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Abstract

In this report, we discuss the implications of the U.S.-China trade war on the U.S. cotton sector. We further discuss developments in global cotton markets over the last decade, such as the increase in global yarn trade and China’s demand for primary processing by foreign countries. It appears that global trends over the last decade might have lessened the impact of China’s retaliatory tariffs on the U.S. cotton sector. However, recent data suggest that the U.S. cotton sector has still been disadvantaged relative to other cotton-exporting countries.

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