HS Code:
The 'Of cotton (369)' category, typically classified under various HS codes such as 5208 to 5212 for woven fabrics of cotton or 6105 to 6110 for cotton apparel, includes a wide range of cotton-based textile products. These products encompass raw cotton, cotton yarn, woven fabrics, and finished apparel items such as shirts, trousers, and bed linens. Cotton remains a critical commodity in global trade due to its widespread use in the textile and apparel industries, driven by its versatility, comfort, and biodegradability. This category is a significant contributor to the economies of many developing and developed countries, with trade influenced by factors such as agricultural production, labor costs, and trade policies.
Total Trade Volume
Approximately $60 billion USD
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
$12.5 billion USD
20.8% of total trade of total trade
Increasing
$9.8 billion USD
16.3% of total trade of total trade
Increasing
$7.2 billion USD
12.0% of total trade of total trade
Stable
$5.5 billion USD
9.2% of total trade of total trade
Increasing
$4.8 billion USD
8.0% of total trade of total trade
Increasing
Average Rate
8.5% ad valorem
Highest Rate
Up to 25% in certain markets (e.g., protective tariffs in some African countries)
Lowest Rate
0% under free trade agreements (e.g., EU-India FTA for specific cotton products)
Shift towards sustainable cotton production
Increased demand for organic and fair-trade cotton products, pushing exporters to adopt sustainable practices, though at higher production costs.
2021-2023
Rising labor costs in traditional manufacturing hubs
Shift of production to lower-cost countries like Bangladesh and Vietnam, impacting trade patterns from China and India.
2020-2022
Technological advancements in textile manufacturing
Automation and digital printing technologies are reducing costs and improving quality, benefiting countries with advanced infrastructure like the US and China.
2019-2023
Phase One trade deal between the US and China reduced tariffs on certain cotton apparel products, boosting exports from China to the US market.
January 2023
Increased trade volume by approximately 5% for Chinese cotton products to the US, though tensions remain over other textile categories.
India introduced subsidies for cotton exporters to counter declining global prices and boost competitiveness against other exporters like Bangladesh.
March 2023
Expected to increase India's cotton export share by 2-3% in the global market, though it may face WTO scrutiny for distorting trade.
New EU regulations mandate stricter sustainability and traceability standards for cotton imports, affecting exporters without robust certification systems.
June 2023
Smaller exporters from developing countries may face reduced market access, while larger players like India and China adapt to compliance requirements.