Meaning Of International Commodity Agreement

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. In Europe, international market-sharing agreements have been actively supported by the French authorities for more than a decade. The Federal Republic of Germany, the main importer of agricultural raw materials in the European Economic Community, supports the agreements as instruments for maintaining a place for foreign suppliers in the common market. For similar reasons, an agreement on cereals also received some scientific support (Coppock 1963). In addition, the United Kingdom, which until recently relied on a policy of cheap food imports and a programme of direct payments to its domestic agricultural producers, has begun to conclude a series of agreements with major foreign suppliers of cereals and meat in order to reduce the budgetary burden resulting from a combination of direct payments and unlimited domestic production. and unlimited imports. International commodity agreements significantly draw all external suppliers to short-term benefits and are willing to ignore longer-term disadvantages by securing opportunities on the basis of quotas. Controlling the market price of certain raw materials has adverse effects both politically and economically. The rigour of the export quotas introduced under the tin agreement from December 1957 to September 1960 appears to have had a long-term effect on production capacity; When restrictions on the export of tin were eased, production was unable to accelerate with a strong recovery in consumption and, therefore, this product is a classic example of the irreversible supply curve.

One possible lesson of Fidel Castro`s Cuban experience is that there is a subtle, unopened form or form of control of economic markets and a degree of political tyranny. Such a philosophy was shared by supporters of the Anti-Corn-Law League in 19th-century England, who built their case on a supposed link between free trade and world peace. Alternatives. Various efforts have been made to invent mechanisms other than international commodity agreements, to transfer purchasing power to less developed countries whose incomes have been cyclically or chronically depressed. Some of these alternatives, such as commodity reserve currency proposals (United Nations, 1964a), would serve the objectives of foreign aid and international monetary “reform” to undermine the role of the price system as the main instrument of economic management in (relatively) free enterprises.