WTO members reviewed global cotton market trends and the path ahead for the
cotton sector at meetings in Geneva on 26 October. The meetings follow the marking
of World Cotton Day in Uzbekistan earlier this month. Delegations reiterated support
for investment in African countries to help them move up the cotton value chain
and stressed the vital contribution of cotton to international trade and its potential
to foster sustainable development.
·
WTO
Review of Cotton Sector: WTO members reviewed global cotton market developments
and trade opportunities at meetings held in Geneva on 26 October 2026, emphasising investment in African cotton-producing countries.
·
Cotton
Partnership Progress: The WTO's Partenariat pour le Coton
(Cotton Partnership), launched in February 2024, has developed a structured action
plan covering short-, medium- and long-term objectives to mobilise
investment in Africa's cotton sector.
·
Expansion
of Partnership: At least five additional African countries have started the process
of joining the Cotton Partnership to strengthen investment and cooperation.
·
Development
Assistance: Germany, Japan, Switzerland and the UN Food and Agriculture Organization
(FAO), among others, have contributed to cotton development projects benefiting
countries including Benin, Cameroon, India, Mozambique, Pakistan, Senegal, Tanzania
and Uzbekistan.
·
Investment
and Employment Opportunities: The Cotton Partnership estimates that US$12 billion
in investment over ten years is required to transform the sector, potentially generating
500,000 direct jobs for women and young people and another 1.5 million indirect
jobs.
·
Focus
on Value Addition: The International Cotton Advisory Committee (ICAC) highlighted
that processing raw cotton into garments can increase its value by more than ten
times, demonstrating the benefits of local textile and garment manufacturing.
·
African
Cotton Development: The African Continental Free Trade Area (AfCFTA) has identified
cotton as one of nine priority agricultural value chains under its Agri-Trade Action
Plan to promote industrialisation and value addition.
·
Global
Cotton Production Outlook: World cotton production is projected at 25.9 million
tonnes in 2026, while consumption is expected to reach
26.1 million tonnes, slightly exceeding production.
·
Major
Producers and Traders: China, India and Brazil are projected to be the largest cotton
producers. Brazil, the United States, Australia and West Africa are expected to
be major exporters in 202627.
·
West
African Cotton Exports: West African countries are expected to export approximately
960,000 metric tonnes of cotton in 202627, representing
a 6% increase over the previous year.
·
Stalled
WTO Negotiations: The C-4+ group of African cotton-producing countries expressed
disappointment over the lack of progress in WTO cotton negotiations, particularly
regarding further disciplines on trade-distorting domestic subsidies.
·
Market
Access and Tariff Barriers: Members called for better monitoring of tariff and non-tariff
barriers, improved rules of origin and effective implementation of the 2015 Nairobi
Decision concerning cotton exports from least-developed countries.
·
India's
Position: India, China and the European Union highlighted measures taken to provide
duty-free and quota-free market access for cotton originating in least-developed
countries.
·
Way
Forward: WTO members stressed greater investment, local processing, improved productivity,
sustainable production and better market access to strengthen the global cotton
value chain and generate employment in developing economies.
[ABS News Service/02.11.2026]
Deputy Director-General Jean-Marie
Paugam welcomed members and observers to WTO headquarters in Geneva for the first
of two sessions. Discussions in the morning, which he chaired, focused on development
assistance to the cotton sector, while those in the afternoon - chaired by Ambassador
Ali Sarfraz Hussain (Pakistan) - considered trade-related developments. Both meetings
are part of a series of consultations organized biannually by the WTO, with participation
from other international organizations.
DDG Paugam opened by noting that
in recent months the Partenariat pour le Coton (Cotton Partnership) had made "concrete progress,"
with the Partenariat Secretariat developing and sharing
a structured action plan outlining short-, medium-, and long-term objectives.
The Cotton Partnership is a flagship
initiative launched in February 2024 to mobilize large-scale investment in Africa's
cotton sector.
DDG Paugam noted that at least
five more African countries have begun work toward joining the Partnership, which
he said would hold a dedicated session to promote investment during the 2026 Global
Review of Aid for Trade on 29 October.
A representative from the United
Nations Industrial Development Organization (UNIDO) updated WTO members on the status of the work plan. This included
work to coordinate support; mobilize and de-risk investment; improve market access
and sustainability; and catalyse programme development.
The WTO Secretariat reported that several WTO members and
observers had reported donations toward cotton development assistance projects.
Donors included Germany, Japan and Switzerland, along with the UN Food and Agriculture
Organization. Recipients included Benin, Cameroon, India, Mozambique, Pakistan,
Senegal, Tajikistan, Tanzania and Uzbekistan, among others.
A representative from the Secretariat
of the African Continental Free Trade Area presented its Agri-Trade Action Plan,
which identifies cotton as one of nine priority value chains, reflecting its strategic
importance for industrialization and the opportunities for increased value addition
arising from the current processing gap.
Ghana informed members that it
plans to host a high-level event in 2027 to celebrate the protection of Kente Cloth
through a geographical indication, which it said would promote value addition in
the textile and apparel sector, support artisan livelihoods, and highlight opportunities
for micro, small and medium-sized enterprises (MSMEs).
A representative from the International
Cotton Advisory Committee (ICAC) presented case studies showing how countries
have successfully added value to cotton by localizing the processing of raw bales.
The study showed that the value of cotton increased from USD 1.80 per kilogram for
raw cotton to over ten times more once transformed into garments.
ICAC highlighted the experience
of Bangladesh, Türkiye and Viet Nam to show how investing in and localizing manufacturing
had contributed to higher GDP and incomes. Steadily rising global demand for apparel
means that the cotton and textile sector could benefit from further investment and
growth in trade.
The C-4+ group of West African
cotton-producing economies announced that Togo had now joined their group, which
includes Benin, Burkina Faso, Chad and Mali, plus Côte d'Ivoire.
The Chair noted that work on
trade could align around market access issues, including rules of origin and tariffs,
and underscored the need for the Secretariat of the Partenariat
to identify target countries for investment outreach.
A study by the Cotton Partnership
found that USD 12 billion in investment is needed over ten years in order to transform
the sector. Doing so could create an estimated 500,000 direct jobs for women and
young people and a further 1.5 million indirect jobs.
In the afternoon session, ICAC
reported to members on market conditions and focused more specifically on the evolution
of the sector in West Africa and opportunities to strengthen it in this region.
ICAC noted that world cotton
production is projected to reach 25.9 million tonnes in 2026, with China being the
largest producer, followed by India and Brazil. Consumption is projected to be 26.1
million tonnes, slightly surpassing production. China and India remain the world's
largest consumers, followed by Pakistan, Viet Nam, Bangladesh and Türkiye. World
trade in cotton is projected to remain on an upward rebound path through 2029. The
largest exporters in 2026/27 are expected to be Brazil, the United States, Australia
and the West African region, with the three largest importers being China, Viet
Nam, and Bangladesh.
ICAC noted that West African
countries are expected to export about 960,000 metric tonnes in 2026/27, up 6% from
last year, with production projected to increase further in the next three years.
The agency noted that much of
the growth in cotton during recent decades came from expanding the area under production,
but yields have not significantly improved.
The C-4+ countries reaffirmed
the critical importance of the cotton sector for their economies and for people's
livelihoods, as did other members, including Cameroon, China, India and Pakistan.
They voiced their disappointment over the lack of progress in negotiations on cotton
in recent years, which have been stalled as a result of persistent differences among
WTO members in the negotiations on agriculture.
While the 2015 Nairobi Ministerial
Conference delivered some progress, eliminating cotton export subsidies and improving
market access for cotton exports from least-developed countries, members have yet
to agree on further disciplines on trade-distorting domestic support. WTO members
were unable to reach consensus on the way forward in agriculture negotiations at
their most recent Ministerial Conference in Yaoundé, Cameroon, in March 2026).
The C-4+ also emphasized the
importance of market access and the need to monitor efficiently the implementation
of the Nairobi Decision in this regard by examining tariff and non-tariff barriers
to the export of cotton by least developed countries. The C-4+ also called for more
work on rules of origin and the impact of recent tariff-related initiatives. India,
China and the EU highlighted the steps they have taken to provide duty-free, quota-free
market access for cotton originating in least developed countries.