Taiwan Cotton Imports Seen Rising in 2004-05

TAIPEI - Jun 3/04 - SNS -- Taiwanese cotton imports are expected to continue growing through the 2004-05 marketing year, rising 3% to a projected 1.08 million bales.

"The increase in import forecasts is primarily due to anticipated decreases in world cotton prices that will encourage stocks building despite the ongoing contraction in Taiwan's textile industry," argues the U.S. agricultural attache here in a report on the sector.

This is positive news for the cotton industry in the United States, which continues to garner a 35% share of the market. However, the forecast increase in imports "assumes that prices will fall from relatively current high levels," notes the U.S. agricultural attache.

The U.S. agricultural attache says the United States enjoys a competitive advantage in Taiwan because of its "price competitiveness, consistent quality and reliable delivery. These qualities continue to make U.S. cotton the foundation of Taiwan's textile formulations. Other origins tend to compete with each other more than with U.S. cotton."

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