Will Xinjiang cotton ban boost India's non-apparel exports to US?

The UFLPA establishes a presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region (XUAR) of China, or produced by certain entities, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods, wares, articles, and merchandise are not entitled to entry to the United States, according to the CBP. 

The UFLPA will have a huge impact on textile-apparel imports into the US, as about 20 per cent of the world’s cotton comes from China, and 84 per cent of that comes from Xinjiang.

US import of cotton non-apparel products from India were valued at $1581.038 million during January-May 2022, according to the latest data released by the US department of commerce. In comparison, imports from China were worth $1013.660 million in the same period. Thus, India has a dominant position in the import with share of 36.41 per cent, followed by China with 23.71 per cent.

The US had imported non-apparel cotton products (home textiles, fabrics, etc) worth $2465.493 million from India in 2020. This jumped by 49.24 per cent to $3679.600 million in 2021. On the other hand, imports from China grew at 12.32 per cent during the same period.

Since India already has a dominant position in the export of cotton non-apparel products to the US, it should get a further boost after the ban. But the extent of advantage cannot be foretold as it is based on several factors including the readiness of the Indian industry.

Fibre2Fashion News Desk (KUL)