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Discuss And Explain Major International Commodity Agreement

The following Convention, also devoid of economic provisions, was signed in 1968, introduced in 1969 and abandoned in 1973. The following agreement, without economic provisions, was concluded in 1977, entered into force in 1978 and continued until the end of 1984 (without the participation of the European Community). There have been two international agreements on olive oil. The first agreement was signed in 1959. Under the aegis of the UN, 11 members participated, including 9 exporting and 2 importing countries. The duration of the agreement was four years. In the post-war period, there were four international agreements on sugar. The first agreement entered into force in January 1954, the second in 1959. The economic provisions of the latter were suspended in 1962 following the Cuban crisis of 1960, although the other provisions were extended until 1968. These agreements have not been so successful. With a few exceptions, not all agreements have been able to achieve their objectives for the following reasons: although prices on national markets generally tend to fluctuate less sharply than those of products sold without protection on the remaining “free” markets, it does not follow that free market prices as a group are necessarily less stable than the prices of primary raw materials, that are subject to global market conditions (i.e.

. (B primary raw materials whose prices in the non-communist world tend to differ mainly in transport costs combined with nominal tariffs). In the past, cocoa, natural rubber and wool tend to be among the raw materials that experience the most significant variations in market prices, mainly for reasons of supply integrity, reinforced by the elasticity of demand in the case of cocoa and, in the case of natural rubber and wool, by fairly large cyclical fluctuations in demand. While sterling producers are the main exporters in all three countries and sterling`s foreign exchange reserves therefore tend to fluctuate according to their current strength or weakness, no agreement was regulated in the post-war period. In addition, the fact that fluctuations in the prices of these raw materials have been broadly reversible has prompted the main exporting countries to introduce different devices, from national marketing agencies to variable export taxes and the advance payment of taxes on producers` incomes – which have the effect of “stabilizing” producers` incomes from one year to the next (but not all of the country`s foreign exchange earnings). This approach is an adaptation to a life of instability (Nurkse, 1958). The United States has completed recent efforts to renegotiate the ICA and the text of the Seventh International Coffee Agreement (ICA 2007) was adopted by the International Coffee Council on September 28, 2007. The new ICA aims to strengthen the OIC`s role as a forum for government consultation, increase its contribution to meaningful market information and market transparency, and ensure that the organization plays a unique role in developing innovative and effective capabilities in the coffee sector. . .


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