International Commodity Agreements Meaning In Hindi

(2) Reasonably stable market share. Since export quotas generally distribute markets in proportion to national shares over a given reference period, difficulties arise when there are sudden or longer-term changes in the shares held by different producing countries. The gradual ouster of U.S. raw cotton by exports from other countries, reinforced by the development of synthetic fibres, prevented the negotiation of an international cotton agreement in the post-war period and the increase in the volume of exports from African countries seriously complicated the negotiations of the 1962 International Coffee Agreement. (4) Mixed producer-consumer interest. The longest agreements are commodities whose motivations are rather different for the major industrialized countries. For example, the United Kingdom, as an importing country, is interested in relatively low sugar prices; but as the commonwealth champion in West India and Oceania, the UK does not want world sugar prices to fall to a catastrophic level. Before Castro, the United States was looking for a higher price for sugar shipments from Cuba outside the United States. As well as the Cubans, who were a little more impressed by the opportunity to maintain the volume of exports.

Even the new coffee agreement reflects some mutual interest from producers and consumers in major importing countries: there are no domestic sources of supply, but moderate industrialized countries are generally concerned about the well-being of less developed countries in the tropical regions of Latin America and Africa, which supply the bulk of world coffee exports. Economic impact . International commodity agreements suffer from the different boundaries that characterize all efforts to artificially support the market position of certain raw materials. In particular, price targets tend to be overestimated, long-term elasticities of demand and supply tend to be underestimated, and cost structures tend to develop so that favourable effects on producer income are at best temporary. The longevity of agreements is therefore not necessarily a virtue and, in the case of sugar, it is only through the ineffectiveness of the main provisions relating to export quotas during periods (especially at high prices) that when an agreement on market share has proved impossible. Since the end of the Second World War, agreements have been successfully negotiated on wheat, sugar, tin, coffee and olive oil. The 1949 and 1953 International Wheat Agreements (IWA) and the Post-War International Sugar Agreements (ISA) are prototypes of two forms of commodity agreements – the multilateral treaty and the variable export quota. Land prices and sugar caps have been set and, for the most part, imposed by the export regulations authorised by Member States; the sugar agreement also provided that stocks held by exporters were not higher or lower than the percentages indicated by export quotas. A very different instrumentality was used for wheat.

Importers agreed to accept certain quantities when the price fell to the minimum level set in the agreement and exporters agreed to disclose certain quantities to Member States when the contract price was set.