Cotton: Partnership gains traction as WTO members discuss sectoral developments

Updates on progress of the Partenariat pour le Coton

Deputy Director-General Jean-Marie Paugam welcomed members and observers to WTO headquarters in Geneva for the first of two sessions. Discussions in the morning, which he chaired, focused on development assistance to the cotton sector, while those in the afternoon - chaired by Ambassador Ali Sarfraz Hussain (Pakistan) - considered trade-related developments. Both meetings are part of a series of consultations organized biannually by the WTO, with participation from other international organizations.

DDG Paugam opened by noting that in recent months the Partenariat pour le Coton (Cotton Partnership) had made "concrete progress," with the Partenariat Secretariat developing and sharing a structured action plan outlining short-, medium-, and long-term objectives.

The Cotton Partnership is a flagship initiative launched in February 2024 to mobilize large-scale investment in Africa's cotton sector.

DDG Paugam noted that at least five more African countries have begun work toward joining the Partnership, which he said would hold a dedicated session to promote investment during the 2026 Global Review of Aid for Trade on 29 October.

A representative from the United Nations Industrial Development Organization (UNIDO) updated WTO members on the status of the work plan. This included work to coordinate support; mobilize and de-risk investment; improve market access and sustainability; and catalyse programme development. 

The WTO Secretariat reported that several WTO members and observers had reported donations toward cotton development assistance projects. Donors included Germany, Japan and Switzerland, along with the UN Food and Agriculture Organization. Recipients included Benin, Cameroon, India, Mozambique, Pakistan, Senegal, Tajikistan, Tanzania and Uzbekistan, among others.

A representative from the Secretariat of the African Continental Free Trade Area presented its Agri-Trade Action Plan, which identifies cotton as one of nine priority value chains, reflecting its strategic importance for industrialization and the opportunities for increased value addition arising from the current processing gap.

Ghana informed members that it plans to host a high-level event in 2027 to celebrate the protection of Kente Cloth through a geographical indication, which it said would promote value addition in the textile and apparel sector, support artisan livelihoods, and highlight opportunities for micro, small and medium-sized enterprises (MSMEs).

A representative from the International Cotton Advisory Committee (ICAC) presented case studies showing how countries have successfully added value to cotton by localizing the processing of raw bales. The study showed that the value of cotton increased from USD 1.80 per kilogram for raw cotton to over ten times more once transformed into garments.

ICAC highlighted the experience of Bangladesh, Türkiye and Viet Nam to show how investing in and localizing manufacturing had contributed to higher GDP and incomes. Steadily rising global demand for apparel means that the cotton and textile sector could benefit from further investment and growth in trade.

The C-4+ group of West African cotton-producing economies announced that Togo had now joined their group, which includes Benin, Burkina Faso, Chad and Mali, plus Côte d'Ivoire. 

The Chair noted that work on trade could align around market access issues, including rules of origin and tariffs, and underscored the need for the Secretariat of the Partenariat to identify target countries for investment outreach.

A study by the Cotton Partnership found that USD 12 billion in investment is needed over ten years in order to transform the sector. Doing so could create an estimated 500,000 direct jobs for women and young people and a further 1.5 million indirect jobs.

Global cotton market outlook

In the afternoon session, ICAC reported to members on market conditions and focused more specifically on the evolution of the sector in West Africa and opportunities to strengthen it in this region. 

ICAC noted that world cotton production is projected to reach 25.9 million tonnes in 2026, with China being the largest producer, followed by India and Brazil. Consumption is projected to be 26.1 million tonnes, slightly surpassing production. China and India remain the world's largest consumers, followed by Pakistan, Viet Nam, Bangladesh and Türkiye. World trade in cotton is projected to remain on an upward rebound path through 2029. The largest exporters in 2026/27 are expected to be Brazil, the United States, Australia and the West African region, with the three  largest importers being China, Viet Nam, and Bangladesh.

ICAC noted that West African countries are expected to export about 960,000 metric tonnes in 2026/27, up 6% from last year, with production projected to increase further in the next three years. 

The agency noted that much of the growth in cotton during recent decades came from expanding the area under production, but yields have not significantly improved.

Negotiations on cotton and other issues

The C-4+ countries reaffirmed the critical importance of the cotton sector for their economies and for people's livelihoods, as did other members, including Cameroon, China, India and Pakistan. They voiced their disappointment over the lack of progress in negotiations on cotton in recent years, which have been stalled as a result of persistent differences among WTO members in the negotiations on agriculture.

While the 2015 Nairobi Ministerial Conference delivered some progress, eliminating cotton export subsidies and improving market access for cotton exports from least-developed countries, members have yet to agree on further disciplines on trade-distorting domestic support. WTO members were unable to reach consensus on the way forward in agriculture negotiations at their most recent Ministerial Conference in Yaoundé, Cameroon, in March 2026 (see briefing note here).

The C-4+ also emphasized the importance of market access and the need to monitor efficiently the implementation of the Nairobi Decision in this regard by examining tariff and non-tariff barriers to the export of cotton by least developed countries. The C-4+ also called for more work on rules of origin and the impact of recent tariff-related initiatives. India, China and the EU highlighted the steps they have taken to provide duty-free, quota-free market access for cotton originating in least developed countries.