Three countries to sign rubber pact at ASEAN Summit<\/p>\n
The Jakarta Post, Nusa Dua, Bali<\/p>\n
Trade ministers from Indonesia, Thailand and Malaysia will
\nsign a \"shareholders agreement\" that will mark the launching of a
\nrubber consortium aimed at stabilizing the price of the commodity
\nin the international market, according to a senior government
\nofficial.<\/p>\n
\"The shareholders agreement will be signed in Bali,\" Director
\nGeneral of International Cooperation at the Ministry of Industry
\nand Trade Pos M. Hutabarat told The Jakarta Post on Friday.<\/p>\n
He said that Minister of Industry and Trade Rini MS Soewandi
\nwould represent Indonesia.<\/p>\n
He added that the signing of the agreement would be witnessed
\nby respective leaders of the aforementioned countries, who are
\nflying to the resort island of Bali to participate in the
\nAssociation of Southeast Asian Nations (ASEAN) Summit next week.<\/p>\n
The signing ceremony will take place on Monday.<\/p>\n
The three countries -- the world's top three rubber producers
\n-- have been trying since 2001 to set up the consortium, called
\nthe International Tripartite Rubber Companies Consortium, in a
\nbid to help boost sagging prices of the commodity, which at the
\ntime had plunged to a 30-year low.<\/p>\n
It was only in August 2002 that the ministers of these
\ncountries signed a memorandum of understanding in Bali for the
\nsetting up of the consortium.<\/p>\n
Under the plan, the three countries will cut rubber output and
\nexports to help stabilize the price of the commodity. Thailand is
\nthe largest rubber producer and exporter with output of between
\ntwo million and 2.4 million tons per year, around 90 percent of
\nwhich is exported. The second largest is Indonesia with an annual
\noutput of between 1.4 million and 1.5 million tons, while
\nMalaysia's production is around 600,000 tons.<\/p>\n
The three countries will also have to contribute funds to the
\nconsortium.<\/p>\n
According to an earlier report, Thailand will contribute
\naround US$25 million, Indonesia $18.75 million and Malaysia
\n$12.50 million. Problems in raising the funds needed was one of
\nthe problems causing delays in the setting up of the rubber
\nconsortium.<\/p>\n
\"It (the funding problem) has now been settled,\" Pos said.<\/p>\n
Analysts, however, say that rubber prices in the international
\nmarket have started to recover, thanks to rising demand,
\nparticularly from China.<\/p>\n
According to one estimate, world rubber consumption will grow
\n7 percent this year, from 17.63 million tons in 2002. In 2004,
\nrubber consumption is expected to grow 5.5 percent.<\/p>\n
China is forecast to import around 900,000 tons of natural
\nrubber this year, compared with around 400,000 tons last year.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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