China : Initiate cotton anti-dumping investigation against US, experts

The large quantity of imported cotton is changing the development pattern of China’s cotton industry: In the first half of this year, cotton imports amounted to 2.74 million tons, nearly half of China's total cotton output this year.

At present, imported cotton has laid down a basic position in China’s cotton market.

Since last year, the US cotton has constantly grabbed China’s cotton market share by relying on its price of 1,700 yuan per ton below China’s local growth.

Due to the time limitation and quantitative restriction of import cotton quotas, Chinese textile manufacturers could not purchase cotton from international market in time, the voices of textile enterprises to seek free cotton imports are rising.

Just six months ago, many textile enterprises would rather cut off production than to take in domestic cotton. They waited with great patience for the state to issue import cotton quotas, in resulting large domestic cotton stocks in the first half of this year.

If the domestic textile industry continues to extend their reliance on foreign cotton, China’s cotton industry will lose its security and strategic infrastructure protection in the country.

Some researchers from Shanghai WTO Consultant Advisory Center believe that heavily subsidized US cotton rushing into China in large quantities has, in fact, harmed the interests of domestic cotton growers and cotton traders.

China should proceed to cotton trade relief measures as early as possible, such as anti-dumping investigations.
 
Du Min, a researcher at the Agricultural Economic Research Center under the Ministry of Agriculture, said, "If the investigation proves that the US is dumping cotton, even if the effect would not reach up to the expectation, China at least could win some bargaining chips for herself in trade negotiations with the US and other trade talks. These measures are commonly used in international trade."

Other experts point out that to launch an anti-dumping investigation should satisfy certain conditions, such as the existing dumping of the imported goods, the injury to the domestic industry, the existence of a causal link between dumping and injury.

Moreover, enterprises and organizations to apply anti-dumping investigation should also have industrial representation.

So much basic work needs to start as early as possible. It would be too late to start an investigation, when domestic cotton industry gets to the brink of collapse.
 
 
Fibre2fashion, News Desk - China