International Coffee Agreement 2001

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The International Coffee Agreement of 2001 (ICA 2001) was an agreement that aimed to regulate the global coffee market and stabilize coffee prices. It was the third agreement of its kind, following the International Coffee Agreement of 1962 and the International Coffee Agreement of 1983.

The ICA 2001 was created by the International Coffee Organization (ICO), a intergovernmental organization that represents coffee producing and consuming countries. The agreement was signed by 77 countries, including major coffee producers such as Brazil, Colombia, and Vietnam.

The primary goal of the ICA 2001 was to stabilize coffee prices by creating a mechanism for managing supply and demand. The agreement established a system of “market management mechanisms” that allowed the ICO to monitor the coffee market and adjust production levels accordingly. This included the creation of a quota system that regulated exports from participating countries.

The ICA 2001 also aimed to support sustainable coffee production and promote environmentally friendly farming practices. It established a number of programs to support small-scale coffee farmers and improve the quality of coffee production.

Another key aspect of the ICA 2001 was the development of a dispute resolution mechanism. The agreement provided a framework for resolving disputes between participating countries and the ICO, and included provisions for mediation and arbitration.

The ICA 2001 was in effect from 2001 to 2011, and was renewed for another ten years in 2011. However, in 2018, the United States withdrew from the agreement, citing concerns about the effectiveness of the organization and the impact of the agreement on U.S. coffee producers.

Despite its shortcomings, the ICA 2001 represented an important effort to regulate the global coffee market and promote sustainable coffee production. Its legacy continues to influence efforts to create a more equitable and sustainable coffee industry.