HS Code:
Subheading 5201.00.80 of the Harmonized System (HS) Code pertains to cotton, not carded or combed, other than those specified in earlier subheadings under 5201. This category primarily includes raw cotton that has not undergone significant processing beyond ginning. It is a critical raw material for the global textile industry, used in the production of yarn, fabrics, and various cotton-based products. Trade in this category is influenced by agricultural production capacities, global demand for textiles, and international trade policies.
Total Trade Volume
Approximately $8.5 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$3.2 billion USD
37.6% of total trade of total trade
Increasing
$1.8 billion USD
21.2% of total trade of total trade
Increasing
$1.1 billion USD
12.9% of total trade of total trade
Stable
$0.9 billion USD
10.6% of total trade of total trade
Decreasing
$0.4 billion USD
4.7% of total trade of total trade
Stable
Average Rate
4.5% ad valorem
Highest Rate
31.4 cents per kg (specific countries under certain trade agreements)
Lowest Rate
0% (under free trade agreements or preferential trade schemes like GSP)
Shift towards sustainable cotton production
Increased demand for certified organic and sustainable cotton under HS 5201.00.80, influencing trade volumes and premiums for eco-friendly products.
2021-2022
Rising production costs due to climate challenges
Erratic weather patterns have affected cotton yields in key producing regions, leading to price volatility and supply chain disruptions.
2022
Growing textile demand in Asia-Pacific
Countries like China, Bangladesh, and Vietnam are increasing imports of raw cotton to meet booming textile manufacturing needs, driving trade growth.
2020-2022
Under the Phase One trade deal, China agreed to increase purchases of US cotton, leading to a surge in exports under HS 5201.00.80 from the US to China despite ongoing tariff challenges.
January 2022
Strengthened US market share in China, potentially shifting trade dynamics away from other exporters like Brazil.
Brazil announced plans to expand cotton cultivation areas to meet global demand, supported by government incentives for agricultural exports.
March 2023
Likely to increase Brazilโs export volumes under this HS code, intensifying competition with the US and Australia.
India imposed temporary restrictions on cotton exports to stabilize domestic prices for its textile industry, affecting global supply chains.
May 2022
Reduced availability of Indian cotton on the global market, driving up prices and benefiting other exporters like the US and Brazil.