Dr. Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), emphasized the need to create a fairer competitive environment by cutting cotton subsidies, currently totalling $8 billion. She noted that this reduction would enhance market access for developing countries and help them gain more from trade.
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. Furthermore, she noted that WTO members have worked hard and will continue advancing negotiations to achieve this goal.
The WTO Director-General expressed concern that, despite the high quality and eco-friendly characteristics of African cotton, the sector is grappling with considerable challenges, including market distortions and the impacts of climate change.
She underscored the critical role of cotton in the economies of West and Central Africa, particularly in countries like Benin, Burkina Faso, Chad, Mali, and Côte d’Ivoire, collectively referred to as the Cotton 4+ nations. She added that these countries as the largest cotton-producing region in Africa produce over one million tons of cotton annually, accounting for 50 per cent of Africa’s total output and 4 per cent of global production.
The WTO DG also praised the Benin Republic for hosting the event, which is being held in Africa for the first time, and emphasized 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 maximizing gains in growth, jobs and opportunities,” she stated
Okonjo-Iweala highlighted that West and Central Africa rank as the third-largest exporters of cotton, following the United States and Brazil, making a substantial contribution to global trade, which increased from $8.2 billion in 2003 to $23 billion in 2022. However, she pointed out that, despite the high quality and eco-friendly characteristics of African cotton, the sector is facing significant challenges, including market distortions and the effects of climate change.
According to Okonjo-Iweala “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”.
