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  • 1.5.3-WORLD COFFEE TRADE-INTERNATIONAL COFFEE AGREEMENT (ICA) 2001 – EXPIRED FEBRUARY 2011 - MAIN ELEMENTS

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  • International Coffee Agreement (ICA) 2001 – expired February 2011 - main elements*

     
     
    • Entered into force for six years on 1 October 2001, on expiry of the International Coffee Agreement (ICA) 1994.  
    • Extension(s) of the Agreement for up to six years now depend(s) upon a vote in the Council rather than on ratification by member country governments.  
    • The Private Sector Consultative Board, comprising eight producing and eight consuming representatives of the private sector, is now an integral part of the ICO with the power to make recommendations on matters raised for its consideration by the Council.  
    • The World Coffee Conference is also now an integral part of the ICO and will feature as an ongoing regular event. The conference is called upon to discuss matters of interest to the industry at large and to be self-financing, unless the Council decides otherwise. The first World Coffee Conference was held in London in May 2001, the second in Brazil in September 2005 and the third in Guatemala in February 2010.  
    • The ICO is authorized to promote consumption using resources pledged by interested parties.  
    • The ICO has been empowered to work towards the sustainable management of coffee resources and processing.  
    • The ICO is to consider improving the standard of living and working conditions of populations engaged in the coffee sector, consistent with their stage of development.  
    • The ICO’s headquarters is to remain in London, unless the members vote otherwise.  
    • The ICO’s decision-making structure is virtually unaltered. The Council, which comprises all ICO members, remains the highest authority. It will continue to meet twice a year, while the 16-member Executive Board will continue to be elected annually in September.  
    • The ICO will continue to act as the centre for the collection and exchange of information on coffee and will continue to conduct studies and surveys as well maintain the system of indicator prices.  
    • Certificates of origin will continue to accompany all exports unless the Council deems that exceptional circumstances warrant using an alternative.  
    • The preamble acknowledges the exceptional importance of coffee to the economies of many countries and to the livelihoods of millions of people, as well as the desirability of avoiding disequilibrium between production and consumption because of the harm price fluctuations can do to both sides of the coffee industry.  
    • The objectives include providing a forum when appropriate for negotiating ways to achieve a reasonable balance between world supply and demand on a basis, which will assure adequate supplies of coffee at fair prices to consumers and markets for coffee at remunerative prices for producers and which will be conducive to long-term equilibrium between production and consumption.

      *The list of main elements is based on F.O.Licht, International Coffee Report, Vol.16 N°3. See also www.ico.org/history.asp . 


    International Coffee Agreement (ICA) 2007 – came into force 02 February 2011* 

    The 2007 agreementis designed to enhance the ICO’s role as a forum for intergovernmental consultations, increase its contributions to meaningful market information and market transparency, and to ensure that the organization plays a unique role in developing capacity building in the coffee sector, including facilitating the availability of information on financial tools and services that can assist coffee producers. The Agreement also recognizes the contribution of a sustainable coffee sector to the achievement of internationally agreed development goals, including the Millennium Development Goals (MDG’s), particularly with respect to poverty eradication. 

    The organizational structure of the ICO has been changed with the elimination of the Executive Board, and the creation of a number of new bodies to assist the Council in its work: the Consultative Forum on Coffee Sector Finance, the Projects Committee, the Promotion and Market Development Committee, and the Finance and Administration Committee. The Council, which comprises all ICO members, remains the highest authority. 

    The full text of the 2007 Agreement can be downloaded from www.ico.org.  

     * Due to delays in the ratification procedure the 2001 Agreement was extended for a total of four years