lundi 29 avril 2013

All That One Needs To Know About Cotton Exports

By Janelle Burnett


Cotton has been used as fabric for centuries with evidence showing fragments as early as 5000 BC in Mexico and Pakistan (former Indus Valley. Cotton is the most preferred natural fiber in the clothing industry hence demands for it has been soaring. Cotton exports in global markets have also been on a sharp rise in the ever-increasing demand occasioned by the rapid increase of population. This demand has led to an annual production of 25 million tones of the commodity in the world markets.

This article tends to look at the economic importance of the commercialism of the crop to the countries producing the crop. The article also examines the methods used in commercializing the above named crop. In addition, the materials manufactured from the above named crop are also examined.

These exports are estimated to be worth $ 7 billion. This trade has enabled America to have a significant reduction in trade deficit occasioned by other sectors. That produced in The United states is mainly exported to Mexico, Asia, Turkey and other smaller emerging countries with textile industries.

The United States is also one of the leading producers. The country transports her cotton produce via more or less the same ways as other countries doing the same. However, the existence of technology in this particular country has prompted the country to use electric trains in this transportation of the produce in the nearby countries such as Canada.

Africa is also a giant when it comes to this kind of export. Africa has an overseas trade in cotton valued at $ billion.Mali, Egypt, Ivory Coast, Benin and Sudan are some of the largest contributors in the African trade. Africa exports most of which it produces. This is mainly due to lack of textile industries to process the raw material. Most of these textile industries are located in the developed nations and the emerging Asian markets where production is significantly high due to technology and the availability of cheap labor.

On the other hand the United States does not have a hostile approach being the second largest producer. It is also by far the largest exporter in the world and regularly ships 40 to 60% of its yield abroad. This account for 50% of the commodity shipped abroad. Cotton output has earned the country a lot of foreign exchange and has improved in the economy of the country.

Trade in this product is also affected by government policies and global trends. For instance The U. S government greatly subsidizes American farmers. The annual rate of these subsidies is $ 2 billion per year.

The commercialization of the above mentioned commodity also has great economic significance to the producing countries such as Egypt, Brazil and the United States. The production and commercialization of this commodity also enhance industrialization in the world. In addition, it also boosts the economy of these countries that engage in this production and commercialization of this commodity. Cotton exports are therefore very beneficial to the involved countries.




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