DDG Paugam on World Cotton Day

Cotton Producers Caught in Fertiliser and Food Supply Crisis, WTO Treasured Note

Speaking in the high-level segment held during World Cotton Day on 7 October at the headquarters of the UN Food and Agricultural Organization in Rome, Deputy Director-General Jean-Marie Paugam outlined the WTO’s work to help cotton producers in developing countries tackle the multiple challenges facing global trade. The WTO is working with its partners to help cotton-producing countries overcome the current crises and boost sustainable cotton production, he said.

DDG Paugam underlined the difficulties facing cotton producers in Africa and elsewhere as they grapple with an array of crises, notably climate change, the COVID-19 pandemic, supply chain disruptions and the food crisis.

High food prices and the consequences of the Russia-Ukraine war have left many cotton-producing countries suffering "a double burden: their exports as a source of external income are penalized, and their imports, essential to the food security of their populations, are now traded at almost prohibitive prices," he said.

DDG Paugam said the WTO has taken action to respond to the food crisis, which is the organization's number one priority. He highlighted the WTO's role in ensuring transparency regarding governments' trade-restrictive measures, its work on keeping markets open, and its efforts to improve market access by facilitating negotiations on new trade disciplines, including those that will affect cotton trade.

He added: "Since the beginning of the Black Sea conflict, 31 countries have introduced 61 trade-restrictive measures on food and feed and seven measures on fertilizers. At least 15 of these measures have since been removed. In addition, 46 measures to facilitate imports of food, feed and fertilizers have been adopted by 25 countries." He continued: "The situation remains volatile, and the WTO will continue to monitor trade measures closely."

Stressing the importance of WTO negotiations for food security and cotton, DDG Paugam pointed to two significant outcomes achieved at the 12th Ministerial Conference in June - a Ministerial Declaration on the emergency response to food insecurity and a historic agreement for curbing harmful subsidies on fisheries. He called on members to expedite the implementation of the outcomes.

DDG Paugam drew attention to the technical assistance and development aid that the WTO and its partners have provided to the Cotton-4 (Benin, Burkina Faso, Chad and Mali) and other cotton-producing developing members. He highlighted the WTO's recent cooperation with FIFA, which will explore opportunities to engage Cotton-4 countries in global football value chains.

On the sidelines of the event, DDG Paugam met with FAO Director-General Qu Dongyu and the Minister of Trade and Industry of the Republic of Chad, H.E. Ali Djadda Kampard, to discuss how to deepen cooperation to fight the global food crisis, tackle environmental challenges affecting agriculture, build technical fisheries capacities, and add value with cotton producers in West Africa.

More on World Cotton Day

World Cotton Day was launched at the WTO in 2019 at the request of four WTO members (the Cotton-4: Benin, Burkina Faso, Chad and Mali). The celebration of 2022 World Cotton Day was organized by the UN Food and Agriculture Organization (FAO).

The high-level event on 7 October, opened by FAO Director-General Qu Dongyu, was also attended by the Minister of Trade and Industry of the Republic of Chad, H.E. Ali Djadda Kampard. Ministers of Benin, Brazil, China, Peru and representatives of the founding partner organizations of World Cotton Day - the WTO, the United Nations Conference on Trade and Development，International Trade Centre and the International Cotton Advisory Committee - participated in the event.

Following the high-level event, the WTO moderated a thematic panel on the role of innovations and markets for sustainable cotton in Africa and Latin America.