Chapter

International Remedial Action

Alfred Maizels, Robert Bacon and George Mavrotas

in COMMODITY SUPPLY MANAGEMENT BY PRODUCING COUNTRIES

Published in print July 1997 | ISBN: 9780198233381
Published online October 2011 | e-ISBN: 9780191678981 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198233381.003.0004

Series: UNU/WIDER Studies in Development Economics

International Remedial Action

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Until the 1970s ended, countries engaged in negotiating agreements with economic provisions. These were intended for providing a framework for negotiated particular price objectives especially for cocoa and coffee. These and other international commodity agreements (ICAs) however lapsed or were deemed non-operative during the 1990s and afterwards. Each ICA had a specific short-term objective, but this caused a technical problem; long-term structural surpluses with large stock overhangs emerged for cocoa and coffee in the 1980s. Also, the developing producing countries and developed consuming countries had different views regarding the function of the price range defended by an ICA. Lastly, the governments of larger consuming countries were no longer inclined to provide support for regulation in the international commodity markets. This chapter illustrates the remedial efforts of the International Cocoa Agreement and the policy changes for coffee.

Keywords: coffee; cocoa; International Cocoa Agreement; remedial efforts; ICAs; short-term objective; structural surplus; stock overhang; price range; regulation

Chapter.  4458 words. 

Subjects: Economic Development and Growth

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