New Cotton Business Seen with US-China Trade

July 18, 2000

U.S. cotton industry officials see new business opportunities for both the United States and China through the World Trade Organization accession agreement designed to bring China into the world trading community. The forecast came from Phil Burnett, National Cotton Council (NCC) and Cotton Council International (CCI) executive vice president, speaking to news media in Beijing.

"The U.S. cotton industry annually invests millions of dollars in research to improve the cotton we sell and the manner in which our cotton is packaged, handled and delivered to textile mills. We look forward to the opportunity of providing your textile industry with the range of high quality cottons demanded by the world's consumers," Burnett said.

His remarks came at a news conference on the first day of a CCI mission that includes visits to Hong Kong, Bangkok and Jakarta, followed meetings he had with the top leadership of China's National Textile Industry Bureau and other key Chinese textile industry officials. Between 1994 and 1998, the U.S. shipped 7.5 million bales of cotton to China, which spins more cotton in its textile mills than any other country in the world - some 22 million bales.

As to the potential for enhanced U.S. trade with China, Burnett said the United States is expecting an above average cotton crop this season and will have ample supplies of a wide range of cottons, including extra long staple (ELS).

"For the past several years the U.S. also has become a major exporter in the ELS market and annually accounts for 40% of the world trade in extra-fine cotton," said Burnett. He was accompanied by U.S. Supima Association executive Jesse Curlee.

Only recently, Burnett said, has world cotton consumption begun to expand after almost a decade of unchanged use - a period in which man-made fiber, especially polyester, has experienced continued growth.

"Man-made fibers have posed a considerable challenge to the world's cotton industry," he said. "Hopefully, at some point in the future, the Chinese cotton industry will be able to join other cotton interests in consumer promotion efforts regarding the value of cotton textile and apparel products. The cotton industries in China and the U.S. ultimately must depend on the world's consumer looking for cotton fiber in the textile and apparel products they buy."

China and the United States are the two largest cotton-producing nations, each producing average cotton crops in excess of 17 million bales. Combined with just five other countries, the seven largest cotton-producing nations annually account for more than 75% of the world's cotton production.