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NOTE:
THIS NEWS ITEM IS DESIGNED TO HELP THE PUBLIC UNDERSTAND DEVELOPMENTS IN
THE WTO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE THE CONTENTS ARE
ACCURATE, IT DOES NOT PREJUDICE MEMBER GOVERNMENTS’ POSITIONS. THE
OFFICIAL RECORD IS IN THE MEETING’S MINUTES
> Cotton
Sub-Committee
> Hong
Kong Ministerial Declaration (section on cotton)
> Mandate
(July-August 2004 framework, paragraph 1.b and Annex A paragraph 4)
> Background
explanations in the agriculture negotiations backgrounder
SEE ALSO:
> Press releases
> News archives
> Pascal
Lamy’s speeches
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Trade issues back to top
The proposal deals with “modalities”, in
this case how domestic support would be cut. It features a
formula that implies
cuts in cotton subsidies that are larger than for agriculture as a
whole — much larger if the agriculture cuts are modest, the
difference narrowing if the agriculture cuts are more ambitious. The
period for making the cuts would be one third the time for
agriculture as a whole. Both of those objectives were agreed at the
hong Kong Ministerial Conference in December 2005 (see
background explanation).
The four also propose additional disciplines on Blue Box subsidies
on cotton.
The paper from Benin, Burkina Faso, Chad and Mali,
TN/AG/SCC/GEN/4
was distributed just before the previous
meeting on 2 March 2006
and only discussed briefly at the time.
By this 27 March meeting, delegations had more time to study it.
Speaking for the “Cotton Four”, Chad said that the objective was to
put into practice members’ agreement in the
2004 framework
to treat cotton “ambitiously, expeditiously and specifically”.
Several delegations supported the proposal, including the European
Union, the African Group (Benin speaking), Cuba, Brazil and Nigeria.
The EU said the proposal should go beyond domestic support to
include the other two pillars of the agriculture negotiations —
export competition and market access. For market access, the EU
suggested that the developed countries commitment to allow cotton
products to be imported duty-free and quota-free should be extended
to imports from all developing countries, not only the least
developed. Developing countries in a position to do so should make
the same offer, the EU went on. And it reminded members that before
the Hong Kong Ministerial Conference it had suggested totally
eliminating trade-distorting domestic support (“Amber Box” support)
for cotton.
Colombia supported the proposal and presented information on
difficulties faced by its domestic cotton sector. It also called for
developing countries to be given special treatment to allow them to
support their farmers. China and Paraguay agreed.
The United States said that the treatment for cotton should be
discussed after the agriculture “modalities” are agreed, arguing
that this proposal prejudges the outcome for farm subsidies as a
whole, and diverts attention from them. It said negotiators cannot
address the issue of “how much more ambitious” cotton will be before
the overall cuts are agreed.
The US objected to the way lower ambition in general would lead to a
wider gap between the cuts in agriculture and cotton. This would not
lead to success, because an ambitious results in cotton can only be
achieved as part of ambitious results for the agriculture
negotiations as a whole, the US said.
It also proposed a discussion on which developing countries are
ready to join the duty-free, quota-free offer made in Hong Kong.
Benin replied that the Cotton Four’s proposal can be used as a basis
for finding an acceptable solution.
Development issues back to top
The Secretariat reported three new issues on the
development aspects of cotton, which came up after the sub-committee’s last
meeting: information on Burkina Faso’s extensive reform of its cotton
sector; Côte d’Ivoire’s request for assistance for four cotton projects; and
an effort to get updated information on implementation of specific
programmes by assistance providers. At the request of Benin, an earlier
communication dealing with 12 projects for assistance will be circulated
again.
Development is on a separate, parallel track from the negotiations, and the
Secretariat reported that consultations on this track continue. They are
chaired by Stuart Harbinson, special advisor to the director-general.
Next meeting back to top
Tentatively 24 April 2006.
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Mixed
reception for ‘Cotton Four’ domestic support proposal