LIVERPOOL, UK (Commodity Online): In order to extend cooperation in cotton markets, the International Cotton Association and China Cotton Association (CCA) have joined hands to formally acknowledge the cooperation between the two trade associations.
A memorandum of understanding (MoU) was signed between ICA President, Cliff White and CCA Executive Vice President, Gao Fang, on May 8, 2010 at the CCA and ICA joint forum on international cotton trading, which was held during the China International Cotton Conference in Sanya.
Speaking after the event, Cliff White explained, Based on the spirit of equality, mutual benefit and friendly cooperation, the purpose of the MOU is to uphold contract sanctity, safeguard the operation of trade and improve the trading environment. We know that mutual understanding and cooperation is crucial to strengthening international ties and we believe that having the MOU in place will lead to a better understanding of the trading rules, more effective dispute resolution and, ultimately, help to reduce the list of unfulfilled awards. It is another milestone in the history of the ICA and one that I am proud to have been part of. Signing the memorandum is a very positive step forward for both associations and our members.
Gao Fang added: Since its establishment, CCA has continuously had a good, cooperative relationship with ICA, dedicated to maintaining order in the international cotton trade. The signing of the MOU will strengthen the cooperation and exchange between the two associations in the areas of international trading rules, list of unfulfilled awards and the resolution of disputes between the members of the two associations. The signing of the MOU helps this cooperation to become a long term and effective mechanism. It will also help to further improve the mechanism for resolving cotton trade disputes, improve the trading environment and safeguard the legitimate interests of trading partners.
Nearly 100 representatives from domestic and overseas cotton firms and organisations attended the CCA and ICA joint forum and witnessed the signing of the MOU. The forum was open to senior representatives from major Chinese cotton firms and ICA members and covered a number of key topics - including trading rules, contracting and arbitration.
In a statement issued on May 28, 2010, ICA mentioned that the forum provided an opportunity for dialogue and culminated in an interactive question and answer session, which helped to gain a greater appreciation of the problems faced by Chinese cotton firms and enabled the ICA to provide clarification of how the ICA Bylaws and Rules would be applied in these situations. Cliff White and Gao Fang were supported during the forum by other key members of the ICA and CCA.