US To Block Xinjiang-linked Cotton, Tomato Imports

US.Customs and Border Protection (CPB) officials have confirmed that they plan to block imports of cotton and tomato products from Xinjiang region over allegations they are produced with forced labour, although a formal announcement has been delayed.

The Trump administration announcement of the actions, initially expected on Tuesday, has been put off until later this week because of "scheduling issues”, a CBP spokesman said.

The New York Times had reported about the planned move earlier, but the scope of such a ban was not clear.

The "Withhold Release Orders" allow the CBP to detain shipments based on suspicion of forced-labour involvement under long-standing US laws aimed at combating human trafficking, child labour and other human rights abuses.

The cotton and tomato bans along with five other import bans over alleged Xinjiang forced-labour abuses would be an unprecedented move by CBP and likely stoke tensions between the world's two largest economies.

CBP Executive Assistant Commissioner Brenda Smith said that the effective import bans would apply to the entire supply chains involving cotton, including cotton yarn, textiles and apparel, as well as tomatoes, tomato paste and other products exported from the region.

"We have reasonable but not conclusive evidence that there is a risk of forced labour in supply chains related to cotton textiles and tomatoes coming out of Xinjiang," Smith said. "We will continue to work our investigations to fill in those gaps."

US law requires the agency to detain shipments when there is an allegation of forced labour, such as from non-governmental organisations, she said.

The bans could have far-reaching effects for US retailers and apparel producers, as well as food manufacturers. China produces about 20% of the world's cotton and most of it comes from Xinjiang. China also is the world's largest importer of cotton, including from the United States.

The China Cotton Association, a trade body, declined to comment on Wednesday.

A Beijing-based cotton trader said the impact may be limited as the mainland brings in about 2 million tonnes of cotton and 2 million tonnes of cotton yarn from abroad each year, which may be sufficient to produce textiles for the United States. Xinjiang's output is about 5 million tonnes.

"If Xinjiang cotton goes to the domestic industry and non-Western markets, the impact may be limited, it can probably still be digested," he said.

In the short-term, it could also boost cotton imports into China, he added. (Reuters)