Rubber producing countries want to raise their profile
Rubber producing countries want to raise their profile
COONOOR, India (Dow Jones): The Association of Natural Rubber
Producing Countries must shed its low profile role and become
stronger and relevant in the rubber industry, ANRPC delegates
said at a meeting in south India, one participant told Dow Jones
Newswires.
The closed door meeting of ANRPC's executive committee was
held Tuesday in Cochin where key issues facing rubber producers
were discussed.
"Most of them agreed the low profile of ANRPC must get a
facelift," the participating official said, not wishing to be
named.
"Market intervention may not work in the liberalized economic
scenario, but ANRPC can do other things like providing
information and accurate statistics," the official said,
outlining the deliberations that took place Tuesday.
Rubber producers and exporters have been hurt after the
International Natural Rubber Organization, which was responsible
for mitigating wild price swings in the physical rubber market,
disbanded in October 1999. INRO must liquidate all its rubber
stocks by June 30 this year.
"We have to find out other methods (in the absence of INRO) of
supporting the market," the official said, "such as supply
adjustments, long term projections and augmenting research and
development."
The official said the members deliberated on the
categorization of natural rubber as an industrial good in the
World Trade Organization.
"Many argued that it (natural rubber) should be in the
agricultural list, as agricultural goods have the advantage of
safety nets," the official said. "Yet many members weren't too
sure of the implications of the classification and said there
should be a study of this rule."
Resolutions will be formally passed by ANRPC Thursday, the
last day of the meeting, the official said.
There is a possibility that China is looking at joining the
ANRPC, because two Chinese officials are participating in the
meeting, the official said.
"They haven't (said) anything about joining, but one assumes
it must be on their mind," the official added.
China, like India, consumes all the rubber it produces.
"China joining ANRPC will give strength to producer-consumer
countries like India and Brazil," the official said.
Participants at the meeting comprise around 30 officials from
member countries Indonesia, Malaysia, Singapore, Sri Lanka,
Thailand, Vietnam and India.
Officials from Papua New Guinea and another member of the
ANRPC, aren't attending.
Other than the two representatives from China, an observer
from the International Rubber Study Group based in London is also
participating as a nonmember.
ANRPC, an intergovernmental producers' body, is based in Kuala
Lumpur.