ERJ staff report (DS)
Bali, Indonesia -- Governments in Malaysia, Thailand and Indonesia are to urge their respective trade associations to blacklist traders who default on their contractual obligations when rubber prices move significantly.
In a statement following the Ministerial Committee of the International Tripartite Rubber Council (ITRC) held on Tuesday, 12 December 2011 in Nusa Dua, Bali, the ITRC said fundamentasl remain strong in the industry and it expects the current downturn in prices to be temporary, blaming it on the crisis in the Euro-zone.
ITRC added that the reduction in rubber prices is affecting smallholders and farmers. As a consequence, they agreed to continue to take concerted measures to improve the market. IN particular, each participating country is to establish a special scheme to implement the Strategic Market Operation (SMO) measure when necessary. Furthermore, the Ministers urged the Rubber Trade Associations of the ITRC countries to jointly blacklist the contract defaulters.
The Ministers agreed to strengthen the role of ITRC/IRCo in the future considering the global economic situations.
They aslo noted that natural rubber is more environmentally friendly than synthetic and urged product makers to use more natural rubber.
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Statement from ITRC