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Article

17 Oct 2008

Author:
Uznews.net

Euphoria from cotton sales can prove to be premature [Uzbekistan]

[original article in Russian; Title translation, and following summary of the article's key points, provided by Business & Human Rights Resource Centre] Despite the boycott of Uzbek cotton by the largest US and European retailers, Uzbekistan managed to sell more “white gold” at the fourth international Uzbek cotton fair than last year. According to the Ministry of Foreign Economic Affairs, Investments and Trade, Uzbekistan suppliers signed contracts for the export of 950 000 tons of cotton- fiber, which exceeds the amount sold last year by 300 000 tons. Companies from Bangladesh, India, China, South Korea, the United Arab Emirates, Pakistan, and Russia were among the major buyers of Uzbek cotton this year. Nevertheless, the boycott of Uzbek cotton by the major US and European retailers, such as Tesco, Marks & Spencer, Target, Gap, Wal-Mart, and other companies will have adverse impact on the income Uzbekistan will get from the cotton sale this year. Sources close to the cotton business report that Chinese companies pay significantly less for Uzbek cotton compared to Europeans. Moreover, textile producers in Bangladesh, India, Vietnam and other countries export their goods mostly to western countries where they may face boycott of Uzbek cotton again.