HS Code:
This category, typically associated with cotton having a staple length of 28.575 mm (1-1/8 inches) or more but under 34.925 mm (1-3/8 inches), falls under HS Code 5201.00 (Cotton, not carded or combed) or a related subheading. It includes medium-staple cotton varieties widely used in textile manufacturing for producing high-quality fabrics and yarns. This type of cotton is prized for its balance of strength and fineness, making it suitable for a range of apparel and industrial applications. Global trade in this category is influenced by agricultural production conditions, textile industry demand, 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
$0.5 billion USD
5.9% of total trade of total trade
Stable
Average Rate
4.5% ad valorem
Highest Rate
10% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as USMCA or EU trade deals)
Increased demand for sustainable cotton
Growing consumer preference for eco-friendly and ethically sourced cotton is pushing exporters to adopt sustainable farming practices, impacting trade patterns by favoring certified producers.
2021-2023
Shift in textile manufacturing to Asia
Rising demand from textile hubs in countries like Bangladesh, Vietnam, and China has increased imports of medium-staple cotton, reshaping traditional trade routes.
2020-2022
Climate change affecting production
Unpredictable weather patterns and water scarcity in key producing regions are causing fluctuations in supply, leading to price volatility in global markets.
2019-2023
The United States and Brazil reached an agreement to reduce tariffs on cotton exports, boosting Brazil's access to the US market and enhancing bilateral trade.
March 2023
Expected to increase Brazil's export volume by 10-15% over the next two years, potentially affecting market shares of other exporters.
The European Union introduced stricter sustainability and traceability requirements for cotton imports, mandating certifications for environmental and labor standards.
January 2023
Smaller exporters may face challenges in compliance, potentially reducing their market share in the EU while benefiting larger, certified producers.
India imposed temporary restrictions on cotton exports to ensure domestic supply for its textile industry amid rising global prices.
May 2022
Caused a short-term supply shortage in key importing countries, leading to a spike in global cotton prices and benefiting other exporters like the US and Brazil.