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Cotton Costs: Clothing Prices May Rise, Thanks to Import Quotas

Aired November 21, 2003 - 06:47   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL LIN, CNN ANCHOR: Time for a little 'Business Buzz.' Think trade wars don't affect you? Think again.
Mary Snow reports from the Nasdaq market site in Times Square.

Morning again -- Mary.

MARY SNOW, CNN FINANCIAL NEWS CORRESPONDENT: Hi there, Carol.

Yes, price of cotton is on the radar screen, and things like pajamas could gain in price. This, after the Bush administration announced the new import quotas on Chinese textiles. And analysts point out that the price of raw cotton has gained about 50 percent in the past six months alone to a five-year high, and that's really because of weather problems. But now combined with these new quotas, this could put a pinch on the consumer, because China is the second largest exporter of cotton clothing to the United States.

So what analysts are looking for saying they don't expect prices to gain right away. But they say if trade relations deteriorate, the dollar weakens, then the consumer could feel the pinch in the pocket when buying a lot of cotton goods -- Carol.

LIN: All right. Looks like I'll be wearing last year's dress to the Christmas party. Thanks -- Mary.

SNOW: Sure.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Quotas>


Aired November 21, 2003 - 06:47   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: Time for a little 'Business Buzz.' Think trade wars don't affect you? Think again.
Mary Snow reports from the Nasdaq market site in Times Square.

Morning again -- Mary.

MARY SNOW, CNN FINANCIAL NEWS CORRESPONDENT: Hi there, Carol.

Yes, price of cotton is on the radar screen, and things like pajamas could gain in price. This, after the Bush administration announced the new import quotas on Chinese textiles. And analysts point out that the price of raw cotton has gained about 50 percent in the past six months alone to a five-year high, and that's really because of weather problems. But now combined with these new quotas, this could put a pinch on the consumer, because China is the second largest exporter of cotton clothing to the United States.

So what analysts are looking for saying they don't expect prices to gain right away. But they say if trade relations deteriorate, the dollar weakens, then the consumer could feel the pinch in the pocket when buying a lot of cotton goods -- Carol.

LIN: All right. Looks like I'll be wearing last year's dress to the Christmas party. Thanks -- Mary.

SNOW: Sure.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Quotas>