USTR - U.S. Announces Launch of West Africa Cotton Improvement Program
                 
The Office of the United States Trade Representative

U.S. Announces Launch of West Africa Cotton Improvement Program
11/10/2005

Another Step By the U.S. to Address Concerns of Key Cotton Countries

OUAGADOUGOU, BURKINA FASO – Today U.S. Secretary of Agriculture Mike Johanns and U.S. Trade Representative Rob Portman announced the launch of the West Africa Cotton Improvement Program (WACIP) aimed at the cotton sectors of Benin, Burkina Faso, Chad, Mali and Senegal.

The program is based on an assessment conducted earlier this year by United States Agency for International Development (USAID) and United States Department of Agriculture (USDA) experts in consultation with experts from these countries on ways to improve production, transformation, and marketing of cotton in the region. The two senior government officials who made the announcement are members of U.S. President George W. Bush’s cabinet.

"We are pleased to announce the allocation of $7 million -- $5 million in fresh funding -- to begin the work of this program. Because this program is a partnership between our countries, we have asked USAID to hold a conference in this region soon after the Hong Kong Ministerial to get countries' input on the final touches of the program's design," said Secretary Johanns.

"The West Africa Cotton Improvement Program is one more way the United States is specifically addressing the needs of cotton dependent countries in Africa," said Ambassador Portman. "When combined with other measures like debt relief, eligibility for Millennium Challenge Account assistance, Administration efforts to end the Step 2 cotton program, and a bold proposal on agriculture in the World Trade Organization negotiations, the United States has taken real steps that can help West Africa, including its cotton farmers."

To complement this program, Secretary Johanns and Ambassador Portman also announced that the National Cotton Council (NCC), which will be a key partner in the WACIP, intends to provide assistance in West Africa during the cotton harvest on recommended measures to control insects and the application of biotechnology.


Background

The West Africa Cotton Improvement Program represents only one part of the overall U.S. response that will help these countries address the development obstacles in their cotton sectors. Other measures include:

· Assistance through the new development agency - The Millennium Challenge Corporation (MCC). The MCC offers the most significant opportunity for many key countries to address long-term development obstacles in cotton. It will result in hundreds of millions of dollars flowing into the region in grant form in a way set by recipient countries. Currently, Benin’s proposal stands at $300 million; Mali’s proposal at $212 million; and Senegal’s proposal at $255 million. On Tuesday, the MCC Board of Directors selected Burkina Faso as eligible to negotiate a compact with the MCC for a transformative development program.

· The G-8 debt relief package will result in hundreds of millions of dollars in relief for Benin, Burkina Faso, Mali and Senegal. This should free up resources for cotton.

· The U.S. will be doubling aid to Africa by 2010 under our G-8 commitment. These countries will benefit from this pledge.

· The new African Global Competitiveness Initiative, a $200 million, 5-year program, is being designed and will also help improve competitiveness and stimulate regional and international trade. This new Initiative will be developed with our African counterparts. The program will help selected countries to diversify their trade and remove key barriers to expanding growth. Some of these reforms should have general benefits for a range of sectors, including agriculture and the cotton sector.

· USAID will program $200 million a year over the next five years to support the Comprehensive African Agricultural Development Programme, in which African Heads of State agreed to achieve and sustain a 6% annual agricultural growth rate.

· The National Cotton Council and USAID cosponsored entomologists from the region to receive training on cotton insect problems in Africa and shorter-term chemical and integrated pest management measures at Tuskegee University.

· USDA has recently sponsored cotton classing and soil management programs.

· The United States Trade and Development Agency has provided grants related to agribusiness and transportation integration in West Africa.

The announcement of the program was made during Ambassador Portman and Secretary Johann’s trip to Burkina Faso to meet with trade and agriculture ministers from the five countries, listen to their concerns, discuss the U.S. agriculture proposal, and explore ways trade capacity building can be helpful. The WACIP is a direct response to requests made in meetings of the "development track" to cotton at the WTO.

A U.S. delegation to Mali composed of USDA, State, USAID, and NCC officials worked with their counterparts in West Africa to create an in-depth assessment of the West African cotton sector, focused on the Benin, Burkina Faso, Chad, Mali and Senegal. Based on this assessment, the WACIP will focus on seven actions:

1. Reduce soil degradation and expand the use of good agricultural practices.

2. Strengthen private agricultural organizations.

3. Establish a West African regional training program for ginners.

4. Improve the quality of C-4 cotton through better classification of seed cotton and lint.

5. Improve linkages between U.S. and West African agricultural research organizations involved with cotton.

6. Improve the enabling environment for agricultural biotechnology.

7. Policy/Institutional Reform.

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