TN/AG/51  
TN/AG/SCC/18  
 
22 November  2021 
(21-8798) Page: 1/4 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton    
 
16TH DEDICATED DISCUSSION OF THE RELEVANT  
TRADE -RELATED DEVELOPMENTS FOR COTTON  
4 NOVEMBER  2021 
Report1 by the Chair person , Ambassador  Gloria ABRAHAM PERALTA  
1.  Pursuant to the Bali Ministerial Decision on Cotton  of 7 December 20132 and the Nairobi 
Ministerial Decision on Cotton  of 19 December 20153, the 16th Dedicated Discussion of the Relevant 
Trade-Related Developments for Cotton  (the Dedicated Discussion)  took place on 4 November  2021. 
The Dedicated Discussion was  held back -to-back with the 3 6th Round of the Director -General's 
Consultative Framework Mechanism on Cotton  (DGCFMC) dealing with the development assistance 
aspects of cotton .  
2.  In my introductory remarks  I noted that, despite the  sanitary -related challenges , the 2021 edition 
of World Cotton Day  was duly celebrated by partner organizations, Members, observers, civil 
society,  and the private sector , in various parts of the globe.  The celebr ations at the WTO included 
a joint webinar with the ITC focusing on African value chains for cotton, textiles, and the clothing 
sector, a cotton exhibition in the WTO atrium showcas ing stands  by the WTO Secretariat, Members, 
and partner organizations, as w ell as online celebrations such as a dedicated webpage with news on 
cotton and WCD 2021 events.  The WTO also hosted several Ministers from Burkina Faso and Mali  on 
that occasion.   
3.  I congratulated the C otton-4 (C-4)4 on the historic adoption  by the United Nations General 
Assembly  of the resolution proclaiming 7 October as the international day for cotton. I highlighted 
the importance of this achievement for the cotton community, noting that the resolution 
acknowledges the vital role cotton pl ays in several countries by providing livelihoods for millions of 
people, as well as its broader economic and social impacts around the world . I noted that t he 
resolution  also reaffirms the relevance of the sectoral cotton initiative launched in 2003  and 
acknowledges the work undertaken at the WTO since the n, both on effective  development assistance 
to cotton sectors in developing countries and in terms of the trade negotiation s. 
4.  In my report of the state of play in the agriculture negotiations with a focus  on cotton , I 
noted that achieving an outcome on cotton at MC12 was a shared objective for Members  and such 
an outcome should  address  both trade and development. The latter, developed under the DGCFMC, 
envisaged to acknowledge at MC12 the work undertaken under the cotton development track 
pursuant to p ast Ministerial Decisions . The second Partners ' Conference , to be held in the margins 
of MC12 to help LDCs in their efforts to mobilize technical and financial resources for the 
implementation of cotton projects , would  also be an important component of an outcome on 
development .  
5.  I noted that the Cotton Quad Plus meeting that took place at Heads of Delegations level on 
13 October had addressed both trade -related aspects , under my chairmanship , and development 
under DDG Paugam's chairmanship. In relation to the trade component, discussions at the Quad 
 
1 This report is circulated under the Chair's own responsibility.  
2 Document WT/MIN(13)/41  - WT/L/916, dated 11 December 2013 . 
3 Document WT/MIN(15)/46  - WT/L/981, dated 21 December 2015 . 
4 Benin, Burkina Faso, Chad, and Mali.  TN/AG/51 • TN/AG/SCC/18  
 
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  Plus meeting and at the CoA Special Sessi on meeting of 28 October  had confirmed the need for 
Members to  pursue efforts to narrow  remaining gaps on the way forward regarding trade -distorting 
domestic support  for cotton. The C -4 invited Members to continue discussions around its proposal .5 
Other Members , considering  the current state of play in the negotiations, saw my draft text contained 
in JOB/AG/215 as a good basis for future work both on the question of trade -distorting domestic 
support and transparency enhancement .  
6.  In terms of process, I noted that I was currently considering what kind of document could be 
submit ted for Ministers' consideration at MC12, based on all the inputs received so far by Members, 
including on cotton. I therefore urged all Members to engage intensively to reach consensus around 
realistic and credible "landing zones".  
7.  Under the agenda item " General Statements from Members ", Burkina Faso , on behalf of the 
C-4, invited Members to demonstrate flexibility with a view  to find ing a mutually agreed solution 
situated somewhere between the Chair's draft text and the C -4's proposal. Recalling tha t the Hong 
Kong Ministerial  Declaration mandated Members to address cotton " ambitiously, expeditiously and 
specifically " within the agriculture negotiations , the group , again , expressed hope that Members 
reach a concrete and measurable outcome at MC12 on t rade-distorting domestic suppo rt, particularly  
as it could be expected to increase because of  the pandemic. The C -4 reiterated its call on Members 
to be more transparent about the measures taken in response to COVID -19, to implement  the 
commitments made regarding market access  under the Nairobi Decision , and to lift all 
trade-restrictive measures that may have a  negative  impact  on the cotton sector.  
8.  In response to the Chair's report, t he United States ( US) noted that  development assistance 
should be dealt with  under the  DGCFMC and discussions in this forum and the CoA special session 
should focus on trade -related issues.  In light of the time constraints and other limitations faced by 
Members, the US viewed transparency as the most likely outcome at MC12. It referred to its 
proposal6 jointly tabled with the European Union (EU), Japan and Canada as a good basis for future  
work and noted that the proponents had taken into account other Members' view s on what could be  
possible . The US further  stressed that , to ensure a  balanced outcome , all pillars should be considered 
and negotiated  in parallel,  including  market access, which was particularly important for the US . 
Finally, the US added that an outcome  on cotton had to be consider ed in the context of the broader 
negotiations  on domestic support.  
9.  The EU welcomed the adoption of the UN resolution proclaiming 7 October as World Cotton Day . 
In the context of  preparations for  MC12, the EU fully supported  the draft text proposed by the Chair 
as a basis for further work  and viewed th at transparency and development assistance should be the 
focus of discussions  on cotton. The EU considered that the joint proposal JOB/AG/213  included good 
ideas on the way forw ard, in cluding the  suggestion  to incorporate the  cotton questionnaire in 
G/AG/2. The EU reiterated its position that an outcome on transparency  should be useful and not 
overly burdensome and existing notif ication  requirements should be complied with before  imposing 
new obligations . The EU expressed once again its openness  to discuss its proposal as well as any 
other practical ideas which would  improv e transparency  without increasing the administrative burden 
of Members.  
10.  China recalled its support for the C hair's draft text and repeated its well -known call for  
eliminating AMS entitlements beyond de minimis . On transparency , China disagreed with the EU 
proposal to include the cotton questionnaire in G/AG/2 . In its view, until Members are fully confident 
with the availability of the  data required in th e questionnaire , responses to the questionnaire should 
continue to be provided on a voluntary basis .  
11.  Brazil considered the draft decision on cotton contained in the Chair's text as a sound basis for 
a decision on trade-related aspects of cotton  at MC12 . Although Brazil  remained of the view that all 
forms of trade-distorting support  should be  addressed, including those covered by Article 6 of the 
Agreement on Agriculture , due to time constraints,  it considered  a framework that sets guidelines 
and principles for reform as the best alternative for a result on domestic support  at MC12  which  
could also benefit cotton .  
 
5 Document  TN/AG/GEN/51  - TN/AG/SCC/GEN23  circulated on 8 September 2021.  
6 Document JOB/AG/213 circulated on 26 July 2021.   TN/AG/51 • TN/AG/SCC/18  
 
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  12.  The International Cotton Advisory Committee (ICAC)7 updated Members  on the latest 
developments in the global cotton market , including trends in world cotton production, consumption, 
and trade,  as well as the evolution of global assistance to cotton production  and the correlation  
between subsidies and price s.  
13.  In relation to ICAC's finding on the negative  correlation  between subsidies and cotton prices, 
Turkey asked  if ICAC had further analysis, including on the effects of subsidies on specific countries.  
ICAC referred to its annual publication on global assistance to cotton production  which would  provide  
Turkey with more  details . Turkey  also enquired about the reason for the increase in cotton 
consumption  during the pandemic . ICAC responded that the increase w as due to rising  demand for 
textile and apparels , particularly  linked to increas ed online purchases of garments during lockdowns.  
14.  China asked what major constraints were  faced by LDCs and the C -4 in producing and exporting 
cotton . ICAC noted that several  factor s, including prices and quality of cotton , could play a role in 
Africa's cotton production and exports. For example, low cotton prices , along with the COVID -19 
pandemic, caused a significant drop in cotton production in Mali  as farmers decide d to grow other  
crops for which  prices were more attractive . ICAC also noted that African cotton producers  should 
meet various  international  standards such as sustainability  requirements  to make their  products  
marketable.  
15.  The Secretariat i ntroduced the updates and highlights of the  revised background paper8 and 
addenda .9 The background paper compile s up-to-date information and data from Members' 
notifications and other submissions on export subsidies, domestic support,  and market access, 
including both tariff and non -tariff measures. The background paper also captures Members' latest 
responses to the questionnair e on cotton policy developments, as well as relevant information on 
cotton markets and policies included in Trade Policy Review reports .  
16.  I reiterated that the quality of the background paper relied on the quality and timeliness of 
Members' notifications a nd submissions to the WTO, including replies to the questionnaire. I invite d 
all Members  – and in particular key cotton actors – to be more forthcoming in sharing information 
on recent policy developments.   
17.  The EU echoed  my comments and drew Members' attention to the importance of the cotton 
questionnaire as a source of additional information and invited Members who have not yet done so , 
especially  key cotton players , to respond to  the questionnaire. The EU also encouraged  Members to 
provide timely and accurate notifications to the WTO.  
18.  Under the new agenda item " COVID -19 and Cotton ", which was added to the agenda as a 
standing item following Members' endorsement of the C -4 proposal at the May 2021 Dedicated 
Discussion, the WTO Secretaria t presented the main findings of a new study10 on the impact of 
COVID -19 on a sample of cotton -producing LDCs . The Secretariat noted that  the study was prepared 
in response to the C -4 request and with inputs from several established WTO partners, in particular 
the ICAC. The study is also intended to inform discussions at an upcoming " High-Level Partn ers' 
Conference ", scheduled to take place virtually in the margins of MC12 on 30 November  2021, with 
the aim of supporting LDCs' efforts to mobiliz e technical and financial resources for the 
implementation of development assistance projects targeting  cotton and its value chains as a means 
to support the achievement of various sustainable development objectives .  
19.  I thank ed the Secretariat, Members,  the ICAC  and other  partner organizations  that contributed 
to the study. I noted that the study provides a good basis for understanding the impacts of the 
pandemic on cotton and its value chains in LDC countries from an economic, social and 
environmental point of view. It also includes a comprehensive summary of the actions taken thus 
 
7 ICAC's presentation can be found on  
https://www.wto.org/english/tratop_e/agric_e/agenda_item_3ia_icac_presentat ion_production_and_tra
de_nov_2021_final.pdf .  
8 The presentation can be found on 
https://www.wto.org/english/tratop_e/agric_e/agenda_item_ 3ib_secretariat_presentation_of_gen34r15.pdf . 
9 Documents TN/AG/GEN/34/Rev. 15 - TN/AG/SCC/GEN/13/Rev. 15, TN/AG/GEN/34/Rev. 15/Add.1  - 
TN/AG/SCC/GEN/13/Rev. 15/Add.1 and TN/AG/GEN/34/Rev. 15/Add.2  - TN/AG/SCC/GEN/13/Rev. 15/Add.2 , 
dated 22 October 2021.  
10 Document TN/AG/SCC/W/40 - WT/CFMC/W/97  circulated on 11 November 2021.  TN/AG/51 • TN/AG/SCC/18  
 
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  far by governments covered by t he study and international institutions as well as recommendations 
from LDCs' public and private stakeholders to support the recovery and relaunch  the sector. This 
information is not only relevant to our discussions in this forum  but will also shed light o n our work 
towards MC12 and after the conference.  I also welcome d the upcoming Partners' Conference  and 
hoped that this high -level platform would help  LDCs secure further technical and financial assistance 
for the implementation of cotton development assistance projects.   
20.  The C -4 welcomed the study and noted that it confirmed, with supporting statistics, that the 
COVID -19 crisis continue d to have disas trous effects on the welfare and export earnings of the 10 
LDCs reviewed.  The C -4 stated that t he pandemic led to continued fall of cotton prices, which had 
already been declining since 2018, and consequently cotton planted area  and production  had 
decrease d on average by 16% and 18%, respectively , in 2019 and 2020, for the 10 sample LDCs. 
This had resulted in a decrease of 34% in cotton exports between 2019 to 2020, which represent ed 
a shortfall of more than USD 500 million in terms of export earnings. In light of these observations, 
the C -4 called for development partners ' support  to find a lasting solution to address the concern s 
of cotton farmers in LDCs and build a strong and resilient post-pandemic economy.  The C -4 
reiter ated its invitation to all partners to participate  in the Partners' Conference to discuss  the 
challenges faced by the cotton sector and needed  solutions .  
21.  The ICAC presented11 on the impact of the COVID -19 pandemic on the global cotton  sector and 
its view on how the sector could recover . Chad noted that some C -4 countries had managed the 
crisis relatively well while t he situation was disastrous  for others such as in Chad and Mali. Chad 
asked if the poor response to the pandemic was due to structural defects or any economic factors 
and what measures Chad and Mali could take to revive the ir cotton sector s. The ICAC reiterated the  
role that cotton prices  play in determining  production level s and noted that  when prices are low  
governments could implement  price support measures to  incentivize  farmers  to plant cotton. ICAC 
also pointed to y ields as another factor  that influences output . Increasing yields in African countries, 
particularly in countries like Chad where yields  are extremely low compared  to the world average , 
could be a good way  to increase production . ICAC informed Members of its project in Chad aim ed at 
doubling yields and  reported that results of the first year show ed an increase in yields of up to 45% 
in the model  farm.  
22.  Before closing the meeting, I invited the Secretariat to share some updates on its initiative s to 
enhance the  Cotton Portal . The Secretariat informed Members that, following the user survey 
introduced at the last Dedicated  Discussion , it is still  exploring together with the ITC  how to improve 
the Portal, and attract more regular users with cost-effective  and accessible cotton -related data . The 
Secretariat invited Members to continue contributing to the survey and to share their views on how 
to enhance the dissemination of this tool to the private sector, especially in developing countries.  
23.  Chad welcomed the initiative  and underl ined the importance of the tool for providing  useful 
information . Despite the challenges to access the platform  due to lack of internet connectivity in 
some areas, Chad noted that the Portal  was widely used in its country by different stakeholders in 
the cotton sector as well as university students for their research work. Chad encouraged  the 
Secretariat to continue efforts to update the platform with additional information such as the survey 
on the COVID -19 pandemic and th e presentations made during Dedicated Discussions . 
 
__________  
 
11 This presentation can be found on  
https://www.wto.org/english/trat op_e/agric_e/agenda_item_4ii_icac_presentation_covid -19_final.pdf .