KARACHI: The All-Pakistan Textile Mills Association (Aptma) plans to become member of the International Cotton Association (ICA) so that arbitration facilities at world level for cotton trade could be availed.
This emerged during the visit of a three-member delegation of the ICA to Aptma on Thursday where they held detailed talks with the members of the association.
The ICA team, headed by its president, Ahmed Elbosaty, and vice president Mohit Shah and managing director Kai Hughes tried to remove wrong perception most of the Aptma members were carrying about the world body.
The ICA President said it is totally wrong to say that the world body is dominated by European countries and added that after 2004, cotton dynamics totally changed and the influence of Liverpool Cotton Association (LCA) over world cotton trade does not exist any more.
He further stated that Pakistan being fourth largest cotton producer and third largest cotton consumer should take ICA membership to safeguard the interest of cotton trade.
After giving details about the membership procedures of ICA and charges, Elbosaty said the world body has fair system of arbitration which does not favour any segment involved in cotton trade.
It may be a supplier or buyer, merchant or miller, the ICA mechanism provides fair and just system of arbitration for cotton trade which does not allow unilateral cancellation of contracts.
Upon becoming member of ICA as a trade body, its members get indirect benefits and facilities and in case individual membership is taken by a mills or a trader, more concessions and facilities could be availed, he added.
He further explained that ICA keeps on improving and changing its rules and by-laws as per change in market dynamics.
Similarly, he said membership structure has been changed for including small traders and textile units into the fold of ICA.
Elbosaty refuted the allegation that ICA laws favour shippers over customers and said that the world body is run on good trading practices and presently its board comprises people from 17 countries which give it global representation.
There was a big turn when in 2004, Liverpool Cotton Association was transformed into International Cotton Association which has no borders and also has members from the world over.
He said ICA is reaching out to every segment of cotton trade: it may be agent, dealer, miller etc and wants to promote trading practices form business intelligence teams to keep track of trading deals and check defaulters.
M Yasin Siddik, Aptma Sindh-Balochistan zone chairman, said that his trade body would like to seek ICA membership and also encourage individual mills to take the membership of the world body.