West Africa; Africa Softens Stand On Cotton Subsidies

Africa News
July 26, 2004

Email this page

Four West African cotton producing states have dropped their demand that the crop be treated as a special agenda item at World Trade Organistion (WTO) farm talks, but insisted on guarantees of financial aid.

Benin, Chad, Burkina Faso and Mali told a WTO meeting they were ready to see cotton included in the overall negotiations on lowering barriers to farm trade, on certain conditions.

"Benin said that the four were prepared to take it (cotton) into the agricultural negotiations, providing their concerns were met," a trade official told journalists after a closed-door meeting of ambassadors to the 147-state WTO.

The WTO is rushing to meet an end-July deadline for a deal in four key areas of its Doha Round of free trade negotiations, with agriculture by far the most controversial issue.

Rich and poor states are still split on how to lower import barriers and slash the huge farm subsidies developed countries pay their farmers so growers in developing countries can compete more effectively.

Cotton has often been seen as a prime example of the distorting impact of subsidies, with West African growers crowded out of markets by subsidised US produce. A blueprint for a possible July deal, drawn up by the talks' chief mediator, New Zealand ambassador Tim Groser, singled out cotton for special mention.

It said it should be dealt with "ambitiously and expeditiously" and pointed out how it would benefit from calls within the overall agricultural package for cuts in aid to farmers in rich nations, better market access for cotton goods in developed countries and an end to direct export subsidies.

But in a letter to WTO chief Supachai Panitchpakdi, the four African countries demanded an undertaking that eventually all rich state aid for cotton - not just export subsidies - be eliminated and that an early deadline be set for some of the cotton-related measures to come into effect.

Developed countries, and international financial institutions should also guarantee financial help to the cotton sector of "least developed and vulnerable countries," the four said.

There was no immediate reaction but in the past they have argued that financial assistance cannot be handled inside WTO negotiations and is best left to institutions such as the World Bank.

NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving this information for research and educational purposes.

Subscribe via RSS

Global Food Challenge
IATP explains the policies that have caused the food crisis and the solutions we need.

Green Chemistry
The Green Chemistry revolution is making safer products and protecting human health and the environment.

Local Foods
IATP analyzes the key policy and marketplace issues driving local food systems.

NAFTA
NAFTA leaves a huge footprint on the U.S. and the world. As Washington gears up for the debate, IATP analyzes what's at stake.

Water
From ethanol to privatization, water is a hot issue in trade and agriculture worldwide. Trade Observatory has document and headline collections dedicated to water issues.

Keep up-to-date on the latest trade issues at Think Forward.