World Trade Organization (WTO) Director General Lamy urged WTO members to pledge to work to salvage the faltering Doha Development Round of trade talks and ensure the multilateral trading system does not become irrelevant.
Lamy spoke during the opening of the WTO's biennial ministerial conference in Geneva. He said WTO members must address the primary question causing the impasse in the negotiations, specifically what contribution major emerging markets (China, India and Brazil) should make towards the further opening of global markets.
Efforts to re-start the Doha negotiations earlier this year following the collapse of the talks in July '08 were unsuccessful in part because the United States insisted that Brazil, China and India increase access for goods and services. This effort was followed by an unsuccessful attempt to secure a "deliverables" package in favor of least developed countries (LDCs) for the December ministerial. That package would have included concessions on cotton.
The United States refused to include a commitment to 100% duty-free/quota free market access for exports from LDCs without additional initiatives that would benefit developed and developing country exporters. To facilitate the discussion of a way forward, Lamy said he would convene a "panel of multi-stakeholders of the WTO" to analyze all these elements and report back to the WTO membership by the end of '12.
US Trade Representative Ron Kirk told the Bureau of National Affairs that he was encouraged that more and more WTO members were coming to the realization that the Doha talks could not go on with "business as usual." He noted, "We can't go back to the same formula and think we'll magically produce a different result. At least we've acknowledged we're at an impasse."
Kirk said that the WTO also must lead the way to examine the issues of vital importance to a "healthy global trading system." These include establishing new market access, disciplining fisheries subsidies leading to stock depletion, food security, trade facilitation and regional trade agreements, he said. He said members should celebrate the organization's "day-to-day work" through its standing committees and monitoring functions, as well as the contributions of the dispute settlement system and existing rules. He struck a similar tone during a Nov. 30 speech at the US Chamber of Commerce in which he stressed that there is "more to the WTO than just Doha."
In a related development, USTR outlined a series of initiatives aimed at helping LDCs benefit more fully from global trade. In a statement, available at www.ustr.gov/about-us/press-office/press-releases/2011/december/united-states-announces-new-initiatives-boost-tra, the Office of the US Trade Representative said the administration would "work energetically" with Congress to enact legislation extending the "third-country fabric" provision under the African Growth and Opportunity Act (AGOA) to '15. The third-country fabric provision allows least-developed beneficiaries under AGOA to use fabric from outside the United States and Africa when assembling apparel for duty-free export to the United States. USTR said the United States also would take "important, new steps" to provide access for in-quota imports of upland cotton fiber from LDCs.
The United States also will extend an assistance program (West African Cotton Improvement Program) for the so-called "Cotton-4" (C-4) countries of Benin, Burkina Faso, Chad and Mali upon the expiration of the existing program in April '12.
In response to the USTR announcement the NCC issued a statement, available at www.cotton.org/news/releases/2011/wacip.cfm, that: 1) commended the Administration for its efforts to resolve cotton trade issues, 2) recommended that the US cotton industry financially support and engage in a more structured exchange between US and W. African industry leaders, 3) urged other major cotton producing countries to follow the NCC's lead and offer the same duty free access to the LDCs, and 4) urged major cotton producing countries to promote an open and transparent system for global cotton fiber trade, by collectively removing distortions from the cotton fiber market -- which have been particularly disruptive to growers in LDCs.
China also announced that it would be offering $20 million worth of technical and financial assistance to four W. African nations to help their cotton growers. At a press conference in Geneva to announce the initiative, China's trade minister, Chen Deming, said the assistance to Benin, Burkina Faso, Chad and Mali would be provided over a three-year period, with the possibility of renewal. The effort will include transferring technology; providing technical assistance for research into plant varieties and seed; supplying cotton plant varieties suitable to growers in W. Africa; supplying agricultural machinery, fertilizer, and seed; and financing educational programs of benefit to cotton growers.
CSP Signup Deadline Near
USDA's Natural Resources Conservation Service (NRCS) announced that the ranking period cut-off date for the Conservation Stewardship Program (CSP) is Jan. 13, '12. Producers interested in CSP should submit applications to their local NRCS office by the deadline so that their applications can be considered during the first ranking period of '12.
CSP is offered in all 50 states, through continuous sign-ups. The program provides conservation benefits including improvement of water and soil quality, wildlife habitat enhancements and adoption of conservation activities that address the effects of climate change. Eligible lands include cropland, pastureland, rangeland, non-industrial private forest land and agricultural land under the jurisdiction of an Indian tribe.
A CSP self-screening checklist is available to help potential applicants determine if CSP is suitable for their operation. The checklist highlights basic information about CSP eligibility requirements, contract obligations and potential payments. It is available from local NRCS offices and on the CSP website at www.or.nrcs.usda.gov/programs/csp/.
As part of the CSP application process, applicants will work with NRCS field personnel to complete the resource inventory using a Conservation Measurement Tool (CMT). The CMT determines the conservation performance for existing and new conservation activities.The applicant's conservation performance will be used to determine eligibility, ranking and payments.
Additional information on CSP can be found on the NCC's home page, www.cotton.org, by clicking on the Conservation icon.Producers interested in signing up during this ranking period should contact their local NRCS office.
Commodity Checkoff Support Reiterated
The NCC joined 19 other agricultural organizations on identical letters to the chairmen and ranking members of the Senate and House agriculture committees and to USDA Secretary Vilsack, which reiterated their strong support for the various state and federally authorized research and promotion programs, commonly known as checkoffs, in which those organizations' members participate.
The letter noted that recent distorted media attacks and ill-conceived legislative proposals ignore how these programs are established and approved in referenda by producers who fund the programs with their own money. With USDA oversight, the letter said, producers have taken it upon themselves to fund more than $905 million of research, promotion and consumer education programs annually through checkoff activities at no cost to the federal government.
"In these austere budgetary times, our producers should be commended and certainly deserve the support of the authorizing committees and USDA," the letter stated. "Our members see the checkoff program as an investment in their families' future, an investment which they and their fellow producers have voluntarily adopted. We support these programs and look forward to working with you to ensure their continued success."
Vilsack/Jackson Meet Again with Agricultural Groups
USDA Secretary Vilsack and EPA Administrator Jackson met with representatives of farm and commodity organizations to discuss current issues and concerns. This meeting was the third of its kind since last year.
Dr. Keith Menchey, the NCC's manager of Science & Environmental Issues, represented the NCC at the well-attended meeting. He voiced the NCC's support for USDA's Office of Pest Management Policy, which acts as a liaison with EPA on pesticide issues.
Secretary Vilsack was quick to warn the group that, because of severe budget cuts to the department, some programs will have to be curtailed or eliminated.
Menchey raised for discussion with Administrator Jackson the issue of EPA's recent concerns regarding the impact on bees of certain pesticide uses for cotton. He summarized a recent meeting that he and Dr. Don Parker, the NCC's IPM manager, had with EPA staff at which Parker questioned the data available to support such concerns and offered the NCC's assistance in obtaining necessary data. Jackson responded that the issue of bee colony collapse was a complex one that involves several factors including stress to the hives because of frequent transportation. She expressed appreciation for the NCC's willingness to work with EPA staff.
Other topics that were discussed included renewable fuel standards, concentrated animal feeding operations, particulate standards, public perception of pesticides, nutrient management rules and water quality standards.
EPA Pushes for Tougher State Enforcement
The EPA Office of Inspector General has released a report which found that "... state enforcement programs frequently do not meet national goals and states do not always take necessary enforcement actions.The scope of the review included selected programs under three statutes: the Clean Water Act, Clean Air Act, and Resource Conservation and Recovery Act.
The review concluded that state enforcement programs are underperforming. The report states that EPA data indicate that noncompliance is high and the level of enforcement is low. EPA does not consistently hold states accountable for meeting enforcement standards, has not set clear and consistent national benchmarks, and does not act effectively to curtail weak and inconsistent enforcement by states.
The report recommends that EPA "... establish clear national lines of authority for enforcement that include centralized authority over resources; cancel outdated guidance and policies, and consolidate and clarify remaining enforcement policies; establish clear benchmarks for state performance; and establish a clear policy describing when and how EPA will intervene in states, and procedures to move resources to intervene decisively, when appropriate, under its escalation policy ... [as well as] develop a state performance scorecard ..."
BWCC Rooms Booking Fast
Rooms are still available, but nearing a sellout, for the NCC-coordinated '12 Beltwide Cotton Conferences set for Jan. 3-6 at the Orlando World Center Marriott. Instructions for housing/registration and other conference information, including the final program, are available atwww.cotton.org/beltwide. The final program also will be distributed at the conferences.
The Cotton Production Conference's general session will feature 1) what went right and wrong in the '11 growing season, 2) producing cotton with a changing arsenal of plant protection products, 3) proven marketing strategies and 4) an update on new farm policy development and other legislative issues.
The Production Conference's workshops will foster interaction between speakers and attendees on timely topics ranging from "Conventional Cotton: Back to the Future" to "Thrips and Nematode Management: Making the Right Decisions on Early-Season Pest Control." As in the past, the New Developments from Industry workshop will feature allied industry representatives talking about new and emerging technology and products such as plant varieties, chemistries, equipment and software.
The 5th annual Cotton Consultants Conference will offer insights gained from the '11 growing season and a discussion on weed resistance management, particularly ways to enhance pigweed control, in '12. The Beltwide Cotton Conferences also include the Cotton Foundation Technical Exhibits and 13 cotton technical conferences.
NCC Planting Intentions Survey Set to Begin
The NCC's annual survey of '12 planting intentions will be mailed to upland and extra-long staple (ELS) cotton producers across the Cotton Belt on Tuesday, Dec. 20. The survey, conducted each year to aid with industry planning and policy deliberations, provides the basis for the economic outlook presented to delegates during the NCC Annual Meeting in early February in Fort Worth, TX. Survey results will be presented during the Joint Meeting of Program Committees on Saturday morning, Feb. 11.
To enhance the survey's accuracy, producers are encouraged to respond by the Jan. 24 deadline. The current survey will be distributed through a combination of regular mail and email with the intent of reaching all cotton farms across the Belt. Growers who do not receive a survey may contact the NCC via email at econsurvey@cotton.org for survey instructions.
ASEAN Supply Chain Conference Successful
The COTTON USA Supply Chain Conference held recently in Singapore was Cotton Council International's (CCI) first ASEAN-focused supply chain marketing conference. The objective was to update the industry on leading factors influencing their business, as well as introduce ASEAN yarn companies using a majority of U.S. cotton to potential customers in the ASEAN region.
The event included 14 ASEAN yarn spinners and 24 international knitting and weaving companies from Hong Kong, Indonesia, Korea, Philippines, Singapore, Thailand and Vietnam. CCI scheduled more than 335 private one-on-one meetings between buyers and sellers. Initial feedback from spinners, as well as from fabric manufacturers, indicates positive support for more COTTON USA conferences of the same format.
Sales Stay Weak, Shipments Steady
Net export sales for the week ending Dec. 8 were 63,200 bales (480-lb). This brings total '11-12 sales to approximately 10.4 million bales. Total sales at the same point in the '10-11 marketing year were approximately 13.9 million bales. Total new crop ('12-13) sales are 398,800 bales.
Shipments for the week were 195,400 bales, bringing total exports to date to 2.3 million bales, compared with the 3.4 million bales at the comparable point in the '10-11 marketing year.
Effective Dec. 16-22, ’11
Adjusted World Price, SLM 11/16
74.22 cents
*
Fine Count Adjustment ('10 Crop)
1.65 cents
Fine Count Adjustment ('11 Crop)
1.70 cents
Coarse Count Adjustment
0.00 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
6
Limited Global Import Quota (480-lb bales)
402,179
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
94.78 cents
Forward 5 Lowest 3135 CFR Far East
NA
Coarse Count CFR Far East
NA
Current US CFR Far East
100.30 cents
Forward US CFR Far East
NA
'11-12 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-Oct.)
92.96 cents
**
**August-July average price used in determination of counter-cyclical payment
