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What is ICA’s lists of unfulfilled awards (LOUA 1 & LOUA 2)?

ICA’s lists of unfulfilled awards (LOUA 1 & LOUA 2): The importance in protecting the interests of the cotton industry and ensuring safe trading.

Cotton is one of the main raw materials for the spinning industry. Today, the majority of the world’s cotton is still traded internationally under ICA Bylaws & Rules. The rules have changed with time, but their aim remains the same – to create a safe trading environment.

The ICA began life 180 years ago in 1841 in Liverpool, UK, when a group of cotton brokers created a set of bylaws and rules to help regulate the sale and purchase of raw cotton. Their mission is to protect the legitimate interests of all those who trade cotton, whether buyer or seller by carrying out the following:

  • Understanding: Promoting a universal understanding of their principles and values
  • Fairness: Pursuing equitable trading practices through their Bylaws & Rules
  • Resolve: Providing an impartial and effective dispute resolution service

When participating in cotton trading activities, it is important to stay informed about firms that have failed to fulfill their obligations under contracts subject to ICA Bylaws and Rules. These firms can have a significant impact on the cotton industry and can cause significant financial losses for those involved in the trade.

To help businesses stay informed, the ICA maintains two lists of unfulfilled awards.

  • The first list, known as List of Unfulfilled Awards Part 1 (LOUA 1), includes firms that have failed to fulfill awards arising out of contracts made subject to ICA Bylaws & Rules and firms reported by the Committee for International Co-operation Between Cotton Associations (CICCA). This list can be accessed by both ICA members and non-members and provides valuable information about firms that have a history of failing to meet their contractual obligations.
  • The second list, known as List of Unfulfilled Awards Part 2 (LOUA 2), is only available to ICA members and it is a list of companies proven to have links to one listed on LOUA 1 and has an outstanding arbitration award against them. This list is particularly useful for members who are considering doing business with a new firm and want to ensure that they are not linked to a company with a poor track record of fulfilling their contractual obligations.

It should be noted that being listed does not automatically imply that a company is untrustworthy or undependable. Nevertheless, it serves as a signal for other firms to exercise prudence when transacting with them. To keep abreast of the latest information on unfulfilled awards in the cotton industry, it is essential to stay informed about these lists and regularly check for updates. This way, ICA members and non-members can protect themselves from potential financial losses as well as future disputes, and ensure that they are only doing business with firms that have a proven track record of fulfilling their contractual obligations.

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