CCP:HF 00/2 - JU 00/2


 

COMMITTEE ON COMMODITY PROBLEMS

JOINT MEETING OF THE THIRTY-FIRST SESSION OF THE INTERGOVERNMENTAL GROUP ON HARD FIBRES AND THE THIRTY-THIRD SESSION OF THE INTERGOVERNMENTAL GROUP ON JUTE, KENAF AND ALLIED FIBRES

in conjunction with a
CONSULTATION ON NATURAL FIBRES

Rome, 12-15 December 2000

INTERNATIONAL COOPERATION ON JUTE AND THE STATUS OF THE IJO

Table of Contents



I. INTRODUCTION

The International Jute Agreement expired on 11 April 2000. Consequently, in the absence of a successor agreement, the International Jute Organization (IJO) went into liquidation on 12 April.

This note summarises developments prior to 12 April 2000 which led to the IJO entering liquidation, and provides an outline of more recent consultations on future international cooperation on jute. The Joint Meeting will be provided with up-to-date information on any further developments which occur in the interval between the preparation of this document and the convening of the Joint Meeting. The Meeting may wish to consider the implications which these developments have on the Intergovernmental Group on Jute, Kenaf and Allied Fibres, and on the Group's relationship with a new instrument for international cooperation on jute.

II. DEVELOPMENTS

The IJO was established to administer the provisions of the first International Agreement on Jute and Jute Products, 1982, and the Organization began functioning in 1984. The Agreement was renegotiated in 1989, and the International Agreement on Jute and Jute Products, 1989, entered into force on 12 April 1991. This agreement was initially in force for 5 years, but was then twice extended for 2-year periods, to finally expire on 11 April 2000.

In the period leading up to the expiry of the Agreement, consultations were held in several fora in an attempt to arrive at an agreement on future international cooperation. Firstly, a preparatory committee (PREPCOM), established by the International Jute Council in March 1998, met in October 1998 and in April 1999. However, India withdrew from the IJO on 7 January 1999 and Thailand on 22 March 1999. India's re-accession to the Agreement with effect from 23 December 1999 subsequently stimulated renewed efforts to negotiate an agreement, although by this time only three and a half months remained to the expiry date of the Agreement.

The Third Meeting of PREPCOM was convened from 6-8 February 2000, and was followed by a Special Session of the International Jute Council on 9 February. At this time, the Executive Director was authorised by the Council to request the Secretary-General of UNCTAD to convene a UN Conference on Jute and Jute Products for the purpose of negotiating a successor agreement. It was noted, however, that some member states had requested more time to take a decision on the format of the instrument of such future cooperation.

The United Nations Conference on Jute and Jute products was convened by UNCTAD in Geneva, 27-31 March 2000, and its deliberations continued to a Second Session in Dhaka, 6-8 April 2000. This conference negotiated and ultimately adopted the text of a draft successor agreement. However the conference took place without the participation of some key member states. Consequently, the International Jute Council at its 28th Session, 8-10 April 2000, did not proceed with the draft Agreement. It did not extend the then current agreement beyond 11 April, and it decided to provide for a liquidation period of 18 months from 12 April.

The International Jute Organization consequently went into liquidation on 12 April 2000.

The 28th Session of the Council also decided to establish a broad-based and open-ended Working Group to prepare an instrument for future international cooperation on jute and jute products. This Working Group met in Dhaka on 27-28 June 2000. Its discussion touched on a number of dimensions of possible future cooperation, including the format of a future instrument, its objectives, membership structure, voting, financing and duration. At the conclusion of its meeting, however, while it confirmed its commitment to work towards the continuation of future cooperation in the jute sector, it did not have time to arrive at a definitive decision on the format of such future cooperation. Some delegates noted, however, that the format of an International Study Group appeared to be the most acceptable option. The Working Group is expected to meet again on 9-11 October, to complete, if possible, its work, and to present its recommendations to a Special Session of the International Jute Council to be held on 12 October.

The outcome of the October meetings of the Working Group and Council will be reported to the Joint Meeting.

III. RELATIONSHIP BETWEEN FAO AND IJO

Throughout the existence of the IJO, harmonious and productive relations were maintained between the IJO and FAO, including particularly FAO's Commodities and Trade Division. This relationship was largely the result of good will on all sides, but was underpinned by formal agreements, both the International Jute Agreements of 1984 and 1989 and an exchange of letters between the two organizations. Article 14 of the International Jute Agreement 1989, required the International Jute Council to make "whatever arrangements are appropriate for consultation or cooperation with the United Nations, its specialised agencies such as the Food and Agriculture Organization . . ." and required it to utilize the "facilities, services and expertise" of these bodies. In an exchange of letters between the IJO and FAO in 1984 it was agreed that cooperation would take the forms of exchange of information and documentation; participation in conferences and meetings convened by either organization; consultation on the planning and execution of programmes of interest to both organizations; carrying out joint studies where desirable and mutually agreeable; and consultation on the development and implementation of projects.

The IGG on Jute, Kenaf and Allied Fibres, at its 21st Session in 1985, considered its role vis � vis the then recently established IJO. The Group agreed that there should be no duplication or overlapping between the activities of the IGG and those of the IJO. It saw that the primary function of the IJO was to implement R and D projects and it agreed that the activities on economic and trade aspects then carried out under its own auspices should be continued. These arrangements were confirmed at the subsequent 22nd Session of the IGG in 1986. While the role of the IGG has evolved a little over the years, the division of responsibilities between the two bodies as understood by the Group in 1985 have continued to be observed.

IV. CONCLUSION

In the light of developments which would determine whether or not a new instrument for international cooperation on jute is to come into force, and the likely timing of its coming into force, the Meeting may wish to consider whether any action by the Intergovernmental Group on Jute, Kenaf and Allied Fibres might be required in either the short or the longer term. The Meeting may also wish to consider the relationship which should exist in the future between the IGG and a new instrument for international cooperation on jute.