Cotton association receives record arbitration requests
03/01/2013
Continued market volatility is a major cause and has resulted in more parties failing to honour their contractual obligations, which is having a direct impact on the number of disputes brought for arbitration.
ICA president Ahmed Elbosaty said: “It is extremely difficult to predict how the situation will evolve during 2013, but as we move into the first quarter the pace does not seem to be slowing down. We have introduced a new business intelligence process that will put the spotlight on firms that are using dishonourable trading practices. We have expanded ICA membership to include agents and we are working hard to promote good trading practice across the global supply chain - delivering free training sessions and educational workshops that focus on responsible contracting and the ICA trading rules.
“Trading with defaulters is not a good business strategy nor is it an honourable way to do business,” added Mr Elbosaty. “If the cotton community sticks together and stands firm on defaulters then we may be able to reduce the stress being placed on the cotton supply chain and improve its economic sustainability. We are confident that the initiatives we have put in place will, in time, have a positive impact and create a safer trading environment.”
Established in 1841, the UK-based ICA is an international trade association and arbitral body with more than 500 members, representing all sectors of the cotton industry and including some of the world’s major cotton companies.
Share this story:
