton". 
21. The United States noted its readiness to engage  in substantive discussions about the trade 
aspects of cotton in the Sub-Committee.  The United States was preparing specific analytic inputs for 
those discussions.  Trade in cotton was a complex issu e.  The cotton sector was affected by a range of 
measures, there were a number of countries which were players and the products themselves were 
sophisticated.  The United States' perspective, simila r to that of the Europ ean Communities, was that 
the Sub-Committee should, under the guidance of the Chair, focus on substantive discussions of 
issues related to trade in cotton to cont ribute towards the Sub-Committee's mandate. 
22. Benin, echoed by Burkina Faso, Chad and Ma li, noted with satisfaction the readiness 
expressed by its partners to move into substan tive issues and thanked both the European Communities 
and the United States for their clear readiness to move in that direction.  Benin was flexible and ready 
to hear and propose constructive ideas within the mandate of the Sub-Committee on cotton. 
23. There was a working consensus in the Sub-Co mmittee to use the att ached work programme 
and arrangements, proposed by the Chairman and amended following its consideration by Members, 
as the basis for its work. TN/AG/SCC/R/1 
Page 4  
 
 I
TEM C:  STATEMENTS BY PARTICIPANTS  
24. The Philippines expressed its strong solidarity with the African Group and emphasized the 
great significance of the cotton issue to the de velopmental dimension of the Doha Round.  The 
Philippines urged Members to proceed ambitiously, expeditiously and specifically, as mandated in the 
July Framework. 
25. Djibouti noted that the Sub-Committee on cotton had been established with a clear mandate 
which had to be respected.  The issue of cotton w as one of life and death in particular for LDCs in 
Africa.  Time was limited and work had to be u ndertaken ambitiously and expeditiously in keeping 
with the Sub-Committee's terms of reference. 
26. The representative of Mali noted its support for the statements made by the delegations of 
Rwanda, Senegal, Burkina Faso, Zambia and Beni n. Mali wished to highlight the need for an 
expeditious and specific treatment of cotton.  Cotto n played an essential role in Mali, Chad, Burkina 
Faso and Benin, keeping tens of thousands of peopl e alive.  Hence there was an acute need of setting 
up the Sub-Committee to address the urgent situatio n faced by cotton growers at the mercy of price 
fluctuations causing periodic distress.  Moreover, developed countries partners had rejected the idea 
of a support fund to offset those losses.  The Sub-Co mmittee had to find a solution to avoid that those 
millions of people be simply put at the mercy of price fluctuations. 
27. Uganda noted that it too grew cotton.  Echoing the call by Benin to obtain results, Uganda 
stated that results mean t reasonable prices especia lly for African LDCS.  In 2004, cotton growers in 
Uganda took home 17 cents/kg after having been conv inced to harvest cotton with subsidies as little 
as 50 shillings.  On the other hand, Greek farmers took home 1 dollar and 60 cents of which 70 cents 
was a subsidy and 35 cents the world price.  This w as were the problem lied, and Uganda stressed that 
getting a result meant raising the price received by African cotton growers to from 17 cents to at least 30 or 50 cents.  The cause of those low prices were subsidies and it was time that the subsidizers joined the discussions to solve the problem.  Uganda further noted that, once the price had been raised 
it needed to be stabilized so that growers would remain on the market.  By stopping or reducing 
subsidizing and controlling over-supply, the high cost producers such as th e Greeks or the Spanish 
cotton growers would get out of the market and diversify in other areas where they had a comparative advantage.  Hence, low cost producers such as Ug anda and Benin would step  up production and gain 
market share. 
28. Brazil noted that this was an issue of extr eme importance and relevance and the numbers 
given by Benin were astonishing.  The representative expressed her country's attachment to the issue 
of cotton, which was as important as the agricultu re negotiations as a whole.  Brazil was willing to 
actively participate in the discussions, with a view to  comply with the mandate given by Ministers.  
Brazil noted that the instructions in paragraph 4 of Annex A of the Framework Agreement and in the 
Doha Mandate were clear.  The work of the S ub-Committee had to be organized in an effective 
manner to address the issue of cotton ambitiously, e xpeditiously and specifically.  All the statements 
made so far just strengthened the reasons all Members had to eliminate trade-distorting subsidies 
affecting the trade of agricultural products. 
29. The representatives of Guinea and Côte d'Ivoire echoed the statements made by Rwanda for 
the African Group and noted that Benin had eloquen tly described the sobering picture in which the 
African cotton growers found themselves.  Although in  a small scale, Guinea was also a producer of 
cotton and supported the cotton initiative.  The Framew ork Agreement clearly specified the role of the 
Sub-Committee and the fact that cotton had to be tr eated ambitiously, expeditiously and specifically.  
Although cotton also had a strong link with other aspects of trade and development, Guinea agreed with Benin that Members should fo cus on the essential given the tight timeframe.  Other countries had 
clearly pointed to the root of the problem:  subsidies and this had to be seriously examined as the economic development of many African and developing countri es depended on the production of  TN/AG/SCC/R/1 
 Page 5 
 
 
 cotton which provided many people with their livelih ood.  The real work of the Sub-Committee was 
starting now and cotton producing countries and count ries which could provide aid had to combine 
their efforts to find a proper solution to an issue of life and death. 
30. Chad noted its support for the statements made  by Rwanda for the African Group and Benin 
for the four co-sponsors of the sectoral initiative.  Chad urged the Chairman to provide the necessary 
backing in order to save the African cotton sector  which was in a very precarious situation. 
31. Canada welcomed the establishment of the Sub- Committee on cotton and the start of its work.  
Cotton matters had to be dealt with ambitiously, ex peditiously and specifically within the framework 
of the agriculture negotiations as agreed in July 2004.   Trade policies bringing about distortions had to 
be dealt with in a very effective way within th e framework of the three pillars of market access, 
domestic support and export competiti on and Canada agreed with Brazil on the need to arrive at a 
very ambitious result regarding reductions of export subsidies and domes tic support given their 
importance in the cotton sector.  Canada was eager to  work on those issues in a spirit of cooperation 
with the Chair and other Members to arrive at solutions. 
32. India expressed its support for the statements of  Benin, Burkina Faso, Rwanda on behalf of 
the African Group, and Zambia on behalf of the LD Cs.  India was in the best position to empathize 
with the cotton producers of those countries as in India, there were very small cotton producers who 
depended on cotton for their livelihood.  They also suffered from the ill effects of trade-distortions in 
the sector.  India therefore reaffirmed its solidar ity with cotton producers in developing countries and 
called for a solution to the problem on a priority basis.   India particularly wished to echo the statement 
of Benin and other Members which refereed to th e core of the problem as being large amounts of 
subsidies given to the sector and which drove down cotton prices.  Members had to focus on such key 
problem areas and take action on a priority basis a nd not be distracted by discussions on extraneous 
issues.  India stated its commitment to participate actively in the deliberations of the Sub-Committee. 
33. Australia joined the Chairman in congratul ating the African proponents of the sectoral 
initiative for obtaining the establishment of the S ub-Committee on cotton.  Australia agreed with 
previous speakers that the Sub-Committee had to fo cus on achieving concrete results within the WTO 
and in other institutions as per the July Framew ork mandate on the development aspects.  Australia 
also agreed with Benin, Uganda, and Guinea on the need for deep and real results on domestic support 
in the agriculture negotiations which could really cha nge the life of farmers.  It was clear for Australia 
that the role of the Sub-Committee was to shine a light on the agriculture negotiations as they 
pertained to questions as important as the depth of domestic support cuts and ensuring that real 
change was achieved in global markets for cotton.  Australia believed that there would clearly need to 
be some degree of interchange between the S ub-Committee and the Speci al Session with some 
informing of each of the fora by the other.  Au stralia suggested that the Sub-Committee be rather 
flexible as to the form that relationship would ta ke.  Finally, as Benin, Australia believed that the 
more important question was the one of substance and getting work started rather than procedure. 
34. The European Communities stated that it took very seriously the problem of cotton as low 
cotton prices had very serious social impacts.  Indeed, the European Communities had taken the 
initiative last July to set up an ACP/EU partnership on  cotton.  Replying to an earlier statement on the 
high subsidies received by Greek and Spanish cotton producers, the representative of  the European 
Communities noted that the European Communities only produced roughly 2 per cent of world cotton 
production and the reforms decided in 2004 entailed partial decoupling of remaining cotton subsidies 
which would be significantly less trade distorting.  Moreover, the European Communities recalled that 
it granted unlimited duty –free access for cotton and th at it did not subsidize its cotton exports.  The 
European Communities reiterated the need for the Sub-Committee to undertake an analysis of world 
cotton markets and other economic facts on what actually existed on the market. TN/AG/SCC/R/1 
Page 6  
 
 35. Switzerland stated it pleasure to see the Sub-Co mmittee established and start its work towards 
what it hoped would be a positive result.  Switzerland  had taken good note of the statements made by 
the co-authors of the sectoral initiative on co tton and was fully aware of the difficulties they 
encountered.  Switzerland wished for the issue of co tton to be dealt with ambitiously, expeditiously 
and specifically, as agreed in the July Framewor k.  Switzerland suggested that the Sub-Committee 
examined what Members could do w ithin the tree pillars of the agri culture negotiations, while bearing 
in mind the specificity of the cotton sector.  Switzerland hoped that the Sub-Committee would achieve concrete results in a good time frame and assured the Chairman of its active participation in the work 
of the Sub-Committee. 
36. Rwanda noted that the terms of reference a nd the scope of the work of the Sub-Committee 
were clearly established in the Doha Texts and in  paragraph 4 of Annex A of the July Framework 
which spelt out very clearly that the work would cover all trade-distorting affecting cotton under the 
pillars of market access, domestic support, and expo rt competition.  Rwanda added that it was clear 
that whatever provisional solutions were found in development terms, they would never compensate 
for distortive trading practices.  Hence what was needed were short-term solutions because of the 
urgency of the cotton issue, but also mid-term a nd long-term solutions in the form of expeditious 
results and fast track implementation.  Rwanda sh ared with the Membership the results of a report 
published by the Institute for Agriculture and Trade Policy (IATP) based in Minneapolis.  The 
recently published study stated that cotton sales by the largest producers in the world was done at 47 
per cent below production costs.  This clearly pointe d to the need to go beyond development solutions 
to find expeditious solutions to trade distortions. 
37. China agreed with Benin that the heart of the cotton problem was clearly the issue of 
subsidies.  China understood the difficulties faced by the African cotton producers, especially the co-
sponsors of the Cotton Initiative, and therefore proposed an ambitious, expeditious and specific 
solution to the issue.  China called upon the Sub-Committee to take action to see that all export subsidies be immediately terminated consistent with  the broad goal of the Doha Declaration and the 
mandates of the Special Session of the CoA and of the Sub-Committee on cotton.  Regarding process, 
China echoed the concerns expressed by many others Members and cautioned against the Sub-
Committee expanding its work to i ssues beyond agriculture and cotton.  China agreed with Japan that 
the Sub-Committee was a Sub-Committee of the Spec ial Session of the Committee on Agriculture and 
not of the TNC.  Therefore, China believed that any attempt to go beyond the mandate of the Sub-Committee in establishing a work programme woul d only serve the purpose of frustrating the 
proponents in getting ambitious, expeditious and specific solutions. 
38. New Zealand noted its support to the wish expressed by many Members for fruitful 
discussions in the Sub-Committee.  The high importa nce of cotton for many economies and the acute 
problems faced by their farmers were clear to all.  New Zealand fully supported the goal of finding specific solutions to the cotton issue ambitiously an d expeditiously within the context of an overall 
ambitious result in agriculture. Like Brazil, Ne w Zealand believed that cotton highlighted the 
importance of ambitious results a nd substantial reductions in trade- distorting support in particular.  
Regarding procedure, New Zealand agreed with Au stralia on the need to maintain a good interchange 
between the CoA Special Session and the Sub-Committee.   For example, there were still many details 
to be worked through in the context of the wide r discussion in the domestic support pillar such as the 
question of product-specific caps.  All of those i ssues would have to be measured against both the 
objective for reduction in trade-domestic support and the issues being tackled in the Sub-Committee. 
39. Argentina noted its interest in the issue since, like neighbouring Paraguay, Northern 
Argentina depended on cotton for its livelihood.  This  was an important issue which Argentina would 
follow closely. 
40. Benin took the floor to thank Members for thei r positive spirit.  Benin noted that Members' 
responsibility was great in the Sub-Committee, as the stand it took could save a lot of human lives or  TN/AG/SCC/R/1 
 Page 7 
 
 
 in the contrary push many human lives into pove rty.  Regarding the link between the Sub-Committee 
and the Special Session of the CoA, Benin stated that  that controversy should be a thing of the past.  
African cotton producers had shown a lot of patience but there was a limit to that patience and they 
did not wish to be pushed into a corner.  All WTO Members had commitments they had to shoulder 
and Members had to go to Hong-Kong with results.   Benin wished for all delegations to actively 
participate in the work of the Sub-Committee so th at viable solutions could be found to the problem. 
41. Statements made at the meeting by the fo llowing delegations were forwarded to the 
Secretariat and are attached to this summary repor t:  Benin, Burkina Faso, Cuba, Paraguay, Rwanda, 
Senegal, Tanzania, the United States and Zambia.  The Chairman asked that any delegation that 
wanted its statement included as an  attachment in the summary report on the formal meeting should 
sent it to the Secretariat in electronic format as soon as possible. 
42. The Chairman noted the wide agreement that  the Sub-Committee get quickly to work and 
examine the substantive issues affecting the cott on sector.  The Chairman assured Members of his 
total commitment to make the work of the Sub- Committee successful.  The Chairman set out very 
clearly that successful negotiations on agriculture were key to a positive outcome on cotton and that 
Members now needed serious progress in the agriculture negotiations including  in particular with 
respect to cotton. 
ITEM D:  OTHER BUSINESS  
Request for Observership by the Interna tional Cotton Advisory Committee (ICAC) 
43. The Committee was informed of a request for observership received from the International 
Cotton Advisory Committee (ICAC). 
44. The representative of Egypt noted that although the issue of observer status was still under 
consideration in the General Council, the general a pproach in negotiating groups had been to operate 
on an ad-hoc basis.  In that light, Egypt had no objection to the ICAC joining the Sub-Committee as an observer. 
45. China stated that it was not a Member of ICAC and it was not quite clear on the way in which 
ICAC intended to participate to the work of the S ub-Committee.  China request ed to see a copy of the 
communication by ICAC in which it requested observers hip so that it could relay such request to its 
capital for analysis and review.  Until it received in structions from its capital, China was not in a 
position to agree to ICAC being granted obser ver status in the Sub-Committee on Cotton. 
46. In light of the lack of consensus on the request  by ICAC, the Sub-Committee agreed to simply 
take note of the situation and to revert  to the matter if and when appropriate. 
Date of Next Meeting 
47. The Sub-Committee agreed to meet again on 22 March 2005, following the March 
Agriculture Week. 
Chairman's Report to the Special S ession of the Committee on Agriculture 
48. In concluding the Chairman stated that in making his report to the Special Session of the 
Committee on Agriculture he would bear in mind the statements made by all Members, that the report 
would be short and entirely factual, the essence of which would be about the working consensus in the 
Sub-Committee to start substantive work along the lines specified in the work programme proposed 
by the Chairman.  Keeping in mind the interests of all Members the report would be circulated to all 
Members and if a factual error was discovered an amendment would be issued. TN/AG/SCC/R/1 
Page 8  
 
 Annex 1
 
 
Proposed Work Programme and Arrangements 
 
 1. Nature and Scope of Work Programme  
(a) Under the direction of the Chair, and until the Sub-Committee directs otherwise, work in 
depth on all trade-distorting policies affecting trade in cotton: 
(i) Assessment of Progress in the Agriculture Special Session; 
(ii) Coherence between Trade and Developm ent Aspects: Regular Update on the 
Development Aspects.  
(b) Work within the framework of sub-paragraphs (i) and (ii) above will be based on technical 
papers and submissions to be contributed by in terested participants, as well as on the basis of 
factual information and data to be prepared by the Secretariat at the request of the Sub-
Committee. 
 
2. Basis of Work 
The Doha Ministerial Declaration and the Agreed Framework. 
  
3. Organization of Work Programme 
a) Work to be conducted through consultations, info rmal and formal open-e nded meetings of the 
Sub-Committee; 
b) Chair to prepare periodic reports on the Sub-Committee meetings to the Special Session of 
the Committee on Agriculture. 
 
4. Sequencing of Work Programme and Timetable   
a) Where possible, the Sub-Committee meetings will be  held on dates as close as possible to the 
Special Session meetings of the Committee on Agriculture;   
b) Additional consultations, formal or informal m eetings to be scheduled by the Chair after 
consultations with Members. 
 
  TN/AG/SCC/R/1 
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 Annex 2  
 
Statements by Members at the Meeting of the Sub-Committee on Cotton of 16 February 2005 
 
 
Statement by Benin on behalf of the co-sponsors of the sectoral initiative on cotton  
and the cotton-producing African countries  
  Mr Chairman, Excellencies, Ambassadors, Representatives of International Organizations, 
Distinguished Delegates, Ladies and Gentlemen, 
 1. On behalf of the four (4) co-sponsors of th e Sectoral Initiative on Cotton and of all the 
African cotton-producing countries, I should like to  welcome the establishment of the Sub-Committee 
on Cotton and congratulate you, Ambassador Tim GROSER , on your election to the chairmanship 
of this body. 
2. We are convinced that, under your leadership, we shall achieve outcomes that will meet the 
expectations of several million cotton producers in Africa. 
Mr Chairman, 
 3. The African cotton-producing countries, and in  particular the leas t developed among them, 
place great hopes in you and in the Sub-Committee. 
4. We are confident that thanks to your dedica tion, motivation, insight and well known savoir 
faire, your leadership of the Sub-Committee's pro ceedings will enable us to find, together and by 
consensus, appropriate solutions to the problems of cotton in the international market, that is, 
solutions that are both fair and consistent with the WTO rules and principles. 
5. We are also convinced that the WTO Members represented here and the rest of the 
Membership will do whatever is n ecessary to see that the Sub-Committ ee fulfils its mandate, which is 
to seek, within the ongoing negotiations on agriculture, ambitious, expeditious and specific  
solutions to the problem of distortion of the international cotton market, bearing in mind how important this issue is for the development of the least developed countries. 
Mr Chairman, 
 
6. Time is running out.  The African cotton sector in is  in a more precarious situation than ever.  
We must, for the sake of our farmers, find soluti ons that are indeed ambitious, expeditious and 
specific to the problem of the international cotton market, so as to ensure the survival of around 
15 million of some of our countries' poorest inhabitants. 
7. This Sub-Committee has a significant role to pl ay.  For the least developed countries, cotton 
will test the international community's readiness to create an international trading system that 
addresses the legitimate interests of all of its Members,  including the weakest.  It is crucial for us to 
find a solution to the cotton issue;  this will demons trate our actual capacity to turn this negotiating 
round into a genuine development round, for cotton is a perfect example of what should be the focus of our quest and our action, namely to combat poverty by furthering trade, while ensuring the 
participation of poor countries in international trade. TN/AG/SCC/R/1 
Page 10  
 
 Mr Chairman, 
 8. Your task is not an easy one.  We know that you have taken on a heavy responsibility, but we 
have no doubt that you will succeed. 
9. We are sure that all the members of th is Sub-Committee are, both individually and 
collectively, aware of their responsibility to do their utmost to guarantee the success of our 
endeavours. 
10. You may rest assured, Mr Chairman, that the co-sponsors of the Sectoral Initiative on Cotton 
and the African cotton-producing countries will no t be lacking in perseverance, dedication or 
negotiating skills in seeking a solution to the cotton issue commensurate with the ambitious goals of 
this group. 
11. We want to assure you once again of our read iness to help and support you in your noble and 
difficult task. 
12. We look forward to beginning the ne gotiation of concrete solutions. 
13. The purpose of my statement and my proposed sche dule is simple.  We want to ensure that 
we start working on concrete solutions.  Let us  therefore avoid becoming bogged down in theoretical 
questions of competence, interdependence between the Sub-Committee and the Committee on 
Agriculture and progress, or lack thereof, in other areas.  Let us not evade the issue by discussing the 
importance of opening up the textile market in or der to improve the cotton market.  Naturally, all 
these questions arise and will need to be resolved. 
14. However, our first priority is to focus on th e essentials.  In the case of cotton, the core 
problem is relatively simple.  The international cott on market is distorted by billions of dollars of 
subsidies which unquestionably affect world market prices. 
15. This is the issue that we need to reso lve.  all the other matters are ancillary. 
16. What we propose, Mr Chairman, Distinguished De legates, is an approach for reaching that 
goal, in other words a work programme with specific targets to be achieved according to a 
predetermined schedule, in order to fulfil our ma ndate of expeditiously finding an ambitious and 
specific solution to the cotton issue. 
17. The proposed approach is simple and can be outlined as follows: 
a) We need first to agree on a working definition of the terms addressed ambitiously, 
expeditiously and specifically , as adopted in July. 
 
b) We need to make sure that our search for ambitious and specific solutions begins as soon 
as possible.  In order to avoid endless preliminary discussions that would not meet the objective of proceeding "expeditiously", we  would suggest the following approach: 
- to define the principles
 that every country should follow in order to submit a 
concrete offer which demonstrates how  that country intends to meet its 
commitment to find an ambitious, exped itious and specific solution to the cotton 
issue; 
- to submit a concrete offer  which the Sub-Committee can assess according to its 
consistency with the objectives set for this negotiation. 
  TN/AG/SCC/R/1 
 Page 11 
 
 
 18. This is the approach, as set out in the schedule,  that we propose for your consideration.  The 
schedule should make clear how many times and when we are to convene.  We are prepared to meet 
as often as may be necessary to ensure that we rema in within the timeframes proposed in our work 
schedule and to achieve the interim objec tives we will set ourselves for each month. 
19. Our countries are ready to begin the work that li es ahead.  We are ready to negotiate here and 
now.  We will support any approach, any solution which ensures that we  will attain the goals we have 
all set for ourselves.  We will not dwell on goodwill statements that are not followed up by concrete 
action.  What we want is results.  The outcome we all seek is an international cotton market which is 
free of any intervention that distorts free compe tition and which allows the poorest countries, which 
are indeed competitive, to earn in the internationa l market the foreign currency they need for their 
development. 
Thank you. 
   TN/AG/SCC/R/1 
Page 12  
 
 Statement by Burkina Faso
 
  
Mr Chairman, Ladies and Gentlemen,  
1. I am speaking here on behalf of the Government and the cotton growers of Burkina Faso. 
2. I am taking the floor not only to express my support for the statement made by the 
Ambassadors of Benin and Rwanda on  our behalf, but also to stress to  you, Mr Chairman, and to all 
of the Members of this Subcommittee, the extent  to which the cotton producers of Burkina Faso 
expect tangible results from our work. 
3. The time has come to move beyond the excha nge of good intentions that we have been 
conducting for several months now, and to take action that will save lives. 
4. The poor farmers and their families are urgently  awaiting an agreement among the actors in 
these negotiations – and indeed, we are engaged in negotiations;  they are waiting for this 
Subcommittee to agree on the mechanisms and a pr ecise calendar for the elimination of the factors 
that are distorting the international cotton market so  that their products can be priced at their proper 
worth, enabling them to live in dign ity from the fruit of their labour. 
5. Without taking up too much of your time, sinc e we are eager to work towards ambitious, 
expeditious and specific solutions, I would like to renew my Government's confidence and to 
congratulate you once again on your election as Chairm an of this Subcommittee, which represents a 
hope for the fundamental principles governing the WTO.   I would also like to assure the Members of 
the Subcommittee of our confidence, and ask them to work constructively to find solutions to what is 
a veritable human disaster threatening the very su rvival of several million farmers of West and 
Central Africa, who are following with great inte rest, on a daily basis, the work taking place in 
Geneva – work which, however far away from their cotton fields, will have a direct impact on their 
future. 
Thank you.  
  TN/AG/SCC/R/1 
 Page 13 
 
 
 Statement by Cuba  
  1. Thank you, Mr Chairman.  Let me begin by  joining the speakers that preceded me in 
congratulating you for your election and wishi ng you success in the work that lies ahead. 
2. We would like to associate ourselves with the statements made by the Ambassador of 
Rwanda on behalf of the African Group, by the Am bassador of Benin, and by the representative of 
Zambia on behalf of the LDCs. 
3. Cotton plays a leading role in the social a nd economic life of many African countries.  
Indeed, in those countries, with the majority of  the population living below the poverty threshold, 
cotton is the main source of income and millions  of families depend directly on its cultivation. 
4. This situation is currently being exacerbated by the subsidy policies of the main industrialized 
countries in this sector, policies which are placing Af rican cotton producers at a great disadvantage in 
the world market.  This is what the work of th is subcommittee is about:  eliminating the domestic 
support and the export subsidies that are causing th ese distortions and providing technical assistance 
to the developing and least developed countries invo lved so that they can face up to the conditions 
imposed on them by the market. 
5. Cuba would like to reiterate its support for th e appeal of the African countries concerned, 
while at the same time urging the members of th is subcommittee to seek an ambitious, expeditious 
and specific solution to this issue as agre ed in Annex A of the July Package. 
 
 TN/AG/SCC/R/1 
Page 14  
 
 Statement by Paraguay
 
  1. The delegation of Paraguay welcomes your elec tion as Chair of the Subcommittee on Cotton.  
Your intellectual ability and dedica tion provide us with the certainty  of a successful run-up to the 
WTO Ministerial Conference in Hong Kong, China, in December 2005.  We therefore stand ready to 
work constructively to this end. 
2. The framework established in the Decision of  1 August 2004 for th is Subcommittee on 
Cotton affords us the possibility, through this Organization, of a ddressing ambitiously, expeditiously 
and specifically all of the problems which affect and distort international trade in a branch of 
agriculture that is of such critical importance to developing countries such as Paraguay, the exports of 
which are largely dependent thereon. 
3. The direct link between international trade in  cotton and development also represents a 
challenge to this Organization, which will have to  deal with the issue in conjunction with other 
international organizations with the necessary cohere nce.  We feel certain that the outcome will be 
very positive for the Organization in terms of credibility, as well as for the Doha Development 
Agenda as a whole. 
4. We have no desire to reopen the extensive a nd comprehensive theoretical discussions which 
have been conducted in this area by other speciali zed international organizations.  The delegation of 
Paraguay does, however, wish to focus work on th e search for concrete solu tions in accordance with 
the terms of the mandate, that is to say "ambitious ly, expeditiously and specifically".  We therefore 
anxiously await the recommended modalities for the submission of proposals with such objectives. 
Thank you very much. 
   TN/AG/SCC/R/1 
 Page 15 
 
 
 Statement by Rwanda on behalf of the African Group  
  Mr Chairman, Ambassadors, Distinguished Repr esentatives of the International Organizations, 
Esteemed Delegates, La dies and Gentlemen, 
 
1. I would like to begin on behalf of the African Group by congratulating you, Mr Chairman, on 
your election as Chairman of the Subcommittee on Co tton, a choice which reflects the recognition of 
your personal qualities as a leader, a man of convictio n, thoroughly receptive and firmly committed to 
development through trade based on fa ir and equitable rules, and respected by all of the actors, large 
and small. 
2. It is also a tribute to your talent as a negotiator and as a person who is at ease with a number 
of WTO Members and groups of Members;  and i ndeed, all of these qualities will be needed in 
addressing a question so important, so crucial, as cotton for the economies of the African cotton-producing countries and for the rural communities working in that sector. 
3. The African Group will spare no effort in helping you fulfil this task. 
Mr Chairman, 
 4. The African Group reaffirms the need to work individually and collectively to find 
appropriate solutions to the problem facing the cotton sector in Africa. 
5. Indeed, the Framework Agreement that we adopted  at the end of July in the context of the 
Doha Round of negotiations established the parameters governing the examination of the cotton issue:  
it established that the issue should be addressed ambi tiously, expeditiously, and specifically under the 
three pillars of the agricultural negotiations, and that  it be accorded all due importance, particularly in 
the case of the least developed cotton producing countries. 
6. These fairly precise provisions of the July Framework Agreement were reaffirmed in the 
terms of reference for the establishment, on 19 November 2004, of the Subcommittee on Cotton of 
which you are now Chairman. 
7. Emphasis was also placed on the need to ensu re coherence between trade and development 
aspects of the cotton issue. 
8. The mandate of the Subcommittee is clear and has provided us with useful guidelines:  it 
remains for us to get down to work as rapidly as possible. 
9. What we need to do is to work together to seek  appropriate solutions that will help to settle 
the problems facing the cotton sector in Africa. 
10. The African Group stands ready to examine, with  all of the members of the Subcommittee on 
Cotton as well as with other actors, the ways and means of responding to the expectations of the 
African cotton producing countries. 
11. The African Group will submit its contribution in  due course, based on the above parameters. 
Mr Chairman, 
 12. We would like to stress here the serious di fficulties that the cotton producing communities 
and the economies of the countries concerned are curre ntly experiencing as a result of the drastic fall 
in the price of cotton on the international market, a nd the need for urgent solutions to a problem that TN/AG/SCC/R/1 
Page 16  
 
 has struck at the heart of the African cotton prod ucing and exporting countries, most of which are 
LDCs. 
13. The best approach to this emergency situation is the creation of an emergency fund in support 
of the cotton sector. 
14. The situation calls for the creation of a suppor t fund so that contingency resources can be 
used to overcome the severe crisis currently facing the sector. 
15. The OECD Development Assistance Committe e has already received a request from the 
African countries in this respect, and we would be grateful if you would follow up this other 
important dimension of the cotton issue with the African cotton producers and their bilateral and 
multilateral partners. 
16. Together, we shall assess the progress made with respect to the trade and development aspects 
of cotton. 
17. I wish you every success in your work on th is major issue, which will be testing our 
commitment to working, under this round of nego tiations, towards taking proper account of the need 
for the poorest and most vulnerable Members to par ticipate fully in international trade, promoting 
their growth and development, and combating poverty. 
Thank you. 
  TN/AG/SCC/R/1 
 Page 17 
 
 
 Statement by Senegal  
  Mr Chairman, 
 
1. The Senegalese delegation congratulates you warmly  on your election to the chairmanship of 
the subcommittee on cotton. Your personal qualities, that is, your thoroughness, sense of equity, 
positive spirit and independence, are to our mind a guarantee of success.  We are confident that your 
leadership will carry us through the process we are embarking on together. 
Mr Chairman, 
 
2. The Senegalese delegation first of all wishes to endorse the statements made by Rwanda on 
behalf of the African Group and by Zambia on behalf of the LDC Group. 
3. After the establishment of the subcommitt ee on cotton on 19 November 2004, my delegation 
now welcomes this first meeting which marks the launching of the subcommittee's activities.  Allow 
me to take this opportunity to re-emphasize the im portance that my delegation attaches to our present 
and future proceedings, considering the degree of urgency given to the cotton issue by the July 
framework in requesting that the matter be addr essed ambitiously, expeditiously and specifically. 
4. Our mandate as a subcommittee is ambitious and requires genuine commitment on the part of 
all the Members so as to give a strong impetus to  the subcommittee's work.  Indeed, the search for 
sustainable solutions  to the cotton problem is more vital th an ever if the many rural populations 
severely affected by this problem are to live decen tly from the fruit of their labour.  As you know, 
such solutions will depend as much on the resu lts achieved on trade aspects as on the outcomes 
regarding the development component of the issue.  Thus, the agriculture negotiations will provide the 
subcommittee with important elements for consid eration, which the subcommittee will have to 
evaluate in order to set courses of action  that will enable us to attain the goals we have all set for 
ourselves.  It will be necessary, however, to ensure  that the subcommittee's work proceeds at its own 
pace, for in any case we should not lose sight of the urgency of the issue if we want to abide by the 
spirit and the letter of the mandate . 
5. As to the development component, we have so  far noted expressions of goodwill on the part 
of the development partners, at both bilateral and multilateral level, which we find somewhat 
reassuring.  We should nevertheless bear in mind that  it is continuing coherence between the trade and 
the development components that will ultimat ely guarantee the successful outcome of our 
proceedings. 
Mr Chairman, 
 
6. As this is the subcommittee's first meeting, I should like to conclude by assuring you of the 
support of my delegation, which will spare no effo rt in contributing to the search for satisfactory 
solutions. 
Thank you. 
 TN/AG/SCC/R/1 
Page 18  
 
 Statement by Tanzania
 
  Mr. Chairman,  
1. My delegation wishes to congratulate you for your election to the Chair of this Sub-
Committee.  Our memory is still fresh about the exce llent and skilful way with which you steered the 
Committee on Agriculture leading to the adoption of the July Package by the General Council.  We 
trust you will maintain the same commenda ble leadership in this Sub-Committee. 
2. We wish to associate ourselves with the statem ents made by Rwanda for the African Group, 
Zambia for LDCs, Benin and othe r delegations who have underlin ed the importance of cotton. 
Mr. Chairman, 
 3. For a period of over ten decades, cotton continues to play a critical role in terms of economic 
and social life of Tanzania.  At the moment cott on is a source of income for over 4 million peasants, 
and the second important source of fo reign exchange for the country.  Co tton is also a main factor for 
industrialization, particularly in textiles and clothing , as well as oil mills, a significant part of which is 
destined for export. 
4. In short, Mr. Chairman, cotton for Tanzania is  both a trade and development issue, directly 
relevant to our national efforts to transform our pe ople out of poverty, along with other adverse effects 
associated with it.  For this reason, Tanzania's expectations about this Sub-Committee, resulting from 
the July Package, are quite high. 
5. My delegation will therefore be more than willi ng to offer it cooperation constructively to you 
Mr. Chairman to advance our shared interests on cotton as rapidly as possible. 
Thank you Mr. Chairman. 
  TN/AG/SCC/R/1 
 Page 19 
 
 
 Statement by the United States  
  1. We believe the work of the sub-co mmittee should focus on the following: 
-  First, world trade in textiles is complicated and co tton is part of this mix.  Therefore it is important 
that the subcommittee monitor progress in all area s of the negotiations related to the cotton sector, 
including agriculture, NAMA, development, and possibly rules (subsidies and trade-remedies). 
 -  With respect to agriculture:  it should monitor pr ogress in all three pillars, as all three contain trade-
distorting measures which can have large effects on trade in cotton. 
 
-  Analysis:  The sector is complicated and Members may benefit from background discussion regarding the fundamentals of trade in cotton and co tton products.  The sub-committee can play a vital 
role in deepening our understanding of th e sector.  Here we suggest the following: 
 
(1)  a good place to start could be a review of basic production, consumption, and trade data for 
cotton, synthetics and textiles.  A review of work underway to strengthen global demand for 
cotton would also be interesting.  (2)  it would also be useful to undertake a revi ew of trade-distorting measures known at this time 
affecting these products,  such as tariffs and ot her market access barrier s, agriculture subsidy 
programs, and government policies benefiting synthetics. 
 (3)  an assessment of compe titiveness factors, and the impli cations of trade reform and 
productivity increase, would help put the trade el ement of the DDA negotiations in perspective, 
particularly for small developing countries. 
 
(4)  it would also be useful to review of  development activities in other international 
organizations, the WTO and bilateral activities. 
 2. Participation should be open- ended to all WTO Members and observer international 
organizations of the SS of CoA as agreed last November. 
3. Regarding timeframes, continue to believe this is premature.  The work of the subcommittee 
should develop before any timeframes are imposed. TN/AG/SCC/R/1 
Page 20  
 
 Statement by Zambia on behalf of the group of Least Developed Countries
 
  Mr. Chairman, Excellencies, Ladies and Gentlemen,  
1. On behalf of the group of the Least Developed Co untries, allow me first of all, to associate 
fully with the statement read by H.E. the Amb. of  Rwanda on behalf of the African Group.  We would 
also like to congratulate you, Chair, on your election to this important Sub-Committee. 
2. The group of LDCs are confident that under your  able leadership, this Sub-Committee will 
indeed strive to address a problem that affects th e majority of African Countries, particularly the 
LDCs. 
Chair, 
 3. The question of cotton does not only affect th e four proponents of the sectoral initiative, 
Benin, Burkina Faso, Chad and Mali, who also happe n to be LDCs, but it also affects a great number 
of Least Developed Countries that are dependent on this very important sector for the livelihood of 
their people.  The importance that our group attaches to the resolution of this problem can, therefore, 
not be overemphasised. 
Chair, 
 4. We too wish to reaffirm our groups solid commi tment to co-operate with the Members of the 
Sub-Committee and all Members of the WTO, in fi nding a positive solution to an issue that could see 
further impoverishment in our ailing economies.  The July Package gives WTO Members the mandate 
and the responsibility of ensuring that work on cotton,  particularly the developmental aspect, will be 
carried out in direct consultation with relevant and key internationa l organizations, such as the Bretton 
Woods Institutions, FAO and the ITC in order to achieve a meaningful solution. 
Chair, 
 5. We are all aware of the serious problems that the LDC cotton producer has had to encounter 
over the years, as a result of the rapid economic reform s that many of our countries have had to face.  
We have been reminded of this grave situation by the representative of the four proponent countries, 
Benin, at many a fora. 
6. We therefore, wish to reiterate the call made by the African Group for the establishment of an 
emergency fund in order to help the affected cotton producers address this crisis.  If indeed we are to 
achieve a balanced outcome of  the Doha deve lopment agenda, and to attain the millennium 
development goals, the developmental aspects of se ctoral initiative on cotton need to be addressed 
with as much vigour as is the case with the other elements of the DDA. 
Thank you. 
  
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