| The
International
Herald Tribune
| By Anwarul
K. Chowdhury
| March 26,
2004
The
reopening
of World
Trade Organization
talks on
agricultural
trade this
week in
Geneva
provides
an opportunity
to remove
an injustice
against
millions
of people
in some
of the
world's
least developed
countries
-- while
also rationalizing
economic
policies
in the
rich countries
and getting
stalled
trade negotiations
moving
again.
At issue
are subsidies
that distort
the cotton
market
at the
expense
of poor
producers.
Cotton
is one
of the
world's
most heavily
subsidized
crops.
U.S. cotton
that was
exported
at 37 cents
a pound
in 2002
cost agricultural
companies
86 cents
to produce,
even before
shipping,
according
to U.S.
Department
of Agriculture
figures.
The difference
was made
up by the
U.S. government,
underwritten
by American
taxpayers.
In 2001,
the payout
of subsidies
by the
United
States
for cotton
alone soared
to $3 billion,
before
settling
down to
$1.7 billion
in 2002.
These
subsidies,
placed
on cotton
by Europe
as well
as the
United
States,
form a
barrier
to poor
countries
trying
to work
and trade
their way
out of
abysmal
poverty.
Cotton
figures
as a significant
export
item for
at least
20 of the
50 nations
designated
as least
developed
countries
by the
United
Nations.
Most of
these 20
countries
-- where
life expectancy
averages
about 50
years,
and most
of the
population
is living
on $1 a
day or
less --
are in
western
and central
Africa.
Last
year, in
the run-up
to the
WTO ministerial
meeting
in Cancun,
Mexico,
a plea
against
the system
of cotton
subsidies
was issued
by Benin,
Burkina
Faso, Chad
and Mali.
These African
countries
are among
the lowest-cost
producers
of cotton
in the
world.
The
four countries
proposed
that the
European
Union and
the United
States
should
embark
on a three-year
phase-out
of cotton
subsidies,
and set
up a transitional
mechanism
to offset
the losses
incurred
in the
meantime.
Since
the breakdown
of trade
talks in
Cancun
last September,
there has
been some
attention
but too
little
action
directed
toward
the problems
of cotton
growers
from poor
countries.
As
the talks
on agricultural
trade issues
reopen,
it is time
to revisit
the proposal
made by
Benin,
Burkina
Faso, Chad
and Mali.
These countries
are not
asking
for preferences,
but for
a correction
of trade
distortions.
In
addition,
there should
be assistance
for the
development
aspects
of cotton
production
-- improving
technical
capacity,
infrastructure
and the
ability
to bring
cotton
products
with greater
value-added
to the
markets.
In
the poor
and developing
countries,
75 per
cent of
the people
live in
rural areas,
so a full
phase-out
of cotton
subsidies
in the
near term
is critical
to the
international
fight against
poverty.
Such
a move
would not
only open
up economic
opportunity
in some
of the
world's
poorest
countries,
it might
also be
the confidence-building
step needed
to jump-start
progress
in other
areas of
agricultural
trade disputes,
which in
turn are
perhaps
the single
largest
obstacle
to progress
in the
current
round of
trade negotiations.
If that
happened,
the whole
world would
benefit.
*
Anwarul
K. Chowdhury,
a former
ambassador
of Bangladesh
to the
United
Nations,
is a UN
undersecretary
general
and the
UN high
representative
for the
least developed
countries
| 