INRO to meet on extending existing pact<\/p>\n
KUALA LUMPUR (AFP): World rubber producers are next month
\nexpected to endorse a further extension of an expired price pact
\nafter they failed to conclude a new accord at recent talks in
\nGeneva, officials said yesterday.<\/p>\n
The chairman of the UN-sponsored talks, Peter Lai, is to work
\nout a solution with members of the International Natural Rubber
\nOrganization (INRO) when they gather here from November 28 for
\nINRO's regular council session, they said.<\/p>\n
INRO's six producer members and 20 consumer members are
\nscheduled to resume negotiations in Geneva on Feb. 6 to try
\nhammer out a new accord following inconclusive talks Oct. 3 to
\nOct. 14 in Geneva.<\/p>\n
\"The INRO council meeting here next month will have to address
\nthe question of an extension since no conclusion was reached at
\nthe Geneva re-negotiating round,\" INRO buffer stock manager James
\nHegarty told AFP.<\/p>\n
Hegarty said the recent talks in Geneva made much progress
\nalthough it failed to reach an accord to succeed the 1987 pact
\nthat had expired last year and was extended until the end of the
\nyear.<\/p>\n
INRA II would have to be further extended to keep the 14-year-
\nold arrangement going, officials said. INRA I came into being in
\n1979.<\/p>\n
Industry sources said producers had pressed for a five percent
\nhike in INRO's current reference price range -- the range that
\nguides the buffer stock manager in his market interventions to
\nstabilize rubber prices.<\/p>\n
Opposition<\/p>\n
Consumer members opposed the rise and the disagreement over
\nthe reference price was the main stumbling block at the talks,
\nthe sources said.<\/p>\n
\"But I am optimistic both sides will eventually overcome their
\ndifferences,\" Hegarty said.<\/p>\n
Primary Industries Minister Lim Keng Yaik, who had earlier
\nthreatened to pull Malaysia out of INRA if consumers remained
\nintransigent to producers' demands, on Monday blamed the leading
\nconsumers, United States and Japan, for \"changing their
\npositions.\"<\/p>\n
\"The U.S. and Japan changed their positions at the last minute
\nand there was not enough time after that to conclude the
\nnegotiations,\" Lim said.<\/p>\n
Consumers had wanted the current price range to roll-over into
\nthe new agreement, arguing that the existing provisions had
\nworked well to defend prices, Malaysian delegates to the recent
\nmeeting said.<\/p>\n
\"Basically, the consumers wanted to roll-over the current
\nprice range package but producers felt that the new agreement
\nshould look at a new price range,\" said Zubeir Nordin, a
\nMalaysian delegate at the Geneva talks.<\/p>\n
Rubber industry officials said the recent failed talks had not
\nmuch impact on prices.<\/p>\n
\"I don't think that had affected the market. If it had, it
\nwould have been more obvious immediately after news of the failed
\ntalks broke a fortnight ago,\" Hegarty said.<\/p>\n
Traders said talks on the accord had long been discounted as
\nthe industry would have preferred a \"free-market.\"<\/p>\n
INRO's five-day moving average Monday eased slightly to 269.69
\nMalaysian-Singapore cents a kilogram (2.2 pounds) from its recent
\npeak of 274.76. Comparatively, the indicator price was 179.49
\ncents in January.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inro-to-meet-on-extending-existing-pact-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}