Posted on 08/06/2009 in category Convention
FOR IMMEDIATE RELEASE
Friday,5 June 2009
BIR WorldRecycling Convention
25-27 May2009, Dubai
PressReleases on Plenary Meetings
Firstmeeting focuses on credit insurance and arbitration
In late May, Dubai hostedthefirst-ever plenary meeting of BIR’s International Trade Council(ITC). But although this body was formed only recently, it hasalready been active in attempts to protect the trading interests ofBIR members in, among other countries, India, Indonesia and Russia,according to the opening address by ITC Chairman Robert Voss ofUK-based Voss International.
The meeting in Dubaifocusedspecifically on the hot issues of credit insurance and of arbitrationin the case of a contract default. And it was agreed that BIR wouldlook to make a presentation to leading credit insurance companies toexplain how instances of loss of cover have hurt the recyclingindustry over recent months. In some situations, the reasoning bywhich insurers have reached decisions over cover for metals recyclershas been “a complete and utter mystery”, declared Mr Voss.
The view was expressed inDubai thatthe recycling industry is generally not well understood by insurers.If a policy truly tailored to the needs of the recycling sector couldbe devised, then this would “sell like hot cakes”, insisted BIRAmbassador Salam Sharif of Sharif Metals in the United Arab Emirates.
Two representatives fromleading creditinsurer Euler Hermes looked to counter a suggestion made at themeeting that the metals industry has fallen out of favour with theinsurance community. However, credit underwriter Ragi Naveen didacknowledge that, based on sectoral analyses, Euler Hermes hadadjusted its exposure in certain industries since the onset of theglobal financial and economic crisis.
Credit insurance helpscompanies toalleviate the risk of bad debts and also provides a means to havepotential new clients vetted by professionals, she also pointed outin Dubai.
On the issue ofarbitration, Mr Vosssaid that BIR has arrived “at a crossroads” with its own serviceand will be subjecting it to review. The world recycling organisationhas “learned a lot” over the last nine months in the light ofcontract defaults and discounting, as well as often unjustifiableclaims.
The meeting featured aguestpresentation from commercial arbitration specialist Eng. ZakariaAbdul-Aleem of Dubai-based Aleem Survey & Evaluation on theadvantages of this approach. Arbitration is “an essential tool”,he said, in resolving commercial disputes, particularly at aninternational level. “It is fast and compatible with rules andprocedures chosen by the Parties,” he continued. “It provides agreat deal of secrecy and confidentiality, which keeps the details ofcommercial deals in secret and keeps the reputation of the Partiesunharmed.”
According to MrAbdul-Aleem, one of themost important forms of arbitration relates to cases of disputebetween a state and a person from another country where the latter“will never expect to find impartiality in the state’s courts”.