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  • 3.5-COTTON MARKETING-THE EUROPEAN COTTON RULES

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  • The European Cotton Rules

    Chapter 3 - Cotton marketing - The European Cotton Rules 

     
     

    Association Cotonnière de Belgique, Association Française Cotonnière (AFCOT), Gdynia Cotton Association (GCA) from Poland and Centro Algodonero Nacional (CAN) from Spain took the lead in a task force aiming and modernizing and harmonizing cotton trading rules. The objective was to adopt a common set of cotton trading rules shared by the greatest number possible, while respecting everyone's identity.

    The work began with a comparison of the various rules of each cotton association in order to have a common platform which would take into account the identity and the specificities of each one and would also satisfy the needs of all members of the cotton community, such as producers and exporters.

    The work has been facilitated with the fact that the national laws in most countries in continental Europe share a common source: the written law. Written laws are also shared by many African and Asian countries. Based on this common platform, the European Cotton Rules (ECR) is a rule book that enables all parties to know their rights.

    The European Cotton Rules were finalized in 2006. They are already in force, and provide protection to all users. ECR offers unique harmonized rules, which have been set up in accordance witch CICCA's principle of sanctity of contract.

    ECR offers security thanks to rules that have been defined with clarity and precision in order to avoid any uncertainty as to how a contract is to be honoured. ECR guarantees equal treatment to all parties, buyers and sellers, be they producers, ginners, ginners, merchants or spinners.

    ECR offers flexibility. Each association that adopts ECR can keep some specific rules in an appendix to preserve its identity specificity.

    ECR offers freedom to choose the arbitration chamber to be will be used by the parties who sign a contract under its rules.