NEW INTERNATIONAL COCOA AGREEMENT ENTERS INTO FORCE

NEW INTERNATIONAL COCOA AGREEMENT ENTERS INTO FORCE

(Reissued as received.)

GENEVA, 1 October (UNCTAD) -- The International Cocoa Agreement, 2001, enters into force on 1 October.  The agreement –- the sixth of its kind to be adopted over the past three decades –- differs from its predecessors in its exclusion of market regulatory mechanisms, such as production quotas, buffer stocks and other price support measures.  It places greater emphasis on a sustainable cocoa economy and, through the creation of a consultative board, seeks the active involvement of the private sector in the achievement of its goals.  These include promoting transparency in the world cocoa market through the statistical collection and analysis and studies.  A range of projects called for by the agreement, including the creation of farmer cooperatives and the development of new farming methods, is intended to strengthen the national cocoa economies of exporting countries, many of which depend on such commodities for their livelihood.

As of today, the governments of seven exporting countries and 18 importing countries, the latter including the 15 members of the European Community (see list), had ratified, approved, signed or given notification of provisional application of the agreement, enabling it to be put into force provisionally.  Signatories represent the majority of the world's leading cocoa exporting and importing countries.

The date of entry into force was decided at a meeting convened by the United Nations Conference on Trade and Development (UNCTAD) in London on 4 June 2003, at which time a number of those countries other than those that had already ratified the agreement indicated they had reached an advanced stage in their preparations to join.  Countries that have not been members of previous agreements were also expected to sign up.

The Sixth International Cocoa Agreement, like its predecessors, was negotiated under UNCTAD auspices.  (For background, see press releasesTAD/INF/PR04 and PR05).   It will remain open for signature until 30 September 2010, at United Nations Headquarters in New York, where the Secretary-General of the United Nations serves as its depositary.  The agreement was concluded in Geneva in November 2000 and February 2001, and was opened for signature and ratification on 1 May 2001.

List of countries that have joined the Sixth International Cocoa Agreement, as of 30 September 2003

Exporting countries:  Cameroon, Côte d'Ivoire, Gabon, Ghana, Malaysia, Nigeria and Togo.

Brazil, Dominican Republic, Ecuador, Papua New Guinea and Trinidad and Tobago are expected to accede shortly.

Importingcountries:  European Community members (Austria, Belgium/Luxembourg, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, United Kingdom), Russian Federation, Slovak Republic and Switzerland.

Contact:  Press Office: +41 22 907 5828, press@unctad.org, www.unctad.org/press; or A. Mojarov, +41 22 907 5782, alexei.mojarov@unctad.org

Definitive entry into force requires ratification by at least five exporting countries accounting for at least 80 per cent of total exports, and by importing countries having at least 60 per cent of total imports.  As of 30 September 2003, the percentages of ratifications represented 76.76 per cent and 60.05 per cent, respectively.

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