22/4/2005
EU calls for WTO action for West African Cotton Farmers


In a speech delivered this week to Cotton producers in Mali, EU Trade Commissioner Peter Mandelson set out a strong new EU commitment to concrete measures to assist cotton-producers in West Africa. Commissioner Mandelson argued that the plunging global cotton prices meant that urgent action was needed to safeguard the future of cotton producers in West and Central Africa. “Time is not on our side. Collapsing prices today threaten the future of your industry tomorrow” he said.

Commissioner Mandelson stressed that “the EU has led the way in reforming its domestic policies on cotton”. EU cotton production has no distorting effect on the international market, and the EU pays no export subsidies for cotton. Under EBA (Everything but arms), all African cotton producers have tariff-free access to the EU market. As of next year, 65% of EU support for cotton growers will be decoupled from production.

Commissioner Mandelson said that the EU was now committed to exceptional treatment for cotton in the WTO negotiations: “we are calling for the WTO membership to fast-track cotton in agriculture negotiations… cotton should be first in the queue” he said. He argued that this means ambitious agreements to: eliminate all forms of cotton export subsidy in developed countries; provide duty-free access for cotton imports by all developed and advanced developing countries; substantially reduce trade-distorting domestic support for cotton producers in developed countries. These commitments would come into effect “from day one” of the signing of a new WTO agreement.

Commissioner Mandelson also noted that the EU has made available 310 million euros since last July for development assistance for the four worst affected cotton-producing countries. The EU will also set up an international capacity building programme for agricultural commodities with a budget of 45 million euros of which 15 million euros will be specifically for the cotton sector.

He argued that “for the cotton sector to thrive there must be broad based development across the region”. EU aid and assistance will be targeted on wider capacity building and investment in infrastructure. Regional economic integration will help develop this capacity and attract investment and this will be the focus of the Economic Partnership Agreements (EPAs) that the EU is currently negotiating with ACP regions.