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African cotton producers urge WTO to curb subsidy

In their statement last week, African cotton producers have said that the Nairobi decision was key to improve market access and eliminate export subsidies for cotton.

Speaking for the “cotton four” (C4) countries — Burkina Faso, Benin, Chad and Mali, the economies of which largely rely on cotton exports, Ambassador Thiam Diallo of Mali is reported to have said that the domestic support programs of major producers were continuing to put downward pressure on global prices of cotton, to the detriment of C4 farmers.

This in turn is having dramatic consequences on rural African communities and forcing thousands of young people to turn to migration in order to earn a living. The statement was supported by the Group of Least-developed countries (LDCs).

The remarks were made at the WTO’s latest consultations on cotton which included the fifth dedicated discussion on trade-related developments for cotton as well as Director General’s Consultative Framework Mechanism on Cotton.

The discussions were the first since WTO members adopted a decision on cotton at their 10th Ministerial Conference in Nairobi last December.

The decision requires developed countries to eliminate export subsidies for cotton immediately and for developing countries to do so by 1 January 2017.

 
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