International Cotton Arbitration

Abstract

This article looks at the arbitration of cotton disputes, concentrating on the Liverpool – based International Cotton Association. Three topics are considered: (1) A short history of the cotton trade in Liverpool. During the American Civil War, Liverpool cotton merchants acted for the Confederate Government, financing the supply of arms in return for cotton. The building of ships like CSS Alabama led to a dispute between the American and British governments, ultimately settled in the Alabama Claims Commission. (2) The Rulebook of the International Cotton Association Ltd. (the ICA) – in particular the provisions relating to arbitration. The Rules contain an internal appeals structure. The Rules restrict the right of lawyers to participate in the arbitral process. The ICA operates worldwide. In 2011, the ICA received 242 requests for technical arbitrations: five times the usual yearly average. In the first half of 2012, 135 requests for arbitration were received. (3) Two cases involving the challenge to ICA arbitration awards: one decided in the High Court in London, the other a decision of the Suzhou Intermediate Court, Jiangsu Province, China. The China case is interesting: the Suzhou Court looks at the ICA Arbitration Rules, the English Arbitration Act and the New York Convention – and approves the award made in Liverpool.