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iconThailand-Indonesia-Malaysia Rubber Cooperation [   September  2017 ]

 

Thailand, Indonesia and Malaysia are world’s major rubber producing and exporting countries. In 2016, world’s total rubber production was 12.4 million tons, including Thai production of 4.47 million tons (36%), Indonesian production of 3.21 million tons (25%) and Malaysian production of 673,500 tons (5%). Collectively, aggregate production of the three countries accounts for 67% of total world production. Since the key issue is that rubber price follows world economic trend, therefore is volatile; it is often that rubber price drops and affects the livelihood of farmers. Meanwhile, rubber consumers encounter hardship during higher-than-expected price situation.

Hence, producers and consumers across the world discussed solutions to the issue. In this relation, International Natural Rubber Organization (INRO) was established in 1980 to solve rubber problems, however ceased its entity in 1999 due to that producers and consumers were of different view on minimum price. In 2001, major rubber producing countries namely Thailand, Indonesia and Malaysia cooperated to solve falling rubber price and stabilize the price, signing the Bali Declaration 2001 to establish International Tripartite Rubber Council (ITRC) and later established International Rubber Consortium (IRCo) in 2003. It is our honour that TRA President was invited to be a committee member of ITRC and IRCo.

ITRC organized ministerial meeting annually. This year, the ministerial meeting of ITRC was hosted by Thai Government on 15 September 2017 at Shangri La Hotel, Bangkok. The meeting was presided by General Chatchai Sarikulya, Minister of Agriculture and Cooperatives. In representation of TRA, Mr. Bundit Kerdvongbundit, TRA Secretary General together with          Mr. Supadetch Ongsakul, TRA Deputy Secretary General and Ms. Piyaporn Saelim, TRA Manager attended the meeting. Among important matters discussed were: 1) Rubber consumption in member countries shall be enhanced at the annual rate of 10%.  Importance shall be given to rubber innovation research and development. 2) Regional Rubber Market shall be developed into futures market and member countries shall invite more buyers and sellers. 3) Supply Management Scheme (SMS) is a long-term measure in balancing demand and supply. Member countries shall cooperate strongly to manage the rubber supply for better price and sustainability of rubber industry. 4) Agreed Export Tonnage Scheme (AETS) is a short-term measure. Member countries shall follow rubber price situation closely. During the time of price fall, AETS is to be implemented immediately. 5) Member countries were of the view that ITRC is to accept Vietnam as an associate member, as Vietnam has high production level, therefore has significant role. 6) The next meeting was scheduled to be held in Malaysia in 2018.

In conclusion, it can be recapitulated that the strong cooperation of Thailand, Indonesia and Malaysia plays a significant role in stabilizing rubber price and is a part in further development of rubber.

Signature
Mr. Chaiyos Sincharoenkul
PRESIDENT

 

 
 
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