Posted on Oktober 11, 2021
The International Coffee Agreement Brings Together Which Groups
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 completed with the negotiations on the 1994 International Coffee Convention, which entered into force on 1 October 1994. Criticism of the international body has also intensified in neighboring Honduras, Central America`s largest coffee producer. Six major projects worth more than $50 million were approved between 1995 and 2000. In 1989, ICO failed to reach an agreement on new export quotas, which led to the collapse of the 1983 ICA.  The disagreement was caused by the shift in consumer taste towards a softer, better quality coffee.
 With the maintenance of the quotas of the 1983 Agreement, the amendment increased the value of sweeter coffee to the detriment of more traditional varieties such as robusta.  In particular, Brazil – the world`s most powerful coffee producer – refused to reduce its quotas, believing that it would reduce its market share.   Consumers, led by the United States, demanded better quality coffee and an end to the sale of coffee to non-members at discounted prices.   The original agreement was signed in 1962 for a period of five years and since then six subsequent agreements have been ratified in 1968, 1976, 1983, 1994, 2001 and 2007. . .