With the agreement both parties intend to promote strong business relationships between US trading companies and Chinese tanners to ensure a smooth trade in hides, skins and leather products between the two countries. The aim is also to offer a platform for the resolution of disputes that may arise between member companies of each party as well as develop cooperation with the ultimate goal of facilitating global leather trading, explained Su Chaoying, Chairman, CLIA.

Su said that the CLIA and the USHSLA will set up procedures within the boundaries of each function for the facilitation and resolution of trade disputes that may arise. Once a dispute arises, the member companies could communicate with their respective association. Either party could inform the other after receiving the dispute communication, then each association would give a warning notice to the member company concerned. The two parties also agreed to have a better communication and information sharing to reach an acceptable solution for the companies concerned. The MoU is effective from April 1, 2014.