Malaysia reconsiders support for INRA III<\/p>\n
KUALA LUMPUR (AFP): Malaysia yesterday said it was now
\nstudying the usefulness of ratifying the new UN-brokered global
\nrubber pact hammered out in Geneva, only weeks after blaming
\nexcessive production for the recent drop in prices.<\/p>\n
"Malaysia is studying the agreement very closely and we will
\nindicate our intention at the proper time," Primary Industries
\nMinister Lim Keng Yaik told a news conference.<\/p>\n
Malaysia's outburst over prices surprised the rubber industry
\nwhich had considered as automatic the ratification of the third
\nInternational Natural Rubber Agreement (INRA III) drawn up by the
\nworld's leading natural rubber producers and consumers in
\nFebruary.<\/p>\n
The accord was drawn up by the International Natural Rubber
\nOrganization (INRO)'s six producer- and 21 consumer-members after
\nmore than two years of protracted negotiations.<\/p>\n
INRO, which groups six producers led by Thailand, Indonesia
\nand Malaysia and 21 consuming nations led by the United States,
\nJapan and the European Union, administers INRA through operation
\nof a buffer stock mechanism to stabilize prices.<\/p>\n
Member countries until December 28 to sign the four-year pact
\nfor it to provisionally succeed the 1987 INRA II next year. The
\nfirst INRA came into effect in 1979.<\/p>\n
The governments have been given until January 21, 1997, to
\ndeposit instruments of ratification or to notify provisional
\napplication of the agreement.<\/p>\n
Ratification<\/p>\n
At least 75 percent of members from both sides should ratify
\nto enable the pact to be enforced, and Malaysia's vote is crucial
\nbeing the world's third largest producer after Thailand and
\nIndonesia.<\/p>\n
"We want to see whether it is worthwhile (to ratify)," said
\nLim, adding that Malaysia's decision would depend on the
\ncooperation between producers and the attitude of consumers.<\/p>\n
Lim said producers should not contribute further to depressed
\nprices by undercutting each other.<\/p>\n
"We should have more consultations on production
\nrationalization to be conscious of the need for a balance between
\nproduction and consumption," he added.<\/p>\n
Lim reiterated the need for key producers -- Thailand,
\nIndonesia, Malaysia -- who are members of the Association of
\nNatural Rubber Producing Countries (ANRPC) -- to rationalize
\noutput to sustain prices at "remunerative levels."<\/p>\n
The ANRPC groups the three, who account for 80 percent of
\nglobal rubber exports, with India, Papua New Guinea and Sri
\nLanka.<\/p>\n
Rubber prices peaked at 4.60 ringgit (US$1.84) a kilogram (2.2
\npounds) early this year, after languishing at the 2.00-to-2.50
\nringgit level for six years, only to drop one ringgit in the past
\ntwo months due to excessive production, Lim said.<\/p>\n
"I am prepared to attend a ministerial meeting if necessary to
\nstress the importance of supply rationalization and a more
\neffective marketing strategy to protect producers," Lim said. The
\nANRPC ministers last met in Papua New Guinea in 1991.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysia-reconsiders-support-for-inra-iii-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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