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.