Cotton growers in the African, Caribbean and Pacific countries and other developing nations, especially Brazil, have won a major battle in the World Trade Organisation against the US whose substantial subsidies to their domestic cotton farmers have distorted cotton prices worldwide for many years. This development is of keen interest to Jamaica, struggling to establish its West Indian Sea Island Cotton production as a fully fledged vertically integrated industry that would encourage regional growers to move up the value chain with this unique crop.

The WTO ruled against the US and imposed annual financial sanctions of approximately US $295 million, for failing to remove subsidies to cotton growers deemed to be illegal which have severely depressed world cotton prices. The United States Trade Representative expected a much lower award, but managed to avoid the US$2.5 billion sanction that leading complainant Brazil was seeking. The annual settlement timing in effect means the longer the US takes to remedy the situation, the more they would increasingly have to pay.

The effects of US domestic subsidies were described as follows: “Critics of the cotton subsidies say they drive down prices, making it impossible for small farms to compete in international markets and more difficult for poorer countries to develop their economies by selling their agricultural produce abroad.”

It was reported that “the Brazilian government brought the case to the WTO in 2002, alleging that the US was able to retain its place as the world’s second largest cotton producer by paying out some US$3 billion to American farmers each year. Still in 2008 the US approved a new farm bill worth nearly US$300 billion leaving other contentious cotton programmes intact”.

In Jamaica the country’s economic woes, compounded by the world recession, have slowed the actualisation of plans to expand the acreage growing Sea Island cotton, now estimated to be 220 acres under cultivation. Cotton picking is a labour-intensive activity, as cotton has to be picked manually. This aspect should now be less of a deterrent with the significant job losses occasioned by the recession. Fortunately, the price of the cotton lint has remained around US$10 per pound and continues to be purchased by Swiss customers. This is testimony to the strong appeal of West Indian Sea Island Cotton.

The world market for cotton is estimated to be three million tonnes per year, with Japan demanding over two million tonnes. Now that the 11-year trade dispute between Jamaica with other Caribbean Sea Island cotton growers has been won, the way is clear for a new profitable deal to be negotiated with Japan who is an eager prospective buyer. The Japanese West Indian Sea Island Cotton Club has presented for consideration a draft plan for restructuring the West Indian Sea Island Cotton Association, and has agreed to make a contribution towards financing the first two years of operations of a restructured WISICA.

Briefly, the dispute with Japan was settled in July 2008 at the Intellectual Property High Court in Japan against the Co-operative West Indian Sea Island Cotton Japan Project, when WISICA had its intellectual property right in the name endorsed by the court, and the West Indies Sea Island Cotton Club of Japan was ordered to return to the Caribbean group the trade mark it had registered as its property.

The overall vision for the industry is to centralise processing of the regional crop in Jamaica, where produce from other island members of WISICA would be consolidated and worked through to the final stage of woven fabric. Essentially, farmers would contract with a joint venture company which would receive the cotton at the cotton collection centre, and transport it to the company’s Ginnery. The ginned cotton would then be delivered to the company’s textile mill where carding, spinning and weaving would take place and the final value-added fabric packaged for sale. Sales of lint would also be exported by the joint venture company, and a reserved stock of lint would be maintained to meet any exigencies that may arise. The process produces three other valuable by-products, namely, cotton seed oil, cake and meal, cotton seed hulls in addition to lint. Cotton seed oil is the most valuable of the by-products and is estimated to account for as much as 50-55 per cent of the combined value of those products.

Given that the recession would eventually end and a degree of prosperity would be restored, the immediate task is to start scouting for potential investors to jump-start the development of the project. The priority is to seek Jamaican investors with a desire to see Jamaica’s agricultural industry become once more a driving force in the country’s economic development, creating jobs and enabling the country to feed, clothe and house itself. West Indian Sea Island Cotton has the potential to become a profitable venture protected from unorthodox competition because of its uniqueness, exceptionally high quality and strong worldwide demand.

Interest has already been shown by the Japanese, Swiss and Chinese textile sectors that should indicate it is time for Jamaican entrepreneurs to consider the project. Interested parties may obtain a comprehensive feasibility study and business plan on request from the Jamaica Agricultural Development Foundation which currently manages the project.

West Indian Sea Island Cotton products retail in many places at higher prices than silk, and have been described by connoisseurs as “the cashmere of cotton”.