A Letter From The International Cotton Association Cooperation Committee To The Global Cotton And Textile Industry

Dear cotton colleagues,

To all persons involved in cotton and textile supply chain

As we all know, the impact of the new crown virus epidemic extends across the globe and in all areas. In this challenging era, the international cotton association cooperation committee (CICCA) is deeply impressed by all the people affected by the epidemic. We extend our best wishes to all the people of the world who are affected by the virus and the economy.

The rapid spread of the new crown virus epidemic brings unprecedented and unpredictable global trade environment, and all of us will face extreme business conditions. We are all anxious about how we will develop in the next few weeks or months, but we must focus on the current situation and work together to ensure that we achieve the best possible results for all stakeholders in the global cotton trade.

CICCA was established in 1975 to promote safe trade and cooperation between cotton producing countries and consuming countries, and its purpose has never been as important as it is today. We are committed to consolidating the principles of secure transactions and contract sanctification - based on trust and cooperation between the parties, to adjust the detailed contract terms to meet the needs of all parties to ensure that both parties carry out the original contract.

Since its inception, CCICA has witnessed a changing market environment, especially in recent years. Cotton supply chain is varied, and the composition of participants is also very complicated. We believe that in today's challenging era, our core principles of collaboration, communication and fulfillment of contracts are more important than ever before. If we do not adhere to these principles, the future of many friends and colleagues in the whole industry will be worrisome.

The sacredness of contracts is an important part of our trading environment. It is defined as an ideal state that once the two sides have signed a contract, they must abide by and fulfill the terms and obligations in the contract. This principle takes into account the commercial certainty that the parties know that failure to perform their obligations will constitute a breach of contract. The parties involved in the contract bear the inherent responsibility for managing the risks associated with the contract commitment. The parties to a commercial contract may choose to modify or change the terms of their existing agreements, subject to mutual consent. By definition, the contract is a binding and enforceable clause mutually agreed by both parties. Therefore, all parties have the right to change their agreement in the context of mutual consent, even though no one is obliged to do so. In addition, any amendment to the contract will retain the same enforceability and binding force, and should not express the freedom to deviate from the explicit performance. It is well known that contract changes will occur under certain circumstances, and therefore, it must be declared that this will not dilute the sacred and inviolable general theme of the contract, nor will it provide any justification for any breach of contract.

In the field of cotton, the trade rules of various associations provide protection for cotton producers, agents and spreaders, whether they are yarn producers or factories that produce finished products. However, there is no such protection between manufacturers and retailers. We are also concerned that many spinning mills and garment factories in developing countries are in trouble. Like many other industries, these enterprises are also faced with a market environment that has changed dramatically within a few weeks due to the rapid decline in global demand.

Cotton textile and garment industry chain is long, involving many labor force employment, is a very fragile industry. The cancellation of orders in the rear links has already affected cotton growers, increasing the risk of the industry from the source. It is disappointing that some retailers and brands are now violating their contractual commitments. These enterprises are having a chain reaction in the entire supply chain and have a great impact on the lives of many people who depend on the survival of the textile industry.

In this difficult time, the actions of all market participants will leave an indelible mark, and people will always remember it. Although the current situation seems insurmountable, stimulus measures, markets, domestic support programmes, and the temporary and other factors affecting the disaster will bring the Council to an end and restore business confidence. What we should consider is how to work hand in hand to overcome this difficulty and avoid any unreasonable measures that may lead to imbalances in the international cotton market.

In response to this global epidemic, governments have made unprecedented responses to reduce the health and economic impact of the new crown pneumonia epidemic. Financial schemes aimed at helping businesses focus on maintaining jobs have been launched around the world. We ask our members to emphasize to their governments the risks and impacts that are taking place in our industry. At the same time, the government also needs to pay attention to the typical example of cotton trade in leading role models and restoring functions in their communities.

We believe that the CICCA membership association's global influence has great potential for creating conditions for the future of cotton. Each of our members has unique channels to reach out to relevant groups, which can actively contribute to the holiness of the supply chain contract. In addition, we believe that the fundamentals of the cotton industry remain strong, and the attractiveness of this unique and sustainable fiber will continue. We request member organizations to make use of your network, influence and voice to contribute to the future of cotton.

CICCA President: Cliff White

CICCA Vice President: Georges Toby