International Cotton Association
Cotton trade arbitration
What is ICA's definition of 'safe trading environment'? How can the interests of buyers and sellers of cotton be protected?
Most of the international cotton trade today takes place under ICA rules. The rules were developed over 170 years ago to help regulate the sale and purchase of raw cotton. They have changed with time to adapt to the trading environment, but their aim remains the same - to create a safer trading environment.
Cotton has a significant volatility in terms of prices, which has led to some defaults in the world-wide market. If you are a member of the ICA and abide by its rules, you portray a 'clean' image for yourself. It shows that you follow certain principles and values and that you support safe trading.
Creating a safer trading environment does not discriminate between the buyer and the seller. It's about protecting the rights of everybody in the market. Our membership comprises of a very decent mix of buyers and sellers. Buyers are made known of the rules and regulations of the association. They are made known of their rights and their obligations. I believe that this will adequately protect the buyers on all accounts. It goes the same with protecting the rights of the traders.
I believe that today it is very important to know the codes of conduct and dos and don'ts in cotton trading and we conduct training in this regards, as we believe that training and education are also directly linked to creating a safer trading environment.
The mission of the ICA is to maintain a safe trading environment and to literally protect your business.
Published on: 15/04/2014
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