Thailand, Malaysia in rubber pact
21 September 1999
Thailand, Malaysia in rubber pact
THAILAND and Malaysia have agreed to a pact on natural rubber which they hope will push its price above 80¢/kg.
The deal between the worlds first and third largest producers of natural rubber calls for no disposal of rubber stocks to be made by the two countries when the international price falls below the targeted level.
The agreement follows the decision by both countries to withdraw from the International Rubber Organisation (Inro). Their resignation was prompted by frustration at the failure of Inro to support the price of rubber when it fell to 30-year lows earlier this year.
Rubber currently trades at about 70¢/kg.
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