U.S. Cotton Trade Deficit Expanded in Early 2019

(WASHINGTON, DC) USDA estimates released in August indicate the total U.S. cotton textile and apparel trade rose during the first half of 2019, compared with the same time in 2018. U.S. cotton product imports totaled the equivalent of nine million bales of raw cotton from January through June, a two percent year over year increase. On the other hand, cotton product exports declined slightly to 1.7 million bales. As a result, the cotton textile and apparel trade deficit was four percent higher during the first half of this year. The source for U.S. cotton product imports remains concentrated among a handful of suppliers, with the top five countries accounting for nearly 68 percent of total imports during the first half of 2019. Compared with the same period in 2018, shares of four of the top five suppliers. Only imports from China decreased, as U.S. importers appeared to increase reliance on other suppliers as a result of the ongoing U.S.- China trade dispute. Nonetheless, China remains the leading supplier of U.S. cotton product imports, accounting for nearly 30 percent of total imports this year. India supplied 12 percent, while Pakistan, Vietnam, and Bangladesh each contributed an additional nine percent.