The great cotton stitch-up
Published: 30 Nov 2010
Cotton is at the heart of agricultural and economic development in many African countries. It makes a vital contribution to foreign exchange earnings and accounts for a significant proportion of GDP and tax income.
This report by the Fairtrade Foundation shows how, in the 10 years since the initiation of the Doha Development Round of world trade talks over $40bn has been allocated by major economies to supporting their own cotton production. Direct losses to West Africa as a result of US and EU subsidies are estimated at $250m per annum, according to Oxfam. The system pits a typical Malian producer, farming two hectares of cotton, who is lucky to gross $400 a year, against US farms which receive a subsidy of $250 per hectare.