By hannover-web.com In an interview addressing the challenges faced by African cotton, Dr. Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), emphasized the need for a more equitable market by reducing cotton subsidies, which currently total $8 billion. This reduction, she believes, will provide developing countries with better market access and enable them to benefit more from trade.
Speaking during the opening ceremony of World Cotton Day 2024 in Cotonou, Benin, Dr. Okonjo-Iweala highlighted the WTO’s ongoing efforts to support the cotton sector despite facing significant hurdles, such as market distortions and the impacts of climate change. She pointed out that African cotton, known for its high quality and environmentally friendly practices, struggles due to these challenges.
She stressed the vital role cotton plays in the economies of West and Central Africa, particularly in the Cotton4+ countries including Benin, Burkina Faso, Chad, Mali, and Côte d’Ivoire. Together, these nations produce over one million tonnes of cotton each year, representing 50% of Africa’s total output and 4% of global production.
This year’s World Cotton Day, which showcases Benin’s economic achievements under President Guillaume Athanase Talon, was acknowledged by Dr. Okonjo-Iweala for its strong economic performance and effective management practices. She noted the significance of holding this event in Africa for the first time, spotlighting the increasing investment opportunities within the continent’s cotton industry.
“I envision this World Cotton Day as a pivotal platform to align our initiatives to enhance conditions for cotton farmers while promoting the sector’s transformation towards sustainable development and maximizing growth, job creation, and opportunities,” she stated.
Dr. Okonjo-Iweala also mentioned that in terms of cotton trade, West and Central Africa ranks as the third largest exporter, following the United States and Brazil. The contribution of this region to global trade has surged from $8.2 billion in 2003 to $23 billion in 2022.
Despite the high quality and sustainable nature of their cotton, the African sector still grapples with significant obstacles, she noted. Reflecting on historical efforts, she recalled that 20 years ago, the Cotton4 countries called for action at the WTO against unfair trading practices, which eventually led to the sector gaining a unique status within the WTO framework, facilitating regular discussions on trade and developmental issues.
On the development front, she highlighted notable advancements in bolstering the competitiveness of the Cotton4 countries and harnessing the immense potential of cotton markets, not just in Africa but globally. “The African market for cotton alone is valued at $12 billion. We are also looking into external opportunities, particularly in the sports apparel value chain, projected to reach $250 billion by 2026,” she added.
