International Cocoa Agreement And International Cocoa Organization
International Cocoa Agreement and International Cocoa Organization Outline
The International Cocoa Agreement has been made for the purpose of stabilising the cocoa market and preventing excessive fluctuations in the prices of cocoa. The first agreement was made in the 1972 UN Cocoa Conference in Geneva. It came into force in 1973 and expired in 1976. The ICCO came into existence in 1973 under this agreement. The second agreement was made in 1975, became effective in 1976, and expired in 1980. The third agreement was concluded in 1980 and entered into force in 1981. It operated till 1986. Another agreement was concluded in 1986 and entered into force in 1987. This agreement expired in 1990. Most provisions of the 1986 agreement, however, continued to operate under the approval of the members of the agreement. A new agreement was negotiated in 1993. The Cocoa Council which is part of the ICCO administers the agree_ment. There were 42 members from both cocoa importing and exporting countries in the ICCO in 1993. The first two agreements adopted the methods of export quotas and buffer stock to control the market. From 1980, the agreement adopted only the method of buffer stock to adjust the prices of cocoa on the world markets.(1)
Leave a Reply