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.