Turkey has launched a probe into possible dumping of US cotton in the country. The country alleges unfair competition in imports of non carded or combed cotton originating from the United States. The move was significant for several reasons. It came just a few days after US regulators cleared the way for a 1.25 per cent anti-subsidy duty on Turkish imports of steel rebar, which is used to reinforce concrete.
Washington-Ankara relations have been strained by Turkey's reluctance to play a frontline role in the fight against the Islamic state on its Syrian border. Turkey was the biggest importer of US upland cotton last year, buying 1.1 million bales. The increased demand for cotton is also due to a resurgence in Turkish textile industry, which is selling more textiles and apparels to Europe even as demand remains sluggish due to the slow economic recovery. Turkey's mills and garment producers are making inroads into Europe due to their close proximity to consumers while its Asian rivals are switching their focus to the Far East.
The case comes as the world’s cotton farmers struggle with weak prices, which have plunged by a third since May on forecasts of another record surplus and falling demand from China, the world's top textile market, as Beijing overhauls its stockpiling policy.
