1. EU-Africa Cotton Partnership - concise update & CRM - Dakar, 24-25 November 2005

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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’)

8. 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