HS Code:
The 'Of cotton, flax or both' category, typically classified under HS Code 5301 to 5305 for raw materials and 5205 to 5212 for yarns and woven fabrics, encompasses products made from cotton, flax, or a blend of both. These materials are fundamental to the global textile industry, used in the production of apparel, home textiles, and industrial fabrics. Cotton is widely favored for its softness and breathability, while flax (linen) is valued for its strength and durability. This category plays a critical role in international trade due to the high demand for sustainable and natural fibers.
Total Trade Volume
Approximately $50 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Reports
$12.5 billion USD
25% of total trade of total trade
Increasing
$8.3 billion USD
16.6% of total trade of total trade
Increasing
$6.2 billion USD
12.4% of total trade of total trade
Stable
$4.8 billion USD
9.6% of total trade of total trade
Increasing
$3.9 billion USD
7.8% of total trade of total trade
Stable
Average Rate
8.5%
Highest Rate
25% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like the EU Single Market or USMCA)
Rising demand for sustainable and organic cotton
Increased production and trade of certified organic cotton and flax products, particularly in European and North American markets
2021-2022
Shift towards blended fabrics
Growing preference for cotton-flax blends due to combined benefits of comfort and durability, driving innovation in textile manufacturing
2020-2022
Supply chain disruptions due to geopolitical tensions
Trade interruptions and higher costs due to conflicts and export restrictions in key producing regions
2022
The European Union introduced stricter sustainability and traceability requirements for cotton and flax products to combat fast fashion and promote eco-friendly practices.
June 2023
Increased compliance costs for exporters but potential for premium pricing in the EU market for certified sustainable products
India revised its cotton export policy to prioritize domestic supply for its textile industry, imposing temporary export restrictions.
May 2022
Global cotton prices spiked temporarily, affecting importing countries like Bangladesh and Vietnam
A new bilateral agreement reduced tariffs on cotton-based products between the US and China as part of broader trade negotiations.
January 2023
Boosted trade volume between the two countries, stabilizing prices for cotton goods in the US market