Rice that has comfortably passed quality control in the country of origin can turn out to be “unfit” in the country of destination — simply because a stricter aflatoxin limit applies there. Who bears that risk: the seller or the buyer? A dispute that went to GAFTA arbitration showed that the answer turns not on common sense, nor on what the goods were actually bought for, but on what the contract actually says. What aflatoxin…
This article is about arbitration under the Gafta 126 Rules. I have written about the standard Rules 125 here. Gafta created Expedited Arbitration Procedure Rules 126 for rapid dispute resolution. The Association designed these rules for simple disputes of small value. The main advantages of the Rules are speed and cost. Statistically, arbitration under Rules 126 takes 4 months, and arbitration under Rules 125 takes 8 months. The average cost under the expedited rules is…
Gafta arbitration (Grain and Feed Trade Association) is a dispute resolution process conducted under the Gafta rules, primarily based on the association’s standard forms. Gafta, the International Grain and Feed Trade Association, was established to standardise and simplify the global trade of grain and feed. The association develops standard form contracts that include mandatory provisions for resolving disputes through Gafta arbitration. These contracts are widely used in international trade, and any disputes arising from them…
