Malaysia unconcerned about global rubber pact

Malaysia unconcerned about global rubber pact

KUALA LUMPUR (AFP): Malaysia has said it is unconcerned about
whether a shaky global rubber price pact is agreed while
persisting in its demand for leadership of an international
rubber body, a report said yesterday.

International Rubber Agreement (INRA) III, a pact hammered
out under the auspices of the United Nations in Geneva in
February 1995, is in jeopardy after failing to garner enough
support by a Dec. 28-deadline set for agreement.

"As far as Malaysia is concerned, it does not matter if there
is or is not INRA III. It's up to the consumer countries,"
Primary Industries Minister Lim Keng Yaik Lim was quoted as
saying.

At the expiry of the deadline, only six of INRO's 27 members
had signed the pact, which was to have succeeded the 1989-INRA II
that expired on December 28 last year.

Only four key INRO producer members -- Indonesia, Malaysia,
Thailand and Sri Lanka -- and two consumers Japan and the
European Union -- have signed, and those votes are insufficient
to bring the four-year pact into force.

"The ball is with the consumers -- if they do not want to sign
in spite of the negotiations, don't even talk about
ratification," Lim was reported saying in the Business Times
daily.

Legally, INRA III is now non-existent because of the lack of
support.

Industry officials have said a fresh UN meeting would have to
be convened to extend the deadline on agreement or approve the
backdating of signatures to save the pact.

If INRA III is not ratified, the International Rubber
Organization (INRO), which is now in limbo pending a council
meeting in April to decide its future, will have to wind up.

Lim said Malaysia had signed INRA III as it felt that the pact
would enhance stability of the rubber market and better
organization among the rubber producers and consumers.

"The industry has in the past used INRA for its own unilateral
benefit," Lim said.

"Malaysia, now relegated to the world's third largest producer
and fifth largest consumer of natural rubber, knows the story of
both sides," he added. Malaysia was formerly the world's largest
producer.

Malaysia will insist on getting the post of INRO executive
director, now vied by Indonesia, before ratifying the
international rubber agreement, the minister said.

"As a matter of principle, as a matter of right, Malaysia
should be given the post and if that is denied why should
Malaysia be in INRO," Lim asked.