Articles on the topic "gafta"

Challenging GAFTA Jurisdiction in the English Courts: CAFI v GTCS Trading DMCC [2025] EWHC 1350 (Comm)

2025-07-14 7 Mins Read

In June 2025, the Commercial Court in London (High Court of Justice) handed down an important judgment concerning a challenge to a decision of the GAFTA Board of Appeal. CAFI – Commodity & Freight Integrators DMCC v GTCS Trading DMCC [2025] EWHC 1350 (Comm), demonstrates how arbitrators may exceed their jurisdiction and establishes an important precedent on overlapping arbitration agreements. The case offers a number of practical lessons for market participants. Factual background: two contracts…

Grain Export: Who Determines Grain Quality and How?

2025-03-12 10 Mins Read

Grain quality is a key factor that determines the success of grain exports. It directly affects the price, global market demand, and compliance with international contract requirements. To ensure objective assessment and fair pricing, the global grain industry follows clear standards that classify wheat and other crops. At the core of this system are the Gafta (Grain and Feed Trade Association) rules, which apply to most international contracts. Quality Indicators That Determine Wheat Grain Class…

Instalment Deliveries in Gafta and FOSFA Contracts Under English Law

2025-02-25 11 Mins Read

Instalment deliveries are used in Gafta and FOSFA contracts to provide flexibility in logistics and risk management. However, misunderstandings regarding the terms of instalment deliveries can lead to financial losses and lengthy arbitration disputes. I am a co-author of a Gafta course on instalment deliveries, and in this article, I will outline the fundamentals that help determine when instalment deliveries are permitted and when they may lead to contract termination and claims for damages. In…

Trump Tariffs and Force Majeure in GAFTA, FOSFA Contracts and English Law

2025-02-03 6 Mins Read

On 1 February 2025, Donald Trump announced the imposition of tariffs on imports from Canada, Mexico, and China. According to the White House statement, tariffs of 25% were imposed on goods from Canada and Mexico, while Chinese imports were subject to a 10% tariff. An exception was made for energy resources from Canada, which were subject to a 10% tariff. These measures were introduced under the International Emergency Economic Powers Act (IEEPA) and had a…

Gafta Contract Training Course in Cape Town

2024-11-28 5 Mins Read

In November, I spoke at a training course on commodity contracts in Cape Town, organised by Gafta. This course is part of the Gafta Professional Development (GPD) programme. For many professionals, successfully completing the course is an important step in their careers, especially if they aim to obtain the Gafta Trade Diploma and become Gafta arbitrators. This was the first Gafta training course held in South Africa. The seminar brought together traders, lawyers, and other…

What is a Performance Bond

2024-09-04 6 Mins Read

A performance bond is an unconditional guarantee provided by a bank to pay a specified amount to the beneficiary upon the first demand. This guarantee protects the beneficiary’s interests in cases where the seller, supplier, or another party fails to meet their contractual obligations. In international trade and construction projects, a performance bond is a key instrument to mitigate the risks associated with non-fulfilment of obligations. A performance bond is often used in contracts for…

FOB (Free on Board): Responsibilities of the Parties and Risk Transfer

2024-08-09 8 Mins Read

The purpose of this article is to provide a basic understanding of the term FOB (Free on Board), which is one of the key terms in international trade. We will also examine how FOB is applied and what responsibilities are placed on the parties to a contract. FOB remains one of the most popular and widely used delivery terms in maritime shipping. General Meaning of FOB FOB means that the seller is responsible for delivering…

Organic Corn and Gafta Arbitration: Certification Challenges and Legal Consequences

2024-08-01 7 Mins Read

Organic products, including organic corn, are gaining increasing popularity in the global market. These products attract consumers with their quality and safety. However, despite the high standards and thorough inspections associated with the production and certification of organic products, challenges and disputes often arise. In this article, we will examine the important aspects of organic corn certification and provide an example of a Gafta arbitration decision to illustrate the potential risks and consequences of such…

Calculation of Damages under English Law and Gafta / FOSFA Contracts

2024-07-16 3 Mins Read

In international trade of agricultural commodities, issues of calculating damages for non-delivered goods are of key importance. In this article, we will consider how damages are calculated under Gafta and FOSFA contracts, as well as under English law. General Principles of Calculating Damages under English Law Under English law, damages for breach of contract are calculated on the assumption that the breaching party acts in the least favourable manner for the claimant. This rule is…

CIF and CFR (C&F): Obligations of the Parties and Transfer of Risks

2023-04-07 8 Mins Read

This article aims to provide a basic understanding of CIF and CFR terms. It also discusses some of their variants – CIFFO and C&FFO. These terms are usually used with Incoterms. Incoterms, or International Commercial Terms, are a set of standardized rules published by the International Chamber of Commerce (ICC) to facilitate international trade. These rules outline the responsibilities, costs, and risks of the parties in international trade. When parties refer to Incoterms, they incorporate…