Call # 243 January 2002

Cotton industry is undergoing a crisis. Chronic overproduction, generated by grant policies and massive aids from Northern authorities to agriculture, caused the collapse of Stock Exchange prices. Southern producers are little by little crippled and threatened with disappearing despite the great efforts they have made for several years to improve their production. The incomes of several millions of people are at stake and the financial stability of countries where cotton is the main source of exportation is severely in jeopardy. That is why African professional organizations launched a call on 21st November, in which they "solemnly ask the USA and the E.U. to stop financing cotton producers". Réseau-Solidarité decided to make this call known and to mobilize.

In the nineteenth century, the first seeds of Gossypium hirsutum cotton variety, originating from the British West Indies, were introduced in West Africa. In the beginning of the twentieth century, while this raw material represented 80 % of textile global market, cotton production has been encouraged by European colonial authorities, in order to counter the monopoly of exportation of the USA and Egypt. West Africa is today the fifth global exporting country with 15 % of the market, behind the USA, China, India and Uzbekistan.

Despite the development of synthetic material, cotton still represents 47% of textile global market. But the supply is more and more exceeding the demand, which causes a constant cut in Stock Exchange prices since 1995 and a catastrophic collapse since the beginning of 2001(1). For the countries in which the exportation revenue mainly comes from this raw material, the situation is alarming: 75 % for Benin, 60 % for Burkina, 50 % for Mali. In these countries, more than 10 million people directly live on cotton production.

Public policies and market rules

In Europe, the mechanisms of the Common Agricultural Policy (CAP) ensure the guarantee of prices to the producers. Therefore, European farmers (in this case Greek and Spanish farmers) can sell their cotton at a stabilized price of 1.06 € / kg of cotton-seed (2) whatever the price on the market, whereas for the farmers from Mali, Benin or Burkina Faso, it is around 0.30 €.

In the USA, the first cotton-exporting country in the world, the same kind of support is given to farmers, through a whole set of direct or indirect aids. In the year 2000, the amount of aids and grants given by the USA to their cotton producers rose to 4,2 billion dollars, ie six times the annual budget of Burkina Faso!

As they are sure to sell their cotton, European and American farmers therefore continue to increase their production and flood the market already saturated, which accelerates the collapse of Stock Market prices. All economic analists think that at this rate, African producers will have to give up their activities in the short term...

African states are totally helpless in the face of their farmers. They are forced to turn to the World Bank asking for new loans enabling them to launch cotton-purchasing campaigns with producers. Of course, these loans come with new conditions, in particular the dismantling of public services in favour of the private sector.

Towards privatization

However, for several years, choices for development in the cotton field have been positive. They are characterized by the " integration " pattern. This means that one national company ensures the supervision of farmers-producers, the supply of funds, seeds, fertilizers and insecticides, the collection of harvests, seeds removing and exportation. This way of organization gave good results and contributed to the support of the global farmer organization.

But for the World Bank and the International Monetary Fund, initiators of the "Sructural Adjustment Programme", the existence of a monopole, even if it is acting for public services, is contrary to the principles of economic liberalism. Hence the measures of partial privatization and of " liberalization " in the cotton field observed in several countries.

The planned dismantling of cotton production in West Africa, and the pressure on prices by agricultural policies of the USA and the EU may vanish years of efforts for the economic development. The neighboring countries will be then deprived of their main source of currencies and millions of farming families will live in poverty. It will then be high time to talk about humanitarian aids!

In view of this situation, West African cotton producers mobilize. The three organizations of producers from Mali, Benin and Burkina Faso have just launched an international call without precedent. They simply claim for the salvage of African cotton and for the respect of fair and equitable trading rules.

We are responsible for making this call heard and for the northern decision-makers to take it into account. That is why Réseau-Solidarité decided to call out to Mr Lamy, European Commissioner in charge of the trade, in order to make him interviene in the international and European authorities to change the rules of the cotton market and to ensure the revenues of small-scale African cotton producers.

West African cotton producers’ common call

At the moment when the point is to fight against poverty, West African cotton producers have quickly understood that making effort was the key to fight poverty. They started the job and just as they got a new record of production, cotton Stock Market prices collapsed all of a sudden!

We therefore have doubts on the will of rich countries to reduce poverty in the poor countries. Grants given to EU and USA farmers help them resist to the collapse of prices.

But it goes even farther. These grants have pernicious effects on the economies of poor countries, because they artificially stimulate production and cause over-production, and therefore lead to the collapse of global Stock Market prices. By giving grants to their cotton producers, the U.S.A. and the E.U. severely endanger the african cotton, and therefore the future of millions of producers, as well as the economies of numerous countries such as Benin, Burkina Faso and Mali.

Therefore, we solemnly ask the U.S.A. and the E.U. to stop giving grants to cotton producers.

We ask every person fighting for a fairer and brotherly world to join us to put pressure on the USA and the EU for them to stop these grants.

Bobo-Dioulasso, 21st November 2001

UNPCB President (Burkina) François Traoré FUFRO President (Bénin) Issa Ibrahima Sycov President (Mali) Ampha Coulibaly

62,01 cents US per pound of cotton-fiber (ie after treatment) on 30th January 2001, 28.52 cents US on 25th October. Global Stock Market prices are today much lower than they were 10 years ago: they were varying around 60 cents US!

ie during harvest, before any treatment.

Ecrivez !

M. Pascal LAMY

Commissaire européen

200, rue de la loi

B - 1049 BRUSSELS

BELGIQUE

Phone : 32 2 298 13 99

E-mail: Commissaire-Lamy@cec.eu.int

TEXT suggested (this text is only a suggestion, you can adapt it to your own style)

Mister Commissioner,

I have been informed by Réseau-Solidarité (10 quai de Richemont 35000 RENNES) on the situation of African small-scale cotton producers, victims of aids and massive grants given by northern governments to their producers.

West african cotton producers decided to stand together to save the African cotton.

I insist on you taking all the necessary measures to take part in the defence of the farmers in the European and international negotiations in which you participate.

Yours truly,

(signature)

To get more information on the African organizations call

www.abcburkina.net/coton.htm

To read

L’Afrique peut-elle être compétitive ? - Claire Mainguy - Karthala 1998

La Compagnie Française du Textile est morte, vive Dagris ! - Sylvie Rantrua - Jeune Afrique Économie (12 juillet 2001).

Call realised with

Antenne de Paris : 34 avenue Reille - 75014 PARIS

Tél. 01 53 80 08 40 - fax 01 53 80 02 41

Courriel : foi-justice@wanadoo.fr