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.