Friday, June 09, 2006

U.S. Seeks To Strengthen The International Coffee Organization

The Bush administration hopes to revive the International Coffee Organization. In a formal submission to the ICO, the U.S. government advocates "substantial reforms" that will enhance the ICO's effectiveness as the chief intergovernmental body for the worldwide coffee industry in the context of free markets and a changing global economy. The National Coffee Association has released a statement in support of the U.S. government's position.

The government believes that current articles of the International Coffee Agreement, set to expire in 2007, need to reflect changes in the global market. Among emerging issues to bed addressed are the implications of international economic integration, the growing importance of developing countries on consumers, the inevitable volatility in coffee prices, market-based mechanisms for risk management in developing countries, and development of mechanisms to provide access to capital and markets for small producers.

The U.S. government also wants a revised, holistic posture to sustainable coffee production.

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