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9/7/2004 Meeting in Paris this week, the EU-Africa Cotton Forum aims to launch a joint strategy for supporting African cotton producers. Speaking at the Forum, European Commissioner for International Trade Pascal Lamy commented: “We are very aware of the essential role played by cotton in the economic development of African countries, which are among the poorest in the world. We are also conscious that the fall in cotton prices has directly and negatively affected millions of small producers. It was crucial to begin with a test case, and cotton has given some real impetus to a general trade strategy for agricultural products. This is one reason for the establishment of this European-African cotton partnership.” He added: ‘Europe has started work at home. The commitments we have made on agricultural policy have not fallen by the wayside. In April, on its own initiative, the EU adopted a profound reform of its cotton regime. It made this commitment despite the fact that European production only constitutes a marginal proportion of worldwide cotton output (around 2%) and EU support has no significant effect on global cotton prices.’ But he also noted: ‘Our internal reform does not remove the pressing need for other developed countries to reform their agricultural support policies. This was agreed at the June G8 summit. The appropriate framework in which to pursue this work is the WTO agricultural negotiation, and here we are working hard to reach framework agreement by the end of July.’ Explaining the EU’s position, Pascal Lamy stated: ‘The EU’s position is very clear: we support the establishment of a specific solution for cotton. And this solution must be an integral part of the agricultural negotiations, in the interest of the African producers themselves. If cotton is isolated from a wider negotiation in which a global balance is found, it seems illusory to expect to reach a solution. We must find ways to encourage to other parties, notably the United States, to modify and change their policies- and we have a unique opportunity to do this in the July agreement. ‘But’ - he added - ‘Europe is not just interested in general declarations. We have made some concrete proposals on the adoption of cotton-specific disciplines. What are these? First, we propose that developed countries eliminate the most trade-distorting forms of domestic support; second, we propose the elimination of export support in the cotton sector; third, we propose complete and full market opening for cotton for the LDCs, akin to Europe’s ‘Everything but Arms’ initiative. And fourth, all this needs to be achieved in a short timescale, which takes into account the urgency of the situation. ‘External elements have obviously also come into play. I am talking about the famous cotton panel initiated by Brazil against the United States. The consequence I draw from that is very simple: all the more reason to quickly reach an agreement within the current negotiation; and this agreement should be a special solution for cotton, including on the timetable, within the agricultural negotiation. I said this in Dakar at a G90 meeting, and I will repeat it next week at a further meeting of the G90 in Mauritius.’ ‘In conclusion, this Forum illustrates the European Union’s desire to establish an open and constructive dialogue with our African partners. Our joint ambition for this partnership must be that it is much more than a simple reaction to current circumstances, or a short-term mobilisation. It must be an enduring co-operation. A co-operation that is about internal policies as much as external trade, that involves national politics of developed and developing countries and that ensures that trade opening works in favour of developing countries through parallel and equivalent efforts by all. For more information
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