 RESTRICTED  
  
TN/AG/GEN/49/Rev.1  
TN/AG/SCC/GEN/20/ Rev.1 
18 September  2019 
(19-6016) Page: 1/4 
Committee on Agriculture  
Special Session  
Sub-Committee on Cotton  Original:  French  
 
  
AGRICULTURE NEGOTIATIONS AT THE WTO  
COMMUNICATION BY THE CO -SPONSORS OF THE SECTORAL INITIATIVE ON COTTON1 
Revision  
The following  communication, dated  16 September  2019, is distributed at the request of  the 
delegation of Benin on behalf of the co -sponsors of the  Sectoral Initiative on Cotton (C4). 
 
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DRAFT MINISTERIAL DECISION  ON COTTON  
The Ministerial Conference , 
Stressing  the vital importance of cotton  to the economy of African cotton -produc ing countries  in 
general , and to the economy of the le ast developed countries  (LDCs) in particular , while recognizing 
that over the past years cotton has been one of the most contentious issues at the WTO both in 
trade negotiations and in the framework of the dispute s ettlement process , 
Noting  that domestic support for cotton by  certain WTO Members  distort s prices  and disrupt s 
international cotton markets , with severe consequences for the economy and society  in African 
cotton -producing countries , in particular the LDCs, 
Recalling  that the Cotton Four (C4) has stressed on several  occasions  the need for  progress as 
regards the commitment of the  WTO Trade Ministers  and has shown its goodwill  in seeking to build 
a credible  consensus through negotiation , 
Having regard to  Article 20 of the Agreement on Agriculture , which recognizes the importance of 
initiating a process of reform  of the agricultural sector , 
Recalling and reaffirming  the mandate and the principles outlined in paragraph 13  of the  
Doha Ministerial Declaration  (WT/MIN(01)/DEC/1),  Expressing their concern at the lack of progress 
in the negotiations on this third pillar of cotton due to the absence of political will and genuine 
commitment on the part of certain players in the trade component of this vital issue s ince 2003, 
when the Sectoral Initiative in Favour of Cotton was submitted to the World  Trade  Organization , 
Referring to  the Decisions adopted on cotton  and contained,  respectively , in the Package of  
July 2004 (WT/L/579 of 2 August  2004), which aimed to address cotton ambitiously, expeditiously 
and specifically ; the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC of 22 December  2005), in 
particular paragraphs  11 and 12 on cotton, the Revised Draft Modalities for Agriculture  
(TN/AG/W/4/Rev.4 of 6 Decembe r 2008) and the  Bali Decision (WT/MIN/(13)/41 -WT/L/916 of 
11 December  2013),  
                                                
1 Benin, Burkina Faso, Chad and Mali.  TN/AG/GEN/49/Rev.1 • TN/AG/SCC/GEN/20/Rev.1  
 
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  Recalling  the Decision on Cotton adopted at the Tenth  WTO Ministerial Conference  in Nairobi 
(WT/MIN(15)/46 -WT/L/981) , which emphasizes that more efforts remain to be made  by Members 
to attain the ultimate objective of total  elimination of all forms of market -distorting support for 
cotton , 
Recognizing  the incremental progress achieved on issues relating to market access, export 
competition and the development component at the Tenth WTO Ministerial Conference held in Nairobi 
in December  2015, 
Recalling  the status report of the WTO Director -General on multilateral trade negotiations  at 
the Eleventh  Ministerial Conference held in  Buenos Aires in December  2017, 
Confirm ing that the Members genuinely recognize  that the  issue of  domestic support  for cotton 
remains to be  handled effectively , and that concrete, substantial and measurable  results in this area 
are needed,  
Without prejudice to the overall outcome  of the  negotiations on agriculture  within the 
framework of the Doha Development Agenda , 
Decides as follows : 
A. TRADE COMPONENT  
1  DOMESTIC SUPPORT  
1.1  Limits on the Aggregate Measurement of Support (AMS)  
The Aggregate Measurement of Support to cotton2 shall be limited  according to  the following 
modalities : 
(a) i. Where the  Final Bound Total Aggregate Measurement of Support (AMS) is greater 
than USD 2 billion  or the equivalent in the monetary terms  in which the  binding  is 
expressed, the reduction shall be 40%; 
ii. Where the Final Bound Total Aggregate Measurement of Support (AMS) is greater 
than USD 1 billion  and less than  or equal to  USD 2 billion , or the equivalents in  the 
monetary terms in which the  binding is expressed , the reduction shall be  35%; 
 
iii. Where the Fina l Bound Total Aggregate Measurement of Support (AMS) is less than 
or equal to USD 1 billion , or the equivalent in the monetary terms in which the binding 
is expressed, the reduction shall be 30%. 
 
(b) Reduction of the AMS support for cotton  applicable to developing country Members who 
have made commitments  towards  the Final Bound Total AMS shall be two thirds  (2/3) 
of the reduction  applicable to developed country Members , pursuant to the provisions 
of paragraph  (a) above . 
 
(c) The reduction perc entages foreseen in paragraphs  (a) and (b) are applied to the base 
value  of support  calculated as the arithmetic average of the amounts notified by 
Members for cotton.  
In all cases, the AMS level  shall remain lower than or equal to the  de minimis  level established by 
virtue of A rticle 6.4 of the Agreement on Agriculture . 
                                                
2 This is the average amount of Aggregate Measurement of Support notified by Members over the past 
three (3) years.  TN/AG/GEN/49/Rev.1 • TN/AG/SCC/GEN/20/Rev.1  
 
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  1.2  De minimis  
(d) Developed and developing Members  shall not grant an accumulated amount of 
AMS support and support  falling within the scope of A rticle 6 (5) of the Agreement on 
Agriculture to cotton producers exceeding the  limit on the monetary amount  that is 
derived from  application of de minimis  rights established by virtue of A rticle 6 (4) of the 
Agreement on Agriculture.  
1.3  Blue Box support  
The level of reduction of Blue Box support for cotton is set at  2/3 of the  average  level of support for 
this category over the past three (3) years . 
1.4  Other measures : Transfer of support from one box to another  
Members shall avoid granting  support for cotton  with distorting effects under a category of support 
that is intended to have minimum or no effect  as this  practice is likely to impede  a clear assessment 
and evaluation3 of the types of support for which reduction commitments shall be m ade. 
The LDCs  shall not be bound to reduction commitments . 
1.5  Implementation perio d 
AMS cotton commitments shall be implemented  over five (5) years, starting from  1 January  2021, 
according to the following schedule : 
- Where the Final Bound Total Aggregate Measurement of Support (AMS) is 
greater than USD 2 billion , or the equivalent in the monetary terms in which 
the binding is expressed, the reduction shall be 40%. 
 
• 8% each year over a period of five  (5) years, starting from 1 January  2021 until 
31 December  2025. 
 
- Where the Final Bound Total Aggregate Measurement of Support (AMS) is 
greater than USD 1 billion  and less than or equal to  USD 2 billion , or the 
equivalent in the monetary terms in which the binding is expressed, the 
reduction shall be 35%. 
 
• 7% each year over a period of five (5) years, starting from 1 January  2021 until 
31 December  2025. 
 
- Where the Final Bound Total Aggregate Measurement of Support (AMS) is less 
than or equal to USD 1 billion , or the equivalent in the monetary terms in which 
the binding is expressed, the reduction shall be 30%. 
 
• 6% each year over a period of five (5) years, starting from 1 January  2021 until 
31 December  2025. 
 
1.6  Green Box : surveillance, notification and transparenc y 
In addition to Article 20 and Annex 2 of the Agreement on Agriculture, WTO Members shall not grant 
support to cotton producers that meet the criteria indicated in paragraphs 5 to 13 of Annex 2 of 
the Agreement on Agriculture.  
Green Box support measures granted to cotton shall have minimal or no distorting effect s on the 
cotton production and export  market.  
                                                
3 It is noted that Green Box support that should have minimum or less trade -distorting effects  
nevertheless remain trade -distorting in different respects, and should thus be categorized as Blue or 
Orange  Box measures, depending on the type of activity for which this support is granted.  TN/AG/GEN/49/Rev.1 • TN/AG/SCC/GEN/20/Rev.1  
 
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  Members are encouraged to ensure  effective surveillance of Green Box support measures  and are 
urged to respect their  notification  obligations as part  of requisite  transparency . 
2  MARKET ACCESS  
Without prejudice to possible consensual revisions that the Members may adopt, market access for 
cotton and its by -products shall be handled as provided for in paragraph 11 of the Hong Kong 
Ministerial Declaration  (WT/MIN(05)/DEC) and in paragraphs  1 to 6 of the  Nairobi Ministerial Decision 
(WT/MIN(15)/46 -WT/L/981).  
3  EXPORT COMPETITION  
Without prejudice to possible consensual revisions that the Members may adopt, export competition 
aspects of the cotton issue shall be handled as provided for in paragraph 11 of the Hong Kong 
Ministerial Declaration (WT/MIN(05)/DEC) and in paragraph 9 of the Nairobi Ministerial Decision 
(WT/MIN(15)/46 -WT/L/981).  
B. DEVELOPMENT COMPONENT  
Without prejudice to possible consensual revisions that the Members may adopt , 
development -related aspects of the cotton issue  shall be handled as provided for in paragraph  12 of 
the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC) and in paragraphs  10, 11, 12 and 13 of 
the Nairobi Ministerial Decision (WT/MIN(15)/46 -WT/L/981).  
C. IMPLEMENTATION AND FOLLOW -UP 
Without prejudice to possible consensual revisions that the Membe rs may adopt , the implementation 
and follow -up of decisions on cotton  shall be handled as provided for in  paragraphs  14, 15 and 16 
of the  Nairobi Ministerial Decision (WT/MIN(15)/46 -WT/L/981).  
 
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