Home / Knowledge / News / Textiles / US cotton associations seek govt help on contract defaults
US cotton associations seek govt help on contract defaults
28
Sep '12
U.S. cotton industry leaders met this week with senior U.S. government officials to discuss the serious financial losses accruing in all industry segments as a result of massive defaults on cotton export contracts. Industry leaders emphasized the threat these contract defaults posed to the growth of U.S. exports and underscored the crucial importance of contract sanctity and the enforcement of arbitration awards as cornerstones of international trade.

The delegation from the National Cotton Council (NCC), the American Cotton Shippers Association (ACSA), AMCOT and the National Council of Textile Organizations (NCTO) met on September 25-26 with USDA Secretary Thomas Vilsack, U.S. Trade Representative (USTR) Ron Kirk, and Assistant Secretary of State William E. Craft, Jr. The sessions followed up previous meetings with Administration officials and leading Members of Congress in August and March.

The cotton industry leaders reported that contracts worth nearly $1 billion, covering sales of more than 4 million bales, are either in default or are at risk of default with little sign of resolution. The delegation explained that while the industry has worked diligently to utilize the internationally recognized arbitration system, far too many foreign mills have refused to honor eventual awards. Worse, in many cases, the host governments appear to be protecting the foreign mills from enforcement of awards, a concern exacerbated in cases in which the mills themselves are state owned.
 
The delegation urged the U.S. officials to pressure foreign government counterparts, emphasizing the crucial importance of contract sanctity as a cornerstone of international trade and warning that a failure to enforce contracts will disrupt international trading relations and undermine the support for future trade agreements. The delegation also noted that other U.S. commodities, such as grains and oilseeds that are currently enjoying record prices, could be at similar risk in the future if the United States doesn't take a strong stand in defense of contract sanctity.
 
The delegation suggested that U.S. officials use the leverage of trade preference discussions to impress on foreign government officials the importance of honoring contracts. They further suggested that if U.S. government agencies are sourcing products from suppliers in default that future purchases from those sources should be terminated.
 
ACSA Chairman Ricky Clarke, a merchant with Cargill Cotton, a division of Cargill Inc., in Cordova, Tenn., said textile mills in several countries, including Bangladesh, Indonesia, Thailand and Vietnam, have defaulted on millions of dollars of raw cotton contracts that resulted in severe economic losses for U.S. cotton merchants and marketing cooperatives.
 
 


Must ReadView All

Textiles | On 19th Sep 2017

Maharashtra govt plans 9 textile parks for value-addition

Maharashtra plans to set up nine textile parks in the northern...

Textiles | On 19th Sep 2017

New Delhi urged to include textiles in MERCOSUR PTA talks

The Indian Texpreneurs Federation (ITF) has appealed to the commerce...

Textiles | On 19th Sep 2017

HSBC report says India to be 3rd largest economy by 2028

India is expected to surpass Germany and Japan to become the third...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search