The China Cotton Association will submit an application on behalf of its members for a waiver on import duties on uncombed cotton from the United States, according to its recent statement. The Ministry of Finance posted a list of goods, including cotton that has not been carded or combed, at the end of May that could be eligible for waivers on tariffs that China imposed in July on US goods as part of the China-US trade war. Waiver applications need to be submitted by July 5.
China is a major importer of cotton from the US and tariffs of 25 per cent implemented on imports last year have significantly reduced that trade. In the first half of the 2018/19 marketing year, running from August 2018 to January 2019, China imported only 11 per cent of its cotton from the United States, down from 45 per cent in the same period in the previous marketing year.
It is not clear if the waiver would be granted. Applicants need to explain how the tariffs have damaged their industry and also say if there are alternatives to the US imports. China imports cotton from many other countries, especially Brazil and Australia.
