Turkey slaps dumping duties on U.S. cotton imports

Turkey has slapped anti-dumping duties on U.S. cotton imports, a U.S. industry trade association said on Monday, fraying relations between one of the world's top fiber growers and one of its biggest customers amid weak global prices and demand.

Imports on a cost, insurance and freight (CIF) basis will incur dumping duties of 3 percent effective immediately, the NCC said, the first official confirmation of the move.

The decision to introduce tariffs has been widely expected since Turkey's Economy Ministry said in February that U.S. cotton was hurting the country's domestic industry.

The NCC vowed to fight the move through the World Trade Organization and Turkish courts, and warned it put U.S. cotton at a competitive disadvantage to other countries and jeopardized U.S. business with Turkish mills.

Turkey is the second-biggest buyer of U.S. cotton, with shipments ranging between 1.5 million and 2 million bales per year.

Still the tariff is lower than expected after Turkey detailed in a February report anti-dumping margins in a wide range for firms shipping to Turkey. Those margins ranged from 3.14 percent for Cargill Co to 7.91 percent for LD Commodities Cotton LLC, a division of Louis Dreyfus Commodities.

The less prohibitive levels offered relief to some. They were expected to slow shipments to Turkey, without halting them entirely.

"It's not great for business, but it could have been worse," said Jordan Lea, chairman and co-owner of Eastern Trading Co in Greenville, South Carolina, and a board member for the National Cotton Council of America.

U.S. cotton prices have been under pressure from huge global inventories as demand for manmade fibers like polyester has stolen market share.

China, the world's largest consumer of cotton, announced plans on Friday to start its annual reserve sales in a bid to cut down its massive stocks.


Latest News

Corn and Soybean Prices Soar Higher, Even With USDA's Surprising March Prospective Plantings Report

USDA's 2023 Prospective Plantings report released March 31 shows farmers intend to plant significantly more corn acres in 2023. At nearly 92 million acres, that's a jump of 3.42 million acres from last year.

Two Major Grain Companies Announce They Will Stop Doing Business in Russia

Within two days at the end of March, two grain companies said they will cease operations in Russia.

6 Spring Ammonia Season Reminders

The next couple of weeks will be busy with ammonia application in Illinois. Here are a few reminders to keep in mind when working with ammonia

9 Steps to a Perfect Corn Stand

More ears at harvest is the key to higher yield. That requires starting with a picket-fence stand with photocopied plants, achieved by adjusting your planter as conditions change from field to field and within fields. 

FieldAlytics Engage: Farmer-Facing App Clears The Communication Pathway

“This is a powerful app designed to strengthen service providers’ relationships with growers by housing essential information in a single source,” says Ernie Chappell, president of Ever.Ag Agribusiness.

Plagued By Drought and High Input Prices, Cotton Acres Could Crumble This Year

Just ahead of USDA's Prospective Plantings report, the largest cotton growing state in the U.S. is seeing another year of drought, and with fields resembling the Dust Bowl, crop prospects are dwindling by the day.