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Textiles

Cotton-Four clarify their proposal

07 Mar '06
4 min read
Stuart Harbinson, special advisor to the director-general, chairs the consultations on the development side.

The formula
If

Rg = the AMS cut for agriculture in general, and
Rc = the AMS cut for cotton.

Then
Rc = Rg + [(100 – Rg) x 100] / 3 x Rg.

(The cut for cotton equals the general cut plus an adjustment term that gets smaller if the general cut is bigger).

The Cotton Four's paper gives some example calculations:

A 60 percent general cut would produce an 82.2 percent cut for cotton (a difference of 22.2 percentage points).

A 70 percent general cut would produce an 84.3 percent cut for cotton (a difference of 14.3 percentage points).

An 80 percent general cut would produce an 88.3 percent cut for cotton (a difference of 8.3 percentage points).

A 90 percent general cut would produce a 93.7 percent cut for cotton (a difference of 3.7 percentage points).

A 100 percent general cut would produce a 100 percent cut for cotton (a difference of 0 percentage points).

Next meetings
Sheepishly on 27 March or possibly 24 April 2006.

World Trade Organization
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