INRO opens talks on new price pact

INRO opens talks on new price pact

KUALA LUMPUR (AFP): The International Natural Rubber
Organization (INRO) yesterday opened talks on a new price pact
which lacks the crucial support of key exporting members for
implementation.

Malaysia and Indonesia, locked in a dispute for INRO's top
post, made no clear commitments yesterday to ratify the new third
International Natural Rubber Agreement (INRA III), delegates
said.

Without the two key exporters, INRA will not garner sufficient
exporter votes for it to come into force on Jan. 1, although key
consumer nations have given their support, they said.

A decision by the European Union Monday to "provisionally
implement" the accord from Jan. 1 means that countries
representing 77 percent of world rubber importers have agreed to
ratify the agreement concluded in February.

This has exceeded the 75 percent of votes which must be
gathered from consumers for the new accord to come into force to
replace INRA II, which expired in December last year.

But INRO rubber exporters have yet to give their required 75
percent backing.

Both Malaysia and Indonesia are vying for the INRO executive
directorship, and Kuala Lumpur has threatened not to ratify INRA
III and abandon INRO if it fails to win the post, now held by
Thailand's Pong Sono.

INRO's buffer stock manager James Hegarty said he was
optimistic INRA III could be ratified and implemented on
schedule.

Several countries have indicated they should complete
ratification of INRA III by the end of the year," Hegarty told
AFP at the end of the first of INRO's two-day semi-annual talks.
He did not name the countries.

"The mood was very positive when the status of the agreement
was reviewed, " Hegarty said, but declined to touch on the
Malaysia-Indonesia dispute.

Delegates said a clearer picture on the dispute could emerge
on Friday.

So far, those who have ratified or have provisionally agreed
to do so are Japan, Spain, Greece and Austria representing the
consumers and Thailand, Nigeria and Sri Lanka from the producers
side.

The Kuala Lumpur-based INRO, which groups six producing
members and 21 consuming members, administers INRA through a
buffer stock mechanism to buy and sell rubber to stabilize
prices.