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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
SEE ALSO:
>
press releases
> news archives
> Supachai Panitchpakdi’s speeches
> Cotton
Sub-Committee
> Mandate
(July-August 2004 framework, paragraph 1.b and Annex A paragraph 4)
> Background
explanations in the agriculture negotiations backgrounder
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In a meeting that covered both trade and development issues related
to cotton, Chairperson Tim Groser also outlined his assessment of the
agriculture negotiations. He said members should study carefully his
forthcoming paper on the negotiations, to be circulated before his
end-of-July “first approximation of full modalities” (the “full modalities”
in turn due to be approved at the Hong Kong Ministerial Conference in
December 2005).
Trade issues back to top
African countries said they were disappointed that no other members have
produced written responses or alternative proposals to their paper,
circulated just before the last meeting in April (available
here, summary
here).
Some other countries said they preferred not to respond immediately in
writing, either to allow them to be flexible in the positions they adopt, or
because they believe an informal setting would be more conducive to
technical exchanges on the paper.
Chairperson Tim Groser agreed, and said he might hold a consultation soon.
This would be best done at a time when participants can assess the
implications for cotton arising from developments in various areas of the
agriculture negotiations as a whole, he indicated.
The call for written responses came from Benin, Burkina Faso and several
other African delegations, supported by Brazil and Argentina. These
delegations said this would help them to report to their governments that
there have been new developments.
The US replied that the outcome in cotton will be determined by the
agriculture negotiations, where it said reductions in specific areas such as
domestic support will affect US programmes for cotton. But in order to
achieve a significant result overall in cotton, members should be more
ambitious in the agriculture negotiations as a whole, the US said. A higher
level of ambition in agriculture could mean a result on cotton that is
closer to the Africans’ aims, the US said.
Development issues back to top
The International Monetary Fund, an observer, outlined the result of a
conference on cotton in Cotonou, Benin, 18 May 2005. Conference participants
agreed on a “four-pronged response” to the surge in cotton production and
decline in prices, the IMF said: (1) to preserve macroeconomic stability by
tackling poverty directly instead of supporting prices in order to avoid
adjustment; (2) using development programmes to increase production
efficiency and competitiveness; (3) eliminating distorting export and
domestic subsidies in developed countries; and (4) protecting the poor
during adjustment.
In a statement that is to be circulated in writing, the US said that in
addition to trade reform and the need to increase African producers’
productivity, efforts should be made to boost flagging demand for cotton
products (which is partly alleviated by increased demand in China), and that
an ambitious result overall in agriculture would yield better results than
focusing more narrowly on cotton. The US said economic analysis suggests
that even when distorting subsidies are removed, the outcome might not be
major increases in prices in the long term because an initial price rise
would result in further expansion in supply which is already outstripping
demand.
Benin, Côte d’Ivoire and Burkina Faso said members should focus on getting
rid of the distortions and allowing poor farmers “do their job”.
Next meeting back to top
18 July 2005
Chairperson back to top
Tim Groser, former ambassador of New Zealand, who also chairs the
agriculture negotiations.
Some of the groups back to top
See also agriculture negotiations backgrounder
PROPONENTS: Benin, Burkina Faso, Chad, Mali
AFRICAN GROUP (41 countries): Angola, Benin, Botswana, Burkina Faso,
Burundi, Cameroon, Central African Republic, Chad, Congo, Congo (Democratic
Republic), Côte d’Ivoire, Djibouti, Egypt, Gabon, The Gambia, Ghana, Guinea,
Guinea Bissau, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritania,
Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal,
Sierra Leone, South Africa, Swaziland, Tanzania, Togo, Tunisia, Uganda,
Zambia, Zimbabwe
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