The National Cotton Council said it will try to reverse Turkey’s decision to assess anti-dumping duties on U.S. cotton, including steps such as a WTO complaint and a lawsuit. Turkey is the second-largest market for U.S. cotton exports, importing from 1.5-2 million bales of the American-grown fiber annually. The Economic Ministry concluded in February that U.S. cotton imports were damaging domestic production, making anti-dumping duties a possibility. The duties took effect immediately and will be assessed on the CIF (cost, insurance and freight) value of the cotton.
Cotton council chairman Shane Stephens said in a statement that Turkey’s cotton farmers suffered for the same reason as growers worldwide — low market prices due to a massive surplus equal to a one-year supply of cotton. “Unfortunately, the import duties only compound the difficult economic climate facing U.S. cotton growers and merchandisers,” said Stephens. The farm-gate price for U.S. cotton is the lowest in nine years. Stephens said Turkey opened the cotton case in retaliation for a U.S. investigation of Turkish steel. Along with China, India and Pakistan, Turkey is one of the world’s leading textile producers.