COTTON PROGRAM
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Strategy
 The strategy in the cotton/textile sector has shifted slightly from previous years to focus on the programs initiated by the new African Cotton and Textile Industries Federation (ACTIF) that meet the RATES’ objectives of increased trade. The shift in program does not stray from the original target sector, the textile industry, as a main buyer of regionally (and mostly smallholder) produced lint, and as a seller of textile products to the apparel sector taking advantage, where applicable, of opportunities provided under AGOA:
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Key Activities
Activity 1. Promote Global Market Access for African Cotton and Textile Products
RATES’ key partner in carrying out our cotton textile program is the African Cotton and Textiles Industry Federation (ACTIF). ACTIF has created a number of subcommittees to address different issues affecting the cotton and textile sector. The ACTIF subcommittee for Global Trade Initiatives has been proactive in addressing global and regional issues including the European EPA trade agreements. RATES has been working with ACTIF to develop the capacity to lead the industry through an enabling policy process that allows for easier access to both the European and U.S. markets.
With the expiry of the African, Caribbean, and Pacific states (ACP)-Cotonou agreement at the end of the 2007 roundtable, discussions are currently taking place between the Common Market for Eastern and Southern Africa (COMESA), the ACP secretariat, and the member countries of the Eastern and Southern Africa ACP grouping to arrive at a position to present to the EU for negotiation. The principal issues to be addressed for textiles and apparel are the rules of origin and product transformation criteria (under the harmonized tariff schedule). RATES will help ACTIF provide private sector input for incorporation into the negotiation round with the EU. Reaching a consensus will require a delicate balance between the interests of the textile and apparel sub-sectors which can only be achieved through wide regional consultations in order to be truly representative.
Activity 2. Promote ACTIF as a Regional Advocacy Group for Cotton/Textiles.
As RATES’ funding is coming to an end before this organization will reach financial sustainability, it is imperative that the ACTIF secretariat seek non-USAID funding for its ongoing activities.
- RATES will engage a short-term consultant to work with ACTIF to write proposals and concept papers to present to other donors.
- The Cotton team will work with ACTIF to assist member trade associations at the national level in conducting regional interface meetings to promote ACTIF, disseminate information, and solicit government support to adopt a regional trade approach. RATES will encourage ACTIF to develop a strong working relationship with COMESA, EAC and the Southern African Development Community with formal memoranda of understanding (MOUs) and use these institutions to lobby for ACTIF.
- Following significant policy successes in the recent past, and the increasing requests for ACTIF’s direct participation in regional and international trade policy forums, RATES will continue to work with ACTIF and its membership to strengthen its capacity to assume a regional leadership role in regional and global policy deliberation, trade negotiation from the private sector view, and long term formation of strategies and partnerships. ACTIF will continue to conduct and present technical analysis in the public domain that represents the views of the full ACTIF membership.
Actviity 3. Initiate an Investment and Finance Program for Cotton and Textiles
The spinning and weaving sector is the weakest link in the regional supply chain, and identifying investment opportunities for this sector (and others) is critical to the dynamics of the regional supply chain. To address this issue a finance/investment subcommittee has been formed and will work with ACTIF/RATES to design and implement this program. Specifically:
- RATES will engage a short-term consultant to assist ACTIF in identifying regional, pan-African, and international finance organizations to establish a working relationship and as an investment information source.
- RATES (through our contacts with the U.S. and European textile industries) will also work with ACTIF to investigate and research the availability of second hand textile equipment and explore favorable potential investment options in this regard.
Activity 4. Integrate Production, Ginning, and Lint Trade into the Regional System
RATES will work with ACTIF to develop activities that support this sector, including developing production information exchange systems, researching niche markets and certification schemes, and exploring the options and challenges of introducing genetically modified cotton.
- RATES will assist ACTIF in holding a regional organic cotton conference in Uganda during March/April 2008. RATES will provide a short-term event planner to help with the organization of the conference.
- RATES will work with ACTIF to create a system of information/technology exchange on research matters, varieties, and seed to improve yield and quality, including the continued assessment of genetically modified cotton.
- RATES will assist ACTIF in exploring “niche” market options such as organic cotton and long, stable varieties and will investigate the introduction of “Fair Trade” certification and practices.
Activity 5. Enhance Interregional Trade and Supply Chains in Cotton/Textiles
As indicated in the SOW, this activity has been a key focus of RATES for the past three years and significant progress has been made through the www.cottonafrica.com trade site. Although the trade site will continue to be a key element of this activity, the program will be augmented, and, through support to the ACTIF subcommittee on interregional trade:
- The RATES cotton textile team will assist ACTIF to further refine a regional/Africa cotton industry database on www.cottonafrica.com and create an inventory of all companies that are ISO, WRAP or SA8000 certified. RATES will oversee the input of the data into the revised trade-industry database.
- By the end of RATES, www.cottonafrica.com will be merged into a dedicated ACTIF website (www.actifafrica.com ) for promotion and as a trade, finance, and investment information source that will promote knowledge and technology transfer across the region. RATES has seconded a site manager to be charge of managing the site and will be transferred over to the ACTIF Secretariat by the end of RATES.
Deliverables
- Institutional structure and secretariat formation for ACTIF completed
- At least one additional funding source for ACTIF secured
- A regional organic cotton forum held by the end of the extension period
- At least one national-level trade promotion event held with ACTIF support
- www.cottonafrica.com transitioned to the ACTIF Secretariat and functioning as regional trade information site.
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Program Highlights
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Reports & Papers
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