WORLD TRADE  
ORGANIZATION  TN/AG/SCC/W/10 
WT/CFMC/20 16 December 2008 
 
(08-6151) 
Sub-Committee on Cotton  
  
IMPLEMENTATION OF THE DEVELOPMENT ASSISTANCE ASPECTS OF THE 
COTTON-RELATED DECISIONS IN  THE 2004 JULY PACKAGE AND 
PARAGRAPH 12 OF THE HONG KONG MINISTERIAL 
DECLARATION 
 
Item 2C - Coherence Between Trade and Development Aspects:
 
Update on the Development Aspects of Cotton  
 
Secretariat Progress Report 
 
  
  
 
 
 
 
 
I. INTRODUCTION 
1. This is the Sixth Progress Report to the Sub-Committee on Cotton (SCC) on the development 
assistance aspects of cotton, pursuant to paragra ph 12 of the Hong Kong Ministerial Declaration.
1  
Since the last Progress Report, the Director-General has sustained intensive engagement with the C4 
and cotton-producing and trading Members.  In the in tervening period since the last report to the SCC, 
there have been several developments.  First , the Director-General met with the Ministers of the C4 
countries on the margins of UNCTAD XII in Accra, Gh ana, in April 2008.  The meeting took stock of 
the outstanding issues requiring treatment on the cotton dossier in the DDA.  Second , the Director-
General addressed a letter to WTO Members, on 30 October 2008, with the updated version of the 
"Evolving Table on Cotton Development Assistance" (WT/CFMC/6/Rev.4).  Third , the 10th Round of 
the Director-General's Consultative Framework Mechanism on Cotton, took place on 7 November 
2008.  Fourth , the WTO Secretariat participated at the 67th Plenary Session of the International Cotton 
Advisory Committee (ICAC) in Ouag adougou, Burkina Faso, in the c ourse of which the Secretariat 
moderated a Plenary Panel comprising Brazil, Burkina Faso for the C4, EC, India and the US on the subject of "What Next for Cotton in the Multilateral Negotiations?".  The 67
th ICAC Plenary at its 
conclusion adopted a Statement,2 relevant to, and supportive of, the two-track treatment of cotton in 
the DDA and the conclusion of modalities.  Fifth , the WTO Secretariat participated at the Multi-
Stakeholder Meeting on Cotton, convened by the UNC TAD Secretary-General, on 2 December 2008.   
                                                      
1 "We invite the Director-General to  furnish a third Periodic Report to our next Session, with updates at 
appropriate intervals in the meantime, to the General Council, while keeping the Sub-Committee on Cotton fully informed of progress".  (WT/MIN(05)/DEC:  paragraph 12.) 
2 Statement of the 67th Plenary Meeting, Ouagadougou, Burkina Faso, 17 – 21 November 2008.   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. TN/AG/SCC/W/10 
WT/CFMC/20 Page 2 
 
 
  II. UPDATED VERSION OF EVOLVING TABLE ON COTTON DEVELOPMENT 
ASSISTANCE 
2. The Director-General addressed a letter to all WTO Members with the fifth updated version 
of the Evolving Table (ET) on Cotton Development Assi stance.  As indicated in the letter, the total 
number of commitments for the development of  the cotton sector increased from 158 in the 4
th version 
of the ET to 185 in the current version.   
• In Part I of the current version of the ET (cott on-specific development assistance), the number of 
commitments increased from 94 to 112 (a 19% increase in quantum);  or from $495 million to US$551 million (an 11% increase in value).  Actual  disbursements also rose and now stand at 
US$109 million, a 186% increase from the previous US$38 million.   
• In Part II (assistance provided within the broa der framework of agriculture and infrastructure-
related projects and benefiting the cotton sector),  there was a small increase in the quantum of 
commitments (from 64 to 73) which, however, involved a significant increase in the total value of commitments to US$2 billion.  Likewise, the total value of disbursed amounts has increased by 
over 107% from US$65 million to US$134 million in the latest updated version.   
3. In his letter, the Director-General stressed that, notwithstanding the evident improvements, 
wide gaps remained between "commitments" and "d isbursements".  These gaps needed to be rapidly 
bridged.  Furthermore, ope rational implementation and project comple tion rates needed to rise further.  
Improvements in these areas were required.     
4. The Director-General reiterated the broade r policy context for cotton.  Members were 
reminded that at the March 2007 High Level Session on Cotton, they had agreed with the Director-
General's summary statement that "cotton remains one of the litmus tests of the development content 
of the Doha Round;  hence urgency of a breakthrough in the DDA" .   
5. The Director-General noted that the global economy was currently characterized by an 
unprecedented financial crisis. The cotton sector was not immune to the effects of the crisis.  The sector was experiencing volatile swings in cotton pr ices, which now reflected a downward trend.  In 
the past 12 months, cotton price had registered the historic high of US¢88 per pound of cotton lint, 
which was the case in March this year.  However,  current prices had fallen to between US¢50 and 
US¢57 per pound.  This downward trend made it all th e more imperative to successfully conclude the 
Doha Round negotiations.  
6. The Director-General stressed that domestic cotton sector reform was part of the process of 
development assistance in favour of cotton.   
7. The Director-General invited all Members, donors and recipients alike, to keep the Evolving 
Table (ET) and its contents under careful scrutiny.  The ET served to ensure accuracy and functioned 
as a monitoring and tracking instrument.  The Table also acted as a more efficient instrument for 
allocating resources to development assistance in pr ovider/recipient engagement in the framework of 
the implementation of the mandate on cotton development assistance.    TN/AG/SCC/W/10 
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  III. 10TH ROUND OF THE DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK 
MECHANISM ON COTTON  
8. The 10th Round of the Director-General's Consu ltative Framework Mechanism on Cotton took 
place on 7 November 2008.3  (The agenda for the consultations is attached as Annex I).  A statement 
was made by H.E. Mr. Ahmadou Abdoulaye Diallo, Minister of Commerce and Industry, Mali .  The 
Minister of Mali restated the importance of the co tton sector for the C4 and the 36 African countries 
that depend on cotton.  He expressed disappointment that the cotton dossier was not addressed at the 
WTO Mini-Ministerial in July 2008.  The cotton sect or was currently being adversely affected by the 
combination of the global financial crisis, the food pr ice crisis and the challenges in the energy sector.  
Mali and the cotton countries welcomed the G20 Su mmit which had been c onvened and were hopeful 
for positive solutions from the meeting.  The WTO was bound to implement the Doha mandate for an 
ambitious, expeditious and specific treatment of cotton.  In light of what was at stake for millions of 
African cotton producers, the C4 would avail itself of each and every possible recourse, if there was 
failure of an ambitious outcome on cotton.  The C4, LDCs, African countries and the ACP desired an 
urgent conclusion to the Doha Round.  The urgent conclusion to the Doha Round was vital to the 
elimination or significant reduction in trade-distorting subsidies.   
9. Minister Diallo welcomed the Director-Gen eral's Consultative Framework Mechanism on 
Cotton.  This exercise in transparency was proving its worth, not only in showing the flows of development assistance to Africa's cotton industry bu t also the difficulties in mobilizing resources.  
The Minister expressed appreciation to development partners.   
10. The Minister acknowledged the need for cott on sector and related reforms in Africa.  
However, the Minister noted that the pace of th ese reforms in Africa was not being matched by the 
pace of change in international market rules or assistance for the cotton sector.  The Minister called 
for the multilateral trading system to be stre ngthened.  Although there were advantages to 
bilateralism, multilateralism was invaluable.   
11. Minister Diallo requested for the circula tion of his statement as a working document.
4   
12. The 10th Round of consultations focu sed on four broad areas:  trade policy aspects of cotton;  
the Director-General's Evolving Table (ET) on Co tton Development Assistance;  South-South Cotton 
Cooperation;  and Domestic Cotton Sector Reforms.   
A. TRADE  POLICY  ASPECTS 
13. In accordance with the coherence mandate on the trade policy and development assistance 
aspects of cotton,5 Ambassador Crawford Falconer, Chai rman of the Committee on Agriculture 
Special Session / Chairman of the Sub-Committee on Co tton, briefed participants on the state-of-play 
on the trade policy aspects of cotton.   
14. The Chairman of the Committee on Agricultu re Special Session / Sub-Committee on Cotton  
recalled that, regrettably, cotton was not addressed at  the July 2008 WTO Mini-Ministerial.  However, 
since then an informal dialogue had been in itiated and the negotiating atmosphere had been 
constructive.  This was a credit to the particip ants.  Nonetheless, this  constructive and positive 
negotiating mood had not yet produced any basis for an  agreement or a textual basis for a revision of 
                                                      
3 DDG Harsha Vardhana Singh chaired the 10th Round of Consultations on behalf of the Director-
General.   
4 WT/CFMC/W/47.   
5 Paragraph 5, Annex A of the 1 August 2004 General Council Decision. TN/AG/SCC/W/10 
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  the current text.  The 10 July 2008 modalities draft text remained the basis for the negotiations on 
cotton.  The Chairman informed the 10
th Round of Consultations that he would retain the current draft 
text on cotton until there were tangible forthcom ing possibilities from participants which would 
provide a clear basis for an alternative text.  Th at moment had not yet been reached.  Movement 
towards convergence on cotton was long overdue.  The Chairman suggested incremental movement 
towards an outcome on cotton.  He doubted the polit ical tenability of continuing to hold cotton up in 
the air as the last issue to be addressed.  There needed to be movement towards a dénouement .  
Consultations on cotton were ongoing.   
15. The Chairman informed Members that, in the ag riculture negotiations more broadly, he had 
conducted informal open-ende d consultations.  He was also conduc ting informal discussions in the so-
called "walk-in-the-woods" process.  Progress was sl ow and painful on the range of issues on which 
he was consulting.  The Chairman assessed that on those range of issues, there was no precise textual 
basis on which to proceed, based on what he had hear d from Members.  He was hopeful for the future.  
In spite of the fact that negotiating positions ha d still not produced anything concrete, the Chairman 
expressed confidence that the possib ilities existed.  If there was some thing workable, it would be put 
forward as a possibility or option for decision-making.   
16. The Chairman noted that approximately tw o million people depended on cotton for their 
livelihood in Mali.  In the real world, the in ternational market outlook was bleak.  Commodity 
markets appeared to be more prone than ever befo re to depressed prices through subsidized products.   
17. It had been wrongly assumed that commodity prices were going up and that there would be 
no need to worry about subsidy policies anymore.  Prices had now come down.  Furthermore, it was 
clear that commodity price behaviour would be exacerbated by subsidy policies.   
18. Statements were made by several delegations:  Brazil (on behalf of the G20), Cuba, Burkina 
Faso, Chad, Egypt, Nigeria, US, India, China, Paki stan, Tanzania, Côte d'Ivoire, Angola, South Africa 
and Zimbabwe.  Delegations that interv ened welcomed the convening of the 10th Round of the 
Director-General's Consultative Framework Mechanism on Cotton (DGCFMC).  There was 
acknowledgement of its value as a necessary forum wh ere providers and recipients of development 
assistance on cotton could engage and exchange views.   Participants acknowledged the important role 
of the Director-General and expressed appreciation to him and the Secretariat for their work on the 
cotton dossier.  They commended the Chairman of  the Committee on Agriculture Special Session / 
Sub-Committee on Cotton for his consultations and brie fings on the Trade Policy Aspects of Cotton.   
19. Brazil, on behalf of the G20 , reiterated strong and full suppor t for the demands and positions 
of the C4.  Cotton was a vital component of the Doha Round agriculture negotiations and a central 
outstanding issue.  The G20 was disappointed that  no progress had been achieved in the discussions of 
trade-distorting support for cotton during the Ju ly 2008 Mini-Ministerial.  Developing-country 
producers and exporters of cotton, particularly  the poorest among them, continued to face unfair 
competition from developed-country subsidies.  It was ti me to redress this situation.  In both its trade 
and development dimensions, cotton must be  addressed ambitiously, specifically and  expeditiously, in 
accordance with the Mandate.  The G20 believed that  only substantial reducti ons in subsidy levels, 
effective disciplines and strengthened monitoring w ould effectively contain the distorting effects of 
developed-country expenditures on cotton.  There w as a clear link between the elimination of trade-
distorting cotton subsidies in developed countries and the promotion of the economic and social 
potential of developing countries, particularly in  Western and Central Africa.  The G20 urged 
developed countries, which account for the bulk of trade-distorting subsidies on cotton, to show 
leadership and implement the cotton mandate.  The G 20 would continue to work closely with the C4 
and shared the assessment that there could be no agreement on modalities without properly addressing 
cotton.    TN/AG/SCC/W/10 
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  20. The representative of Brazil also made a statemen t on its own behalf.  In the statement, Brazil 
reaffirmed the importance of the trade and development assistance aspects of cotton as vital components of the DDA and fundamental elements  of South-South cooperation.  The statement 
elaborated on the importance of cotton for the C4  and countries of West and Central Africa with 
regard to rural incomes and livelihood.   
21. Cotton accounted for high percentages of total exports and GDP for the C4 and for a 
significant part of rural incomes of poor farmers in West and Central Africa (WCA) and in other parts 
of the developing world. Cotton production was the so le means of livelihood.  By contrast, only a few 
thousand farmers in the developed world received massive amounts of distorting subsidies.  The 
situation of cotton was a microcosm of the distortions in agricultural trade and of the implications of 
those distortions for developing countries.  The 2007-2008 increase in prices of agricultural 
commodities provided respite on two counts for ex porting developing countries:  increased export 
earnings;  and, reduced levels of trade-distor ting support.  Unfortunately, cotton, unlike other 
commodities, experienced only modest price increases.  The recent reversal in the financial markets 
had brought back the spectre of slower growth  of consumption and downward pressures on cotton 
prices.  Beyond the twin challenges of falling in come and enhanced competition with subsidized 
producers, cotton producers in the developing world ri sked being further affected by competition from 
artificial fabrics due to falling oil prices.  As a c onsequence, the counter-cycli cal nature of developed 
countries' agricultural policies made it imperative to find a comprehensive compromise for controlling 
spending in cotton in accordance with the mandate in the Hong Kong Ministerial Declaration.   
22. Brazil stressed that the WTO DSB ruling on cotton was a landmark that must be fully 
implemented by the party violating WTO disciplin es, and complemented by results in the Doha 
Round.  Brazil and the G20 fully supported the C4 positions.   
23. Related to the trade policy aspects of this discussion, Brazil was a firm believer in the 
effectiveness of South-South coope ration on cotton and its impact on the development dimension.  
Brazil was engaged in an ambitious programme fo r cooperation, technical assistance, technology 
transfer and capacity building on cotton with Beni n, Burkina Faso, Chad and Mali.  Brazil had 
circulated copies of the cotton programme with th ese countries.  The main activities involved were:  
(a) capacity building for systems of cotton cultiva tion and genetic enhancem ent;  (b) introduction of 
varieties and germplasms through valid ation and demonstration units;  (c) biological control of pests;  
and (d) enhancement of the profitability of the cotto n industry.  Brazil intende d to expand its cotton 
programme to other cotton-producing African countries.   
24. Cuba
 noted that nothing had changed in relation to the treatment of the cotton dossier since 
the 9th Round of the DGCFMC in November 2007.  As evidence of the position of the Cuban 
delegation, the representative of Cuba re-r ead its statement on 22 November 2007 at the 9th Round of 
Consultations.  The representative of  Cuba noted that, in fact, the situation had worsened for the 
African cotton-producing countries because of the f ood price crisis, high oil price and the ongoing 
global financial crisis.   
25. Cuba stated that, although its delegation valued  very positively the efforts by the Director-
General and the Secretariat to achieve concrete  progress on the cotton dossier, Cuba was surprised 
that despite the urgency of action on cotton, the topic had not been addressed at the WTO Mini-Ministerial, including meetings of the G7, in July  2008.  The delegation of Cuba stressed that it was 
unfortunate that this topic had not been addressed with the urgency consistent with the mandate for 
ambitious, expeditious and specific treatment.  Cuba urged that on future occasions this topic should 
be accorded urgent and priority treatment in orde r to address the unfulfilled Hong Kong mandate.   TN/AG/SCC/W/10 
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  26. Cuba commended Ambassador Falconer and the Secr etariat for working systematically in the 
Sub-Committee on Cotton, although there had not been any more meetings.   
27. Burkina Faso
 made a statement, on behalf of the C4 and other African cotton-producing and 
trading countries, underlining several points.  First, cotton had become emblematic of the 
development content of the DDA.  Second, the C4 and C36 endorsed the statement by the Mali 
Minister of Commerce and Industry.  Third, the non-treatment of cotton in the July 2008 Mini-Ministerial was regrettable.  This should not be repe ated in the future.  Burkina Faso fully associated 
with the statements by Brazil for the G20 and by  Cuba.  The representative of Burkina Faso was 
satisfied and appreciative of the sustained direct involvement of the Director-General on the cotton 
dossier both in Geneva and in the capitals.  Amba ssador Falconer was commended for his efforts, 
which merited a successful conclusion.  Fourth , the representative of Burkina Faso expressed 
appreciation to the bilateral and multilateral partne rs for the development assistance provided to the 
cotton sector.  Fifth, the cotton countries would a ppreciate a report from the WTO Secretariat on the 
cotton projects submitted for which funding had been requested.  Sixth, the situation in the cotton 
sector continued to pose significant challenges.  Th e cotton countries remained discouraged with the 
continuing distortion of world prices for commodities.   It was imperative that negotiations produced a 
successful outcome.  Seventh, with reference to paragraph 12 of the Hong Kong Ministerial 
Declaration, the C4 and other cotton countri es felt that a "temporary mechanism" should be 
established to offset export revenue losses for cotton.   The C4 welcomed the draft text produced by 
the Chairman of the Committee on Agriculture Special Session, which also highlighted the 
development assistance aspects in paragraph 54 of the July 2008 draft text.   
28. The representative of Burkin a Faso informed Members that it would host the 67
th Plenary 
Meeting of the International Cotton Advisory Co mmittee from 17 to 21 November 2008.  He invited 
Members to participate and expressed the hope that the WTO Secretariat would also participate.  The global financial crisis was aggravating the situati on in the cotton sector.  There was need for urgent 
action.  It was hoped that the impact of the financial crisis would be addressed at this meeting.      
29. Chad
 endorsed the positions expressed in the stat ements by the Minister of Commerce and 
Industry of Mali and Burkina Faso.  The Doha process for the treatment of cotton was slow, but the C4 was not discouraged.  C4 and African countri es positions on cotton would be maintained because 
these were questions of life and death.  The represen tative of Chad also expressed appreciation to the 
development community and to the developing countries driving the process of South-South 
cooperation.   
30. Egypt
 reiterated its full support for the positions of the C4 and the African countries in 
relation to their demands on the subsidies provide d to cotton producers by developed countries.  
Egypt was disappointed by the failure to reach an y outcome on cotton in July 2008 and on the way the 
cotton issue was handled, by back-loading it to the very end.  Ministers waited to participate in 
discussions on cotton.  This situation would not be accepted in the future.  Co tton should be accorded 
priority in accordance with the mandate of the Hong  Kong Ministerial Declaration.  Egypt was deeply 
concerned with the lack of progress in the current  consultations led by Ambassador Falconer with 
regard to cotton.  Contacts by Egypt had shown that there was no real progress in this regard and called on the negotiating partners to  show movement.  The representative of Egypt stressed that he 
could not see any outcome to the Doha Round withou t an outcome on cotton that was satisfactory to 
the demands of the C4 and the African countries.  Finally, in light of the financial crisis and the 
implications it could have on development assistance, Egypt stressed that development assistance to the cotton sector should not be affected.    TN/AG/SCC/W/10 
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  31. Nigeria  acknowledged the value of the DGCFMC as a forum for constructive engagement 
between the development community and the co tton proponents.  The Director-General was 
commended for sustaining the rounds of consultations .  The representative of Nigeria expressed full 
support for the position of the C4 and fully associated with the statements by the Minister of 
Commerce and Industry of Mali and Brazil for the G 20.  Nigeria shared the disappointment with the 
non-treatment of cotton at the Mini-Ministerial in July 2008.  It welcomed the assurance of the development community to maintain support for cotton trade development in Africa.  Cotton in Africa possessed the potential to transform national economi es and contribute to poverty alleviation.  The 
representative of Nigeria called on the developed coun tries to show more l eadership and commitment 
towards achieving a breakthrough on cotton.  Th ere could be no agreement on modalities without 
satisfactorily addressing the issue of cotton.   
32. The United States
 intervened to make clear that it remained committed to a successful Doha 
outcome and was specifically comm itted to upholding the Hong Kong obligations with respect to 
cotton in trade policy.  The United States recogni zed the importance that cotton played in many 
countries and had a shared interest with others in  opening markets for cotton worldwide.  The view 
was expressed that cotton must be integrated into the broader agricultural negotiations and that we 
could not afford to wait until the last minute to accomplish this outcome.  Regarding any outcome on 
cotton, the United States believed that it had to operate within the structure that was ultimately 
developed for overall domestic suppor t considerations in the negotiati ons.  The United States held the 
view that, ultimately, the most effective way to re move trade barriers and open markets was to obtain 
an ambitious outcome in all three pillars of the ag riculture negotiations.  Finally, it agreed with the 
position by the Chair of the Committee on Agricultur e Special Session, that the current and ongoing 
atmosphere for discussion on the important issue of cotton was very positive.  The United States was 
committed to achieving a desirable outcome for all.   
33. India  underscored the need to redress the issue of cotton in accordance with the mandate in 
the Hong Kong Ministerial Declaration.  India was disappointed that no progress had been made on 
this issue during the July 2008 Mini-Ministerial.  I ndia fully associated with the statements made by 
Ambassador Roberto Carvalho de Azevedo of Braz il, on behalf of the G20 and Burkina Faso, on 
behalf of the C4.  Since the previous session of the DGCFMC in November last year and the Mini-Ministerial in July 2008 there had been strong expect ations that this issue, of critical importance for 
the C4 countries specifically, and the developi ng countries in general, would undergo expedited 
resolution.   
34. The representative of India recalled that the majo r cause of the critical situation in the cotton 
sector was the continuing prevalence of trade-distor ting subsidies in developed countries.  Therefore, 
the issue of such subsidies would have to be dealt with meaningfully and frankly for the situation to 
be redressed.  India fully supported the proposals of th e C4 in this regard.  Since the previous Round 
of the Director-General's Consultative Framework Mechanism in November 2007, and the circulation 
of the revised agriculture text in July 2008, the cotton dossier continued to be one of the major issues 
that needed to be addressed ambitiously, specifi cally and expeditiously for achieving success in the 
Round.  The C4 had shown considerable patience.   It was now time for a positive outcome and 
solution to the cotton dossier.   
35. China
 welcomed the participation of the Minist er of Commerce and Industry of Mali.  The 
statement by Minister Diallo was an important on e.  China fully supported the statement by Brazil on 
behalf of the G20.  Cotton was a very important  issue on the Doha agenda, especially for African 
countries.  China regretted that at the July 2008 Mini-Ministerial meeting there had been neither 
progress on the cotton issue nor an opportunity to substantively discuss the subject.  The importance 
of cotton should not be underestimated and it should be  an integral part of the final agreement of the 
Doha negotiations.  China believed that developed countries should do more to cut their subsidies and TN/AG/SCC/W/10 
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  tariffs.  Developing countries also needed to end eavour to assist cotton-producing countries.  As a 
developing country, China was also affected by the subsidies of the developed countries in the cotton 
sector.  China had 100 million farmers that relied on the cotton sector.  Without the subsidies from the developed countries, cotton farmers could not sell th eir products in China or elsewhere.  Currently, 
they could only sell thei r cotton in Chinese markets.  The pric e of imported cotton into China was 
affected by high subsidies in some cases.  Chin a would work for an ambitious outcome on cotton in 
the Doha negotiations and would like to cooperate with other delegati ons to achieve this outcome.   
36. Pakistan
 supported the C4 initiative and fully associated with the statement made by Brazil on 
behalf of the G20.  Pakistan had a keen inter est on the cotton dossier and was, like many others, 
deeply disappointed and concerned that this issu e had not been discussed in the July 2008 Mini-
Ministerial.  Pakistan hoped that this issue would be  accorded due priority at any future meeting.  The 
representative of Pakistan clarified that its a pplied duty on cotton was zero.  There was no tariff 
barrier to cotton in Pakistan.   
37. Pakistan had also taken an initiative on South- South cooperation through the ISO forum.  In 
the Southern Punjab belt of cotton, a research institu te had been declared a centre of excellence for 
cotton research.  Activities had been planned with IS O members for integrated pest management and 
development of disease-resistant varieties.  This c ooperation would be extended to African countries 
as well.   
38. Tanzania intervened on behalf of the LDCs .  It associated with the statements by Minister 
Diallo of Mali, by Brazil on behalf of the G20, by Burkina Faso for the C4 and by other cotton 
producing countries and Cuba.  Con cerns expressed on the cotton dossier were strongly shared by the 
LDCs' Group, the majority of whose Members are in Africa.  The LDCs' Group was disappointed by 
the stalled progress.  Cotton subsidies distorted intern ational trade in the sector and had a particularly 
adverse effect in the C4 countries.  Expedited ac tion was required to resolve the problems associated 
with the sector.  In Tanzania, cotton occupied a ce ntral pillar of livelihood for more than 20% of the 
population.  There was an urgent need to address th is issue as rapidly as possible on the basis of the 
decisions that had been made at previous meetings.   
39. Côte d'Ivoire, on behalf of the African Group , endorsed the statements by the Minister of 
Mali, Brazil on behalf of the G20 and Burkina F aso for the C4.  It was necessary to urgently 
implement the Hong Kong mandate on cotton.  Côte d' Ivoire was disappointed with the non-treatment 
of the cotton dossier at the July 2008 Mini-Ministeri al.  The main partners should sustain their efforts 
so as to fulfil the provisions provided in the Doha  mandate.  Development pa rtners should intensify 
their efforts to finance the cotton projects initiate d in the different cotton-producing countries.   
40. Angola  supported the statements made by the Minister of Commerce and Industry of Mali, 
and Burkina Faso, on behalf of the C4.  It was depl orable that the cotton issue - emblematic of the 
development content of the Doha round - had not been discussed at the July 2008 Mini-Ministerial.  
This issue must make progress in the near fu ture.  The representative of Angola expressed 
appreciation for the support provided by the de velopment community for the cotton sector.   
41. South Africa  reaffirmed its support for the position of the C4 and other African cotton-
producing and trading countries.   South Africa, as a cotton-producing country, continued to suffer 
from the problems related to cotton.  Cotton productio n had declined substantially over time in South 
Africa and faced a bleak future if the issue of domestic support for cotton was not addressed 
comprehensively and expeditiously.  South Africa fu lly supported the statements by Brazil on behalf 
of the G20 and Burkina Faso for the C4.    TN/AG/SCC/W/10 
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  42. Zimbabwe  associated its delegation with the statements made by Brazil on behalf of the G20 
and the C4.  The cotton issue was central to the de velopment of many developing countries in Africa, 
including Zimbabwe.  Zimbabwe appealed for enhanced efforts to address the cotton issue 
comprehensively and in accordance with the mandate.   
43. The Chairman  concluded by expressing appreciation to the Chairman of the Committee on 
Agriculture Special Session / Sub-Committee on Cotton for his presentation and also to the participants for their engagement on the issues.  St atements by participants had been noted and would 
be reflected in the Progress Report by the Director-G eneral.  It was self-evident from the exchange of 
views that cotton remained an issue to which Memb ers attached great priority.  The Chairman was 
certain that the Chairman of the CoA/SS would take away with him the feedback expressed by 
delegations under this item to his various consultative formats.   
B. DEVELOPMENT
 ASSISTANCE  ASPECTS  OF COTTON   
44. Under the item on the Development Assistance As pects of Cotton, the Secretariat introduced 
the current updated version of the Evolving Ta ble (ET).  Development partners (donors and 
recipients) engaged on aspects of the implementation of the ET and participants also engaged on the 
item on "Domestic Cotton Sector and Other Re forms / National Cotton Focal Points".   
1. EVOLVING TABLE – UPDATED VERSION (WT/CFMC/6/REV.4)   
45. The WTO Secretariat  introduced the current updated version of the Evolving Table on Cotton 
Development Assistance.   
46. There had been five versions of the Evolving Table (ET) so far.  Numbers in the ET were 
cumulative.  They had been analyzed and discu ssed, not only in the sessi ons of the DGCFMC, but 
also at a meeting of all stakeholders jointly hosted  by the Government of Burkina Faso and the World 
Bank in Ouagadougou in June 2006.  The current form at for the ET and the numbers in the Table had 
been stabilized and noted at the Cotton HLS convene d by the Director-General in March 2007.  The 
Director-General continued to stress the urgent necessity to close the gap between commitments and 
disbursements by more pro-active engagement be tween providers and reci pients of development 
assistance.  The validity of these numbers should re sult from the engagement between providers and 
recipients.  The Secretariat was a clearing house.  There was also need for more urgent operational 
reports.  The Secretariat, while noting that only 7 out of 36 African countries had notified the required 
details of their National Cotton Sector Focal Poin ts, also informed Members that the 7 notified 
National Cotton Sector Focal Points had stated th at they had not been contacted by development 
providers.   
2. EVOLVING TABLE – OPERATIONAL IM PLEMENTATION / DISBURSEMENTS  
47. Under this item, statements were made by:   
• several providers of cotton development assist ance, namely, the US, EC, Common Fund for 
Commodities (CFC), International Trade Centre  (ITC), Food and Agricultural Organization 
(FAO), United Nations Industrial Development Organization (UNIDO);   
• several recipients of cotton development assistance , namely, Chad, Mali, Tanzania, Nigeria; and,  
• the Secretariat responded to the questions raised and clarifications sought by the delegations of 
Chad, Mali, Nigeria and Tanzania.   TN/AG/SCC/W/10 
WT/CFMC/20 Page 10 
 
 
  48. The United States
 drew attention to the West Af rica Cotton Improvement Programme 
(WACIP), which remained the main cotton-related assistance instrument in the C4 and Senegal.  WACIP was announced in late 2005 with the broa d mandate to address competitiveness issues for 
West African cotton as compared with cotton produced in other regions, by supporting key national 
and cotton-producer groups and other important private sector entities involved in the cotton value 
chain.     
49. WACIP was nearing completion in its second year  of implementation.  Major activities had 
been launched and early results were emerging.  For example, following work in 2007 to establish 
national advisory committees in each country, and the establishment of priority activities by these 
advisory committees, WACIP and local partners pursued implementation of a number of activities.  In 
2007, WACIP launched its flagship agricultural activity which was disseminating policy and 
technology packages for increased cotton productivity in Benin and Mali.  The Programme was intensively engaged in other count ries to develop grant proposals for executing the same activity.  The 
project involved development of state-of-the–art tr aining materials for Integrated Pest Management 
and integrated soil fertility management to more th an 1,000 extension agents  and 950,000 farmers and 
producers.  The ultimate goal of this effort was to  boost yields, increase farmer incomes, ensure the 
safe handling of pesticides and build capacity of participating extension services.   
50. WACIP was increasing cotton farmer incomes primarily by improving the productivity of 
cotton and food crops grown in rotation with cotton,  through a combination of support for research, 
extension and inputs activities aimed at a variety of  areas.  There were extension packages for cotton 
but also for corn and cow peas for nearly one million cotton farmers.  Farmers we re assisted to control 
spiralling input costs and debt load through traini ng and pilot programmes and testing alternative 
systems of input supply.  For example, WACIP was conducting large-scale training of grass-roots 
producer organizations in the management of agricu ltural inputs;  piloting alternative approaches to 
input provision;  access to fertilizers and pesticides for food crops.  It was noted that farmers often 
divert the inputs that they have obtained on credit from cotton companies to other crops, lowering 
cotton yields and contributing to rising indebte dness.  WACIP was also working on programmes to 
develop organic cotton, enhancing the capacity of national agricultural research institutes in the C4 
countries to generate a steady stream of new co tton technologies through support for research, the 
provision of new equipment and enha nced exchange with international experts.  WACIP was also 
aimed at improving incomes for cotton processors through efforts to gin higher quality cotton more 
efficiently, improve the quality of ginned cotton lint and link textile artisans to markets.   
51. There were activities and projects underway on the platform of the Millennium Challenge 
Corporation (MCC).  The MCC continued to be enga ged with US partners in Benin, Burkina Faso, 
Mali and Senegal.    On 14 July 2008, the M CC and Burkina Faso signed a US$481 million five-year 
grant programme, expected to operate from 2009 to 2013.   
52. This five-year agreement would assist the e fforts of Burkina Faso to reduce poverty and 
stimulate economic growth through strategic invest ments for improved agricultural productivity, land 
tenure security and land management, farm to market  roads, and girls' primary education.  This 
programme was expected to improve productivity, sp ecifically through investments in irrigation and 
water management, technical assistance to farmer s, access to rural credit, rural land governance and 
upgrades to rural and primary roads.  The MCC and the Government of Senegal were actively 
working to complete the development of a five-year  compact.  It was hoped that this compact could 
be concluded and approved by the MCC Board in the course of 2009.  The MCC was now implementing the already agreed compacts with Benin and Mali.   
53. The representative of the US provided an overview of the status of implementation of the 
MCC programmes in Benin and Mali:    TN/AG/SCC/W/10 
 WT/CFMC/20 
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  • In Benin, the US$360 million five-year compact incl uded a variety of important investments.  The 
construction, renovation and upgrade of the Port of  Cotonou was expected to begin by mid-2009.  
Seven GPS land survey stations ha d been installed to start the process of formalizing land rights 
in more than 300 rural villages.   
• In Mali, the MCC Compact valued at US$460 million had been in effect for approximately one 
year.  Construction was expected to begin by the end of 2008 on the Niono Goma Coura road.  Construction of the new runway and terminal at  Bamako Airport were expected to begin in 2009 
and procurement actions were underway for d esign and construction of the Alatona Irrigation 
Project.   
54. There were several other MCC activities, in cluding those on the threshold, in Malawi, 
Mozambique and Tanzania.   
• Malawi:  the MCC was currently working to develop a compact with Malawi.   
• Mozambique:  the US$500 million compact had en tered into effect in September 2008.  The 
trade-related aspects of that compact were valued  at approximately US$200 million.  This was 
linked to aid for trade.  Mozambique was inv esting in the northern provinces that border with 
Tanzania with focus on water and private sect or development to assist rural agricultural 
communities.   
• Tanzania:  the US$798 million compact had en tered into effect in September 2008.  
Approximately US$579 million of this compact was directed at trade-related activities.  These 
would include investments in transportation in a variety of key road segments and access to 
markets in agricultural areas.  The compact al so focused on water and power in key areas.   
55. The representative of the United States informed  participants that the US had stepped up 
agricultural assistance as a result of the food crisis by  investing in short-term measures in Africa.  The 
US was also restarting the process of investing in longer-term agricultural research.  To this end, it 
had allocated an additional US$200 million a year for th e next five years.  A part of US investments 
would be channelled through the Comprehensive African Agricultural Development Programme 
(CAADP).   
56. Finally, the US representative stated that the US Department of Agriculture continued to 
provide assistance for the improvement of cotton productivity, including training for West African government institutions and research organizations to develop BT regulatory infrastructure.  The latter 
was needed for research and production of BT cott on.  Journalists were being trained to better 
disseminate and understand information about agricu ltural biotech.  For the first time, the US DOA 
had an agricultural attaché in the region , based in Dakar and covering the C4.   
57. The European Communities
 reminded participants that th e EU-Africa Cotton Partnership was 
agreed in Paris in 2004.  The Partnership re mained the relevant framework for EU-Africa 
development cooperation on cotton.  This partnership addressed a range of relevant issues for 
revitalizing African cotton sectors, including institu tional reforms, sector strategies, technological 
improvement and risk management.   
58. A partnership existed because it included respons ibilities for the various stakeholders (donors 
and recipients).  On its part, the EC had mobilized significant levels of support for the implementation 
of the EU-Africa Cotton Partnership.  As the ET by the WTO Secretariat showed, the EC had 
allocated a total of €147 million of which over €60 million had been disbursed.  This disbursement 
represented more than 40% of the allocation.  In fact, actual disbursement was much higher than the TN/AG/SCC/W/10 
WT/CFMC/20 Page 12 
 
 
  range of 40%.  Since the data provided to the WTO Secretariat, as reflected in the ET, the rate of 
implementation had further improved.  The EC would provide this info rmation in the next update to 
the ET.   
59. The representative of the EC stressed that its interventions and activities went well beyond the 
C4 and included a number of other African count ries.  Furthermore, beyond development assistance 
provided at the Community level, there was assist ance by individual EU Members, particularly 
France, Germany and the Netherlands.  These Me mbers had added significant support in the 
implementation of the EU-Africa Cotton Partnership.  Taken as a whole, EU allocations were in the 
range of €260 million since 2004.  It should be noted  also that the EC had only supplied figures for 
Part I of the ET.  Entries had not been provided fo r Parts II and III because the EC considered that for 
the purpose of this exercise the focus should be on de velopment assistance projects directly related to 
the cotton sector.  Based on this position, the EC  had not mentioned various activities which were 
indirectly related to cotton, such as general agricu ltural projects, infrastructure, trade facilitation and 
general microeconomic assistance, although these project s were important for the recipient countries.   
60. The EC remained financially engaged in the cott on sector in the longer term.  It was important 
that African governments strongly expressed cotton assi stance as a priority in their development plans 
and Poverty Reduction Strategy Pape rs (PRSPs), and in discussions with development partners in 
future areas of cooperation.  Unfortunately, it app eared that only a few African countries had given 
priority to cotton as an area of assistance for the 10
th European Development Fund (EDF) for the 
period 2008 to 2013.  There was surprise that A frican countries had not expressed more firmly cotton 
as a priority for future development assistance.   
61. Finally, the EC representative signalled that an external review of the EU-Africa Cotton 
Partnership was underway.  The review would examin e various achievements that had been recorded 
to date.  Recommendations would be made.  The final report of the external review would be 
submitted in 2009.   
62. The Common Fund for Commodities (CFC)  reaffirmed its commitment and availability of the 
CFC for cooperation with cotton-producing African countries to improve income situation for the 
cotton producers.  It confirmed its cooperation with the European Communities and ACP countries 
within the framework of the EC Commodity Progr amme.  The CFC was actively cooperating with 
other agencies and individual countries to strengthen the interventions supported by the Common Fund.   
63. The International Trade Centre (ITC)
 reviewed its existing programmes for cotton 
development assistance in the areas of training, capacity building, advisory services and market 
information, including the completion of the Cotton Exporter's Guide.   
64. The Food and Agricultural Organization (FAO)  referred to two projects which were part of 
cotton-specific development assistance in Part I of the ET.  First, 40,000 co tton farmers were being 
targeted to be trained through farmer-field schools in the C4 and also in Guinea, Mauritania, and 
Niger for GEF projects with financial assistance valued at €7.4 million.  The second was with the 
African Development Bank (AfDB) and the West African Economic and Monetary Union (WAEMU) 
"Cotton Multinational Competitiveness Programme".   This project was underway in the C4 and 
totalled US$51.8 million.   
65. The United Nations Industrial De velopment Organization (UNIDO)  updated its African 
Cotton Initiative, focusing on two projects.  A project was being finalized in Côte d'Ivoire to 
rehabilitate the cotton classification centre in Waki.  This project would be financed by the European 
Union in order to increase the value and competit iveness of cotton-producers in Côte d'Ivoire to  TN/AG/SCC/W/10 
 WT/CFMC/20 
 Page 13 
 
 
  upgrade the cotton classification system.  The project w as expected to start in 2009.  Progress had also 
been made in the project for Mali and Burkina F aso to promote local processing of cotton.  UNIDO 
was working closely with the Common Fund for Commodities on this project.     
66. Following updated presentations provided by th e development community, observations were 
made, clarifications sought, questi ons asked and requests made in the ensuing exchange of views by 
Chad, Mali, Tanzania, Nigeria, EC and Burkin a Faso.  The WTO Secretariat responded to the 
questions.   
67. Chad  intervened on behalf of the C4.  The repr esentative of Chad expressed appreciation to 
the development partners for the assistance provided and to the Secretariat for improvements made to 
the ET after the series of problems initially encounte red.  The beneficiaries of cotton development 
assistance were pleased with the introduction of the column on disbursement status.  This had made 
things clearer.  The representative of Chad noted  that, as important as development assistance was, 
coherence was essential between the development assi stance aspects and the trade policy aspects.   
68. Chad posed two questions to the WTO Secretariat:   
• had there been any substantial contribution made by the identified focal points for the revision 
and update of the ET?   
• did the data reflect contributions from providers and recipients?   
69. Mali  (the focal point) intervened to suggest add itional entries, with a specific suggestion for 
the US:   
• In Part I, sub-regional programmes existe d for the improvement of competitiveness and 
productivity in the C4 in the coordination ca rried out by WAEMU.  These programmes, 
which were underway, were not reflected in th e ET.  Also, a project by France was currently 
being drawn up and would shortly start up.  Ma li would like to have the French programme 
reflected in the next version of the ET.   
 
• In Part II, the US MCC commitment for Mali re flected two components:  an agricultural and 
an educational component.  As the representativ e of the United States said, there was a part 
for education.  As a consequence, Mali sugg ested that the entire value of US$460 million 
should not all be attributed to agriculture.  The agricultural and educational components 
should be separated.     
 
• In Part III for multilateral aid, there were th ree programmes underway.  For the IMF, there 
was a 2008-2010 programme, which was signed in May 2008.  For the World Bank, there was a programme for the period 2008-2012. For th e African Development Bank, Mali had signed 
a programme for support for the growth strate gy and poverty reduction for the period 2008-
2010 to the value of 33 million units.  Mali would like these commitments added to the 
Evolving Table.   
 70. Tanzania
 commended the presentation by the WTO Secretariat and thanked the Director-
General for his efforts to mobilize resources.  A ppreciation was expressed to the bilateral donors for 
development assistance provided in support of the C4.  The figures were very encouraging.  Tanzania 
hoped that the same assistance would be extended to other countries that were in need.  Tanzania was 
particularly appreciative of the support from the US.  While appreciative of the improvement in 
disbursements, Tanzania was still concerned about the wide gap between commitments and TN/AG/SCC/W/10 
WT/CFMC/20 Page 14 
 
 
  disbursements. This problem needed to be addr essed.  It should not endure.  Tanzania asked the 
Secretariat:   
• were there any ideas from the Director-General on specific strategies that could be implemented 
to bridge or narrow the gap between  commitments and disbursements?   
71. Nigeria
 observed that, positively, beyond the C4 ther e were several other countries that were 
benefiting from programmes for cotton development assistance.  Nigeria was one of such.  The WTO Secretariat was commended for its presentation and donors for their updates.  This transparency 
exercise was appreciated.  The process in the DGC FMC and the ET were valuable experiences.  The 
representative of Nigeria expressed appreciation to the EC for the EU-Africa Cotton Partnership and 
welcomed in particular the statement by the EC, urging African and ACP countries to reflect cotton 
sector priorities in their national development plans and in the 10
th EDF, if these were indeed 
priorities.  This message would be tran smitted back to the capital authorities.   
72. Nigeria observed that on page 8 of the ET, it w as one of the beneficiaries listed in the UNIDO 
project.  However, Nigeria did not have much informa tion as to the status of the project.  Nigeria put a 
question to the representative of UNIDO:  
• Could the representative of UNIDO clarify the status  of the project, including its duration?  The 
representative of UNIDO undertook to respond directly  to the representative of Nigeria as soon as 
the information was obtained.   
73. The WTO Secretariat  responded to the following questions:   
• The evolution of the figures in the ET :  the figures in the ET were cumulative.  Since 2005, they 
had evolved over a 3-year period of analysis, scr utiny and discussions.  The figures had acquired 
greater credibility and acceptability across 5 different versions.  They had attained critical mass.  
The figures resulted from the partnership engagement  on cotton between providers and recipients.  
The figures would remain in constant evol ution because implementation was ongoing and 
changes were being regularly introduced.  This was work in progress.  As already agreed, at a 
prior session, the ET would be updated bi-anually.     
• Focal point contributions to the ET :  focal point contributions to the figures in the ET were 
essential, but were currently limited in detail with  scope for engagement.  So far, only 7 focal 
points had been identified, with 29 yet to be notified.  Based on information available to the 
Secretariat, there had so far been minimal to no contact with the identified focal points.  The 
Secretariat was pleased that the focal point for Mali was present at the 10th Round of 
Consultations.  Her contributions for adjustment s to the commitments for Mali at the meeting 
exemplified the considerable value of focal point  engagement.  The Secretariat agreed with the 
representative of Chad about the necessity and valu e of greater engagement of the focal points 
and the improvement that needs to be made in  this regard.  Focal point engagement and 
contributions were critical to the credibilit y of the process and essential to improved 
implementation.   
• Mali's requests for adjustment of commitments by  the US and reflection of projects by France :  on 
the MCC commitment by the US in favour of Mali, th e Secretariat suggested that the US and Mali 
engage to separate the agricultural from the e ducational component in the commitment, and, 
consequently, forward the agreed value to the Secr etariat to be reflected in Part II of the next 
update to the ET.  The WTO Secretariat would coordinate with the EC, France and Mali with a view to reflecting the currently absent projects in Part II, as suggested, in the next update to the 
ET.    TN/AG/SCC/W/10 
 WT/CFMC/20 
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  • Mali's requests for adjustments to World B ank, IMF commitments in Part III and AfDB 
Commitments :  the WTO Secretariat would communicate to the World Bank and the IMF, Mali's 
suggestions for adjustments to Part III of the ET to update their commitments.  The Secretariat 
would also communicate to the African Developmen t Bank (AfDB) Mali's sugg estions to reflect a 
commitment in favour of Mali, currently absen t from the ET.  The World Bank, the IMF, the 
AfDB and the Mali focal point would need to reve rt to the Secretariat with descriptions of the 
commitments, status of implementation, and the agreed values.   
• Status and duration of UNIDO's commitment in favour of Nigeria :  UNIDO would respond 
directly to Nigeria and keep the WTO Secretariat informed.   
• Director-General's strategy for improving disbursement flows :  the Director-General created the 
ET in November 2005 and introduced the "Disburseme nt Column" in January 2007, to track the 
flow of resources from commitments to disbursements.  Notification of focal points and more 
intensive interactive engagement  between providers and recipien ts were key ingredients for a 
solution.  Sustained domestic cotton sector and othe r reforms were parts of the solution.     
• Cotton project proposals for which responses remain outstanding :  there were 33 of such projects 
on cotton which were not reflected in the ET.  These were projects presented by several of the cotton proponents within the frame work of the DGCFMC.   The projects were circulated to the 
development community.  In acknowledging the pr ojects, cotton proponents were reminded of the 
understanding in the DGCFMC of the two-step pro cess for the treatment of such projects, namely, 
their circulation in-country to capital-resident donors at the same time as such projects were 
circulated to the DGCFMC within the framework of the Doha mandate on cotton.  The 33 cotton 
projects would be circulated as a follow-up to the 10
th Round of Consultations.  It could also be 
useful for the EC to channel the document to the authorities for the 10th EDF in light of comments 
at the 10th Round.  The projects listed in the document to  be circulated could be forwarded to the 
10th EDF authorities, within the context of the D DA mandate.  This could be useful, although it 
would be understood that proponents of the project s would have to ensure active follow-up.   
74. Chad  intervened, following the Secretariat r esponses, to suggest that, periodically, the 
identified focal points needed to be sensitized to pr ovide information to update the ET.  Perhaps it 
could be useful for the Secretariat to explore the po ssibility of "bringing the focal points to Geneva for 
two days and taking care of their expenses".  Such  an approach could address the problem of the 
reliability and timeliness of information provided  by Geneva missions.  The invitation of capital-
based focal points to Geneva to participate in th e DGCFMC could ensure greater data reliability and 
prevent figures in the ET being challenged, as w as the case at the meeting in Ouagadougou in 2006, 
when some Ministers challenged the numbers.   
75. The EC  intervened, following WTO Secretariat respon ses, to state that the EC had also noted 
that project proposals had been circulated by th e WTO Secretariat and as the Secretariat itself had 
noted, it would reiterate that the discussions on the funding of these proposals should be carried out in-country.  The EC was surprised that in some  cases, it appeared that some of the proposals 
circulated in Geneva were not also circulated in -country. The EC would wait to review the note to be 
circulated with projects which had not yet received  any consideration for s upport.  Nonetheless, the 
EC was hopeful that these projects were also being circulated to the donor community in-country.  
The Geneva process should not be considered as a sep arate process.  It was part of the process of 
consultations with donors in the countries concerned.   
76. The Chairman
 concluded the discussions under this item .  The contributions and exchange of 
views had been valuable.  Statements had been noted  and would be reflected in the Director-General's 
progress report to the Membership.  Follow -up action would be actively pursued.   TN/AG/SCC/W/10 
WT/CFMC/20 Page 16 
 
 
  77. In his summary, the Chairman noted  that participants had:   
• acknowledged the call by the Director-General  to stress the necessity of bridging the 
commitment/disbursement gaps so that implem entation was deepened.  There was scope for 
improvement and a more intensive engagement  between development assistance providers and 
focal points in the capitals of recipients of assistan ce would contribute to this objective.  Bridging 
the gaps involved deepening partnerships.   
• emphasised the relationship between the implemen tation of cotton development assistance and the 
broader issue of trade capacity building, including for poverty reduction.   
78. The Chairman reiterated to participants that th e Director-General continued to accord priority 
to cotton issues, was committed to mobilizing r esources and improving the process of donor/provider 
engagement to ensure effective delivery of development assistance for the cotton sector.   
79. The Chairman noted that identified areas for follow-up would be actively pursued by the 
Secretariat through the coordination of responses and feedback from all the parties involved.   
3. DOMESTIC COTTON SECTOR AND OTHER REFORMS  
80. The Chairman
 introduced the item on Domestic Cotton S ector Reforms.  This was a standing 
item on the agenda of the consultations, from the ve ry beginning.  Members and participants had 
continually reiterated the critical importance of this item as a necessary complement to improved 
efficiency in the use of development resources and enhanced productivity, in cluding through greater 
openness and competition.  Cotton proponents a nd receivers of cotton development assistance 
provided updated reports.     
81. The Chairman invited cotton pr oponents and receivers of cotton development assistance to 
report on any updates to their reforms.  The Chairman  also invited participants to take stock of 
progress on the "understanding" for a "Table on Domestic Cotton Sector Reforms".   
82. Mali   informed the consultations that it had dr awn up a revised programme for the reform of 
the cotton sector, dated 16 October 2008.  The doc ument had been forwarded to the Secretariat for 
processing and circulation.  The report described th e progress made in the reform of the cotton sector 
in Mali, activities undertaken and sectoral pros pects.  The major activ ities undertaken included 
privatization activities and the creation of subsidiaries of the Compagnie Malienne pour le 
Développement des Textiles  (CMDT).  Privatization in Mali would be effected through the creation of 
subsidiaries.  There would be four subsidiaries.   Regulatory bodies would be established.  There 
would be a cotton classification office.  Studies had been carried out.  It was the intention to implement reforms and set up the bodies before the end of the year.  
83.  The capacity-building of producers was underway with the assistance of development 
partners, such as Japan, World Bank, the US and the African Development Bank.  A new mechanism 
had been adopted to set cotton grain price.  A s upport fund had also been set up which would address 
the cost of grain seeds.  This was partly financed  by producers and partly by the European Union to 
the value of €5 million.  In the current timetable envisaged, it was the intention to launch a tender for 
privatization in April 2009 and to conclude the pro cess by the end of 2009.  The details are reflected 
in the document to be circulated by the Secretariat.   
84. Chad
 had communicated to the Secretariat the implementation of a privatization structure for 
the cotton sector in Chad and the setting up of a techni cal team to carry out this programme.  The final  TN/AG/SCC/W/10 
 WT/CFMC/20 
 Page 17 
 
 
  update was not immediately available.  As soon as it became available, it would be forwarded to the 
Secretariat.   
85. Burkina Faso  had furnished to the Secretariat appropria te documents relating to the reform of 
the cotton sector in Burkina Faso.  SOFITEX had b een reorganized with parts of its responsibilities 
ceded to other companies.  These new structures  were functioning independently.  Significant 
developments would be forwarded to th e Secretariat when they emerged.   
86. The EC  expressed appreciation to the delegati on of Mali for the papers submitted for 
circulation.  The EC would encourage countries involved in cotton reforms to regularly submit 
information on progress with these reforms.  The EC would like to mention that a comparative study 
of cotton reforms in several African countries had been undertaken by the World Bank.  The study 
contained valuable lessons on the different re form paths taken by African countries.   
87. The US  stated that it had approached consultati ons on cotton from the perspective of "three 
pillars".  Two pillars had been covered extensivel y over time.  However, the US was concerned that 
the pillar of domestic cotton sector reforms had not been accorded fu ll attention and full credence as 
an equal partner to the other two.  It was regre ttable that the item was again being taken up towards 
the tail end of the meeting, limiting the possibility for a full discussion.   
88. The C4 and other African countries receiving cotton-specific and other development 
assistance were making progress on privatization and reform.  However, there was continued scope 
for improvement.  The United States would like to see more frequent and comprehensive reports by 
recipient countries on their domestic cotton sector pr oject coordination in implementation and reform 
processes.  As highlighted in TN/AG/SCC/W/9, th e Secretariat's fifth progress report to the Sub-
Committee on Cotton, the US would also welcome a more formalized approach to reporting that 
provided for greater regularity and clarity with a strong domestic outcome to optimize the efficient use of development assistance.  
89. The US welcomed the information provided by Mali and recognized the effort involved.  
However, disappointment was expressed that othe r countries had not provided information for the 
Table on Domestic Cotton Sector Reforms.  It was s uggested that the Secretariat incorporate inputs to 
the Table on Domestic Cotton Sector Reforms into th e next version of the ET.  It was noted that it 
would be of vital importance that reporting on domestic cotton sector reforms complement the 
information already contained in the Table for the tw o pillars related to the f unding of projects by the 
development community.  The US would encourage co tton proponents to expeditiously supply such 
information for the Table as partners in the deve lopment assistance aspects of cotton.  It would be 
important to document the progress being achieved collectively.  The donor community needed to 
demonstrate to tax payers that funds provided to  recipients of cotton development assistance would 
lead to the fulfilment of shared goals.  Such an  approach would not only enhance transparency of 
project execution and timely achievement of objectives by funding beneficiaries, but would also 
improve constructive engagement  between providers and recipients.  The United States urged 
continued attention to enhanced South-South advo cacy in the reform of the cotton sector via the 
establishment of, and adherence to, an emergent framework table on South-South cooperation for 
cotton sector development and reform.  This  would enlarge and broaden discussions.   
90. Finally, the United States reiterated the valu e of institutionalizing more effective market-
based operations with appropriate risk-managemen t tools, such as price formation transparency, 
accurate producer information and decision tools.  This would be significantly greater than price gains 
to be realized from reductions  in domestic support.   TN/AG/SCC/W/10 
WT/CFMC/20 Page 18 
 
 
  91. The Chairman
 invited the 10th Round of Consultations to ta ke note of the updated reports 
provided by the proponents, including documents for which circulation had been requested.  The 
documents would be circulated to the Membership.  Issues raised in the exchange of views would be 
reflected in the Director-General's Progress Report.   The Chairman noted the suggestion by the US 
delegation for the incorporation of the inputs to the Table on Domestic Cotton Sector Reforms into 
the ET.  This would require further work  and consultations w ith delegations.   
92. The Chairman invited participants to reve rt to the "understanding" reached at the 9th Round of 
consultations on 22 November 2007.  The Secretariat had been requested to prepare an appropriate 
tabular format for reporting and tracking domestic cotton sector reforms in consultations with the 
cotton proponent countries.  The Secretariat had consulted extensively.  Following these 
consultations, there was convergence on a tabular format  that would serve as a transparency tool to 
track and monitor domestic cotton sector and any ot her related reforms.  Identification of these 
reforms would signal areas where concerned African countries would urgently require priority development assistance for cotton.  The tabular fo rmat around which there was convergence had been 
circulated to participants for the 10
th Round of Consultations.  Convergence and agreement on the 
Tabular format marked progress.  This process now had to be taken forward.   
93. On the basis of format around which there had been convergence, the C4 Coordinator (Benin, 
at the time) had briefed the African Group (and other cotton proponents) in May 2008 on the 
understanding.  At that meeting, Benin had request ed all cotton proponents to forward the tabular 
format to their capitals so that th e appropriate data could be entere d into the Table and re-submitted to 
the WTO Secretariat before the 10th Round of the Director-General's Consultative Framework 
Mechanism on Cotton.  As follow-up to that meeti ng, Benin had circulated a Note to the African 
Group, copied to the Secretariat.  The Note summarized the briefing  for the Group and transmitted the 
agreed format for the Table on Domestic Cotton Sector Reforms.   
94. The Secretariat had not received completed Tables with the required data.  The updated 
reports at the 10th Round were very useful.  However, these details now were required to be entered 
into the agreed format and submitted to the Secretariat for circulation to Members.  
95. The Table on Domestic Cotton Sector Reforms was of key importance in the partnership 
between providers and recipients of assistance to  better target development assistance, improve 
delivery and enhance efficiency in the use of de velopment resources for improved productivity.   
96. To conclude the exchange of views on this item, the Chairman:  
• invited participants to note statements made and the updated reports by several of the cotton 
proponent countries under the item;  
• encouraged cotton proponent countries to extract  the essential elements from their updated reports 
and reflect them in the agreed tabular format  for the Domestic Cotton Sector Reforms;   
• encouraged proponent countries who had not yet provided any reports to endeavour to do so;   
• noted that it was important to bear in mind that in times of competing demands on national fiscal 
resources, all Members, both providers and reci pients of development assistance, were more 
conscious than ever of the necessity for the efficien t use of resources.  In this context, the Table 
on Domestic Cotton Sector Reforms would play an important role for all Members.    TN/AG/SCC/W/10 
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  C. SOUTH -SOUTH COOPERATION  
97. The Chairman  introduced the item by noting that this  was an area where Brazil, China and 
India had provided strong and effective leadership.  He invited these Members to update their reports. 
Under this item, statements were made by Brazil,  China, India, Pakistan, Chad and ITC.    
98. Brazil  attached great importance to South-South Cooperation on cotton.  Brazil was engaged 
in an ambitious programme of cooperation in technical assistance, technology transfer and capacity building with the C4.  This programme was bei ng coordinated and implemented by the Brazilian 
agency for cooperation, which was the focal point.  There was an initial budget of US$3 million for the programme with the C4.  The details of the pr ogramme had been forwarded to the Secretariat for 
circulation.  This programme was in fulfilment of commitments made in November 2007 at the WTO 
Seminar on South-South Cooperation for Cotton Sector  Development.  Brazil was fully committed to 
the implementation of the programme.  It was the intention to expand it to other African nations.  
Brazil would circulate a shorter version of the current document as a WTO document on South-South 
cooperation.  The new document to be circulated would serve as a strategic benchmark for bilateral 
cooperation, both for the C4 and other African countries.   
99. China
 stated that cotton trade between China and other developing countries, especially 
African countries, was an important dimension of South-South Cooperation.  Although China's 
domestic demand for cotton declined in 2007, China s till imported a considerable quantity of cotton.  
For example, China imported 300,000 tons of cotton from African countries, of which between 11,000 to 12,000 tons from Burkina Faso, 30,000 tons from Benin, 40,000 tons from Cameroon and 
23,000 tons from Mali.   
100. Cotton trade was a win-win outcome for all.  China considered African countries as partners 
and as important and strategic sources of its cotton imports.  Within the framework of China's South-
South Cooperation Programme, there was a total of a bout 2,000 projects with 120 countries involved.   
101. In the cotton sector, there were approximately 34  projects and operations.  These were mainly 
in the areas of planting and downstream projects for te xtile and clothing industries.  In recent years, 
China had also focused on training and capacity building in this sector. Training projects covered the areas of new breeds of cotton, fabric spinning, need lework, etc.  Three hundred and sixty officials and 
technicians from 64 developing countries participated in the training exercise.  In the future, China 
would deepen and expand training and capacity build ing.  China was convinced that South-South 
Cooperation could make an important  contribution to the development of Africa and other developing 
countries.   
102. India
 remained committed to South-South Cooperation, including cooperation in the cotton 
sector, and specifically for C4 projects and proposals.  In April 2008 the Prime Minister launched India's Duty-Free Tariff Preference Scheme for Least-Developed Countries (L DCs).  The scheme was 
in line with the Decision of the Hong Kong Ministeria l Meeting.  It applied to 49 LDCs of which 33 
were from the African continent.  It included all the C4 countries.  Under this scheme, India had, 
autonomously, provided preferential market acce ss for exports from all 49 LDCs.  The scheme 
covered 94% of India's total tariff lines.  Specifica lly, it provided preferential market access on tariff 
lines that comprised 92.5% of global exports of all LDCs.  Projects of immedi ate interest to Africa 
also included cotton.   TN/AG/SCC/W/10 
WT/CFMC/20 Page 20 
 
 
  103. India had been privileged to be a partner in post-colonial Africa  and had worked with African 
countries towards social and economic developmen t through a number of technical assistance 
programmes.  In April 2008, India doubled its  long-term scholarships for undergraduates, post-
graduates and higher education courses.  It increas ed the number of training slots under its annual 
technical assistance programmes from 1,100 to 1,600.  India would enhance this number, if required.  
India was keen to receive feedback from its  partners for areas of specific needs.   
104. Students from the C4 and other African countries were welcome to avail themselves of higher 
education in specialized courses in India in the area  of agriculture, including cotton.  As previously 
stated at earlier sessions and in informal meeti ngs, India's response would be more targeted and 
effective if the C4 indicated specific areas of ne ed.  In the area of capacity building, India was 
committed to sharing the expertise developed in Indi a's R&D centres with African partner countries.  
Indian training institutes were ready to provide training in all areas of cotton cultivation and 
processing.  India urged the C4 to comprehensivel y indicate areas of specific needs to enable it 
formulate more targeted responses.  India was committed to exploring further areas of cooperation 
with its African partners with the objective of im proving the situation of cotton farmers in Africa.   
105. Pakistan
 was fully supportive of South-South Cooperati on.  Pakistan would be keen to receive 
any existing training needs assessment undertaken  by the C4 and other African countries.  
Agricultural research institutes and universities in Pa kistan were open to students from the African 
region.   
106. The International Trade Centre  facilitated South-South coopera tion in the cotton sector in 
several areas:   
• best practices - learning how other developing countries had successfully developed their cotton 
industry/production, focusing on Brazil, India, China and Turkey.  African countries could learn from these successful cotton-producing countries mainly in Asia but also in South America;   
• learning from the Asian experiences and how Asia n countries had successfully developed fibre 
transformation.  This would accord with the obj ective of African countries for value addition to 
their cotton industry;     
• promoting African cotton exports in the Asian ma rket, other regional markets and intra-African 
trade cooperation.   
107. ITC organized an intensive programme in Turkey in October 2008 for several East African 
countries:  Tanzania, Malawi, Zambia, Mozambique and Uganda.  In 2009, ITC planned to organize 
activities in Bangladesh, Thailand, China and India.   
108. Chad
, on behalf of the C4, expressed appreciati on to development partners within the 
framework of South-South Cooperation, particularly India, Brazil and China.   In the context of 
South-South Cooperation, Chad had just signed a co operation agreement with India.  To implement 
this cooperation agreement, a weaving industry was now  being set up in an old textile factory.  The 
cooperation agreement would also cover the assembly of tractors and bicycles.  The representative of 
Chad considered that that was the kind of coope ration that Chad and other C4 countries needed, 
particularly for cotton processing for downstream produc ts in textiles and clothing.  The C4 welcomed 
these types of initiatives and would ask others to pr oceed similarly.  The C4 would shortly identify 
and convey their priorities in response to the offers from Brazil and India.    TN/AG/SCC/W/10 
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  109. The Chairman  concluded discussions under the item.  Issues raised in the discussions would 
be reflected in the Director-General's Progress Report.   The Chairman invited participants to note in 
particular the importance of de mand-driven projects, which was consistent with the type of 
development assistance being requested by the cotto n proponents themselves.  It was noted that all 
participants attached importance to enhanced  implementation and st rengthened South-South 
cooperation.  South-South coopera tion had emerged as a substantive component of the development 
aspects of the DDA.  The discussions demonstrated th at developing countries were keen to see this 
form of cooperation deepened and extended.   
Any Other Business  
  
110. The Chairman  informed participants that two consu ltations were envisaged for 2009:  one 
before and the other after the summer.  
IV. 67TH PLENARY OF THE INTERNATIONAL COTTON ADVISORY COMMITTEE   
111. The WTO Secretariat participated at the 67th Plenary Meeting of the International Cotton 
Advisory Committee (ICAC), Ouagadougou, Burkin a Faso, 17 – 21 November 2008.  Burkina Faso, 
on behalf of the C4, reiterated the importance of the cotton sector for their economies and strategies 
for poverty reduction.  They asked for intensified e ngagement in the Doha negotiations in order to 
agree to modalities this year to enable the conclusion of the Doha Round.   
112. The ICAC Plenary reviewed the current pressures, including the impact of the global financial 
crisis, on the cotton sector.  ICAC noted with se rious concern current sectoral data on cotton, 
reflecting estimates indicating declines in cott on production, demand, consumption and a current 
downward trend in cotton prices with increased volatility.   
113. The WTO Secretariat moderated a Panel on:  "What Next For Cotton In the Multilateral 
Trade Negotiations?", on 18 November 2008.  Th ere were five panellists from Burkina Faso 
(representing the C4), Brazil, EC, India and the Unite d States.  The panel took stock of the trade 
policy and development assistance aspects in th e DDA, reaffirmed its full commitment to the 
ambitious, expeditious and specific treatment of  the cotton dossier, and supported the G20 Summit 
Declaration on Financial Markets and the Global Economy.   
114. The 67th ICAC Plenary agreed to a "Final Statemen t" with paragraphs 6 and 6.1 relevant to 
the WTO and the DDA reproduced respectively hereunder:   
"6. Urgent Completion of Doha Round Needed: The ICAC Members 
acknowledged that the consequences of th e ongoing global financial crisis were 
having particularly adverse effects on the cotton sector.  Members hoped that an early and successful conclusion of the Doha Round would resolve the outstanding issues of the cotton dossier in the Doha Developmen t Agenda (DDA) and help to mitigate the 
crisis in this sector. Members agreed that an ambitious and balanced outcome to the 
Doha Round remains a strategic objective of  ICAC.  The ICAC Members welcomed 
the leadership provided by the G20 Summit as expressed in the Declaration on Financial Markets and the Global Econ omy, on 15 November 2008 in Washington 
D.C., particularly the instruction to Trade Ministers to strive to reach agreement on 
modalities in 2008.   
6.1 The ICAC Members called on WTO Members to engage intensively to 
achieve modalities this year.  They reaffirmed the continued validity of the two-track 
treatment of cotton in the DDA.  They acknowledged the progress made on both the TN/AG/SCC/W/10 
WT/CFMC/20 Page 22 
 
 
  trade policy and the development assistance aspects.  They urged WTO Members to 
act urgently to resolve the outstanding issu e of the treatment of the cotton dossier in 
the domestic support pillar of the agriculture negotiations and to make faster progress 
on the implementation of the commitments on the development assistance aspects. 
The Committee took note of the reaffirmation from the representatives of the 
European Community, India and the United States of their development assistance 
commitments."     
V. UNCTAD SECRETARY-GENERAL'S HIGH-LEVEL MULTI-STAKEHOLDER 
MEETING ON COTTON, 2 DECEMBER 2008 
115. The WTO Secretariat participated at the High Level Multi-Stakeholder Meeting on Cotton, 
convened by UNCTAD Secretary-General in accord ance with paragraph 183 of the "Accra Accord" 
agreed at UNCTAD XII.   
116. Director-General Pascal Lamy delivered a keynot e statement at the opening.  In his statement, 
the Director-General took account of the impact of the ongoing global financial crisis on the cotton 
sector.  The Director-General reaffirmed that cotton had become the litmus test of the development 
content of the Doha Round and summarized the progress and outstanding issues on the two-track 
treatment of cotton in the DDA.  The Director-General called for agreement on modalities before the 
end of 2008 and for the development community to  fully deliver on their development assistance 
commitments.   
117. The Director-General also consulted on the cotton dossier with Ministers participating at the 
High-Level Multi-Stakeholder Meeting.    TN/AG/SCC/W/10 
 WT/CFMC/20 
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  ANNEX I  
 
DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK MECHANISM ON COTTON 
 
10TH ROUND OF CONSULTATIONS ON COTTON DEVELOPMENT ASSISTANCE 
 
7 NOVEMBER 2008 (9.30 a.m.) 
 
PROVISIONAL AGENDA  
 
 
1. Introductory Remarks – Chairman   
2. Statement by H.E. Mr. Ahmadou  Abdoulaye Diallo, Minister of Industry and Commerce, 
 Mali  
3. Trade Policy Aspects:   
- Briefing by Chairman CoA Special Session/Chairman SCC  
- Exchange of Views  
4. Evolving Table – Updated Table (WT/CFMC/6/Rev.4) 
- Secretariat Remarks 
5. Evolving Table -  Operational Implementa tion/Disbursements of Notified Commitments:  
- Development Community – Status Report   
6. South-South Cotton Cooperation:  
- Update by South-South partners 
7. Domestic Cotton Sector and Other Reforms/National Cotton Focal Points:   
- Update by Cotton Proponents   
- Exchange of Views   
8. Any Other Business  
 
Documentation guide  
WT/CFMC/W/24/Rev.3  
__________