The American Cotton Exporters Association (ACEA) and the World Cotton Exporters Association (WCEA) distribute to their members and recognized cotton associations throughout the world a current list of those parties engaged in the purchase and/or sale of cotton who have been reported to be in default on an outstanding export contract.
All members are required to comply with their contracts and to honor arbitration awards. While the listing of a party in default is not to be construed as a prohibition against dealing with that party, in adhering to the principle of sanctity of contracts in international trade, members are required to take no action which would jeopardize the financial interest and economic well-being of raw cotton suppliers by knowingly selling to mills or merchants listed in default by recognized cotton associations. Exporters are advised to exercise their own business judgment as to the use of the default lists, taking into consideration all relevant factors such as creditworthiness, reliability, and the sanctity of contracts in international trade.
Further, well established and legally recognized procedures are utilized to determine whether a purchaser of cotton is deemed to be in default on an export contract. These procedures provide protection to the parties listed in default, since prior to the default listing the exporter must submit a detailed complaint, and the buyer is notified in writing of the complaint and is accorded a reasonable time in which to submit a response.
The American Cotton Exporters Association (ACEA) was incorporated in 1975 in the US State of Delaware, pursuant to the authorizing provisions of the Foreign Trade Act of 1918, for the purposes of protecting the financial interests and economic well-being of the exporters of US grown cotton, to foster and improve international trade, and to preserve the principle of the sanctity of contracts in international trade.
The shareholder members include all the merchant exporters of US cotton including the major cotton cooperatives.
The World Cotton Exporters Association (WCEA) was organized in 1991 to promote, improve and further the export of raw cotton and cotton products in international trade, to encourage compliance with contractual obligations and adherence to arbitration awards, to protect the financial interest and economic well-being of the exporters of cotton and to preserve the sanctity of contracts in international trade.
The merchant and cooperative members of WCEA are engaged in the trade of all growths of cotton produced and spun throughout the world and are based in the US, Central and South America, Europe, Asia, and Australia.