Five representative cotton and textile industry associations have joined hands to call for fair and equitable trade practices in the global supply chain during the COVID-19 pandemic.
Better Cotton Initiative (BCI), Council for Cooperation among International Cotton Associations (CICCA), International Cotton Association (ICA), International Cotton Advisory Committee (ICAC), The International Textile Manufacturers Association (ITMF) has joined forces to outline the shared values of the global cotton community and a common commitment to safe transactions and contractual constraints.
The group stated: The loss of demand caused by the new crown epidemic and the adoption of preventive measures on a global scale have always affected the development of the cotton and textile industries. It is critical that each trading partner pays attention to the other’s position. We must work hard to find a common agreement while bearing in mind our shared commitment to the long-term health of international cotton and textile trade, based on fair and equitable trade principles.
It encourages a shared commitment by those involved in the cotton and textile value chain:
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Taking actions that are seen and designed to contribute to the recovery of the cotton and textile industry in 2021 and beyond
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Communicate, collaborate, and respond to counterparty needs
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Continue to comply with the trading rules that govern the industry
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Recognize and promote positive behavior
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Identify and point out negative and unproductive business practices
It Says: The strong sense of community in the cotton and textile community will continue to be a source of strength. The constraints we currently face will pass, and many of the freedoms we are accustomed to may soon be restored. We are confident in the future development of the industry.
According to ICAC’s latest forecast, global cotton consumption will fall by 12% in 2019/20 due to the sudden drop in demand caused by the COVID-19 pandemic. It is said that cotton prices at the end of the year will dropped to its lowest level in more than a decade.
