The Evolution of Cotton Trade and Its Impact on African Countries Under W.T.O Law

Abstract

Cotton has been at the centre of international trade from the beginning of the industrial revolution and has played a fundamental role in the development of many countries. This is because cotton is the raw material for textiles which are a fundamental human need. Cotton also serves as a means of livelihood for millions of people around the world who grow it as a cash crop or work in the textile industry. As a cash crop, it serves as an important source of revenue for many governments. From the outset, it is important to state that cotton in international trade can be categorised either as an agricultural product, a textile product or as any other good/commodity. This classification is important because: (a) as an agricultural product, trade in cotton would be subject to the Agreement on Agriculture which applies to ‘agricultural products’ as listed in Annex 1 of the agreement. Under Annex 1, ‘raw cotton, waste and cotton carded or combed’ (under HS headings 52.01 to 52. 03) are listed as agricultural products and therefore under the scope of the Agreement; (b) as a textile product, trade in cotton was also affected/regulated by the Agreement on Textiles and Clothing (ATC). In fact article 1.4 expressly stated that: ‘... the particular interests of cotton-producing exporting members should ... be reflected in the implementation of the provisions of this agreement’. This agreement terminated after the 10th year that the WTO was in force (2005), none-the-less its inclusion of cotton and cotton products such as cotton yarn under an annex of textile product goes to show that indeed trade in cotton was regulated under the ATC as well; (c) as any other good or commodity, cotton is subject to the General Agreement on Tariffs and Trade, the Agreement on subsidies and any other agreement regulating trade in goods. In my submission I will consider cotton as first a good/commodity like any other under the GATT and as an agricultural product and finally as a ‘textile’. It has been shown that in the ATC, cotton yarn was considered as a textile. Additionally under the 1973 Arrangement regarding international Trade in Textiles (commonly referred to as MFA), the expression ‘textiles’ was defined in article 12 to include ‘yarns’. A similar definition is given for ‘cotton textiles’ under article 9 of The Long Term Arrangement regarding Trade in Cotton textiles (‘LTA’). Finally, According to the Oxford English dictionary, the word ‘textile’ means inter alia, ‘... fibrous material such as flax, cotton or silk’.