Thailand withdraws from world rubber group INRO<\/p>\n
BANGKOK (Reuters): Thailand, the world's largest natural
\nrubber producer and exporter, decided on Tuesday to withdraw from
\nthe global price pact, the International Natural Rubber
\nOrganization (INRO).<\/p>\n
\"INRO is useless for natural rubber producers but more useful
\nfor rubber consumers. So I think it is appropriate for us to
\nleave,\" Deputy Agriculture Minister Newin Chidchob said.<\/p>\n
Thailand's move is likely to prove fatal for INRO, which was
\nset up in 1980 to stabilize volatile world rubber prices under
\nthe auspices of the United Nations Conference on Trade and
\nDevelopment (UNCTAD).<\/p>\n
Thailand is the biggest contributor to INRO on the rubber
\nproducer side and its withdrawal follows a similar move by
\nMalaysia at the end of last year.<\/p>\n
Newin, speaking to reporters after emerging from a cabinet
\nmeeting, said Thailand had decided not to pay contributions worth
\n401 million baht (US$10.84 million) to INRO's buffer stock
\naccount for the new round of intervention.<\/p>\n
He said that Thailand by itself had to spend billions of baht
\nper year to shore up rubber prices in the local market but INRO
\nhad failed to raise rubber prices in the world market.<\/p>\n
INRO's main purpose is to stabilize world rubber prices by
\nbuying when the prices drop sharply and selling when prices
\nsurge.<\/p>\n
It comprises six rubber producers and 16 consumer countries.<\/p>\n
The rubber producing members are Thailand, Indonesia,
\nMalaysia, Ivory Coast, Nigeria and Sri Lanka.<\/p>\n
The consuming country members are the United States, Japan,
\nChina, Germany, France, Austria, Belgium plus Luxembourg,
\nDenmark, Finland, Greece, Ireland, Italy, the Netherlands, Spain,
\nSweden and Britain.<\/p>\n
Each member country has a different number of votes, depending
\non the size of their exports or imports. Contributions to the
\norganization are based on the number of votes each member
\ncarries.<\/p>\n
\"We will not pay our contribution worth 401 million baht in
\ncash call to INRO,\" Newin added.<\/p>\n
In its latest cash call to Thailand, INRO required payment by
\nThailand of this sum by Tuesday as its contribution to support
\nintervention in the sagging rubber market.<\/p>\n
The minister said Thailand's next step was to send a proposal
\nto the United Nations to confirm its withdrawal and officially
\nannounce the decision to INRO.<\/p>\n
The world's three top producers -- Thailand, Indonesia and
\nMalaysia -- have all indicated unhappiness with INRO in recent
\nmonths.<\/p>\n
Malaysia has already served notice of withdrawal from INRO
\neffective Oct. 15, 1999. Indonesia has said it will not withdraw
\nfrom the organization.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/thailand-withdraws-from-world-rubber-group-inro-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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