CASHEW BAN – IS FORCE MAJEURE APPLICABLE ?
Due to the export prohibition, Côte d’Ivoire’s exporters are now unable to meet their delivery obligations. As a result, there is a scarcity of raw cashew nuts for processing, especially in Vietnam.
Many contracts in the supply chain, including those at retail, are unlikely to be completed. Prices are quite variable, and even if contracts are completed, it cannot be expected that items would be received or at the agreed price, because certain amounts are simply not accessible on the worldwide market.
Given the present market instability in cashew nuts, it is critical that all market players take appropriate precautions to mitigate the immediate and long-term consequences of their actions.
There have been many disputes on whether it may be used in the current situation to invalidate contractual obligations.
