October 17, 2015
COTTON
The Trans-Pacific Partnership (TPP) will provide significant new market opportunities for U.S. exporters. It will
promote economic growth in the Asia-Pacific region, expanding demand for U.S. food and agricultural products
among nearly 500 million consumers in TPP partner countries. The TPP strengthens trade rules and provides
specific new market access commitments for U.S. agricultural exports to Japan, Malaysia, Vietnam, New
Zealand, and Brunei.
The United States is the world’s largest cotton exporter, shipping $1 billion of cotton to the TPP region and
$4.4 billion to the world in 2014. Nevertheless, exports of U.S. cotton and cotton products face competition in
the TPP region. Under the TPP, U.S. exports stand to benefit from expanded market access opportunities, a
reduction in trade barriers, and preferential tariff treatment.
Japan
Japan imported $61 million of U.S. cotton in 2014. Under the TPP agreement, all of Japan’s tariffs on cotton
will remain at zero percent.
Malaysia
The United States exported $7.2 million of cotton to Malaysia in 2014. Under the TPP agreement, all of
Malaysia’s tariffs on cotton will be locked in at zero percent.
Vietnam
The United States exported $393 million of cotton to Vietnam in 2014. Vietnam’s large and growing textiles
industry offers significant opportunities for U.S. cotton exporters. Under the TPP agreement, all of Vietnam’s
tariffs on cotton, currently as high as 10 percent, will be eliminated within four years.
New Zealand
All of New Zealand’s tariffs on cotton products will be locked in at zero percent.
Brunei
All of Brunei’s tariffs on cotton products will be locked in at zero percent.
United States
The United States will eliminate tariffs on cotton, currently as high as 31.4 cents per kilogram (19.6 percent ad
valorem equivalent), within 10 years.
NOTE: Data on U.S. domestic exports are from the U.S. Census Bureau. Data on Japan's imports are from Japan Customs.