 WORLD TRADE  
ORGANIZATION   WT/L/564 
31 March 2004 
 
 (04-1444) 
  
   
WTO AFRICAN REGIONAL WORKSHOP ON COTTON 
 
COTONOU, REPUBLIC OF BENIN – 23-24 MARCH 2004 
 
Summary Conclusions
 
  
 Attached herewith are the Summary Conclusi ons of the WTO Secretariat organized African 
Regional Workshop on Cotton
1.  The Workshop took place in Coton ou, Republic of Benin, from 23 to 
24 March 2004.  WTO Director-General Dr. S upachai Panitchpakdi opened the Workshop.  
Introductory remarks at the opening ceremony we re also made by Mr. Fatiou Akplogan, Benin 
Minister of Industry, Commerce and Employment Promotion. 
  Participants at the Workshop were the 30 A frican countries involved in cotton production and 
trade;  18 intergovernmental multilateral institutions ;  Canada, the European Commission, Japan, the 
United States and China.  (Presentations by pa rticipants at the Workshop will be compiled and 
circulated.) 
  
 The holding of the Workshop was preceded by  informal consultations.  In addition to 
consultations with the WTO African Group, in Janua ry, there were also consultations at the Joint 
OECD-DAC/WTO Meeting in Paris, 2 to 3 Ma rch 2004.  Furthermore, there were broader 
consultations at the WTO Secretariat, in Gene va, on Friday, 5 March 2004.   These consultations 
involved the four proponent countries (Benin, Burkina Faso, Chad and Mali), the African Group 
Coordinator, several multilateral institutions, th e QUAD, and China.  Taken together, these 
consultations supported the holding of  this Workshop and its focus, and provided broad indications of 
the aims and outcome.   The Workshop was organized in four sessions, namely:   
 
• Session I  – Factors in African cotton production and trade , chaired by Mr. U. Dadush, 
World Bank 
• Session II – Cotton-specific types and sco pe for financial and technical assistance , 
chaired by Mr. Chuku-Dinka Spencer, African Development Bank 
• Session III – Roles and contributions of multilateral institutions , chaired by H.E. 
Ambassador H. Iversen, Permanent Representative of Denmark 
• Session IV – Roles and contributions of bilateral donors , chaired by H.E. Ambassador 
H. Iversen, Permanent Representative of Denmark 
• Concluding Session -  Deputy Director-General, Dr. Kipkorir Aly Azad RANA 
  
 To conclude the Workshop, H.E. Ambassador J. Meetoo (Mauritius/WTO African Group Coordinator) welcomed the holding of the Works hop, its aims and output.  He noted that the 
substance of the Summary Conclusions would provi de a positive impetus to work in Geneva.  On 
behalf of the Workshop, he commended the Director -General for the timely initiative.  The Workshop 
noted the Summary Conclusions. 
                                                     
 
1 Deputy Director-General Dr. Rana read the Summary Conclusions to the Workshop. WT/L/564 
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WTO AFRICAN REGIONAL WORKSHOP ON COTTON
 
COTONOU, REPUBLIC OF BENIN  
23-24 MARCH 2004   
 
SUMMARY CONCLUSIONS   
 
 1. We have now come to the end of the 2-da y WTO Secretariat organized African Regional 
Workshop on Cotton.  Following two days of pr oductive discussions, several  remarks are hereby 
offered on the responsibility of the Secretariat.   
2. The Workshop was opened by WTO Director-Gen eral Dr. Supachai Panitchpakdi.  Minister 
Akplogan, of Benin, host country Minister for Industry, Commerce and Employment Promotion,  
delivered introductory remarks on behalf of the proponent countries of the Sectoral Initiative on 
Cotton.  (Mr. Rogatien Biaou, Benin Minister for Foreign Affairs and African Integration was present 
at the Opening Ceremony).   
3. There is no doubt that the discussions at the Workshop were intensive, constructive and 
positive.  Participants agreed that the presentati ons were of high quality a nd the interventions amongst 
participants in the various sessions reflected se riousness of purpose, realism and a new sense of 
pragmatic engagement.  In their interventions, pa rticipants unanimously welcomed the initiative by 
the WTO Secretariat in organizing the Workshop.  It was felt that the Workshop was an important 
confidence-building measure between the 4 proponent countries,
2 the 26 involved African countries,3 
the 18 multilateral intergovernmental institutions,4 and the representatives of Canada, the European 
Commission, Japan, the United States and China, all of  whom were represented at very high levels.  
The Workshop was well attended with 150 regist ered participants, who acknowledged that the 
Workshop was an important and necessary gatheri ng between the trade and development communities 
and was a concrete expression of efforts by all pa rticipants for improved c oherence between the two 
communities.   
4. Following the Opening Ceremony, there were 4 sessions.  Session I on Factors in African 
Cotton Production and Trade was chaired by the Wo rld Bank.  Session II on Cotton-Specific Types of 
Financial and Technical Assistance was chaired by  the African Development Bank.  Session III and 
IV on the Roles and Contributions of Multilateral In stitutions, and Bilateral D onors respectively, were 
chaired by Ambassador Henrik Iversen, Permanen t Representative of Denmark, in Geneva, and 
Chairman of the Integrated Framework for Trade- Related Technical Assistance to Least-Developed 
Countries.   
5. There was acknowledgement of the systemic im portance of the cotton sector for the involved 
countries and in its linkage, in several of the countries involved, to their overall macroeconomic performance. Presentations and subsequent exchange  of views established the vital importance of 
cotton production, consumption and trade for African countries in light of the sector's significant 
share in GDP, as a share of total merchandise and agriculture exports.  Many households are 
                                                     
 
2 Benin, Burkina Faso, Chad and Mali.   
 3 Angola, Cameroon, Central African Rep., Congo (Dem. Rep. of), Côte d'Ivoire, Egypt, Ethiopia, 
Ghana, Guinea, Kenya, Madagascar, Malawi, Morocco, Mozambique, Niger, Nigeria, Senegal, Somalia, South 
Africa, Sudan, Tanzania, Togo, Tunisi a, Uganda, Zambia and  Zimbabwe.   
4 African Development Bank, African Union, ACP Secretariat; Economic Community of West African 
States; United Nations Food and Agriculture Organization; Intergovernmental Francophone Agency; 
International Cotton Advisory Committee; International Monetary Fund; International Trade Centre; New 
Partnership for Africa's Development; Organization for Economic Cooperation and Development; United 
Nations Conference on Trade and Development; United Nations Development Programme; United Nations 
Economic Commission for Africa; United Nations Industrial Development Organization; West African 
Development Bank; West African Economic and Monetary Union; and, the World Bank.   WT/L/564 
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dependent on the cotton sector and there was an urgent  need to respond, in an integrated manner, to 
the challenges faced by African countries in th is sector.  The sector was linked to the poverty 
reduction efforts in several countries, particularly th rough the income of farmers.  The point was made 
that cotton production improved cereal production,  hence contributing to food security.   
6. African cotton was of very high quality and ha d comparative advantage.  At the same time, 
the facts made evident that the gl obal cotton market was characterized by slow demand growth, rapid 
productivity growth, new entrants into the market, downward price trends and price volatility.  Some 
presentations suggested that there was the likelihood  of the continuation of this trend.     
7. The principal focus of the Workshop was on the Development Assistance Aspects 
(comprising of financial and technical assistance) of the Cotton Initiative.  The Workshop presented a 
first opportunity for all the relevant stakeholders to meet in a meaningful dialogue on the 
Development Aspects of the Cotton Initiative.  This exercise has produced useful results.   
8. To set the basis for discussions, following presen tations by the World Bank, the IMF, the 
African Development Bank, the OECD/SWAC, the International Cotton Advisory Committee, the 
Food and Agricultural Organization, participants at the Workshop exchanged views on the complex 
range of factors influencing African cotton producti on, consumption, trade and price trends.  The 
presentations made evident that these factors were both internal and external to the involved countries.  
They included internal taxation policies, decline of cotton as a share of total fibre consumption 
relative to chemical fibres in textiles and clothing,  new technologies, increased transgenic varieties, 
internal structural difficulties (trade and finance) within individual countries, the impact of HIV/AIDS, and external trade barriers, particular ly trade distorting government intervention.   
9. Although the Workshop focused on the Developm ent Aspects of the Cotton Initiative, it was 
frequently underlined that the optimal and compre hensive response lay in coherence between trade 
and development policies.  There was a balanced co nsideration of all the objective factors in complex 
interplay.  In considering these factors and in focu sing on the Development Aspects, participants felt 
that the trade aspects could only be meaningfully and effectively addressed within the broader DDA 
agricultural negotiations, while preserving the focu s on cotton in doing so.  At the same time, à 
propos  the Trade Aspect, the point was made that cons ultations would be requi red with the proponent 
countries before a definitive decision is taken on how to address this matter.   
10. The Workshop dedicated considerable time to  exploring the necessary mix of approaches, 
policies, and areas of focus for effectively addressi ng the Development Aspects of the Initiative.   
11. The intensive interaction amongst participants  reflected a valuable and policy-relevant 
exchange of views.  Expectations and needs were  expressed.  These were considered in an exchange 
pointing to the necessity for a realistic adjustment of such expectations.  There were suggestions for 
the establishment of a stabilization fund ( fond de soutien ) to respond to price fluctuations.  There were 
also suggestions for greater reliance on and use of market-based mechanisms su ch as credit guarantee 
schemes, agriculture insurance, co-financing of prem iums on a market basis, etc.  There was also a 
strong convergence to base solutions within existi ng mechanisms.  The pay- off in working within 
existing mechanisms would start almost immediatel y.  Costly and tedious bureaucracy would be 
avoided.  Focus and efforts would be intensively de dicated to the substance of financial and technical 
assistance.  Furthermore, the critical distinction w as made between the mere institutional formality of 
a "fund" per se , on the one hand, and the real issue of "funding", on the other.  In addition, there was 
explicit reluctance amongst the vast majority of  intergovernmental multilateral institutions and 
bilateral donors to work outside of existing mechanisms.   
 WT/L/564 
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OUTCOMES
  
 
 12. Against this background, there were several useful outcomes and areas of convergence:  
• Participating intergovernmental multilateral ins titutions, as well as clearly identifying existing 
programmes for financial and technical assistance,  provided positive indications of additional 
financial and technical assistance in their areas of competence.   
• Bilateral donors and partners also very clear ly identified existing and new programmes for 
financial and technical assistance and provided as well positive indications of additional financial 
and technical assistance.  Furthermore, in this regard, inter alia , the EU provided information on 
its proposed EU-Africa Partnership for Cotton Development; and, the United States on its 
Millennium Challenge Account.  Japan provided information on opportunities under the TICAD.  
Canada also provided informati on on its support for trade-related technical assistance to Africa, 
including through multilateral ins titutions and mechanisms.  China provided detailed information 
to demonstrate its contributions through signifi cantly improved demand for African cotton.  An 
appeal was made for enhanced donor coordination,  harmonization and synergies for the avoidance 
of duplication and overlap.   
13. Broad and specific outcomes, for follow-up actio n, were evident in three distinct areas, 
namely: i) areas of focus; ii) delivery mechanisms for cotton-specific financial and technical assistance; and, iii) enhanced coordina tion and follow-up arrangements.     
• Areas of Focus : Drawing on the abundant lessons of  development and trade capacity 
building, there was support for the position that  the effective delivery and the meaningful 
absorption of cotton-specific financial and technical assistance depended on well prepared 
sectoral (or economy-wide trade) diagnostic integration studies.  On the basis of proper 
diagnostics (which already existed in several cases), financial and technical assistance would 
then be targeted, as appropri ate,  to such areas like:  
 
- Continued cotton sector reform, including the improvement of domestic 
competition in production, distributio n, buying and selling – legislative 
framework for investors – in order to achieve increased market efficiency;  
- Production-related support – strengt hening cotton production methods; 
infrastructure improvement; support for producer organizations; increasing yield with new cotton varieties;  
- Commodity price risk management st rategies through the use of market-
based instruments;  
- Macroeconomic safety nets by  relevant institutions;  
- Support for quality control and standards in cotton production;  
- Enhancement and support for cotton sector support services & product sector 
strategy development;  
- Export promotion and market support services;  
- Support for diversification and down- stream value-added production in 
textiles and apparels.  (A case was made for assistance in resuscitating the cotton sector in countries that have experienced civil conflict and war);  WT/L/564 
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- Establishment of Regional Cotton Technology Programmes; Regional 
Research Programmes; and, Regional Capacity Building Programmes (to be implemented by regional bodies such as the ECOWAS and the WAEMU within the framework of NEPAD);  
- Support for the rehabilitation of textile and clothing mills.   
• Delivery Mechanisms - Use of Existing Mechanisms : The preference was widely held for 
the use of existing mechanisms in the delivery of financial and technical assistance.  This 
position was itself based on the consistently he ld position by many developing countries for 
enhanced coordination within the development community in the delivery of financial and 
technical assistance, and the avoidance of the confusing prolifer ation of overlapping 
mechanisms.  There was a relu ctance for the creation of new international bureaucracies and a 
preference for the more effective use of exis ting institutions.  Bila teral donors and multilateral 
institutions considered that synergies should be built, with enhanced c oordination, around the 
Poverty Reduction Strategy Papers (PRSPs) or  national development plans, and the African 
Development Bank's Country Strategy Papers  (CSPs), which are derived from priorities 
reflected in the PRSPs.  Bilateral donors and mu ltilateral institutions were in support of the 
accelerated use of the Integrated Framework for Trade-Related Technical Assistance for 
LDCs, and the Joint Integrated Technical Assi stance Programme for African Countries (the 
JITAP).  On such a fast-track basis, eligible countries would have the IF (for LDCs) and the 
JITAP (for African countries) u sed as the mechanisms for mainstreaming  cotton-specific 
financial and technical assistance into the de velopment vehicles of their PRSPs or national 
development plans and Country Strategy Pape rs and for delivering such assistance.   
 
• Enhanced Coordination and Follow-up Arrangements : The specific issue of enhanced and 
focused coordination between bilateral donors and multilateral institutions was carefully 
considered, keeping in view the urgent necess ity to retain the momentum and follow-up on 
the identified areas of financial and technical assi stance after the Workshop.  It was felt that 
coordination would need to take account of 4 crucial factors: knowledge of the region; 
poverty reduction targets, jurisdictional competen ce of the subject matter; and, bilateral donor 
partner support.  As a result, there was broad support that the immediate follow-up process of coordination and implementation after the Work shop would be actively led by the World 
Bank, the African Development Bank, the IC AC, the FAO, bilateral donors including the 
United States and the European Commission, a nd one representative of the African cotton 
producing countries.   
 
- In support of these ends, it was felt that development agencies should be 
immediately involved in the implem entation of the outcomes of the 
Workshop.  To this end, the WTO S ecretariat will communicate the outcome 
of the Workshop to the Developmen t Assistance Committee of the OECD 
Secretariat – the institutional forum for development agencies – and to 
request their appropriate follow-up and provide information;  
- The WTO Secretariat would enhance the OECD/WTO database to reflect 
current projects, subsequent follow- up, and implementation results.   
14. It was noted that the implementation of both the broad and more specific outcomes would be 
work in progress.  The WTO Secretariat would re port on the outcome to the WTO membership.   
15.
 A full report of this Workshop will be co mpiled and circulated, with an annex of 
presentations, to all participants.   
__________ 