International Commodity Agreement Adalah

kenty9x | December 10, 2020 | 0

(1) Inelastic request. If narrow substitutes are available, it is certain that market-priced assistance for individual products will have immediate and very detrimental effects. The presence of synthetic rubber explains the total absence of a post-war agreement for the natural product; Agreements restricting the use of the agreement for individual olive trees are excluded by the existence of a large list of alternative seeds and by competition with butter; but since 1937 sugar has borrowed a continuous succession of agreements. While it is generally true that prices in domestic markets tend to fluctuate less strongly than those of products sold without protection in the remaining “free” markets, it is not at all clear that free market prices as a group are necessarily less stable than those of primary commodities that are subject to global market conditions (i.e. primary raw materials) , for which prices vary throughout the non-communist world mainly through transport costs combined with nominal fares). This is mainly for reasons of supply elasticity, reinforced in the case of cocoa by the inadequacy of demand and by fairly large cyclical variations in demand, cocoa, natural rubber and wool in the case of cocoa, which have experienced the most significant variations in market prices. While sterling producers are off-the-top of all three and sterling`s foreign exchange reserves tend to fluctuate according to their current market strength or weakness, none were settled by an agreement in the post-war period. Moreover, the fact that price fluctuations in these raw materials were generally reversible has led major exporting countries to introduce various devices – from national marketing advice to variable export taxes to producer income tax – which have the effect of “stabilizing” producers` incomes from year to year (but not all of the country`s foreign exchange earnings). This approach is an adaptation to life with instability (Nurkse 1958). The International Tropical Woods Agreement (ITTA) is often referred to as a “hybrid agreement” because it combines a traditional trade agreement on raw materials with sustainable tropical forest management objectives. ITTA has established the International Tropical Timber Organization (ITTO), a 59-member intergovernmental organization, which together represents about 80 percent of the world`s tropical forests and 90% of the annual tropical timber trade.

ITTO promotes market transparency through the collection, analysis and dissemination of data on the production and trade of tropical timber; supports the development, funding and implementation of projects and other measures to strengthen the sustainable management and exploitation capacity of tropical forests; and facilitates intergovernmental consultation and international cooperation on trade and exploitation of tropical timber and sustainable management of its resource base. The current pressure that favours agreements. Despite the serious drawbacks, the number of international commodity agreements has tended to increase and there is good reason to expect this trend to continue. On the one hand, the United States, through a series of moderate measures, has moved from doctrinal opposition to these agreements to one in which official policy, as President Kennedy says, “is poised to cooperate on a case-by-case review of commodity market problems.” Such agreements tend to be strongly favoured by less developed countries to “stabilize” (i.e. increase) the currencies they obtain from their main exports.