Global rubber price pact signed soon<\/p>\n
KUALA LUMPUR (Reuter): Key rubber producers and consumers have
\nindicated they will sign a new price pact in four weeks after
\nnearly 10 months of deliberation, the International Natural
\nRubber Organization (INRO) said yesterday.<\/p>\n
"The indications are that both the producers and consumers
\nwill sign on or before Dec. 28," INRO chairman Anura Ekanayake
\ntold reporters after a five-day council meeting of the
\norganization.<\/p>\n
The agreement, known as INRA 3, will be the third
\nInternational Natural Rubber Agreement. It will start from
\nJanuary 1, 1997, and form the price and operational benchmark for
\nINRO, which buys and sells rubber in the market to keep the
\ncommodity stable.<\/p>\n
The Kuala Lumpur-based INRO is one of the last UN-supported
\ncommodity groupings with some muscle. It groups 27 countries,
\nproducers Indonesia, Malaysia, Sri Lanka, Thailand, Nigeria and
\nIvory Coast and 21 consumer nations led by the U.S., the European
\nUnion, China and Japan.<\/p>\n
INRA 3 was drafted in February by the U.N.-backed INRO to
\nreplace the current pact, INRA 2, which came into force in 1987
\nand is scheduled to expire on December 28 this year.<\/p>\n
INRA 3, valid for four years, was hammered out in February but
\nis yet to be signed.<\/p>\n
Ekanayake said INRO has, however, decided to operate for an
\ninterim period of one year until INRA 3, based on the unanimous
\nsupport for the new pact at the just-concluded council meeting
\nafter much uncertainty in the last 10 months.<\/p>\n
Without the interim period or INRA 3, INRO will be forced to
\nliquidate its operations.<\/p>\n
Ekanayake said INRA 3 will still be subjected to unanimous
\nratification by governments after its signing, for the pact to be
\nglobally valid. "They have a year to ratify but the indications
\nare all very positive that they will," he said.<\/p>\n
To assist the smooth transfer from INRA 2 to INRA 3, Ekanayake
\nsaid the appointments of the INRO executive director, buffer
\nstock manager and other staff, except for the deputy executive
\ndirector, have been retained for the interim period.<\/p>\n
The executive director's post -- the top job in INRO --
\nstirred much interest during the five-day meeting, with Malaysia
\nsaying it wanted the post under INRA 3 after Thailand
\nrelinquished the job under INRA 2.<\/p>\n
Indonesia, which had held the executive director's post under
\nINRA 1, countered Malaysia's demand by saying the post should
\nrevert to it under INRA 3.<\/p>\n
Malaysia's delegation leader to the INRO, Ahmad Zubeir
\nNoordin, told reporters that his country's bid was "duly noted"
\nby the producers and consumers, including Indonesia.<\/p>\n
"There was much cordiality over the issue," Zubeir said,
\nwithout elaborating on whether the bid would be successful.<\/p>\n
The council also approved a US$2.9 million fund to create a
\nstandards mechanism for rubber produced by African states.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/global-rubber-price-pact-signed-soon-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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