Tashkent, Uzbekistan (UzDaily.com) — In the first half of August 2025, a delegation from Uzbekistan visited the United States for negotiations primarily focused on increasing bilateral trade. One of the central topics of the trip was the supply of American cotton.

According to the Ministry of Investments, Industry, and Trade (MIIT), the decision to procure U.S. cotton is aimed at strengthening the position of Uzbek textiles in premium global markets. The imported raw material will be used to fulfill specialized orders that demand exceptionally high quality standards. Inomjon Abdurakhmanov, head of MIIT’s Department of Foreign Trade, noted that American cotton will primarily be utilized in segments where international certification and strict industry protocols are critically important.

He emphasized that Uzbekistan produces between 1 and 1.2 million tons of cotton fiber annually and fully processes it domestically. However, with the introduction of new production capacities, the average utilization of enterprises has dropped to 75%. The resulting spare capacity is expected to be supplemented by imported raw materials, which will enable the production of premium-segment goods, including apparel for leading global brands.

The imports will consist of Strict Middling grade cotton, known for its long and strong fibers, uniform structure, and clean color. These properties make it particularly suitable for high-quality clothing manufacturing. Abdurakhmanov highlighted that the presence of the “Made with US Cotton” label—available when using fiber certified under the US Cotton Trust Protocol—is a mandatory requirement for several global companies, including Levi’s, Puma, PVH, Ralph Lauren, and Tesco.

Producing Strict Middling cotton domestically in Uzbekistan is challenging due to objective factors, such as limited arable land, the need to increase yields, and specific climatic conditions necessary to maintain the proper humidity during maturation. MIIT estimates that addressing these challenges will take at least five years, making the short-term import of U.S. cotton an economically justified step.

The imports will be organized under the U.S. Department of Agriculture’s GSM-102 program, which provides a 12–18 month deferred payment and a credit guarantee of up to 98% of the contract value. This arrangement allows enterprises to pay for raw materials from the proceeds of subsequent export deliveries without tying up working capital.

Although the cost of American cotton is 15–20% higher than local cotton, MIIT expects that the production of high value-added goods will offset the price difference and open access to orders from major brands. Cooperation with American partners, the ministry notes, could have an effect comparable to the 60% growth in textile exports to the EU following Uzbekistan’s accession to the GSP+ program.

Entering premium market segments and meeting international sustainability standards will create conditions for integrating Uzbekistan into global supply chains, attracting new investments, establishing factories for global brands, and expanding their orders.

“Working with companies like Nike or H&M represents the top league, bringing the country not only contracts but also prestige,” Abdurakhmanov stressed, adding that this approach is successfully applied by the world’s leading textile producers, including China, Vietnam, Indonesia, India, Turkey, and Mexico.