ICA Captivates Asia
June 30, 2010 By almost any measure, the International Cotton Association’s first ever conference in Singapore March 4-5 was a huge success. Held in conjunction with Cotton Outlook, Singapore 2010 lived up to its promise of bringing together the cotton community of Asia, with 470 attendees from 29 countries.
“Our aim with Singapore 2010 was to provide a unique opportunity for the cotton community in Asia to come together – to learn more about the market, to network, to make new contacts, to do business and to debate the important issues affecting our industry,” Cliff White, ICA President explains. “We certainly achieved this and we’ve been overwhelmed by the response.
“No matter where we are today, the importance of markets in Asia is very evident. The raw cotton market is no different and this has resulted in the realignment of business strategies and created a need for close cooperation between buyers, sellers, and established institutions in the marketplace.”
Theme of the two-day event was “Protecting Your Cotton Business,” with Day One focused on the “Importance of Asia and the Market Outlook,” and Day Two on “How to Protect Your Cotton Business.” ICA hosted the final “Trade Forum” session, providing an opportunity for delegates to ask questions and share their views on the important issues affecting the industry.
Calling this “the Asian century,” Wai Ho Leong, senior regional economist for Barclays Capital, gave the keynote address, focusing on where Asia might be in 2020. “Over the past decade, Emerging Asia has accounted for over half of global growth. We project the GDP of Asia will rise from around US$ 14 trillion now, to around US$34 trillion in 2020.”
Sachit Jain of Vardhman Mills profiled the Indian textile industry. “Cotton fibers place in the Indian textile value chain will remain important,” he said, projecting production of cotton fibers to grow from 2.948 million metric tons (mt) in 2008 to 4.5 million mt in 2020.
In his presentation, White gave a brief history of ICA which began in 1841 as Liverpool Cotton Brokers Association representing buyers and sellers. In 1882, the name was changed to Liverpool Cotton Association, and in 2004, to International Cotton Association. From the beginning, fair trading and sanctity of contracts has been the association’s major focus and remains so today. “I ask you to consider our trading environment if we did not have the Bylaws and Rules of the ICA,” White said. “The ICA provides the platform for the orderly trading we have and it must be maintained and strengthened.”
Approximately two-thirds of the world’s cotton export sales are made under ICA Rules. Arbitrations can be performed anywhere in the world, and arbitration awards are enforceable in most countries under New York Convention of 1958.
ICA Managing Director Kai Hughes discussed proposed changes in the membership structure, including a new category of Association Member and Association Member Firm and the discontinuation of Associate Member category. Other proposed changes relate to dues structure and arbitration process. Voting on the new structure will be held later this year.
“Our vision is to ensure contract sanctity in the global trade of cotton,” Hughes said. “Our mission is to protect the legitimate interests of all those who trade cotton, whether buyer or seller. We will achieve this by promoting a universal understanding of our principles and values.”
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470 attendees from 29 countries enjoyed the proceedings. Pictures (center to far right): Kai Hughes, Cliff White, and Bill May.
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