Turkey has accused the US of dumping cotton and has launched a probe. The investigation could result in penalties on US cotton imports. However, Turkey’s textile industry doesn’t want any such probe. News of the probe into US fiber imports a month ago has brought buying by Turkish mills almost to a standstill, escalating fears in the United States, the world's top exporter, about demand from one of its top foreign buyers. If a probe takes place, Turkey fears mills will go to Brazil, Greece or Australia for their cotton.
Turkey's mills hope the US government will also help pressure their country for a resolution of the anti dumping investigation. The probe comes at a tough time for the global cotton industry as prices sink below the cost of production because of slowing demand in China, the world’s largest textile market.
In Turkey, mills are plagued by unrest in important markets, including Ukraine and Syria, where demand has dried up. Syria was not only a significant market but a door to the whole Arab peninsula. It is a big blow for the United States too as buying by Turkey's mills has slowed since the launch of the probe.
