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Great price gap may crash cotton sliding-scale duty policy

Great price gap may crash cotton sliding-scale duty policy Source:
Date: 12-06-2012
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China’s import cotton market shows three characteristics in 2012. First, cotton import volumes are enormous. Second, price gap between Chinese and international cotton hit historic high. Third, transferring prices of sliding-scale duty quota are speculated higher and higher. Actually, since domestic cotton prices were supported by state reserve while international cotton prices slumped on dull demand, Chinese mills had to pay more attention to low-priced international cotton and as a result, sliding-scale duty quotas have been speculated.

I. Policy on import quota
II. Market status of import quota
III. Cotton textile industry status
IV. Possible new import way

Cotton import of China in 2011/12 season
Available MFN for cotton
Comparison between the costs under sliding-scale duty and 40% import tariff

Indian cotton prices under sliding-scale duty and 40% import tariff

Regulations of the People's Republic of China on Import and Export Duties
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