Venezuela offers premium prices of Mali Cotton for UN seat
07 Aug '06
1 min read
During his Auggust 2-3 tour of the West African countries, Venezuelan President Hugo Chavez signed agreements on gold in Mali and potential oil exploration in Benin.
What is of geopolitical importance is the cooperation on cotton deals. In Mali's capital of Bamako on August 2, Chavez announced a proposal under which Venezuela would buy the country's entire cotton output at a premium price - a move designed to gain favor after years of depressed cotton prices.
This announcement will add pressure to the United States and World Trade Organization who are already under stress to give more support to farmers in developing countries, especially in Africa.
In Benin, 60 percent of the population supports itself based on cotton agriculture, and cotton accounts for 70 percent of the country's exports.
In Mali, cotton is the basis of the economy, making up some three-quarters of the country's export earnings. Considering the lack of viable employment alternatives, farming cotton by small-scale landholders represents in many cases the sole means of subsistence for rural West Africans.
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