Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala has underscored the importance of levelling the playing field by reducing subsidies on cotton, which currently amount to $8 billion, to allow developing countries greater market access and enable them to benefit more from trade.
According to her, WTO members have worked hard and will continue advancing negotiations to achieve this goal.
She spoke at the ongoing World Cotton Day 2024 opening ceremony in Cotonou, Benin Republic, where she highlighted the WTO’s progress in supporting the cotton sector.
The WTO DG lamented that despite the high quality and environmentally-friendlynature of African cotton, the sector faces significant challenges, from market distortions to climate change.
She emphasised the importance of cotton to the economies of West and Central Africa, particularly Benin, Burkina Faso, Chad, Mali and Côte d’Ivoire — collectively known as the Cotton4+ countries.
As the largest cotton-producing region in Africa, these countries, she said, produceover one million tons of cotton annually, accounting for 50 per cent of Africa’s total output and 4 per cent of global production.
Commenting on this year’s World Cotton Day which showcased Benin’s economic successes under the leadership of President Guillaume Athanase Talon, she praised the country for its strong economic performance and the prudent management of its economy.
She also eulogised Benin Republic for hosting the event, which is being held in Africa for the first time and emphasised Africa’s growing cotton investment opportunities.
“I hope this World Cotton Day serves as a platform to coordinate our efforts to improve the conditions for cotton farmers and supports transformation of the sector, focusing on sustainable development and maximising gains in growth, jobs and opportunities,” she said.
Okonjo-Iweala noted that in terms of cotton trade, West and Central Africa rank as the third-largest exporter after the United States and Brazil, contributing significantly to global trade, which has grown from $8.2 billion in 2003 to $23 billion in 2022.
However, she observed that despite the high quality and environmentally friendly nature of African cotton, the sector faces significant challenges, from market distortions to climate change
According to her, 20 years ago, the Cotton4 countries made a call for action at the WTO against unfair trade practices in cotton, adding that this led to cotton gaining a unique status within the WTO, with members regularly meeting to address both the trade and development aspects of the sector.
On the development front, she highlighted the significant progress made in supporting Cotton4 countries in enhancing their competitiveness and tapping into the vast potential of cotton markets, both in Africa and globally.
“The African market for cotton alone is worth USD 12 billion. We are also exploring external opportunities, including the sports apparel value chain, which is expected to reach USD 250 billion by 2026,” she added.
Ndubuisi Francis
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