Lobby for Cotton Fair Trade Gathers Steam
The Times of Zambia (Ndola) May 20, 2003
Frank Katope
Cotton! Cotton! Cotton! The crop is fast becoming one
of the world's leading cash crops that industrialised
countries like the United States of America are heavily
subsidising its farmers to ensure optimum production.
Huge profits being eked out of cotton production in Western
countries have, however, led to a commercial syndrome
which limping Third World countries without any subsidies
to buttress them, are complaining about.
Western or the G8 countries, in their ostensible position
to maintain a market monopoly and a culture of dependence
on the part of cotton farmers in developing countries,
have adamantly tightened the screws around the cotton
market to ensure that only theirs "which is cheaply produced
due to subsidies has an edge over others". A fierce campaign
is now raging and African cotton producers have locked
horns with Western countries over their attitude to sideline
cotton farmers from the continent.
According to Oxfam policy papers briefing, highlighting
the impact of American cotton subsidies on Africa, the
US cotton industry is destroying livelihoods in Africa
and other developing regions. The dossier states that
by encouraging over production and dumping, these subsidies
are driving down world prices, now at their lowest levels
since the great depression. While America's cotton barons
are getting richer on government transfers, African farmers
are forever bearing the consequences.
Agricultural subsidies in USA are at the heart of a deep
crisis in world cotton markets. American cotton farmers
are first among equals in the harvesting of subsidies.
They reap windfall financial gains from government transfers
as their African colleagues continue struggling against
a heavy tide. The iron is that while the US government
loudly advocates free trade and open markets in developing
countries, it is not showing tenacity in following what
it preaches.
Its subsidies are destroying markets for vulnerable
farmers. No region on the face of earth is more affected
by the unfair competition in world cotton markets than
sub-Saharan Africa. In Brazil, the government has challenged
US cotton subsidies through the World Trade Organisation
(WTO). The challenge has a wider significance such that
if it succeeds, it will improve prospects for poverty
reduction in a large group of cotton dependent nations.
"More importantly, it will address a problem that is undermining
the potential of agricultural trade to reduce poverty
namely the use of subsidies to dump agricultural produce
on world markets at prices that bear no relation to the
costs of production. "World cotton prices have fallen
by half since the mid-1990s. Adjusted for inflation, they
are now lower than any time since the great depression
of the 1930s.
Only a limited recovery is in prospect," states the dossier
on cotton compiled by Oxfam. The dossier adds that Central
and West Africa have been devastated as a result of the
cotton trade imbalance. It says more than 10 million people
in those countries depend directly on cotton production
and many millions are affected. Cotton is also for many
Third World countries the major source of foreign exchange
and government revenue.
The US bears much of the responsibility for the slump
in world prices. The only language Americans can understand
to force it to undo the unfavourable trade disposition
towards developing countries is heavy lobbying laced with
a relentless showdown. Since Zambia grows cotton on an
appreciably high scale, the Southern African nation has
also joined West African countries whistle blowers to
declare America offside for its deeds that are crippling
the agricultural and trade sectors in Third World countries.
Since the initiation of major agricultural reforms in
Zambia, cotton production and processing has grown rapidly
and now ranks as one of the most important sources of
crop income among small scale farmers and agro-business
firms.
A cotton industry consultative meeting convened by the
Ministry of Agriculture was on two occasions seven years
ago held in Lusaka to discuss problems and challenges
facing the cotton industry. The meeting brought together
representatives of farmers' groups, assemblers, ginners
research and extension systems and other stakeholders
to identify underlying causes of the current crisis facing
the cotton industry. A set of actions to salvage the cotton
industry that had been entangled in the unfair trade dictates
of the American government were tailored out. Countries
like Chad, Benin, Mali and Ivory Coast are taking an aggressive
stance against American agricultural "imperialism." Zambia
is shaking out of its slumber to add an ounce of energy
pounding the US trade and agricultural attitude towards
Third World countries in the cotton industry.
The lobby for a fair cotton deal has so far brought at
least 50,000 Zambians on board. The organisation development
and community management trust (ODCMT) is in the forefront
of the campaign in Zambia to influence change in the terms
and trade conditions that govern world trade. The rules
which are characterised by unfair trade practices, double
standards and exploitation are being taken head-on in
league with other affected countries. The campaign to
crush to grit unfair trade terms has been dubbed "Make
Trade Fair." "More than 50,000 Zambians have now added
their voices to this popular campaign by appending their
signatures to a petition to make trade a fair practice
worldwide," Kennedy Mulenga at the helm of the campaign
team is quoted as saying.
Mr Mulenga lamented in Lusaka recently that the imbalance
in global trade favoured developed countries resulting
in impoverished millions of people in developing countries
including Zambia, becoming even more poorer. The Make
Trade Fair" campaign, according to Mr Mulenga, aims at
mobilising at least 500,000 signatures through petitions
to WTO leaders at a meeting to be held in Cancun in Mexico
later next month.
Ripples of protest will also be sent through the assembly
hall where heads of state will gather for a world conference
on trade at the WTO headquarters. Cotton production in
Zambia has doubled since the dismantling of Lintco. It
will indeed be unfair and in fact economical suicidal
to sit back and watch local cotton produced at great expense,
give little returns all because of the big baron-America
being selfish and applying double standards. The big noise
to force a change of heart on the part of US which Zambia
is adding her vocals to, should not be drowned but should
echo far and wide if the world trade order is to swing
in favour of Third World countries like Zambia.
The "Trade Fair" campaign will no doubt change the landscape
of developing nations agricultural sector, by forcing
US to embrace small brothers and sisters in the trade
arena with humane instead of squeezing them. Bravo trade
fair campaign! ______________________________________
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