RI, Thailand, KL to sign rubber pact

RI, Thailand, KL to sign rubber pact

BANGKOK, Thailand (AP): The world's three largest producers of natural rubber - Thailand, Indonesia and Malaysia - are preparing to sign a joint declaration on cooperation in the rubber industry on July 7.

The eight areas of cooperation under the declaration will help farmers with small plots of land to get better rubber prices, Dow Jones Newswires reported Wednesday quoting Chakarn Saengruksawong, deputy director-general of the department of agriculture.

The countries will work together in managing exports and production, increasing domestic consumption and coordinating government actions to boost prices, among other areas, Chakarn was quoted as saying.

After the joint declaration is signed, the ministers will meet at least once a year to discuss details of cooperation, he said.

At a meeting of senior officials of the three countries in Bangkok last week, the three countries agreed to adjust the rubber supply in line with market demand. But Indonesia said it needed to consider the issue further since it is worried that it does not have a sufficient budget to intervene.

Chakarn said the three countries also agreed to work together to tackle the problem of what to do when the defunct International Natural Rubber Organization disposes of its rubber stocks. INRO's members last year agreed to dissolve their cartel after Thailand and Malaysia quit.

INRO is seeking to dispose of about 140,000 tons of its natural rubber stockpile by June 2001.

Although Indonesia agreed to cooperate with Thailand and Malaysia in purchasing INRO stocks, it faces financial constraints and might have to leave the buying to the private sector, Chakarn said.

Thailand is the world's largest rubber exporter, following by Indonesia and Malaysia. The three countries account for about 80 percent of global rubber exports.