The USA noted a marginal surge of 0.5 per cent in the quantity of cotton products import during the January to May 2017 period. Particularly in the month of May, the imports witnessed a hike of 2.3 per cent on the yearly note. The cotton products include cotton yarn, cotton fabrics, cotton made-ups and cotton apparels.
In the period under review, the USA imported 7,640.6 million SME of cotton products worth US $ 18,336.57 million as against 7,601.4 million SME worth US $ 18,740.4 million in the corresponding period last year. However, cotton yarns and cotton apparel imports declined in volume terms by 5.3 per cent and 1.7 per cent, respectively. Meanwhile, cotton fabrics (up 2.5 per cent) and cotton made-ups (up 5 per cent) increased volume-wise during the January to May period when compared with imports during the corresponding months last year.
Somehow, the USA is continuing consolidation in domestic demand of cotton products which is clearly evident by mounting imports, supported by falling dollar exchange rates in China and Vietnam, the first and the third largest cotton product exporters to the USA.
Meanwhile, India, the largest exporter of cotton in the world and the second largest exporter to the USA, might upset the USA in the coming months due to fluctuating value of rupee against dollar.
Apparel Resources’ Take
Since the USA is already out of TPP, causing disruption in Vietnam’s exports to the country, the South-East Asian country will observe the fluctuating export figures in the near future.
Also, the Border Adjustment Tax (BAT) is knocking the door. If implemented, the new taxation system will hit China’s trade with the USA extensively. Things will be clearer once the US trade policies are out officially.