Washington, DC
October 24, 2007
The
International Cotton Advisory Committee met in Izmir, Turkey
during October 22-26, 2007 for its 66th Plenary Meeting since
1939. 521 people participated in the meeting, including
representatives from 44 governments and 9 international
organizations.
1. Record Growth in Demand
The Secretariat estimates that world cotton mill use is
increasing for the ninth consecutive season to a record 27
million tons (Annex I). World cotton consumption is estimated to
be above production this season, while world
production is estimated lower than last season at 26 million
tons. Cotton prices are expected to be higher than in recent
seasons. Nevertheless, the world price is expected to remain
lower than the long-term average, and many countries report that
cost pressures remain significant.
2. Urgent Completion of Doha Round Needed
Member Governments reaffirmed that subsidies, tariffs and
quotas that distort production and trade reduce cotton prices
and lead to negative impacts on cotton farmers and the economies
of developing and least developed countries. The successive
decreases in international prices have reduced profitability in
recent years and have caused a decrease in production in some
countries. The Committee called on the WTO and its members to
urgently complete the Doha Round of multilateral trade
negotiations. A balanced, ambitious and timely conclusion of the
Doha Round would contribute to prosperity in the global economy,
poverty reduction, and strengthen the rules-based multilateral
trading system. The Committee noted that progress will be
possible only if developed and developing WTO members are
willing to compromise on key issues, including reductions in
direct support to agriculture and increases in agricultural and
non-agricultural market access. The Committee agreed that a
collapse of global trade talks could thwart efforts by
developing countries to capitalize on higher world prices for
cotton. The Committee noted the outcomes of the WTO 2007 High
Level Session on Cotton, which concluded that cotton remains one
of the ‘litmus tests’ of the development content of the Doha
Round.
The Committee understands that there cannot be an outcome in the
Doha Round without an outcome on cotton,
and there cannot be an outcome on cotton without a conclusion of
the Doha Round.
2.1. The Committee acknowledged the Sectoral Initiative on
Cotton from the four African countries of Benin, Burkina Faso,
Chad, and Mali, supported by the African Union (AU), the
African, Caribbean and Pacific countries (ACP) and the
least-developed countries. The Committee noted the importance of
the Initiative in contributing to solutions to problems
involving cotton production. The Committee strongly supported
the mandate for the trade and development aspects of the WTO
Initiative on Cotton and noted that substantive progress on both
is imperative in order to ensure coherent policy treatment, as
mandated by WTO Members. The Committee recalled that members of
the WTO agreed to treat cotton ambitiously, expeditiously, and
specifically. The Committee welcomed the efforts of the WTO
Director-General Pascal Lamy to reach a satisfactory resolution
of the cotton dossier.
3. Strategies for National Competitiveness
The Committee recognized that competitiveness is market
driven. The development of human resources, improvements in
quality throughout the value chain from fiber to apparel, strong
research and development efforts and creative marketing
strategies are required for competitiveness. Governments can
enhance competitiveness in both cotton production, as well as in
textile and clothing production, through the observation of
social standards and intellectual property rights, the
development of a strong investment climate to encourage private
initiative and investments in storage, transportation, and
communication infrastructure and through support for research
and development. The Committee noted that maintaining cotton’s
competitiveness with synthetic fibers is an important aspect of
“Strategies for National Competitiveness”. The Committee also
noted that demand enhancement efforts can be an important
component of such strategies. It was noted that
macroeconomic factors, such as trade rules and exchange rates,
have significant impacts on national competitiveness. The
elimination of subsidies would contribute to international
competitiveness. Cotton production can be enhanced with
regulations that provide nondistorting incentives for investment
in production inputs and with mechanisms for price risk
management. It was agreed that the Committee would continue to
gather information about current conditions and pragmatic
strategies for competitiveness in cotton production and textile
and garment manufacturing. The Committee welcomed the news that
a National Cotton Council
has been formed in Turkey to advance the interests of cotton and
implement marketstrengthening measures.
4. Cotton Serves as a Sustainable Engine of Economic
Development
The Committee heard from the Chair of its Expert Panel on
Social, Environmental and Economic Performance
of Cotton Production (SEEP). The Panel is collecting information
from countries representing diverse farming systems around the
world and will report to the Committee in 2008. Countries
emphasized the importance of reporting on the legal and social
working conditions of those involved in cotton production,
together with the related costs per country. Without adequate
remuneration, education and a solid social structure, it is
difficult to achieve ecological awareness among farmers and to
foster good management practices.
5. Industry Standardization Promotes Competitiveness
The Secretariat reported that initiatives toward
standardization of instrument testing and the use of
standardized trade rules in cotton were moving forward, and that
these initiatives are helping the cotton industry lower costs
and improve quality in competition with synthetic fibers. The
Secretariat reported that the ICAC Task Force on Commercial
Standardization of Instrument Testing of Cotton (CSITC) began
conducting round trials during 2007 to facilitate international
standardization of instrument testing and provide diagnostic
information to individual testing centers in order to improve
performance.
6. The Committee received a report from its Private Sector
Advisory Panel.
The PSAP recognizes the importance of the work of the
International Forum for Cotton Promotion (IFCP) and encouraged
continued support by the ICAC. The PSAP reported that excess
moisture in cotton bales is a growing problem from several
origins, and the PSAP recommended that the Secretariat
facilitate cooperation with the International Textile
Manufactures Federation (ITMF) to gather information and address
the issues of bale moisture measurements, standards and
education. The PSAP reviewed the ICAC Strategic Plan. Specific
strategies for each goal were reviewed with significant progress
noted. The PSAP reaffirmed that the goals of the Strategic Plan
remain relevant and strategies are appropriate. The PSAP
reported that it believes the ICAC is a globally respected
advocate for the cotton industry and a dependable source for
factual, unbiased information. The Panel commended member
governments for promoting communication and cooperation
throughout the world of cotton, and expressed appreciation for
the consideration of recommendations from the private sector.
7. The International Forum for Cotton Promotion (IFCP)
conducted a breakout session on demand enhancement during the
Plenary Meeting. Participants in the session agreed that
building demand enhancement programs through the entire supply
chain can increase cotton consumption, and that it is important
to understand and influence the consumer at the retail level.
The program reaffirmed that the work of the IFCP is important.
The Committee agreed that efforts to build demand contribute to
the health of the cotton sector and urged that the work of the
IFCP continue.
7.1. Members of the IFCP noted that some companies and
organizations are making inaccurate negative statements about
the social and environmental impacts of cotton production to
promote their own interests and products. The IFCP encouraged
its members to identify companies and organizations making
misleading statements so as to raise awareness of the
questionable validity of such claims and to report such
companies or organizations to appropriate international and
national regulatory institutions.
8. Membership Rising
The Committee welcomed Kenya as its newest member and
recalled that Kazakhstan and Zambia had joined in the past year.
There are now 44 members of the ICAC. Member governments noted
that the ICAC provides public infrastructure in support of the
cotton industry that cannot be provided by the private sector,
and that the ICAC is an instrument of cooperation and
communication to the benefit of all participants in the cotton
economy.
9. CFC and EU Support for Cotton Development
The ICAC expressed its appreciation to the Common Fund for
Commodities (CFC) for supporting commodity development and
acknowledged the benefits to the cotton industry of projects
financed by the CFC. Since the
Fund became operational in the early 1990s, a total of 19 cotton
projects valued at $63 million have been supported. The ICAC
also expressed its appreciation to the European Union (EU) under
its All-ACP Support Programme on Agricultural Commodities, for
its support of an ICAC/CFC project to assist African countries
to implement instrument testing systems.
10. Izmir, The Pearl of the Aegean
The Committee thanked the Government and cotton industry of
Turkey for their hospitality and generosity in serving as
host of the 66th Plenary Meeting, and noted that the city of
Izmir deserves its reputation as the Pearl of the Aegean.
Countries agreed that Izmir is an excellent location for
international events.
11. The efforts of the Secretariat and Organizing Committee in
preparing for the plenary meeting were much appreciated.
12. The Committee accepted an invitation from the Government of
Burkina Faso to host the 67th Plenary Meeting in the city of
Ouagadougou during November 17-21, 2008. An invitation to host
the 69th Plenary Meeting in South Africa in 2010 was also
accepted.
This statement + annex: Supply and
Distribution of Cotton:
http://www.icac.org/meetings/plenary/66_izmir/documents/english/e_statement_2007.pdf
MEMBER GOVERNMENTS
Argentina, Australia, Belgium, Benin, Brazil, Burkina Faso,
Cameroon, Chad, China (Taiwan), Colombia, Côte d'Ivoire, Egypt,
Finland, France, Germany, Greece, India, Iran, Israel, Italy,
Kazakhstan, Kenya, Republic of Korea, Mali, Netherlands,
Nigeria, Pakistan, Paraguay, Poland, Russia, South Africa,
Spain, Sudan, Switzerland, Syria, Tanzania, Togo, Turkey,
Uganda, United Kingdom, United States of America, Uzbekistan,
Zambia, Zimbabwe. |
|
