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Okonjo-Iweala calls for subsidy cuts to support developing nations

The importance of reducing cotton subsidies, currently amounting to $8 billion, to create a fairer environment for developing countries was stressed by Dr. Naomi Okonjo-Iweala, the Director-General of the World Trade Organization.

This reduction is aimed at improving market access and allowing these nations to gain more from global trade.

Dr. Okonjo-Iweala, speaking at the launch of World Cotton Day 2024, acknowledged the active efforts of WTO members in advancing negotiations towards this objective.

She emphasized the organization’s dedication to supporting the cotton sector and ensuring fair trade practices that empower developing economies.

Despite its high quality and environmentally friendly characteristics, the African cotton sector faces significant challenges, including market distortions and the effects of climate change, as highlighted by Dr. Okonjo-Iweala.

The crucial role of cotton in the economies of West and Central Africa, particularly in the Cotton4+ countries: Benin, Burkina Faso, Chad, Mali, and Côte d’Ivoire, was underscored by the DG WTO. These nations collectively represent the largest cotton-producing region in Africa, yielding over one million tons annually, accounting for 50 percent of Africa’s total output and 4 percent of global production.

During this year’s World Cotton Day, Dr. Okonjo-Iweala commended Benin for its economic progress under President Guillaume Athanase Talon, highlighting the country’s strong economic performance and responsible management.

She applauded Benin for hosting the event, marking its first occurrence in Africa, and emphasized the increasing investment prospects in Africa’s cotton sector.

Dr. Okonjo-Iweala expressed hope that World Cotton Day would serve as a platform for coordinating efforts to enhance conditions for cotton farmers and supporting the transformation of the sector, focusing on sustainable development and maximizing growth, employment, and opportunities.

It was noted by Dr. Okonjo-Iweala that West and Central Africa rank as the third-largest cotton exporters, following the United States and Brazil, emphasizing the region’s significant contribution to global cotton trade, which has increased from $8.2 billion in 2003 to $23 billion in 2022.

However, she highlighted that despite the high quality and environmentally friendly attributes of African cotton, the sector faces substantial challenges, including market distortions and the impacts of climate change.

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