When Was The International Coffee Agreement Stopped

In 1989, the ICO failed to reach an agreement on new export quotas, which led to the breakdown of the 1983 ICA. [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 text of the seventh international coffee agreement, the 2007 agreement, was approved by the 77 members of the International Coffee Council meeting in London on 28 September 2007. It was formally adopted by the Council in Resolution 431 and came into force on 2 February 2011. The agreement will strengthen the role of ICO as an intergovernmental consultation forum, facilitate international trade by increasing transparency and access to relevant information, and promote a sustainable coffee industry for the benefit of all stakeholders and, in particular, small farmers in coffee-producing countries. The forerunner of the ICA was the Inter-American Coffee Agreement (IACA), which was founded during World War II. The war had created the conditions for a Latin American coffee deal: European markets were closed, the price of coffee fell, and the United States feared that lower prices would push Latin American countries – especially Brazil – towards Nazi or communist sympathies. [4] [5] 1963: the first ICA comes into force in a period of low prices and regulates deliveries through an export quota system.

1972: Export quotas are suspended when prices rise. 1980: Export quotas reinstated and producers agree in return to abandon attempts at unilateral market regulation. February 1986: Quotas suspended following a boom caused by drought losses for Brazil`s crop push prices above the ICA target range from $1.20 to $1.40. October 1987: reintroduction of quotas. 4 July 1989: Undetermined suspension of quotas after the failure of the system under pressure from competing claims of exporters on market shares under the new ICA, which will then be negotiated. Supported by the United States, the Central American states and Mexico insist on a much larger share of the market at the expense of Brazil (which opposes it) and African producers. September 4, 1989: Colombian President Virgilio Barco writes to U.S. President George Bush asking for assistance in the repatriation of export quotas under a new ICA and receives an encouraging response on 19 September.

October 1, 1989: the extension of the ICA with oppressed economic clauses comes into force. February 1990: At a Latin American summit on drugs in Colombia, President Bush reaffirms his commitment to a new ICA and publishes a document out of the government`s thoughts on its possible form. December 1991: In discussions with Cesar Gaviria (the new Colombian President), Brazilian President Fernando Collor de Mello (elected in March 1990) declares himself fundamentally ready to support efforts to restore quotas if local industry can agree on a common position, given the driving role of policy formulation. March 1992: Brazil finally gives the green light to the negotiation of a new ICA with economic clauses. June 1992: First round of negotiations. March 9, 1993: Bill Clinton, winner of the November 1992 U.S. presidential election, writes to Gaviria, who supports a new ICA, but without any sign of enthusiasm. 31 March 1993: the ICA negotiations collapse in round 6, with little progress, and each side holds the other responsible.

About the Author