International cotton trade has experienced an upward trend during the period from 1980/81 to 1997/98. The stability of cotton trade was interrupted by a number of shocks caused mainly by the policy changes in major exporting countries (China, the U.S., and Former USSR). The position of China in the world market has changed significantly throughout these years, reflecting the imbalance in domestic supply and demand conditions. Among the major exporters, increasing market shares stimulated by the increased production can be observed in countries of Francopone Africa, Australia, Argentina, Paraguay, Greece, and Syria. In traditional importing countries, there has been a decreasing trend in Japan, Germany, and France. A similar declining trend was less pronounced for Hong Kong, Taiwan, and South Korea. Indonesia, Thailand, Mexico, and Brazil have all experienced growth in imports.