Australian cotton industry statement on exports to China

16/10/2020
Australian cotton industry statement on exports to China

The Australian cotton industry is working to understand apparent changes to export conditions for Australian cotton to China.

In a joint statement on October 16, the chief executive of Cotton Australia, Adam Kay, and the chair of the Australian Cotton Shippers Association, Michael O’Rielley, said it had become clear to them that the authorities in China had tried to discourage spinning mills there from using cotton from Australia.

“Our industry is working with the Australian government to investigate the situation and fully understand what is going on,” the industry figures said. 

In the statement, they commented that the Australian cotton industry has “earned a reputation as a reliable international supplier of cotton with fast shipping times to export destinations and reliable delivery”.

They went on to say: “Our crop is in strong demand internationally and can attract a price premium, due to its high quality, excellent sustainability credentials, reliability and proven track record in meeting manufacturer and consumer needs, including in China.”

The statement then said that the Australian cotton industry’s relationship with China was important to it and had been mutually beneficial for years and that it hoped to find a resolution to the current dispute. But they warned that Australian cotton growers and exporters would be able to find buyers in other markets if they had to.

There have been trade tensions between China and Australia since July 2019, when Australia and 21 other nations signed a letter condemning China’s treatment of the Uyghur minority ethnic group.