The Trading Rules

Maximum safeguard will be provided by being a member or registered with the association under whose rules it is intended to trade and by gaining a thorough understanding of those rules.

Many firms are registered with more than one association.

By being a member or registered with a selected association, firms will also have a greater opportunity to influence the rules of that association. If the delicate balance between the needs of the various sectors in the industry is to be maintained, then it is essential that the composition of the association be fully representative of all sectors.

Arbitration

Each CICCA Member Association is prepared to arbitrate and give an award in the event of a dispute, provided that it has proper jurisdiction.

There is no international law of arbitration. Arbitration must be conducted under the control of the courts of the country in which the relevant association is located. The function of the courts is to ensure that justice is done.

The essential outcome of arbitration is an award which is enforceable through the courts in accordance with the provisions of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards - 1958 New York Convention. CICCA Member Associations will seek to ensure that each award is made under conditions which qualify it to be a 'Convention Award'.

CICCA Associations always try to ensure that every award is an enforceable document. They strive hard to avoid the possibility of having an award thrown out by the courts on the grounds that the arbitration was not properly administered, despite the fact that this often leads to criticism that the arbitration process takes too long. But, the Association having done its job, it is entirely up to the party with an award in its favour to take enforcement action.

Unfortunately, a party intent on avoiding the consequences of an award can argue long and hard against enforcement attempts. These are features of the international trading and legal systems; the situation is not unique to cotton. Despite the difficulties of enforcement, those with awards in their favour are strongly urged to press for settlement by all proper means.

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