International Natural Rubber Agreement 1979

The International Natural Rubber Agreement 1979 (INRA) was a significant agreement signed by several countries involved in natural rubber production. Its aim was to stabilize the prices of natural rubber in international markets by establishing a buffer stock system and regulating exports and imports of natural rubber.

The agreement was signed by the International Natural Rubber Organization (INRO), which was established in 1974, and covered 90% of the world`s natural rubber production at the time. The countries included in the agreement were Indonesia, Malaysia, Thailand, Sri Lanka, and India, which were major exporters of natural rubber.

Under the INRA, the buffer stock system was established to help stabilize the prices of natural rubber in the international market. The buffer stock system involved the purchase of natural rubber by the INRO when prices were low and its sale when prices were high. This helped to maintain a stable price range for natural rubber and prevent drastic fluctuations in prices.

The INRA also regulated the export and import of natural rubber by member countries. Export quotas were set to prevent oversupply in the international market, which could lead to a sharp drop in prices. Import restrictions were also implemented to protect the domestic natural rubber industry of member countries.

The INRA was successful in stabilizing the prices of natural rubber for several years. However, it faced challenges in the late 1980s as prices began to decline due to the emergence of synthetic rubber and the increase in natural rubber production by non-member countries.

In 1995, the INRA was replaced by the Agreement on the International Natural Rubber Market, which aimed to promote the sustainable development of the natural rubber industry and ensure fair prices for producers and consumers. This agreement is still in effect today and covers countries that produce over 90% of the world`s natural rubber.

In conclusion, the International Natural Rubber Agreement 1979 was an important agreement that aimed to stabilize the prices of natural rubber in international markets. Its buffer stock system and regulation of exports and imports helped to maintain a stable price range for natural rubber for several years. Although it faced challenges in the late 1980s, its legacy continues through the Agreement on the International Natural Rubber Market, which promotes the sustainable development of the natural rubber industry.

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