The National Cotton Council (NCC) is going to fight Turkey’s decision to impose a 3 percent CIF (cost, insurance and freight) duty on all U.S. cotton fiber imports, according to Agri-Pulse.
The Turkish government’s decision to impose the penalties came from accusations that U.S. cotton was dumped into Turkey, injuring the domestic fiber market. According to a statement by NCC Chairman Shane Stephens, the investigation was initiated in October 2014 in response to several U.S. trade investigations of Turkish steel imports.
“In the first place, the investigation itself lacked transparency regarding information used to justify the investigation,” Stephens said a statement. “In fact, data used in support of a finding of injury to the Turkish domestic cotton market ignored established facts to the contrary.”
These penalties could spell bad news for the cotton industry with U.S. cotton farmers already facing a difficult economic outlook, Stephens noted.
Ample evidence, Stephens said, was submitted by the Council showing Turkey’s cotton market experienced price declines from similar factors—stagnant global demand, increased stocks and lower cotton prices—affecting cotton markets worldwide.
“Unfortunately, the import duties only compound the difficult economic climate facing U.S. cotton growers and merchandisers,” Stephens said. “The Council will continue to actively oppose the imposition of duties and is exploring ways to reverse the decision, such as WTO mechanisms and the Turkish judicial system.”