Coffee Agreement

The agreement provides that exported coffee contains a country of origin certification to guarantee the origin of the coffee. The overall objective of the agreement is to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment in order to improve all players in the sector. Other new objectives are: according to Yves Engler, Canada in Africa “is no longer concerned about the prospect of poor coffee producers turning to the Soviet Union, the United States withdrew its support from the international coffee agreement in 1989” The agreement aims to promote the sustainable development of the global coffee sector economically, social and environmental. This original 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 countries with low consumption rates. In addition, any participating country may terminate the agreement with a period of 90 days. Despite the weakness of the implementation of this version of the agreement, the United States of America, one of the largest consumers of coffee in the world, initially opposed the ratification of the agreement. Against fears of high coffee prices, the United States did not officially approve this agreement until February 1965, but only after export quotas were increased by an additional 2.3 million bags.[3] The process of negotiating a new agreement gained new momentum with the fall in prices to record levels during the 1990/1991 and 1991/1992 coffee years, and the Council approved a further extension of the agreement until the 30th. September 1993. At the same time, it decided to set up a working group to carry out a comprehensive review of all proposals and ideas for future cooperation on coffee. This led to the creation of a negotiating group that was mandated to negotiate a new agreement on the basis of a universal export quota system.

Despite important negotiations, however, it proved impossible to reach a satisfactory conclusion before the required date of 31 March 1993. The Council therefore decided, in June 1993, to extend the Agreement until 30 September 1994 in order to preserve the Organisation as a forum for international cooperation in the field of coffee and to have time to negotiate a new agreement. This time, MEPs focused on negotiating an agreement that does not provide for regulation of coffee prices. This process was successfully concluded with the negotiations on the 1994 International Coffee Convention, which entered into force on 1 October 1994. .

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