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International Coffee Agreement 2007

The 1983 ICA was due to expire on 1 October 1989, but, recognizing that it would be impossible to reach a new agreement before the deadline, the Coffee Council (the ICO`s highest body) effectively decided on 4 July 1989 to suspend export quotas. [14] In the absence of a renewed agreement, producing countries have lost most of their influence in the international market. [16] The average price of ICO indicators for the last five years prior to the end of the regime fell from US$1.34 per pound to US$0.77 per pound in the first five years that followed. [16] The agreement aims to promote the economic, social and environmental sustainability of the global coffee sector. According to Yves Engler`s Canada in Africa, in 1989, the United States “no longer worries about the prospect of poor coffee producers turning to the Soviet Union, withdrawing their support from the International Coffee Agreement.” The International Coffee Agreement is an international commodity agreement between coffee-producing and consumer countries to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment for all participants. The OIC, the monitoring body for the agreement, represents most of the coffee-producing and consuming countries. In 1940, the United States agreed to limit its imports to a quota of 15.9 million bags, and other Latin American countries agreed to limit their production. [6] The agreement had a direct effect and the price almost doubled until the end of 1941. [4] After the end of the war in 1945, the price of coffee continued to rise[5][7] until 1955/57, when some balance was reached. The International Coffee Organization, based in London (Bs), is the leading intergovernmental coffee organization, which brings together export and import governments to address the challenges facing the global coffee sector through international cooperation. Its members represent the governments of 98% of the world`s coffee-producing countries and 83% of the consumer countries. Nineteen ICO members are the least developed countries (low-income and economically fragile) and there are more than 25 million small coffee producers and their families that produce 70% of the world`s coffee and are particularly affected by market price fluctuations and supply and demand imbalances. The current 2007 agreement has 42 exporting members and 7 imports (the European Union represents all its Member States as one member).

[3] In 1989, the ICO failed to reach an agreement on new export quotas, which led to the ICA collapsing in 1983. [10] The disagreement was caused by the change in consumer taste towards a softer, better quality coffee. [11] With the maintenance of the quotas of the 1983 agreement, the amendment increased the value of softer coffee at the expense of more traditional varieties such as robusta. [12] In particular, Brazil – the world`s most powerful coffee producer – refused to reduce its quotas because it thought it would reduce its market share. [11] [13] U.S.-led consumers have called for better quality coffee and an end to the sale of coffee to non-members at reduced prices. [14] [15] The issues covered by the agreement fall within the exclusive competence of the EU within the framework of the Common Trade Policy.

About David Hayden

Restaurant industry professional helping small restaurants with their training, operations, and marketing needs. Author of Tips2: Tips For Increasing Your Tips and Building Your Brand With Facebook. You can also visit my other websites and blogs at: http://www.tips2book.com http://www.restaurant-marketing-plan.com http://www.themanagersoffice.com http://www.tipssquared.com http://www.foodieknowledge.com http://www.restaurantlaughs.com http://www.tipsfortips.wordpress.com

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