International Commodity Agreement
There is a great gap between the principles underlying these provisions and the harsh realities of the agreements that were actually negotiated in the post-war period. The U.S.S.R. continues to vote on the international sugar agreement and the international wheat agreement as an exporting country, although the dynamism of international trade is such that it has recently become a major net importer of both countries. In the present circumstances, the United States, although not itself a member of the ITA, is in fact setting a ceiling for international tin prices by regulating the rate at which tin disposals are produced from that country`s strategic stocks. In the case of wheat, too, the international market was less dominated by IWA than by the oligopolistic pricing practices of the Canadian Wheat Board and the U.S. Commodity Credit Corporation. The membership of a large number of nations in the current international agreements on raw materials can only complicate administrative and decision-making processes, whereas in at least one case – the UK`s decision not to side with the 1953 IWA – the absence of a major wheat-importing country could have had a beneficial effect in moderating the exercise of oligopolistic power. International Commodity Bodies (ICBs) are independent and autonomous legal entities, with their mandates, procedures and boards of directors as their supreme authority. The provisions of IICA and ISGs are managed by the relevant international commodity organisations. Controlling the market price of certain raw materials has adverse effects both politically and economically. The rigour of the export quotas introduced under the tin agreement from December 1957 to September 1960 appears to have had a long-term effect on production capacity; When restrictions on the export of tin were eased, production was unable to accelerate with a strong recovery in consumption and, therefore, this product is a classic example of the irreversible supply curve. One possible lesson of Fidel Castro`s Cuban experience is that there is a subtle, unopened form or form of control of economic markets and a degree of political tyranny.
Such a philosophy was shared by supporters of the Anti-Corn-Law League in 19th-century England, who built their case on a supposed link between free trade and world peace. While it is generally true that prices in domestic markets tend to fluctuate less strongly than those of products sold without protection in the remaining “free” markets, it is not at all clear that free market prices as a group are necessarily less stable than those of primary commodities that are subject to global market conditions (i.e. primary raw materials) , for which prices vary throughout the non-communist world mainly through transport costs combined with nominal fares).