Features Of International Commodity Agreements

Preconditions for negotiation. Empirically, if not theoretically, seems to be among the primary conditions that must be met for an international conference on raw materials to be translated into an agreement: principles outdated from reality. The havana Charter chapter, which deals with intergovernmental agreements to control goods, included provisions that would have benefited the consumer, including (a) equal representation for import and export countries; (b) the participation of all countries that are “essentially interested in the product concerned”; (c) advertising controls in the form of an annual report; and (d) to ensure increased market opportunities for deliveries from regions where production is most efficient. (2) Reasonably stable market share. Since export quotas generally distribute markets in proportion to national shares over a given reference period, difficulties arise when there are sudden or longer-term changes in the shares held by different producing countries. The gradual ouster of U.S. raw cotton by exports from other countries, reinforced by the development of synthetic fibres, prevented the negotiation of an international cotton agreement in the post-war period and the increase in the volume of exports from African countries seriously complicated the negotiations of the 1962 International Coffee Agreement. Alternatives. Various efforts have been made to invent mechanisms other than international commodity agreements, to transfer purchasing power to less developed countries whose incomes have been cyclically or chronically depressed. Some of these alternatives, such as commodity reserve currency proposals (United Nations, 1964a), would serve the objectives of foreign aid and international monetary “reform” to undermine the role of the price system as the main instrument of economic management in (relatively) free enterprises.

Others acting through covert financial transfers (United Nations, 1964 b); Swerling 1964), the great advantage is that the price system, as a leader in economic resources, is not affected to a large extent. Finally, the International Monetary Fund has acted – albeit with great restraint and after some delay (Fleming – Lovasy 1960) – to provide an additional tranche (a quarter of the country`s IMF ratio) to compensate for the export revenue deficits of less developed countries when these deficits occur for reasons not under the control of the country suffering from balance-of-payments difficulties (International Monetary Fund 1963). Such an approach has the important advantage of taking into account fluctuations in export volume rather than reacting solely to fluctuations in commodity prices. The United States has led recent efforts to renegotiate the ICA and the text of the Seventh International Coffee Agreement (ICA 2007) was adopted by the International Coffee Council on 28 September 2007.

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