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Agreement Of Coffee

The current 2007 agreement has 42 exporting members and 7 imports (the European Union represents all its Member States as one member). [3] In this context, the agreement states that its signatories must strive to limit tariff and regulatory barriers to coffee consumption, such as preferential tariffs, quotas, state monopolies and subsidies. They must also take due account of sustainable management of coffee resources, in line with the principles and objectives of Action 21 (the UN Action Plan for Sustainable Development adopted at the 1992 Earth Summit, which was replaced by Agenda 2030 at the 2015 Summit on Sustainable Development) and improving the standard of living and working conditions of people working in the coffee sector. This initial version of the agreement is considered largely symbolic, given that all provisions were voluntary and that producing countries were not limited in their exports to low-consumption countries. In addition, each participating country could withdraw from the agreement with a 90-day period. Despite the weak application in this version of the agreement, the United States of America, one of the world`s leading consumers of coffee, initially hesitated to ratify the agreement. Concerned about the high price of coffee, the United States did not formally approve the agreement until February 1965, but only after export quotas had increased by another 2.3 million bags. The issues governed by the agreement fall within the exclusive competence of the EU within the framework of the Common Trade Policy. 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 decision adopts the agreement on behalf of the European Community (now the EU). The scarcity of coffee supply and the evolution of production conditions after 1970 led to differences between producing and consuming countries, which could have jeopardized the continuation of the 1962 Treaty. In 1983, a new agreement endorsed the same principles of the 1962 Treaty and also stressed the promotion and maintenance of employment and income in Member States in order to contribute to fair wages, a higher standard of living and better working conditions. The International Coffee Organization was established in 1963 to manage the terms of the agreement and control existing mechanisms. Until 1986, the Coffee Council, the decision-making body of the ICO, approved export quotas. [1] 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.

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