At a recent meeting of the WTO's Director-General's Consultative Framework Mechanism on Cotton (DGCFMC), Deputy Director-General Jean-Marie Paugam praised Benin and the International Cotton Advisory Committee for their successful organization of World Cotton Day 2024. The event, held on October 7, highlighted value addition and the transformative potential of the cotton sector.
The Cotton 4+ countries—Benin, Burkina Faso, Chad, Mali, and Côte d'Ivoire—emphasized the importance of improved trade practices and international cooperation to support cotton farming communities. They expressed readiness to collaborate with investors and donors to develop their cotton sectors.
The United Nations Industrial Development Organization (UNIDO) presented a roadmap aiming to establish Africa as a sustainable textiles hub by 2035. Meanwhile, the African Export-Import Bank (Afreximbank) shared insights from a webinar on crafting project proposals for cotton value chain development.
Deputy Director-General Paugam outlined immediate priorities for the cotton sector, including recycling efforts and medical uses for cotton. He noted interest from South-South cooperation partners in UNIDO's work and mentioned Brazil's potential involvement in these initiatives.
Access to financing remains critical for the sector. While progress has been made with Afreximbank, further efforts are needed. Alternative approaches such as seminars or technical assistance were suggested to advance discussions.
The C4+ countries raised concerns about subsidies distorting global markets and hindering growth. They called for reforms to ensure fair trade practices, emphasizing cotton's role in poverty alleviation and sustainable development.
Concerns were also raised about slow progress in global trade negotiations on cotton. The C4+ stressed maintaining specificity in negotiations while aligning with broader agricultural talks.
The International Cotton Advisory Committee (ICAC) forecasted a 4.7% increase in world cotton production but only a 1.7% rise in mill use for 2024-25. Exports are expected to remain high at 9.7 million tonnes.
The International Trade Centre (ITC) presented its collaborative initiative with the WTO—the Cotton Portal—to improve access to trade data and market regulations. ITC reiterated its commitment to working closely with WTO members on this project.
Recent crises affecting the cotton sector include climate change and high input prices, impacting production and livelihoods. The meetings underscored the urgency of addressing barriers while promoting sustainable solutions for economic resilience among poor producers worldwide.