Preparation of Partnership Feb 2004: two Communications Ø EU-Action Plan on agricultural commodities Ø Proposal for EU-Africa Cotton Partnership April 2004: EU-Council Conclusions Ø Endorsement of both Ø Cotton: measures on trade & on development Ø supporting cotton in Africa: competitiveness; policies and institutions; cotton in EPAs and price risk management 5-6 July 2004 Paris: EU-Africa Cotton Forum Ø Endorsement of Partnership Ø Action Plan
EU-Africa Cotton Partnership Action Plan: 7 areas 1. International trade Dialogue at forum WTO framework agreement WTO cotton subcommittee Trade & development interlinked 2. National & regional strategies Ø Enhance policy priority to commodities Ø Regard cotton from strategic perspective 3. Policies & institutions Efficiently operating cotton companies Reinforce producer organizations and business associations Efficient input-output credit transactions
EU-Africa Cotton Partnership 7 main action areas 4. Technological innovation Ø Improved soil fertility and reduced pesticide use Ø High yielding seed varieties Ø Instrument classing systems 5. Risk management & finance Ø Hedging pilots in cotton Ø Work on self-insurance systems Ø Cotton risks linked to shock management strategy 6. Chain Integration (textile) 7.Coordination
EU-Africa Cotton Partnership EU Support – National & Regional National level: Ø Strategies & Policies Ø Institutional Strengthening Ø TOTAL – about € 100 million for West-Africa Regional level: Ø Focus on regulatory environment Ø Ongoing project on rapid machine-based testing of cotton (through UNIDO) Ø General: regional integration and trade facilitation
EU-Africa Cotton Partnership EU Support - International level Preparation of €45m international capacity building program on agricultural commodities, incl €15m cotton (for ACP) Indicative involvement of International Organisations: Ø FAO: strategies/plans, diversification Ø World Bank: risk management Ø UNCTAD: transactions/information Ø CFC: projects (such as on instrument classing) Ø ITC: marketing/chain analysis; EC contribution of €25m to a Global Index Insurance Facility, under preparation by WB
EU-Africa Cotton Partnership EC Support - CRM Support to World Bank work (CRM group; GIIF) FLEX (see separate presentation) General/Sectoral Budget Support Finding complementarity with other initiatives (‘toolbox approach’)
EU-Africa Cotton Partnership Looking Ahead Partnership is for the long term 2006: ETR of 9 th EDF 2006: programming 10 th EDF (2008-2012) based on national priority setting for poverty alleviation Conclusion: importance of adequate prioritisation of cotton in national development plans and strategies
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