EU says rubber talks promising<\/p>\n
SINGAPORE (AFP): The European Union (EU) said it is \"very
\noptimistic\" of a successful outcome this week to ongoing talks on
\na new natural rubber agreement as there are only two major
\ndifferences to be resolved.<\/p>\n
EU spokesman Derek Taylor said in a statement released to AFP
\nMonday that \"it is clear that there are several similarities
\nbetween the proposals made by consumers and those made earlier by
\nproducers.\"<\/p>\n
\"There are only two major differences between the proposals of
\nconsumers and those of the producers,\" said Taylor, who is
\nattending talks which started in Geneva last week to conclude a
\nnew International Natural Rubber Agreement (INRA).<\/p>\n
He said the first difference had to do with the structure of
\nthe price ranges used for the buffer stock, with producing
\ncountries seeking to strip the buffer stock manager of his
\ndiscretionary powers.<\/p>\n
\"There is absolutely no possibility that the consumers would
\naccept this proposal,\" Taylor said.<\/p>\n
The buffer stock manager buys rubber for his stockpile when
\nprices are too low and sells his stocks when they are too high to
\nstabilize prices within a band agreed by consumers and producers.<\/p>\n
The existing agreement allows him to use his discretion in
\ndeciding whether or not to buy or sell rubber when his Daily
\nMarket Indicator Price (DMIP) hit the so-called \"may-buy\" or
\n\"may-sell\" levels.<\/p>\n
It is mandatory for the buffer stock manager, a nominee of
\nconsuming countries as provided by the agreement, when the lower
\n\"must buy\" or higher \"must sell\" levels are triggered.<\/p>\n
The \"may-buy\" level is 167 Malaysian\/Singapore cents a kilo,
\nthe \"must-buy\" is 157 cents while the \"may-sell\" is 226 cents and
\nthe \"must-sell\" is 236 cents.<\/p>\n
The DMIP is culled from prices of three grades of rubber in
\nKuala Lumpur, Singapore, London and New York and is quoted in a
\ncomposite currency.<\/p>\n
Producers have complained that the buffer stock manager has in
\nthe past been too quick to sell when prices are high and tardy to
\nact when prices fall.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/eu-says-rubber-talks-promising-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}