Turkey plans to impose anti-dumping duties on US cotton imports. But this decision may increase raw material costs of Turkish textile producers by two to three per cent and affect the price competitiveness of Turkish exports. Turkey has decided to place three per cent duty on US cotton imports with the argument that such imports were hurting domestic cotton production.

The face-off is likely to put a strain on trade relations between one of the world’s top fiber growers and one of its biggest customers at a time of weak global prices and demand. Turkey is the second biggest buyer of US cotton, with shipments ranging from 1.5 million to 2 million bales per year. Turkey exported $17 billion worth of garments and ready-to-wear clothing last year and $8 billion of textiles and raw materials.

The country has made headway in cotton production. Availability of high quality seeds, an increased number of harvesters and good farming practices have all facilitated higher yields. Turkish mills have been investing in new machinery and technology to increase quality and lower costs in order to get ahead in the very competitive international textile trade.