China confirms 2014 tariff-rated import quota for cotton

摘要

China's National Development and Reform Commission (NDRC), the nation's powerful economic planning body, confirmed on September 27 that 894,000 tonnes of tariff-rated quota (TRQ) (1% duty) will be issued for cotton during the 2014 calendar year. This fulfils the country's obligations under it accession agreement to the World Trade Organisation. However, one stipulation imposed by the government is that only mills with over 50,000 spindles capacity qualify for TRQ, a factor that is putting smaller mills at a distinct disadvantage in view of the massive gap between local and international prices. Mills' access to international cotton is likely to remain a key issue for the local spinning industry in view of the gulf between local and domestic prices.