"Contract sanctity is a fundamental building block of trade relations and widespread disregard of the principle should sound a loud warning to the extension of trade preferences," Clarke said. "The U.S. government should carefully consider a foreign government's record of enforcing commercial commitments when granting eligibility to a U.S. trade preference program." NCC Vice Chairman Jimmy Dodson, a Robstown, Tex., cotton producer, said, "The defaults are threatening the ability and the willingness of cooperatives and merchants to enter into forward contracts with producers, thereby reducing competition for cotton fiber and resulting in lower prices for farmers."
U.S. cotton industry leaders met this week with senior U.S. government officials to discuss the serious financial losses accruing in all industry #
AMCOT's Mike Quinn, president of Carolinas Cotton Growers Cooperative in Garner, N.C., agreed saying, "Contract defaults ultimately mean lower prices and reduced returns for producers. In addition, merchant and cooperative losses jeopardize U.S. jobs and threaten the fragile commodity banking system."
U.S. cotton industry leaders met this week with senior U.S. government officials to discuss the serious financial losses accruing in all industry #
NCTO's Dan Nation, division president of Parkdale Mills in Gastonia, N.C., noted, "U.S. textile mills honor their commitments or face quick legal action in U.S. courts. International mills operate under fewer judicial constraints and gain a competitive advantage by their ability to default without penalty, reducing their relative raw material prices and allowing them to undercut prices for yarn, fabrics, and garments offered by non-defaulting mills."
National Cotton Council (NCC)
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