U.S. Exports to the CBI Region Soar
U.S. cotton yarn and fabric exports to the CBI region posted impressive sales throughout 2001, climbing to record levels. During the 1990s, woven cotton fabric exports rose by a lackluster $59 million, to $165 million, while cotton yarn exports rose by a similarly unimpressive $51 million. Yet during the first full calendar year after the new legislation was implemented, woven cotton fabric sales to the CBI region ballooned 167%, to over $441 million. The CBI region’s share of U.S. sales abroad climbed from a low of 9.6% just two years ago to over 29% in 2001. Similarly, U.S. exports of cotton yarn to the CBI region surged 66% in 2001, to a record $104 million. The region’s share of total U.S. cotton yarn exports jumped from 13.1% two years ago to over 39% in 2001, as more CBI-region manufacturers began to take advantage of the quota- and duty free treatment of apparel constructed with U.S. made materials.
 Looking forward, Congress is expected to announce several clarifications to the CBI legislation, in hopes of spurring trade with the region. The origination of dyeing, finishing, and printing processes for knit and woven products and equitable allocation of T-shirt quotas among CBI countries are examples of issues hindering suppliers from taking full advantage of benefits under the legislation. The challenge before the United States remains to capitalize on the opportunity that the CBI affords to gain a sourcing foothold in the region, establish operations and relationships with local manufacturers, and establish a sustainable market advantage before quota restrictions are lifted for World Trade Organization members in 2005.
 Top
U.S. cotton textile and apparel trade with sub-Saharan Africa diverged from U.S. textile trade trends in other parts of the world, climbing to record levels in 2001. U.S. cotton apparel imports from sub-Saharan Africa jumped $176 million (26.9%) in 2001, to a record $833 million, as the region’s share of total U.S. cotton apparel imports reached a record 2.6%. Of the 35 nations eligible for inclusion under AGOA guidelines, only 16 so far have qualified for textile benefits: Botswana, Cameroon, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Uganda, and Zambia. All of these except Mauritius, Namibia, and South Africa qualify for “lesser-developed country” (LDC) benefits, which allow duty-free shipment of apparel to the United States regardless of where the fabric was produced. The six largest suppliers accounted for over 93% of U.S. cotton apparel imports from the region during the 1990s, and they saw their share rise to 97% in 2001 after taking advantage of the benefits of the AGOA legislation.
 The growth in shipments from sub-Saharan Africa was not limited to a particular nation or product, as five of the six largest suppliers in the region increased their cotton apparel shipments to the United States by double-digit rates from 2000, to reach record levels. At the same time, the largest product categories experienced impressive growth in the U.S. market. As with the product mix from the CBI region, the distribution of cotton apparel shipped from sub-Saharan Africa is skewed to a few dominant products, including bottomswear and knit shirts for both sexes, which accounted for 85% of the cotton apparel imported from the region in 2001. Combined, U.S. imports of these products from sub-Saharan Africa expanded 34.8% from last year, to reach record levels.
|
