COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 05.12.1995 
COM(95) 616 final 
95/0310 (ACQ 
Proposal for a 
COUNCIL DECISION 
concerning the signing and notification of provisional application of the 
International Natural Rubber Agreement 1995 
on behalf of the Community 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. Negotiations for a Third International Natural Rubber Agreement were concluded 
on 17 February 1995 at the end of the third session of the Negotiating Conference. 
This international commodity agreement was negotiated in the context of the 
• Integrated Programme for Commodities covered by Resolutions 93 (IV),the "new 
partnership for development : Cartagena Commitment" and the relevant objectives 
in the final document "Cartagena Spirit" adopted by the United Nations Trade and 
Development Conference at its eighth session. 
2. The main aims of the Agreement are : 
to promote and strengthen international cooperation in all branches of the 
world natural rubber sector in particular by providing an effective framework for 
the discussion of matters relating to the sectors ; 
to contribute to the stabilization of the world market in natural rubber in 
the interests of both producers and consumers, notably by seeking to avoid 
excessive price fluctuations and to ensure a long-term balance between supply and 
demand ; 
to facilitate the expansion of international trade in natural rubber. 
3. Apart from the exchange of basic statistical data, the methods/ envisaged for 
achieving these aims include the setting up of a price protection mechanism 
comprising : 
a price range expressed in Singgit/kg l and automatically readjustable on 
the basis of the volume of buffer stock transactions and / or price levels on the 
world market ; 
a buffer stock of a total capacity of 550.0001 of natural rubber, made up of 
a normal buffer stock of 400.0001 and a contingency buffer stock of 150.000 t. 
4. The principal amendments made by the 1995 Agreement to the 1987 Agreement 
relate to : 
the strengthening of procedures for the revision of the price range by 
increasing the automaticity of the procedure and of any adjustment ; 
the reduction from 15 months to 12 months of the interval at which the 
reference price must be reviewed; 
increase in the Lower Indicative Price from 150 cents/kg to 157 cents/kg ; 
reduction in initial duration from 5 years to 4 years ; 
inclusion of an article on environmental aspects ; 
Singgit : average value of the Malaysian Ringgit and the Singapore dollar. 
3^ 
inclusion of the post of Deputy Executive Director in the agreement. 
5. The sources of finance envisaged remain the same as in the 1987 Agreement 
(contribution by the member countries to the administrative budget and the buffer 
stock). 
6. The Agreement has been negotiated by the Community and its Member States in 
accordance with the common position defined by the Council. It is open for 
signature from 3 April 1995 to 28 December 1995. The 1987 Agreement is due to 
expire en 28 December 1995 and, as it has already been extended by 2 years, it 
cannot be extended further. In order to avoid any legal hiatus or any gaps in the 
working of the intervention mechanisms of the two Agreements, the Commission 
proposes that the Community and its Member States should : 
sign the 1995 Agreement as soon as possible ; 
state their intention to apply the said Agreement on a provisional basis. 
7. It is important that the Community and its Member States should simultaneously 
sign and give notification of the provisional application of this Agreement, since 
they have both to become contracting parties and act together. 
8. The attached proposal, which the Council is asked to adopt, has been drafted to 
this end. 
1£ 
Proposal for a 
COUNCIL DECISION 
concerning the signing and notification of provisional application of the 
International Natural Rubber Agreement 1995 
on behalf of the Community 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 in connection with Article 228 § 2, thereof, 
Having regard to the proposal from the Commission, 
Whereas the International Natural Rubber Agreement of 1995 negotiated in the context of 
the Integrated Programme for Commodities Resolution 93 (IV), the "new partnership for 
development : Cartagena Commitment" and the relevant objectives in the final document 
"Cartagena Spirit" adopted by the United Nations Trade and Development Conference at 
its eighth session is open for signature from 3 April to 28 December 1995. 
Whereas the International Natural Rubber Agreement of 1987 expires on 28 December 
1995 ; whereas it is therefore advisable to apply the new Agreement with effect from 29 
December 1995 in order to avoid any gap in the working of the intervention mechanisms 
of the two Agreements, if the ratification procedures were not completed by that date ; 
Whereas the aims of the Agreement are : 
- to promote and strengthen international cooperation in all branches of the world 
natural rubber sector, in particular by providing an effective framework for the 
discussion of matters relating to the sectors ; 
- to contribute to the stabilization of the world market in natural rubber in the interests 
of both producers and consumers, notably by seeking to avoid excessive price 
fluctuations and to ensure a long-term balance between supply and demand ; 
- to facilitate the expansion of international trade in natural rubber. 
Whereas, apart from the exchange of basic statistical data, the methods envisaged for 
achieving these aims include a price protection mechanism comprising : 
- a price range expressed in Singgit/kg (Singgit : average value of the Malaysian ringgit 
and the Singapore dollar) and automatically readjustable on the basis of the volume of 
buffer stock transactions and / or price levels on the world market ; 
^ 
- a buffer stock of a total capacity of 550.000 t of natural rubber, made up of a normal 
buffer stock of 400.0001 and a contingency buffer stock of 150.0001. 
Whereas the aims pursued by the Agreement fall within the bounds of the common 
commercial policy ; 
Whereas the following sources of finance are envisaged : 
- contributions by the members of the Agreement to the administrative budget ; 
- contributions by the members of the Agreement to the buffer stock ; 
Whereas the application of the said Agreement involves financial contributions by the 
Member States ; 
Whereas, consequently, it is important that the Community should sign the Agreement 
deposited with the Secretary-General of the United Nations and give notification before 
29 December 1995 of its intention to apply the new Agreement on a provisional basis, 
pending its definitive conclusion, 
HAS DECIDED AS FOLLOWS : 
Article 1 
The Community shall sign the International Natural Rubber Agreement, 1995, deposited 
with the Secretary-General of the United Nations, the text of which is annexed to this 
Decision, and state its intention to apply the International Natural Rubber Agreement, 
1995, on a provisional basis, in accordance with the Articles of the Agreement. 
Article 2 
The President of the Council is hereby authorized to designated the person empowered to 
sign the Agreement and to deposit the notification of provisional application on behalf of 
the Community. 
Done at Brussels, For the Council, 
The President, 
^ 
DECLARATIONS TO BE ENTERED IN THE MINUTES 
1. The Council and the Commission declare that this Decision is being adopted in 
order to enable the International Natural Rubber Agreement 1995 to become 
effective on 29 December 1995. It is being taken with the pragmatic aim of 
adhering as closely as possible to existing practices and it does not prejudice the 
basis and nature of future measures concerning commodities, including the 
renewal of this Agreement. 
2. The Member States' representatives meeting within the Council declare that their 
governments are prepared to sign the new International Natural Rubber 
Agreement 1995 as soon as possible, together with the Community, and to ensure, 
by common accord with the European Community, its provisional application. 
Those states which cannot decide to apply the Agreement on a provisional basis by 
an act of their Government will begin their parliamentary ratification procedures as 
soon as possible. Pending ratification they will take all measures to ensure that the 
Agreement can be applied as regards the Community's competencies. 
TD/RUBBER.3/11 
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 
Geneva 
INTERNATIONAL NATURAL RUBBER 
AGREEMENT, 1995 
UNITED NATIONS 
New York and Geneva, 1995 
\l\ 
INTERNATIONAL NATURAL RUBBER AGREEMENT, 1995 
CONTENTS 
Page 
PREAMBLE 4 
CHAPTER I. OBJECTIVES 
Article 
1. Objectives 5 
CHAPTER II. DEFINITIONS ' ~ 
2. Definitions 6 
CHAPTER III. ORGANIZATION AND ADMINISTRATION 
3. Establishment, headquarters and structure of the 
International Natural Rubber Organization . . 8 
4. Membership in the Organization 8 
5. Membership by intergovernmental organizations v 8 
CHAPTER IV. THE INTERNATIONAL NATURAL RUBBER COUNCIL 
6. Composition of the International Natural Rubber Council . 9 
7. Powers and functions of the Council 9 
8. Delegation of powers 10 
9. Cooperation with other organizations 10 
10. Admission of observers 10 
11. Chairman and Vice-Chairman 10 
12. Executive Director, Deputy Executive Director, Buffer Stock-
Manager and other staff 11 
13. Sessions ......... 11 
14. Distribution of votes 12 
15. Voting procedure 13 
16. Quorum . 13 
17. Decisions 13 
18. Establishment of committees 14 
19. Panel of experts 14 
CHAPTER V. PRIVILEGES AND IMMUNITIES 
20. Privileges and immunities 15 
CHAPTER VI. ACCOUNTS AND AUDIT 
21. Financial accounts 16 
22. Form of payment 16 
23. Audit 16 
I Page 
CHAPTER VII. THE ADMINISTRATIVE ACCOUNT 
24. Approval of the administrative budget and assessment of 
contributions 17^ 
25. Payment of contributions to the administrative budget . .' 17 
CHAPTER VIII. THE BUFFER STOCK 
26. Size of the Buffer Stock 18 
27. Financing of the Buffer Stock 18 
28. Payment of contributions to the Buffer Stock Account ... 19 
29. Price range 20 
30. Operation of the Buffer Stock . 20 
31. Review and revision of the price range . . . . 22 
32. . Market indicator price 23 
33. Composition of buffer stocks . . 24 
34. Location of buffer stocks 24 
35. Maintaining the quality of the buffer stocks 25 
36. Restriction or suspension of buffer stock operations . . -. 25 
37. Penalties relating to contributions to the Buffer Stock 
Account , 26 
38. Adjustment of contributions to the Buffer Stock Account . 26 
39. The Buffer Stock and changes in exchange rates 27 
40. Liquidation procedures for the Buffer Stock Account ... 28 
CHAPTER IX. RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES 
41. Relationship with the Common Fund.for Commodities .... 30 
CHAPTER X. SUPPLY AND MARKET ACCESS AND OTHER MEASURES 
42. Supply and market access 31 
43. Other measures 31 
CHAPTER XI. CONSULTATION ON DOMESTIC POLICIES 
44. Consultation •; 32 
CHAPTER XII. STATISTICS, STUDIES AND INFORMATION 
45. Statistics and information 33 
46. Annual assessment, estimates and studies 33 
47. Annual review 33 
CHAPTER XIII. MISCELLANEOUS 
48. General obligations and liabilities of members 34 
49. Obstacles to trade 34 
50. Transportation and market structure of natural rubber . . 34 
51. Differential and remedial measures *..... 35 
52. Relief from obligations 35 
53. Fair labour standards 35 
54. Environmental aspects 35 
Page 
CHAPTER XIV. COMPLAINTS AND DISPUTES 
55. Complaints .................. 36 
56. Disputes •...'. 3 6 
CHAPTER XV. FINAL PROVISIONS 
57. Signature 3 8 
58. Depositary 3 8 
59. Ratification, acceptance and approval 38 
60. Notification of provisional application 38 
61. Entry into force 39 
62. Accession 1 40 
63. Amendments 40 
64. withdrawal - 41 
65. Exclusion 41 
66. Settlement of accounts with withdrawing or excluded 
members or members unable to accept an amendment ..... 41 
67. Duration, extension and termination . 42 
68. Reservations 43 
ANNEXES 
A. Shares of individual exporting countries in total net exports 
of countries, as established for the purposes of article 61 44 
B. Shares of individual importing countries and groups of 
countries in total net imports of countries, as established 
for the purposes of article 61 45 
C. Cost of the Buffer Stock as estimated by the President of 
the United Nations Conference on Natural Rubber, 1994 . . 46 
PREAMBLE 
The Contracting Parties, 
Recalling the Declaration and the Programme of Action on the 
Establishment of a New international Economic Order, * 
Recognizing in particular the importance of the United Nations 
Conference on Trade and Development resolutions 93 (IV), 124 (V) and 
resolution 155 (VI) on the Integrated Programme for Commodities,* the Cartagena 
Commitment and the relevant objectives contained in "The Spirit of Cartagena" 
adopted by the United Nations Conference on Trade and Development, 
Recognizing the importance of natural rubber to the economies of 
members, particularly to the exports of exporting members and to supply 
requirements of importing members, 
Recognizing further that the stabilization of natural rubber prices is 
in the interests of producers, consumers and natural rubber markets, and that 
an international natural rubber agreement can significantly assist the growth 
and development of the natural rubber industry to the benefit of both 
producers and consumers, 
Have agreed as follows: 
* General Assembly resolutions 3201 (S-VI) and 3202 (S-vi) of 1 May 1974 
CHAPTBR I. OBJECTIVES 
Article 1 
Objectives 
The objectives of the International Natural Rubber Agreement, 19 9 5 
(hereinafter referred to as this Agreement), in the light of the resolution 
93 (IV), of the New Partnership for Development: the Cartagena Commitment and 
the relevant objectives contained in "The Spirit of Cartagena" adopted by the 
United Nations Conference on Trade and Development, are inter alia as follows: 
(a) To achieve a balanced growth between the supply of and demand for 
natural rubber, thereby helping to alleviate the serious 
difficulties arising from surpluses or shortages of natural 
rubber; 
(b) To achieve stable conditions in natural rubber trade through 
avoiding excessive natural rubber price fluctuations, which 
adversely affect the long-term interests of both producers and 
consumers, and stabilizing these prices without distorting 
long-term market trends, in the interests of producers and 
consumers; 
(c) To help stabilize, the export earnings from natural rubber of 
exporting members, and to increase their earnings based on 
expanding natural rubber export volumes at fair and remunerative 
prices, thereby helping to provide the necessary incentives for 
a dynamic and rising rate of production and the resources for 
accelerated economic growth and social development; 
(d) To seek to ensure adequate supplies of natural rubber to meet the 
requirements of importing members at fair and reasonable prices 
and to improve the reliability and continuity of these supplies; 
(e) To take feasible steps in the event of a surplus or shortage of 
natural rubber to mitigate the economic difficulties that members 
might encounter; 
(f) To seek to expand international trade in and to improve market 
access for natural rubber and processed products thereof; 
(g) To improve the competitiveness of natural rubber by encouraging 
research and development on the problems of natural rubber; 
(h) To encourage the efficient development of the natural rubber 
economy by seeking to facilitate and promote improvements in the 
processing, marketing and distribution of raw natural rubber; and 
(i) To further international cooperation in and consultations on 
natural rubber matters affecting supply and demand, and to 
facilitate promotion and coordination of natural rubber research, 
assistance and other programmes. 
CHAPTER II. DEFINITIONS 
Article 2 
l' Definitions 
For the purposes of this Agreement: 
1. "Natural rubber" means the unvulcanized elastomer, whether in solid or 
liquid forms, from Hevea brasiliensis and any other plant which the 
Council may decide for the purposes of this Agreement; 
2. "Contracting party" means a Government, or an intergovernmental 
organization referred to in article 5, which has consented to be bound 
by this Agreement provisionally or definitively; 
3. "Member" means a contracting party as defined in definition (2) above; 
4. "Exporting member" means a member which exports natural rubber and has 
declared itself to be an exporting member, subject to the agreement of 
the Council; 
5. "Importing member" means a member which imports natural rubber and has 
declared itself to be an importing member, subject to the agreement of 
the Council; 
6. "Organization" means the International Natural Rubber Organization 
referred to in article 3; 
7. "Council" means the International Natural Rubber Council, referred to 
in article 6; 
8. "Special vote" means a vote-requiring at least two thirds^of the votes 
cast by exporting members present and voting and at least two thirds of 
the votes cast by importing members present and voting, counted 
separately, on condition that these votes are cast by at least half the 
members in each category present and voting; 
9. "Exports of natural rubber" means any natural rubber which leaves the 
customs territory of any member, and "imports of natural rubber" means 
any natural rubber which enters the domestic commerce in the customs 
territory of any member, provided that for the purpose^ of these 
definitions, customs territory shall, in the case of a member which 
comprises more than one customs territory, be deemed to refer to the 
combined customs territories of that member; 
10. "Distributed simple majority vote" means a vote requiring more than half 
of the total votes of exporting members present and voting and more than 
half of the total votes of importing members present and voting, counted 
separately; 
11. "Freely usable currencies" means the deutsche mark, the French franc, 
the Japanese yen, the pound sterling, and the United States dollar; 
12. "Financial year" means the period from 1 January to 31 December 
inclusive; 
13. "Entry into force" means the date on which this Agreement enters into 
force provisionally or definitively in accordance with article 61; 
14. "Tonne" means a metric ton, i.e. 1,000 kilogrammes; 
15. "Malaysian/Singapore cent" means the average of the Malaysian sen and 
the Singapore cent at the prevailing rates of exchange; 
16. "Time-weighted net contribution of a member" means its net cash 
. contributions weighted by the number of days during which the 
constituent parts of' the net cash contribution have stayed at the 
disposition of the Buffer Stock. In calculating the number of days, the 
day when the contribution was received by the Organization will not be 
taken into account, nor the day when the reimbursement was effected, nor 
the** day when this Agreement terminates; 
17. "First quoted month" means the calendar month of shipment officially 
quoted to the Organization by a market for inclusion in the daily market 
indicator price; 
18. "Established commercial market" means a natural rubber trading centre 
where a rubber trade association or regulatory body exists meeting the 
following criteria: 
(a) a written constitution which includes sanctions that could be 
taken against erring members; 
(b) qualification standards, including financial standards, that 
members must maintain; 
(c) official written contracts that are legally binding; 
(d) full and binding arbitration to all market participants; 
(e) publishes official daily prices for physical rubber. 
CHAPTER III. ORGANIZATION AND ADMINISTRATION 
Article 3 
Establishment, headquarters and structure of the 
International Natural Rubber Organization 
i. The International Natural Rubber Organization, established by the 
International Natural Rubber Agreement, 1979, shall continue in being for the 
purpose of administering the provisions and supervising the operation of this 
Agreement. 
2. The Organization shall function through the International Natural Rubber 
Council, its Executive Director and its staff, and such other bodies as are 
provided for in this Agreement. 
3. Subject to the requirement in paragraph 4 of this article, the 
headquarters of the Organization shall be in Kuala Lumpur, unless the Council, 
by special vote, decides otherwise. 
4. The headquarters of the Organization shall at all times be located in 
the territory of a member. 
Article 4 
Membership in the Organization 
1. There shall be two categories of membership, namely, 
(a) Exporting; and 
(b) Importing. 
2. The Council shall establish criteria regarding a change by a member in 
its category of membership as defined in paragraph 1 of this article, taking 
fully into account the provisions of articles 24 and 27. A member which meets 
such-criteria may change its category of membership subject to the agreement 
of the Council by special vote. 
3. Each contracting party shall constitute a single member of the 
Organization. 
Article 5 , 
Membership by intergovernmental organizations 
1. Any reference in this Agreement to a "Government" or "Governments" shall 
be construed as including a reference to the European Community and to any 
intergovernmental organization having responsibilities in respect of the 
negotiation, conclusion and application of international agreements, in 
particular commodity agreements. Accordingly, any reference in this Agreement 
to signature, ratification, acceptance or approval, or to notification of 
provisional application, or to accession shall, in the case of such 
intergovernmental organizations, be construed as including a reference to 
signature, ratification, acceptance or approval, or to notification of 
provisional application, or to accession, by such intergovernmental 
organizations. 
***** 
2. In the case of votes on matters within their competence, such 
intergovernmental organizations shall exercise their voting rights with a 
number of votes equal to the total number of votes attributed, in accordance 
with article 14, to their member States. In such cases, the member States of 
such intergovernmental organizations shall not exercise their individual 
voting rights. 
CHAPTBR IV. THE INTERNATIONAL NATURAL RUBBER COUNCIL 
Article 6 
^Composition of the International Natural Rubber Council 
1. The highest authority of the Organization shall be the International 
Natural Rubber Council, which shall consist of all the members of the 
Organization. 
2. Each member shall be represented in the Council by one delegate, and may 
designate alternates and advisers to attend sessions of the Council. 
3. An alternate delegate shall be empowered to act and vote on behalf cf 
the delegate during the latter's absence or in special circumstances. 
Article 7 
Powers and functions of the Council 
1. The Council shall exercise all such powers and perform or arrange for 
the performance of all such functions as are necessary to carry out the 
provisions of this Agreement, but it shall not have the power, and shall not 
be taken to have been authorized by the members, to incur any obligation 
outside the scope of this Agreement. In particular, it shall not have the 
capacity to borrow money, without, however, limiting the application of 
article 41, nor shall it enter into any trading contract for natural rubber, 
except as provided for specifically in paragraph 5 of article 30. In 
exercising its capacity to contract, the Council shall ensure that thr terms 
of paragraph 4 of article 48 are brought by written notice to the attention 
of the other parties entering into such contracts, but any failure to do so 
shall not in itself invalidate such contracts, nor shall it be deemed to oe 
a waiver of such limitation of liability of the members. 
2. The Council shall, by special vote, adopt such rules and regulations as 
are necessary to carry out the provisions of this Agreement and are consistent 
therewith. These shall include its own rules of procedure and those of the 
committees referred to in article 18, rules for the administration and 
operation of the Buffer Stock, and the financial and staff regulations of the 
Organization. The Council may, in its rules of procedure, proVide for a 
procedure whereby it may, without meeting, decide specific questions. 
3. For the purposes of paragraph 2 of this article, the Council shall, at 
its first session after the entry into force of this Agreement, review the 
rules and regulations established under the International Natural Rubber 
Agreement, 19 87, and adopt them with such modifications as it deems 
appropriate. Pending such adoption, the rules and regulations established 
under the International Natural Rubber Agreement, 1987, shall apply. 
4. The Council shall keep such records as are required for the performance 
of its functions under this Agreement. 
5. The Council shall publish an annual report on the activities of the 
Organization and such other information as it considers appropriate. 
Article 8 
r 
Delegation of powers 
1. The Council may, by special vote, delegate to any committee established 
under article 18 the exercise of any or all of its powers which, in accordance 
with the provisions of this Agreement, do not require a special vote- of the 
Council. Notwithstanding this delegation, the Council may at any time discuss 
and decicfe any issue that may have been delegated to any of its committees. 
2. The Council may, by special vote, revoke any power delegated to a 
committee. 
Article 9 
Cooperation with other organizations 
1. The Council may make whatever arrangements are appropriate for 
consultation or cooperation with the United Nations, its organs and 
specialized agencies, and other intergovernmental organizations as 
appropriate. 
2. The Council may also make arrangements for maintaining contact with 
appropriate international non-governmental organizations. 
Article 10 
Admission of observers 
The Council may invite any non-member Government, or any of the 
organizations referred to in article 9, to attend as an observer any of the 
meetings of the Council or of any committee established under article 18. 
Article 11 
Chairman and vice-chairman 
1. The Council shall elect for each year a Chairman and a vice-chairman. 
2. The Chairman, and the vice-chairman shall be elepted, one from among the 
representatives of exporting members and the other from- among the 
representatives of importing members. These offices shall alternate each year 
between the two categories of members, provided, however, that this shall not 
prohibit the re-election of either or both, under exceptional circumstances, 
by special vote of the Council. 
3. In the temporary absence of the Chairman, he shall be replaced by the 
vice-Chairman. In the temporary absence of both the Chairman and the 
Vice-chairman or the permanent absence of one or both of them, the Council may 
elect new officers from among the representatives of the exporting members 
and/or from among the representatives of the importing members, as 
appropriate, on a temporary or permanent basis' as may be required. 
4. Neither the Chairman nor any other officer presiding at a meeting of the 
Council shall vote at that meeting. The voting rights of the member he 
represents may, however, be exercised in accordance with the provisions of 
paragraph 3 of article 6, or paragraphs 2 and 3 of article 15. 
10 
Article 12 
Executive Director, Deputy Executive Director, 
Buffer Stock Manager and other staff 
1. The Council shall, by special vote, appoint an Executive Director, 
Deputy Executive Director and a Buffer Stock Manager. 
2. The terms and conditions of appointment of the Executive Director, 
Deputy Executive Director and the Buffer Stock Manager shall be determined by 
the Council. 
3. The Executive Director shall be the chief administrative officer of the 
Organization and shall be responsible to the Council for the administration 
and operation of this Agreement in accordance with the provisions of this 
Agreement and decisions of the Council. 
4. The Deputy Executive Director shall at all times be responsible to the 
Executive Director. The Deputy Executive Director shall act as the Executive 
Director when the latter is for any reason unable to perform his duties or 
when the office of the Executive Director is temporarily vacant-^ in which 
event, he shall be directly responsible to the Council for the administration 
and operation of the Agreement. The Deputy Executive Director shall be 
involved in all matters pertaining to the Agreement. 
5. The Buffer Stock Manager shall be responsible to the Executive Director 
and the Council for the functions conferred upon him by this Agreement, as 
well as for such additional functions as the Council -may determine. The 
Buffer Stock Manager shall be responsible for the day-to-day operation of the 
Buffer Stock, and shall keep the Executive Director informed of the general 
operations of the Buffer Stock so that the Executive Director may ensure its 
effectiveness in meeting the objectives of this Agreement. 
6. The Executive Director shall appoint the staff in accordance with 
regulations established by the Council. The staff shall be responsible to the 
Executive Director. 
7. Neither the Executive Director nor any member of the staff, including 
the Deputy Executive Director and the Buffer Stock Manager, shall have any 
financial interest in the rubber industry or trade, or associated commercial 
activities. 
8. In the performance of their duties, the Executive Director, the Deputy 
Executive Director, the Buffer Stock Manage^ and other staff shall not seek 
or receive instructions from any member of from any other authority external 
to the Council or to any committee established under article 18. They shall 
refrain from any action which might reflect on their positions as 
international officials responsible only to the Council. Each member shall 
respect the exclusively international character of the responsibilities of the 
Executive Director, the Deputy Executive Direction, the Buffer Stock Manager 
and other staff and shall not seek to influence them in the discharge of their 
responsibilities. 
Article 13 
Sessions 
1. As a general rule, the Council shall hold one regular session in each 
half of the year. 
2. In addition to sessions in circumstances specifically provided for in 
this Agreement, the Council shall also meet in special session whenever it so 
decides or at the request of: 
(a) The Chairman of the Council; 
11 
1 (b) The Executive Director; 
(c) A majority of the exporting members; 
(d) A majority of the importing members; 
(e) An exporting member or exporting members holding at least 200 
votes; or 
(f) An importing member or importing members holding at least 200 
votes. 
ir 
3. Sessions shall be held at the headquarters of the Organization, unless 
the Council, by special vote, decides otherwise. If on the invitation of any 
member the Council meets elsewhere than at the headquarters of the 
Organization, that member shall pay the additional costs incurred by the 
Council. 
4. Notice of any sessions and the agenda for such sessions shall be 
communicated to members by the Executive Director, in consultation with the 
Chairman of the Council, at least 30 days in advance, except in cases of 
emergency when notice shall be communicated at least 10 days in advance. 
Article 14 
Distribution of votes 
1. The exporting members shall together hold 1,000 votes and the importing 
members shall together hold 1,000 votes. 
2. Each exporting member shall receive one initial vote out of the 1,000 
votes except that in the case of an exporting member with net exports of less 
than 10,000 tonnes annually the initial vote shall not apply. The remainder 
of such votes shall be distributed among the exporting members as nearly as 
possible in proportion to the volume of their respective net exports of 
natural rubber for the period of five^ calendar years commencing six calendar 
years prior to the distribution of votes. 
3. The votes of importing members shall be distributed among them as nearly 
as possible in proportion to the average of their respective net imports of 
natural rubber during the period of three calendar years commencing four 
calendar years prior to the distribution of votes, except that each importing 
member shall receive one vote even if its proportional net import share is 
otherwise not sufficiently large to so justify. 
4. For the purposes of paragraphs 2 and 3 of this article, paragraphs 2 and 
3 of article 27 relating to contributions of importing members,, and article 
38, the Council shall, at its first session, establish a table of£ net exports 
of exporting members and a table of net imports of importing members which 
shall be revised annually in accordance with this article. 
5. There shall be no fractional votes. 
6. The Council shall, at the first session after the entry into force of 
this Agreement, distribute the votes for that year, to remain in effect until 
the first regular session of the following year, except as provided for in 
paragraph 7 of this article. Subsequently for each year, the Council shall 
distribute the votes at the beginning of the first regular session of that 
year. Such distribution shall remain in effect until the first regular 
session of the following year, except as provided for in paragraph 7 of this 
article. 
7. whenever the membership of the Organization changes or when any member 
has its voting rights suspended or restored under any provision of this 
Agreement, the Council shall redistribute the votes within the affected 
category or categories of members in accordance with the provisions of this 
article. 
12 
8. In the event of the exclusion of a member pursuant to article 65, or the 
withdrawal of a member pursuant to article 64 or article 63, resulting in the 
reduction of the total trade share of ^those members remaining in either 
category below 80 per cent, the Council ^shall meet and decide on the terms, 
conditions and future of this Agreement, including in particular the need to 
maintain effective buffer stock operations without causing undue financial 
burden to the remaining members. 
Article 15 
Voting procedure 
1. Each member shall be entitled to cast the number of votes it holds in 
the Council and shall not be entitled to divide its votes. 
2. By written notification to the Chairman of the Council, any exporting 
member may authorize any other exporting member, and any importing member may 
authorize any other importing member, to represent its interests and to 
exercise its voting rights at any session or meeting of the Council. 
3. A member authorized by another member to cast the latter member's votes 
shall cast such votes as authorized. 
4. when abstaining, a member shall'be deemed not to have cast its votes. 
A member when present and not voting shall be deemed to have abstained. 
Article 16 
Quorum 
1. The quorum for any meeting of the Council shall be the presence of a 
majority of exporting members and a majority of importing members, provided 
that such members hold at least two thirds of the total votes in their 
respective categories. 
2. If there is no quorum in accordance with paragraph 1 of this article on 
the day fixed for the meeting and on the following day, the quorum on the 
third day and thereafter shall«be the presence of a majority of exporting 
members and a majority of importing members, provided that such members hold 
a majority cf the total votes in their respective categories. ','. 
3. Representation in accordance with paragraph 2 of article 15 shall be 
considered as presence. 
Article 17 
Decisions 
1. All decisions of the Council shall be taken and all recommendations 
shall be made by distributed simple majority vote, unless otherwise provided 
for in this Agreement. 
2. Where a member avails itself of the provisions of article 15 and its 
votes are cast at a meeting of the Council, such member shall, for the 
purposes of paragraph 1 of this article, be considered as present and voting. 
13 
1 Article 18 
Establishment of committees 
1. The following committees established by the International Natural Rubber 
Agreement, 1979, shall continue in being: 
(a) Committee on Administration; 
(b) <> Committee on Buffer Stock Operations; 
(c) Committee on Statistics; and 
(d) Committee on Other Measures. 
Additional committees may also be established by special vote of the Council. 
2. Each committee shall be responsible to the Council. The Council shall, 
by special vote, determine the membership and terms of reference of each 
committee. 
Article 19 
Panel of experts 
1. The Council may establish a panel of experts from the rubber industry 
and trade of exporting and importing members. 
2. Any such panel would be available to provide advice and assistance to 
the Council and its committees, particularly on buffer stock operations and 
on the other measures referred to in article 43. 
3. The membership, functions and administrative arrangements of any such 
panel would be determined by the Council. 
14 
CHAPTER V. PRIVILEGES AND IMMUNITIES 
Article 20 
Privileges and immunities 
1. ' The Organization shall have legal personality. In particular, but 
without prejudice to the provisions of paragraph 4 of article 48, the 
Organization shall have the capacity to contract, to acquire and dispose of 
movable, and immovable property, and to institute legal proceedings. 
2. The status, privileges and immunities of the Organization, of its 
Executive Director, Deputy'Executive Director, Buffer Stock Manager as well 
as other staff and experts, and of members' delegations shall continue to be 
governed by the Headquarters Agreement between the host Government and the 
Organization signed on 10 June 1987, with such amendments as might be 
necessary for the proper functioning of this Agreement. 
3. If the headquarters of the Organization is moved to another country, the 
Government of that country shall, as soon as possible, conclude with the 
Organization a Headquarters Agreement to be approved by the Council. 
4. Pending the conclusion of the Headquarters Agreement pursuant to 
paragraph 3 of this article, the Organization shall request the host 
Government to grant, to the extent consistent with its laws, exemption from 
taxation on remuneration paid by the Organization to its employees, and on the 
assets, income and other property of the Organization. 
5. The Organization may also conclude, with one or more Governments, 
agreements to be approved by the Council relating to such privileges and 
immunities as may be necessary for the proper functioning of this Agreement. 
6. The Headquarters Agreement shall be independent of this Agreement. It 
shall, however, terminate: 
(a) By agreement between the host Government and the Organization; 
(b) In the event that the headquarters of the Organization is moved 
from the country of the host Government; or 
(c) In the event that the Organization ceases to exist. 
15 
1 CHAPTER VI. ACCOUNTS AND AUDIT 
Article 21 
Financial accounts 
1. For the operation and administration of this Agreement, there shall be 
established two accounts : 
(a) The Buffer Stock Account; and 
(b) The Administrative Account. 
2. All the following receipts and expenditures in the creation, operation 
and maintenance of the Buffer Stock shall be brought into the Buffer Stock 
Account: contributions from members under article 27, revenue from sales of 
or expenditure in respect of acquisition of buffer stocks; interest on 
deposits of the Buffer Stock Account; and costs relating to purchase and sales 
commissions, storage, transportation and handling, maintenance and rotation, 
and insurance. The Council may, however, by special vote, bring any other 
type of receipts or expenditures attributable to buffer stock transactions or 
operations into the Buffer Stock Account. 
3. All other receipts and expenditures relating to the operation of this 
Agreement shall be brought into the Administrative Account. Such expenditures 
shall normally be met by contributions from members assessed in accordance 
with article 24. 
4. The Organization shall not be liable for the expenses of delegations or 
observers to the Council or to any committee established under article 18. 
Article 22 
Form of payment 
Payments to the Administrative and Buffer Stock Accounts shall be made 
in freely usable currencies or currencies which are convertible in the major 
foreign exchange markets into freely usable currencies, and shall be exempt 
from foreign exchange restrictions. 
Article 23 
Audit 
1. Each financial year, the Council shall appoint auditors for the purpose 
of auditing its books of account. 
2. An independently audited statement of the Administrative Account shall 
be made available to members as soon as possible, but not later than four 
months, after the close of each financial year. An independently audited 
statement of the Buffer Stock Account shall be made available to members not 
earlier than 60 days, but not later than four months, after the close of each 
financial year. The audited statements of the Administrative and Buffer Stock 
Accounts shall be considered for approval by the Council at its next regular 
session, as appropriate. A summary of the audited accounts and balance sheet 
shall thereafter be published. 
16 
CHAPTBR VII. THE ADMINISTRATIVE ACCOUNT 
Article 24 
Approval6,of the administrative budget and assessment of contributions 
1. At its first session after the entry into force of this Agreement, the 
Council shall approve the administrative budget for the period between the 
date of the entry into force and the end of the first financial year. 
Thereafter, during the second half of each financial year, the Council shall 
approve the administrative budget for the following financial year. The 
Council shall assess the contribution of each member to that budget in 
accordance with paragraph 2 of this article. 
2. The contribution of each member to the. administrative budget for each 
financial year shall be in the proportion which the number of its votes at the 
time the administrative budget for that financial year is approved bears to 
the total votes of all the members. In assessing contributions, the votes of 
each member shall be calculated without regard to the suspension of any 
member's voting rights or any redistribution of votes resulting therefrom. 
3. The initial contribution to the administrative budget of any Government 
which becomes a member after the entry into force of this Agreement shall be 
assessed by the Council on the basis of- the number of votes to be held by that 
member and of the period from the date on which it becomes a member to the end 
of the current financial year. The assessment made upon other members for 
that financial year shall not,' however, be altered. 
Article 25 
Payment of contributions to the administrative budget 
1. Contributions to the first administrative budget shall become due on a 
date to be decided by the Council at its first session. Contributions to 
subsequent administrative budgets shall become due by 28 February in each 
financial year. The initial contribution of a Government which becomes a 
member after the entry into force of this Agreement, assessed in accordance 
with paragraph 3 of article 24, shall, for the financial year concerned, 
become due 60 days after the date on which it becomes a member. 
2. If a member has not paid its full contribution to the administrative 
budget within two months after such contribution becomes due in accordance 
with paragraph 1 of this article, the Executive Director shall request that 
member to make payment as quickly as possible. If a member has not paid its 
contribution within two months after such request by the Executive Director, 
its voting rights in the Organization shall be suspended unless the Council 
decides otherwise. If a member has still not paid its contribution within 
four months after such request by the Executive Director, all rights of that 
member under this Agreement shall be suspended by the Council, unless the 
Council, by special vote, decides otherwise. 
3. -For contributions received late, the Council shall levy a penalty charge 
at the prime interest rate in 'the host country from the date the contributions 
become due. The Council may waive such penalty charge up to 31 March of the 
same financial year on request from a member if, because of its internal laws 
and regulations, it is not able to pay the contributions to the administrative 
budget by the due date, in accordance with paragraph 1 of this article. 
4. A member whose rights have been suspended under paragraph 2 of this 
article shall in particular remain liable to pay its contribution and to meet 
any other of its financial obligations under this Agreement. 
17 
1 CHAPTBR VIII. THE BUFFBR STOCK 
Article 26 
Size of the Buffer Stock 
In order to achieve the objectives of this Agreement, an international 
Buffer Stock shall be' established. The total capacity of the Buffer Stock 
shall be 550,000 tonnes, including the total stocks still held under the 
International Natural Rubber Agreement, 1987. It shall be the sole instrument 
of market intervention for price stabilization in this Agreement. The Buffer 
Stock shall comprise: 
(a) The normal Buffer Stock of 400,000 tonnes; and 
(b) The contingency Buffer Stock of 150,000 tonnes. 
Article 27 
Financing of the Buffer Stock 
1. Members commit themselves to finance the total cost of the international 
Buffer Stock of 550,000 tonnes established under article 26, it being 
understood that shares in the Buffer Stock Account of the International 
Natural Rubber Agreement, 1987, of those members of the International Natural 
Rubber Agreement, 19 87, which became members of this Agreement shall, with the 
consent of each member, be carried over to the Buffer Stock Account under this 
Agreement in accordance with the procedures determined under the provisions 
of paragraph 3 of article 4 0 of the International Natural Rubber Agreement, 
1987. 
2. The financing of both the normal Buffer Stock and the contingency Buffer 
Stock shall be shared equally between the exporting and importing categories 
of members. Contributions of members to the Buffer Stock.Account shall be 
apportioned according to their shares of the votes in the Council, except as 
provided for in paragraphs 3 and 4 of this article. 
3 . Any importing member whose share of total net imports as set out in the 
table to be established by the Council under paragraph 4 of article 14 
represents 0.1 per cent or less of total net imports shall contribute to the 
Buffer Stock Account as follows: 
(a) If its share of total net imports is less than or equal' to 0.1 per 
cent but more than 0.05 per cent, such member shall contribute an 
amount assessed on the basis of its actual share of total net 
imports; 
(b) If its share of total net imports is 0.05 per cent or less, such 
member shall contribute an amount assessed on the basis of a share 
of 0.05 per cent of total net imports. 
4. During any period in which this Agreement is" in force provisionally 
either under paragraph 2 or subparagraph (b) of paragraph 4 of article 61, the 
financial commitment of each,exporting or importing member to the Buffer Stock 
Account shall not in total exceed that member's contribution, calculated on 
the basis of the number of votes corresponding to the percentage shares set 
out in the tables to be established by the Council under paragraph 4 of 
article 14, of the totals of 275,000 tonnes falling to the exporting and 
importing categories of members respectively. The financial obligations of 
members when this Agreement is in force provisionally shall be shared equally 
by exporting and importing categories of members. At any time when the 
aggregate commitment of one category exceeds that of the other, the larger of 
the two aggregates shall be brought equal to the smaller of the two 
aggregates, each member's votes in that aggregate being reduced in proportion 
to the shares of votes derived from the tables to be established by the 
Council under paragraph 4 of article 14. Notwithstanding the provisions of 
this paragraph and of paragraph 1 of article 28, a member's contribution may 
not exceed 125 per cent of the amount of its total contribution calculated on 
the basis of its share in world trade as indicated in annex A or annex B to 
this Agreement. 
<> 
5. The total costs of the normal and contingency Buffer Stock of 550,000 
tonnes shall be financed by contributions by members in cash to the Buffer 
Stock Account. Such contributions may, when relevant, be paid by the 
appropriate agencies of members concerned. 
6. The total costs of the 550,000-tonne international Buffer Stock shall 
be paid from the Buffer Stock Account. Such costs shall include all expenses 
involved in acquiring and operating the 550,000-tonne international Buffer 
Stock. In the event that the estimated cost, as given in annex C to this 
Agreement, cannot fully cover the total cost of acquisition and operations of 
the Buffer Stock, the Council shall meet and make the necessary arrangements 
to call up the required contributions to cover, such costs according to 
percentage shares of votes. 
Article 28 
Payment of contributions to the Buffer Stock Account 
1. There shall be an initial contribution in cash to the Buffer Stock 
Account equivalent to 7 0 million Malaysian ringgit. This amount, which 
represents a working capital reserve for buffer stock operations, shall be 
apportioned among all members according to their percentage shares of votes, 
taking into consideration paragraph 3 of article 27, and shall be due within 
60 days after the first Council session after the entry into force of this 
Agreement. The initial contribution of a member due in accordance with this 
paragraph shall, with the consent of that member, be made wholly or in part 
by transfer of that member's share in the cash held in the Buffer Stock 
Account under the International Natural Rubber Agreement, 1987. 
2. The Executive Director may at any time, and independently of the 
arrangements in paragraph 1 of this article, call for contributions provided 
that the Buffer Stock Manager has certified that the Buffer Stock Account may 
require such funds in the next four months. 
3. When a contribution is called, it shall be due from members within 
60 days of the date of notification. If requested by any member or members 
accounting for 200 votes in the Council, the Council shall meet in special 
session and may modify or disapprove the call-up based on an assessment of the 
need for funds to support buffer stock operations in the next four months. 
If the Council cannot reach a decision, contributions shall be due from 
members in accordance with the Executive Director's notification. 
4. Contributions called up for the normal and the contingency Buffer Stock 
shall be valued at the lower trigger action price in effect at the time such 
contributions are called. 
5. The call-up of contributions to the contingency Buffer Stock shall be 
handled as follows: 
(a) At the 300,000 - tonne review provided for in article 31, the 
Council shall make all financial and other arrangements which may 
be necessary for the prompt implementation of the contingency 
Buffer Stock including call-up o'f funds if necessary; 
(b) If the Council by special vote under article 30, paragraph 2 
decides to bring the contingency Buffer Stock into operation, then 
the Council shall ensure that: 
19 
(i) All members have made all necessary arrangements for 
financing their respective shares of the contingency Buffer 
Stock; and 
(ii) The contingency Buffer Stock has been invoked and is fully 
primed for action in accordance with the terms of 
article 30. 
Article 29 
Price range 
1. There shall be established, for the operations of the Buffer Stock: 
(a) A reference price; 
(b) A lower intervention price; 
(c) An upper intervention price; 
(d) A lower trigger action price; 
(e) An upper trigger action price; 
(f) A lower indicative price; and 
(g) An upper indicative price. ~ 
2. On the entry into force of this Agreement, the reference price shall be 
the reference price applicable on 28 December 1995. 
3. There shall be an upper intervention price and a lower intervention 
price calculated respectively at plus and minus 15 per cent of the reference 
price, unless the Council, by special vote, decides otherwise. 
4. There shall be an upper trigger action price and a lower trigger action 
price calculated respectively at plus and minus 20 per cent of the reference 
price, unless the Council, by special vote, decides otherwise. 
5. The prices calculated in accordance with paragraphs 3 and 4 of this 
article shall be rounded to the nearest cent. 
6. On the entry into force of this Agreement, the lower and upper 
indicative prices shall be initially fixed at 157 and 270 Malaysian/Singapore 
cents per kilogramme, respectively. 
Article 30 
Operation of the Buffer Stock 
1. If, in relation to the price range provided for in article 29, or as 
subsequently revised in accordance with the provisions of articles 31 and 39, 
the market indicator price provided for in article 32 is: 
(a) At or above the upper trigger action price, the Buffer Stock 
Manager shall defend the upper trigger action price by offering 
natural rubber for sale until the market indicator price falls 
below the upper trigger action pricer 
(b) Above the upper intervention price, the Buffer Stock Manager may 
sell natural rubber in defence of the upper trigger action price; 
(c) At the upper or lower intervention price, or between them, the 
Buffer Stock Manager shall neither buy nor sell natural rubber, 
except in order to carry out his responsibilities for rotation 
under article 35; 
(d) Below the lower intervention price, the Buffer Stock Manager may 
buy natural rubber in defence of the lower trigger action price; 
20 
(e) At or below- the lower trigger action price, the Buffer Stock 
Manager shall defend the lower trigger action price by offering 
to buy natural rubber until the market indicator price exceeds the 
lower trigger action price. 
2. when sales or purchases for the Buffer Stock reach the 4,00,000-tonne 
level, the Council shall, by special vote, decide whether to bring the 
contingency Buffer Stock into operation at: 
(a) The lower or upper trigger action price; or 
(b) Any price between the lower trigger action price, and the lower 
indicative price, or the upper trigger action price and the upper 
indicative price. 
3. Unless the Council, by special vote, decides otherwise under paragraph 
2 of this article, the Buffer Stock Manager shall use the contingency Buffer 
Stock to defend the lower indicative price by bringing the contingency Buffer 
Stock into operation when the market indicator price is at a level 2 
Malaysian/Singapore cents per kilogramme above the lower indicative price, and 
to defend the upper indicative price by bringing the contingency Buffer Stock 
into operation when the market indicator price is ât a level 2 Malaysian/ 
Singapore cents per kilogramme below the upper indicative price. 
4. The total facilities of the Buffer Stock, including the normal Buffer 
Stock and the contingency Buffer Stock-, shall be fully utilized to ensure that 
the market indicator price does not fall below the lower indicative price or 
rise above the upper indicative price. 
5. Sales and purchases by the Buffer Stock Manager shall be effected 
through established commercial markets at prevailing prices, and all his 
transactions shall be in physical rubber available for shipment not later than 
one month after the end of the first quoted month in the market concerned, or 
for delivery in a consuming market during the delivery month or months 
normally corresponding to such shipment months in that market. For the 
purpose of the efficient operation of the Buffer Stock, the Council may decide 
by consensus to allow the Buffer Stock Manager to purchase future contracts 
up to a maximum of two months forward on the strict and absolute condition 
that tenders are taken up on maturity. 
6. To facilitate the operation of the Buffer Stock, the Council shall 
establish branch offices and such facilities of the Buffer Stock Manager's 
office, where necessary, in established rubber markets and approved warehouse 
locations. 
7. The Buffer Stock Manager shall prepare a monthly report on buffer stock 
transactions and the Buffer Stock Account's financial position. Thirty days 
after the end of each month, the report for that month shall be made available 
to members. 
8. The information on buffer stock transactions shall include quantities, 
prices, types, grades and markets of all buffer stock operations, including 
rotations effected. The information on the Buffer Stock Account's financial 
position shall also include interest rates on and terms and conditions of 
deposits, the currencies operated in and other relevant information on the 
items referred to in paragraph 2 of article 21. 
21 
Article 31 
Review and revision of the price range 
A. Reference price 
1. Any review or revision of the reference price, including those following 
net changes in the Buffer Stock under paragraph 2 of this article, shall be 
based on market trends. Immediately before the first meeting of the Council 
after the Agreement enters into force and every 12 months thereafter, the 
Buffer Stock Manager shall calculate the average daily market indicator price 
for the previous six months and compare this value with the two intervention 
prices. The date of this calculation shall be fixed at least three months in 
advance except for the first review and immediately precede a Council session. 
(a) If the average of the six-month daily market indicator prices is 
at the upper intervention price, at the lower intervention price, 
or between these two prices, no revision of the reference price 
shall take place. 
(b) If the average of the six-month daily market indicator prices is 
below the lower intervention price, the reference price shall be 
automatically revised downward by 5 per cent of its level and 
become effective the following day. Normally the Council would 
meet on that day and take note of the revision. The Council may 
review the reference price and may, by special vote, decide on a 
higher percentage adjustment downwards of the reference price. 
(c) If the average of the six-month daily market indicator prices is 
above the upper intervention price, the reference price shall be 
automatically revised upwards by 5 per cent of its level and 
become effective the following day. Normally the Council would 
meet on that day and take note of the revision. The Council may 
review the reference price and may, by special vote, decide on a 
higher percentage adjustment upwards of the reference price. 
(d) However, at the first regular session of the Council after the 
entry into force of the Agreement any automatic revision under 
article 31, paragraph 1, subparagraphs (b) or (c) shall be 4 per 
cent. 
(e) For the purposes of the comparison, the reference price and the 
six-month daily market indicator price will be calculated to two 
decimal places. 
2. Following a net change to the Buffer Stock of .100,000 tonnes since the 
last regular session of the Council, the Executive Director shall convene a 
special session of the Council to assess the situation. The Council may, by 
special vote, decide to take appropriate measures which may include: 
(a) Suspension of buffer stock operations; 
(b) Change in the rate of buffer stock purchases or sales; and 
(c) Revision of the reference price. 
3. If net buffer stock purchases or sales amounting to 300,000 tonnes have 
taken place since (a) the last revision under paragraph 3 of article 31 of the 
International Natural Rubber Agreement, 1987, (b) the last revision under this 
paragraph, or (c) the last revision under paragraph 2 of this article, 
whichever is most recent, the reference price shall be lowered or raised, 
respectively, by 3 per cent of its current level unless the Council, by 
special vote, decides to lower or raise it, respectively, by a higher 
percentage amount. 
22 
4. Notwithstanding the provisions of article 29, paragraph 4, revision of 
the reference price shall not result in the trigger action price breaching the 
indicative price. 
5. Notwithstanding the provisions of article 31, paragraph 1 and article 
31, paragraph 3, revision of the reference price shall not result in the 
intervention price breaching the level at which the contingency Buffer Stock 
will be brought into operation under article 30, paragraph 3. 
B. indicative prices 
6. The Council may, by special vote, revise the lower and upper indicative 
prices at reviews provided for in this section of this article. 
7. The Council shall ensure that any revision of indicative prices is 
consistent with evolving market trends and conditions. In this connection, 
the Council shall take into consideration the trend of natural rubber prices, 
consumption, supply, production costs and stocks, as well as the quantity of 
natural rubber held in the Buffer Stock and the financial position of the 
Buffer Stock Account. 
8. The lower and upper indicative prices shall be reviewed: 
(a) 24 months after the last review pursuant to paragraph 7 (a) of 
article 31 of the International Natural Rubber Agreement, 1987, 
or in the event that this.-Agreement enters into force after 1 May 
1996, at the first session of the Council under this Agreement, 
and every 24 months thereafter; 
(b) In exceptional circumstances, at the request of a member or 
members accounting for 200 or more votes in the Council; and 
(c) when the reference price has been revised (i) downwards since the 
last revision, of the lower indicative price or the entry into 
force of the International Natural Rubber Agreement, 1987, or (ii) 
upwards since the last revision of the upper indicative price or 
the .entry into force of the International Natural Rubber 
Agreement, 1987, by at least 3 per cent under paragraph 3 of this 
article and at least 5 per cent under paragraph 1 of this article, 
or by at least this amount under paragraphs 1, 2 and/or 3 of this 
article, provided that the average of the daily market indicator 
price for the 60 days subsequent to the last revision of the 
reference price is either below the lower intervention price or 
above the upper intervention price, respectively. 
9. Notwithstanding paragraphs 6, 7 and 8 of this article, there shall be 
no upward revision in the lower or upper indicative price if the average of 
the daily market indicator prices over the six-month period prior to a review 
of the price range under this article is below the reference price. 
Similarly, there shall be no downward revision in the lower or upper 
indicative price if the average of the daily market indicator prices over the 
six-month period prior to a review of the price range under this article is 
above the reference price. 
Article 32 
Market indicator price 
1. There shall be established a daily market indicator price which shall 
be a composite, weighted average - reflecting the market in natural rubber -
of daily official prices as defined by the Council on the Kuala Lumpur, 
London, New York and Singapore markets, and such other established commercial 
markets as the Council may decide. Initially, the daily market indicator 
price shall comprise RSS 1, RSS 3 and TSR 20 and their weighting shall be in 
the ratio of 2:3:5. All quotations shall be converted into f.o.b. 
Malaysian/Singapore ports in Malaysian/Singapore currency. 
23 
2. The type/grade composition weightings, method of computing the daily 
market indicator price and the number of markets shall be reviewed and may, 
by special vote, be revised by the Council to ensure that it reflects the 
market in natural rubber. The Council may, by special vote, decide to include 
additional established commercial markets in the calculation of the daily 
market indicator price if such markets are deemed to influence the 
international price of natural rubber. 
3. The market indicator price shall be deemed above, at or below price 
levels specified in this Agreement if the average of the daily market 
indicator prices for the last five market days is above, at or below such 
price levels. 
Article 33 
Composition of buffer stocks 
1. At its first session after the entry into force of this Agreement, the 
Council shall name the internationally recognized standard types and grades 
of ribbed smoked sheets and technically specified rubbers for inclusion in the 
Buffer Stock, provided that the following criteria are met: 
(a) The lowest types and grades of natural rubber authorized for 
inclusion in the Buffer. Stock shall be RSS 3 and TSR 20; and 
(b) All types and grades allowed under subparagraph (a) of this 
paragraph which account for at least 3 per cent of the previous 
calendar year's international trade in natural rubber shall be 
named. 
2. The Council may, by special vote, change these criteria and/or the 
selected types/grades if that is necessary to ensure that the composition of 
the Buffer Stock reflects the evolving market situation, attainment of the 
stabilization objectives of this Agreement and the need to maintain a high 
commercial standard of quality of buffer stocks. 
3. The Buffer Stock Manager shall make every effort to ensure that the 
composition of the Buffer Stock closely reflects the export/import patterns 
for natural rubber, while• promoting the stabilization objectives of this 
Agreement. ' . * 
4. The Council may, by special vote, direct the Buffer Stock Manager to 
change the composition of the Buffer Stock if the objective of price 
stabilization so dictates. . 
Article 34 
Location of buffer stocks 
1. The location of buffer stocks shall ensure economic and efficient 
commercial operations. In accordance with this principle, the buffer stocks 
shall be located in the territory of both exporting and importing members, 
unless the Council, by special vote, decides otherwise. The distribution of 
the buffer stock rubber shall be consistent with attaining the stabilization 
objectives of the Agreement while minimizing costs. 
2. In order to maintain high commercial quality standards, buffer stocks 
shall be stored only in warehouses approved on the basis of criteria 
established by the Council of the International Natural Rubber Agreement, 
19 87, or revised by the Council under this Agreement. 
24 
3. After the entry into force of this Agreement, the Council shall 
establish and approve the,list of warehouses and the necessary arrangements 
for their use. The Council may, if necessary, review the list of warehouses 
approved by the Council of the International Natural Rubber Agreement, 1987, 
and the criteria established by the said Council and maintain or revise them 
accordingly. 
4. The Council shall also periodically review the location of the buffer 
stocks and may, by special vote, direct the Buffer Stock Manager tô change the 
location of the buffer stocks to ensure economic and efficient commercial 
operations. 
Article 35 
Maintaining the quality of the buffer stocks 
The Buffer Stock Manager shall ensure that all buffer stocks are 
purchased and maintained at a high commercial standard of quality. To help 
him achieve this, lie may rotate natural rubber stored in the Buffer Stock as 
necessary to ensure such standards, taking into appropriate consideration the 
cost of such rotation and its impact on the stability of the market. The 
costs of rotation shall be brought into the Buffer Stock Account. 
Article 36 
Restriction or suspension of buffer stock operations 
1. Notwithstanding the provisions of article 30, the Council, if in 
session, may, by special vote, restrict or suspend the operations of the 
Buffer Stock, if in its opinion the discharge of the obligations laid upon the 
Buffer Stock Manager by that article will not achieve the objectives of this 
Agreement. 
2. If the Council is not in session, the Executive Director may, after 
consultation with the Chairman, restrict or suspend the operations of the 
Buffer Stock, if in his opinion the discharge of the obligations laid upon the 
Buffer Stock Manager by article 30 will not achieve the objectives of this 
Agreement. 
3. Immediately after a decision to restrict or suspend the operations of 
the Buffer Stock under paragraph 2 of this article, the Executive Director 
shall convene a session of the Council to review such decision. 
Notwithstanding the provisions of paragraph 4 of article 13, the Council shall 
meet within 10 days after the date of restriction or suspension arid shall, by 
special vote,, confirm or cancel such restriction or suspension. If the 
Council cannot come to a decision at that session, buffer stock operations 
shall be resumed without any restriction imposed under this article. 
4. As long as any restriction or suspension of buffer stock operations 
decided in accordance with this article remains in force, the Council shall 
review this decision at intervals of not longer than three months. If at a 
session to make such a review the Council does not confirm, by special vote, 
the continuation of the restriction or suspension, or does not come to a 
decision, buffer stock operations shall be resumed without restriction. 
25 
Article 37 
Penalties relating to contributions to the Buffer Stock Account 
1. If a member does not fulfil its obligation to contribute to the Buffer 
Stock Account by the last day such contribution becomes due, it shall be 
considered to be in arrears. A member in arrears for 60 days or more shall 
not count as a member for the purpose of voting on matters covered in 
paragraph 2 of this article. 
2. The voting and other rights in the Council of a member in arrears for 
60 days or more under paragraph 1 of this article shall be suspended, unless 
the Council, by special vote, decides otherwise. 
3. A member in arrears shall bear interest charges at the prime rate in the 
host country beginning on the last day such payments become due. Coverage of 
arrears by the remaining importing and exporting members shall be on a 
voluntary basis. 
4. A member shall not be considered as in arrears if any shortfall in its 
contribution is only a result of fluctuations in currency exchange rates in 
the 60 days following the call for payments. In this case, no interest will 
be charged on the shortfall. However, any such shortfall should be covered 
by the member within the 60 days following the payment. 
5. when the default has been remedied to the satisfaction of the Council, 
the voting and other rights of the member in arrears for 60 days or more shall 
be restored. If the arrears have been made good by other members, these 
members shall be fully reimbursed. 
Article 38 
Adjustment of contributions to the Buffer Stock Account 
1. When the votes are redistributed at the first regular session in each 
financial year or whenever the membership of the Organization changes, the 
Council shall make the necessary adjustment of each member's contribution to 
the Buffer Stock Account in accordance with the provisions of this article. 
For this purpose, the Executive Director shall determine: 
(a) The net cash contribution of each member, by subtracting refunds 
of contributions to that member in accordance with paragraph 2 of 
this article from the sum of all contributions paid by that member 
since the entry into force of this Agreement; 
(b) The total net call-ups, by summing the consecutive call-ups and 
subtracting the total of refunds made in accordance with paragraph 
2 of this article; 
(c) The revised net contribution for each member, by apportioning the 
total net call-ups among members on the basis of each member's 
revised voting share in the Council pursuant to article 14, 
subject to paragraph 3 of article 27, provided that the voting 
share of each member shall, for the purpose of this article, be 
calculated without regard to the suspension of any member's voting 
rights or any redistribution of votes resulting therefrom. 
Where a member's net cash contribution exceeds its revised net contribution, 
a refund of the difference minus any outstanding penalty interest on arrears 
shall be made to that member from the Buffer Stock Account, where a member's 
revised net contribution exceeds its net cash contribution, a payment of the 
difference plus an/ outstanding penalty interest on arrears shall be made by 
that member to the Buffer Stock Account. 
26 
2. If the Council, having regard to paragraphs 2 and 3 of article 28, 
decides that there are net cash contributions in excess of funds required to 
support buffer stock operations within the next four months, the Council shall 
refund such excess net cash contributions less initial contributions unless 
it decides, by special vote, either to make no such refund or to refund a 
smaller amount. Members' shares of the amount to be refunded shall be in 
proportion to their net cash contributions, minus any outstanding penalty 
interest on arrears. The contribution liability of members in arrears shall 
be reduced in the same proportion as the refund bears to the total net cash 
contributions. 
3. At the request of a member, the refund to which it is entitled may be 
retained in the Buffer Stock Account. If a member requests that its refund 
be retained in the Buffer Stock Account, this amount shall be credited against 
any additional contribution requested in accordance with article 28. The 
credit retained in the Buffer Stock Account at the request of a member shall 
bear interest at the average rate of interest earned on funds in the Buffer 
Stock Account, beginning the last day when the amount should normally be 
reimbursed to that member until-the day preceding the actual reimbursement. 
4. The Executive Director shall immediately notify members of any required 
payments or refunds resulting from adjustments made in accordance with 
paragraphs 1 and 2 of this article. Such payments by members or refunds to 
members shall be made within 60 days from the date the Executive Director 
issues such notification. 
5. in the event that the amount of cash in the Buffer Stock Account exceeds 
the value of total net cash contributions of members, such surplus funds shall 
be distributed upon termination of this Agreement. 
Article 39 
The Buffer Stock and changes in exchange rates 
1^ In the event that the exchange rate between the Malaysian 
ringgit/Singapore dollar and the currencies of the major natural rubber 
exporting and importing members changes to the extent that the operations of 
the Buffer Stock are significantly affected, the Executive Director shall, in 
accordance with article 36, or members may, in accordance with article 13, 
call for a special session of the Council. The Council shall meet within 10 
days to confirm or cancel measures already taken by the Executive Director 
pursuant to article 36, and may, by special vote, decide to take appropriate 
measures, including the possibility of revising the price range, pursuant to 
the principles of the first sentences of paragraphs 1 and 6 of article 31. 
2. The Council shall, by special vote, establish a procedure to determine 
a significant, change in the parities of these currencies for the sole purpose 
of ensuring the timely convening of the Council. 
3. In the event that there is a divergency between the Malaysian ringgit 
and the Singapore dollar to the extent that buffer stock operations are 
significantly affected, the Council shall meet to review the situation and may 
consider the adoption of a single currency. 
27 
Article 40 
Liquidation procedures for the Buffer Stock Account 
1. On termination of this Agreement, the Buffer Stock Manager shall 
estimate the total expense of liquidating or transferring to a new 
international natural rubber agreement the assets of the Buffer Stock Account 
in accordance with the provisions of this article, and shall reserve that 
amount in a.separate account. If these balances are inadequate, the Buffer 
Stock Manager shall sell a sufficient quantity of natural rubber in the Buffer 
Stock to provide the additional sum required. 
2. Each member's share in the Buffer Stock Account shall be calculated as 
follows: 
(a) The value of the Buffer Stock shall be the value of the total 
quantity of natural rubber of each type/grade therein, calculated 
at the lowest of the current prices of the respective types/grades 
on markets referred to in article 32 during the 30 market days 
preceding the date of termination of this Agreement; 
(b) The value of the Buffer stock Account shall be the value of the 
Buffer Stock plus the cash assets of the Buffer Stock Account on 
the date of the termination of this Agreement less any amount 
reserved under paragraph 1 of this article; 
(c) Each member's net cash contribution shall be the sum of its 
contributions paid throughout the duration of this Agreement less 
all refunds made under article 38; penalty interest on arrears 
paid in accordance with paragraph 3 of article 37 shall not 
constitute a contribution to the Buffer Stock Account; 
(d) If the value of the Buffer Stock Account is either greater or less 
than total net cash contributions, the surplus shall be allocated 
among members in proportion to each member's time-weighted net 
contribution share under this Agreement. Any deficit shall be 
allocated among members in proportion to each member's average 
number of votes held during its period of membership. In 
assessing the share of the deficits to be borne by each member, 
the votes of each member shall be calculated without regard to the 
suspension of any member's voting rights or any redistribution of 
votes resulting therefrom; 
(e) Each member's share in the Buffer Stock Account shall comprise its 
net cash contribution, reduced or increased by its shares in 
deficits or surpluses in the Buffer Stock Account, and reduced by 
its liability, if any, for .outstanding interest on arrears. 
3. If this Agreement is to be immediately replaced with a new international 
natural rubber agreement, the Council shall, by special vote, adopt procedures 
to ensure efficient transfer to the new agreement, as required by that 
agreement, of shares in the Buffer Stock Account of members which intend to 
participate in the new agreement. Any member which does not wish to 
participate in the new agreement shall be entitled to the payment of its 
share: 
(a) From available cash in proportion to its percentage share of the 
total net cash contributions to the Buffer Stock Account, within 
three months; and 
(b) From the net proceeds from the disposal of the buffer stocks, by 
way of orderly sales or by way of transfer to the new 
international natural rubber agreement at current market prices, 
which must be concluded within 12 months; unless the Council 
decides, by special vote, to increase payments under subparagraph 
(a) of this paragraph. 
28 
4. If this Agreement terminates without being replaced by a new 
international natural rubber agreement which provides for a buffer stock, the 
Council shall, by special vote, adopt procedures to govern orderly disposal 
of the Buffer Stock within the maximum period specified in paragraph 6 of 
article 67, subject to the following constraints: 
(a) No further purchases of natural rubber shall be made; 
(b) The Organization shall incur no new expenses except those 
necessary to dispose of the Buffer Stock. 
5. Subject to an election by any member to take natural rubber in 
accordance with paragraph 6 of this article, any cash which remains in the 
Buffer Stock Account shall be forthwith distributed to members in proportion 
to their shares as determined in paragraph 2 of this article. 
6. In lieu of all or part of a cash payment, each member may elect to take 
its share in the assets of the Buffer Stock Account in natural rubber; subject 
to procedures adopted by the Council. 
7. . The Council shall adopt appropriate procedures for adjustment and 
payment of members' shares in the Buffer Stock Account. This adjustment shall 
account for: 
(a) Any discrepancy between the price of natural rubber specified in 
subparagraph (a) of paragraph 2' of this article and the prices at 
which part or all of the Buffer Stock is sold pursuant to 
procedures for disposal of the Buffer Stock; and 
(b) The difference between estimated and actual liquidation expenses. 
8. The Council shall, within 30 days following final transactions of the 
Buffer Stock Account, meet to effect final settlement of accounts among 
members within 30 days thereafter. 
29 
CHAPTER IX. RELATIONSHIP WITH THE COMMON FUND POR COMMODITIES 
Article 41 
Relationship with the Common Fund for Commodities 
1. The Organization shall take full advantage of the facilities of the 
Common Fund for Commodities. 
2. In respect of the implementation of any project funded under the Second 
Account of the Common Fund for Commodities, the Organization, as a designated 
International Commodity Body, shall not incur any financial obligation 
including for guarantees given by individual members or other entities. 
Neither the Organization, nor any member by reason of its membership in the 
Organization, shall be responsible for any liability arising from borrowing 
or lending by any other member or entity in connection with such projects. ) 
30 
CHAPTER X. SUPPLY AND MARKET ACCBSS AND OTHER MEASURES 
Article 42 
Supply and market access 
1. Exporting members to the fullest extent possible undertake to pursue 
policies and programmes which maintain continuous availability to consumers 
of natural rubber supplies. 
2. Importing members to the fullest extent possible undertake to pursue 
policies which will maintain access to their markets for natural rubber. 
Article 43 
Other measures 
1. With a view to achieving the objectives of this Agreement, the Council 
shall identify and propose appropriate measures and techniques directed 
towards promoting: 
(a) The development of the natural rubber economy by producing 
members, through expanded-and improved production, productivity 
and marketing, thereby increasing the export earnings of producing 
members while at the same time improving the reliability of 
supply. For this purpose, the Committee on Other Measures shall 
undertake economic and technical analyses in order to identify: 
(i) Natural rubber research and development programmes and 
projects of benefit to exporting and importing members, 
including scientific research in specific areas; 
(ii) Programmes and projects to improve the productivity of the 
natural rubber industry; 
(iii) Ways and means to upgrade natural rubber supplies and 
achieve uniformity in quality specification and 
presentation of natural rubber; and 
(iv) Methods of improving the processing, marketing and 
distribution of raw natural rubber; 
(b) The development of end-uses of natural rubber. For this purpose, 
the Committee on Other Measures shall undertake appropriate 
economic and technical analyses in order to identify programmes 
and projects leading to increased and new uses of natural rubber. 
2. The Council shall consider the financial implications of such measures 
and techniques and seek to promote and facilitate the provision of adequate 
financial resources, as appropriate, from such sources as international 
financial institutions and the Second Account of the. Common Fund for 
Commodities. 
3. The Council may accept any voluntary contribution in support of approved 
projects to implement this article. The management of financial contributions 
shall be subject to rules to be established by special vote of the Council. 
4. The Council may make recommendations, as appropriate, to members, 
international institutions and other organizations to promote the 
implementation of specific measures under this article. 
5. The Committee on Other Measures shall periodically review the progress 
of those measures which the Council decides to promote and recommend, and 
shall report thereon to the Council. 
31 
CHAPTER XI. CONSULTATION ON DOMESTIC POLICIES 
Article 44 
Consultation 
The Council shall consult, at the request of any member, on government 
natural rubber policies directly affecting supply or demand. The Council may 
submit its recommendations to members for their consideration. 
32 
CHAPTBR XII. STATISTICS, STUDIBS AND INFORMATION 
Article 45 
Statistics and information 
1. The Council shall collect, collate and as necessary publish such 
statistical information on natural rubber and related areas as is necessary 
for the satisfactory operation of this Agreement. 
2. Members shall promptly and to the fullest extent possible furnish to the 
Council available data by specific types and grades concerning production, 
consumption and international trade in natural rubber. 
3. The Council may also request members to furnish other available 
information, including information on related areas which may be required for 
the satisfactory operation of this Agreement. 
4. Members shall furnish all the above-mentioned statistics and information 
within a reasonable time to the fullest extent possible consistent with their 
national legislation and by the ways most appropriate for them. 
5. The Council shall establish close relationships with appropriate 
international organizations, including the International Rubber Study Group, 
and with commodity exchanges in order to help ensure the availability of 
recent and reliable data on production, consumption, stocks, international 
trade and prices of natural rubber, and other factors that influence demand 
for and supply of natural rubber. 
6. The Council shall endeavour to ensure that no information published 
shall prejudice the confidentiality of the operations of persons or companies 
producing, processing or marketing natural rubber or related products. 
Article 46 
Annual assessment, estimates and studies 
1. The Council shall prepare an annual assessment on the world natural 
rubber situation and related areas in the light of the information supplied 
by members and from all relevant intergovernmental and international 
organizations. 
2. At least once in every half year, the Council shall also estimate 
production, consumption, exports and imports of natural rubber by specific 
types and grades, if possible, for the following six months. It shall inform 
the members of these estimates. 
3. The Council shall undertake, or make appropriate arrangements to 
undertake, studies of trends in natural rubber production, consumption, trade, 
marketing and prices, as well as of the short-term and long-term problems of 
the world natural rubber economy. 
Article 47 
Annual review 
The Council shall each year review the operation of this Agreement 
including conformity to its spirit and promotion of its objectives. It may 
then make recommendations to members regarding ways and means of improving the 
functioning of this Agreement. 
33 
CHAPTBR XIII. MISCELLANEOUS 
Article 48 
General obligations and liabilities of members 
1. Members shall for the duration of this Agreement use their best 
endeavours and cooperate to promote the attainment of the objectives of this 
Agreement and shall not take any action in contradiction to those objectives. 
2. Members shall in particular seek to improve the conditions of the 
natural rubber economy and to encourage the production and use of natural 
rubber in order to promote the growth and the modernization of the natural 
rubber economy for the mutual benefit of producers and consumers. 
3. .Members shall accept as binding all decisions of the Council under this 
Agreement and will not implement measures which would have the effect of 
limiting or running counter to those decisions. 
4. The liability of members arising from the operation of this Agreement, 
whether to the Organization or to third parties, shall be limited to the 
extent of their obligations regarding contributions to the administrative 
budget and to financing of the Buffer Stock under and in accordance with 
chapters VII and VIII of this Agreement and any obligations that may be 
assumed by the Council under article 41. 
Article 49 
Obstacles to trade 
1. The Council shall, in accordance with the annual assessment of the world 
natural rubber situation referred to in article 46, identify any obstacles to 
the expansion' of trade in natural rubber in its raw, semi-processed or 
modified forms. 
2. The Council may, in order to further the purposes of this article, make 
recommendations to members to seek in appropriate international fora mutually 
acceptable practical measures designed to remove progressively and, where 
possible, to eliminate such obstacles. The Council shall periodically examine 
the results of such recommendations. 
Article 50 
Transportation and market structure of natural rubber 
The Council should encourage and facilitate the promotion of reasonable 
and equitable freight rates and improvements in the transport system, so as 
to provide regular supplies to markets and to effect savings in the cost of 
the products marketed. 
34 
Article 51 
Differential and remedial measures 
Developing importing members, and least developed countries which are 
members, whose interests are adversely affected by measures taken under this 
Agreement may apply to the Council for appropriate differential and remedial 
measures. The Council shall consider taking such appropriate measures in 
accordance with paragraphs 3 and 4 of section ill of resolution 93 (IV) of the 
United Nations Conference on Trade and Development. 
Article 52 
Relief from obligations 
1. Where it is necessary on account of. exceptional circumstances or 
emergency or force majeure not expressly provided for in this Agreement, the 
Council may, by special vote, relieve a member of an obligation under this 
Agreement if it is satisfied by an explanation from that member regarding the 
reasons why the obligation cannot be met. 
2. The Council, in granting relief to a member under paragraph 1 of this 
article, shall state explicitly the terms and conditions on which, and the 
period for which, the member is relieved of such obligation, and the reasons 
for which the relief is granted. 
Article 53 
Fair labour standards 
Members declare that they will endeavour to maintain labour standards 
designed to improve the levels of living of workers in their respective 
natural rubber sectors. 
Article 54 
Environmental aspects 
Members shall endeavour to pay due attention to environmental aspects 
as agreed at the eighth session of the United Nations Conference on Trade and 
Development and the United Nations Conference on Environment and Development, 
held in 1992. 
35 
CHAPTBR XIV. COMPLAINTS AND DISPUTBS 
Article 55 
Complaints 
1. Any complaint that a member has failed to fulfil its obligations under 
this Agreement shall, at the request of the member making the complaint, be 
referred to the Cpuncil, which, subject to prior consultation with the members 
concerned, shall take a decision on the matter. 
2. Any decision by the Council that a member is in breach of its 
obligations under this Agreement shall specify the nature of the breach. 
3. whenever the Council, whether as the result of a complaint or otherwise, 
finds- that a member has committed a breach of this Agreement, it may, by 
special vote, and without prejudice to such other measures as are specifically 
provided for in other articles of this Agreement: 
(a) Suspend that member's voting rights in the Council and, if it 
deems necessary, suspend any other rights of such member, 
including those of holding office in the Council or in any 
committee established under article 18 and of being eligible for 
membership of such committees, until it has fulfilled its 
obligations; or 
(b) Take action under article 65, if such breach significantly impairs 
the operation of this Agreement. 
Article 56 
Disputes 
1. Any dispute concerning the interpretation or application of this 
Agreement which is not settled among the members involved shall, at the 
request of any member party to the dispute, be referred to the Council for 
decision. 
2. In any case where a dispute has been referred to the Council under 
paragraph 1 of this article, a majority of members holding at least one third 
of the total votes may require the Council, after discussion, to seek the 
opinion of an advisory panel constituted under paragraph 3 of this article on 
the issue in dispute before giving its_ decision. 
3. (a) Unless the Council, by special vote, decides otherwise, the 
advisory panel shall consist of five persons as follows: 
(i) Two persons, one having wide experience in matters of the 
kind in dispute and the other having legal standing and 
experience, nominated by the exporting members; 
(ii) Two such persons nominated by the importing members; and 
(iii) A chairman selected unanimously by the four persons, 
nominated under (i) and (ii) of this subparagraph or, if 
they fail to agree, by the Chairman of the Council. 
(b) Nationals of members and of non-members shall be eligible to serve 
on the advisory panel. 
(c) Persons appointed to the advisory panel shall act in their 
personal capacities and without instructions from any government. 
36 
(d) The expenses of the advisory panel shall be paid by the 
Organization. 
4. The opinion of the advisory panel and the reasons therefor shall be 
submitted to the Council which, after considering all the relevant 
information, shall, by special vote, decide the dispute. 
37 
CHAPTBR XV. FINAL PROVISIONS 
Article 57 
Signature 
This Agreement shall be open for signature at United Nations 
Headquarters from 3 April 1995 to 28 December 1995 inclusive by the 
Governments invited to the United Nations Conference on Natural Rubber, 1994. 
Article 58 
Depositary 
The Secretary-General of the United Nations is hereby designated as the 
depositary of this Agreement. 
Article 59 
Ratification, acceptance and approval 
1. This Agreement shall be subject to ratification, acceptance or approval 
by the signatory Governments in accordance with their respective 
constitutional or institutional procedures. 
2. Instruments of ratification, acceptance or approval shall be deposited 
with the depositary not later than 1 January 1997. The Council may, however, 
grant extensions of time to signatory Governments which have been unable to 
deposit their instruments by that date. 
3. Each Government depositing an instrument of ratification, acceptance or 
approval shall, at the time of such deposit, declare itself to be an exporting 
member or an importing member. 
Article 60 
Notification of provisional application 
1. A signatory Government which intends to ratify, accept or approve this 
Agreement, or a Government for which the Council has established conditions 
for accession but which has not yet been able to deposit its instrument, may 
at any time notify the depositary that it will fully apply this Agreement 
provisionally, either when it enters into force in accordance with article 61 
or, if it is already in force, at a specified date. 
2. Notwithstanding the provisions of paragraph 1 of this article, a 
Government may provide in its notification of provisional application that it 
will apply this Agreement only within the limitations of its constitutional 
and/or legislative procedures and its domestic laws and'regulations. However, 
such Government shall meet all its financial obligations to this Agreement. 
The provisional membership of a Government which notifies in this manner shall 
not exceed 12 months from the provisional entry into force of this Agreement, 
unless the Council decides otherwise pursuant to paragraph 2 of article 59. 
38 
Article 61 
Entry into force 
1. This Agreement shall enter into force definitively on 29 December 1995 
or on any date thereafter, if by that date Governments accounting for at least 
80 per cent of net exports as set out in annex A to this Agreement, and 
Governments accounting for at least 80 per cent of net imports as set out in 
annex B to this Agreement, have deposited their instruments of ratification, 
acceptance, approval or accession, or have assumed full financial commitment 
to this Agreement. 
2. This Agreement shall enter into force provisionally on 29 December 1995> 
or on any date before 1 January 1997, if Governments accounting for at least 
75 per cent of net exports as set out in annex A to this Agreement, and 
Governments accounting for at least 75 per cent of net imports as set out in 
annex B to this Agreement, have deposited their instruments of ratification, 
acceptance or approval, or have notified the depositary under paragraph 1 of 
article 60 that they will apply this Agreement provisionally and assume full 
financial commitment to this Agreement. The Agreement shall remain in force 
provisionally up to a maximum of 12 months, unless it enters into force 
definitively under paragraph 1 of this article or the Council decides 
otherwise in accordance with paragraph 4 of this article. 
3. If this Agreement does not come into force provisionally under paragraph 
2 of this article by 1 January 1997,- the Secretary General of the United 
Nations shall invite, at the earliest time he considers practicable after that 
date, the Governments which have deposited instruments of ratification, 
acceptance or approval or have notified him that they will apply this 
Agreement provisionally, to meet with a view to recommending whether or not 
such Governments should take the necessary steps to put this Agreement 
provisionally or definitively into force among themselves, in whole or in part. 
If no conclusion is reached at this meeting, the Secretary-General of the 
United Nations may convene such further meetings as he considers appropriate. 
4. If the requirements for definitive entry into force of this Agreement 
under paragraph 1 of this article have not been met within 12 calendar months 
of the provisional entry into force of this Agreement under paragraph 2 of 
this article, the Council shall, not later than one month before the end of 
the 12-month period mentioned above, review the future of this Agreement and, 
subject to paragraph 1 of this article, by special vote, decide: 
(a) To put this Agreement definitively into force among the current 
members in whole or in part; 
(b) To keep this Agreement provisionally in force among the current 
members in whole or in part for an additional year; or 
(c) To renegotiate this Agreement. 
If no decision is reached by the Council, this Agreement shall terminate at 
the expiry of the 12-month period. The Council shall inform the depositary 
of any decision taken under this paragraph. 
5. For any Government that deposits its instrument of ratification, 
acceptance, approval or accession after the entry into force of this 
Agreement, it shall enter into force for that Government on the date of such 
deposit. 
6. The Executive Director of the Organization shall convene the first 
session of the Council as soon as possible after the entry into force of this 
Agreement. 
39 
Article 62 
Accession 
1. This Agreement shall be open for accession by the Government of any 
State. Accession shall be subject to conditions to be established by the 
Council, which shall include, inter alia, a time limit for the deposit of 
instruments of accession, the number of votes to be held and financial 
obligations. The Council may, however, grant extensions of time to 
Governments which are unable to deposit their instruments of accession within 
the time limit set in the conditions of accession. 
2. Accession shall be effected by the deposit of an instrument of accession 
with the depositary. Instruments of accession shall state that the Government 
accepts all the conditions established by the Council. 
Article 63 
Amendments 
1. The Council may, by special vote, recommend amendments of this Agreement 
to the members. 
2. The Council shall fix a date by which members shall notify the 
depositary of their acceptance of the amendment. 
3. An amendment shall become effective 90 days after the depositary has 
received notifications of acceptance from members constituting at least two 
thirds of the exporting members and accounting for at least 85 per cent of the 
votes of the exporting members, and from members constituting at least two 
thirds of the importing members and accounting for at least 85 per cent of the 
votes of the importing members. 
4. After the depositary informs the Council.that the requirements for the 
amendment to become effective have been met, and notwithstanding the 
provisions of paragraph 2 of this article relating to the date fixed by the 
Council, a member may still notify the depositary of its acceptance of the 
amendment, provided that such notification is made before the amendment 
becomes effective. 
5. Any member which has not notified its acceptance of an amendment by the 
date on which such amendment becomes effective shall cease to be a contracting 
party as from that date, -unless such member has satisfied the Council that its 
acceptance could not be obtained in time owing to difficulties in completing 
its constitutional or institutional procedures, and the Council decides to 
extend for that member the period for acceptance of the amendment. Such 
member shall not be bound by the amendment before it has notified its 
acceptance thereof. 
6. If the requirements for the amendment to become effective have not been 
met by the date fixed by the Council in accordance with paragraph 2 of this 
article, the amendment shall be considered withdrawn. 
40 
Article 64 
withdrawal 
1. A member may withdraw from this Agreement at any time after the entry 
into force of this Agreement by giving notice of withdrawal to the depositary. 
That member shall simultaneously inform the Council of the action it has 
taken. 
2. One year after its notice is received by the depositary, that member 
shall cease to be a contracting party to this Agreement. 
Article 65 
Exclusion 
If the Council decides that any member is in breach of its obligations 
under this Agreement and decides further that such breach significantly 
impairs the operation of this Agreement, it may, by special vote, exclude that 
member from this Agreement. The Council shall immediately so notify the 
depositary. One year after the date of the Council's decision, that member 
shall cease to be a contracting party to this Agreement. 
Article 66 . 
Settlement of accounts with withdrawing or excluded members 
or members unable to accept an amendment 
1. In accordance with this article, the Council shall determine any 
settlement of accounts with a member which ceases to be a contracting party 
to this Agreement owing to: 
(a) Non-acceptance of an amendment to this Agreement pursuant to 
article 63; 
(b) Withdrawal from this Agreement pursuant to article 64; or 
(c) Exclusion from this Agreement pursuant to article 65. 
2. The Council shall retain any contribution paid to the Administrative 
Account by a member which ceases to be a contracting party to this Agreement. 
3. The Council shall refund the share in the Buffer Stock Account in 
accordance with article 40 to a member which ceases to be a contracting party 
owing to non-acceptance of an amendment to this Agreement, withdrawal or 
exclusion, less its share in any surpluses. 
(a) Such refund to a member which ceases to be a contracting party 
owing to non-acceptance of an amendment to this Agreement shall 
be made one year after the amendment concerned enters into force. 
41 
(b) Such refund to a member which withdraws shall be made within 60 
days after that member ceases to be a contracting party to this 
Agreement, unless as a result of this withdrawal the Council 
decides to terminate this Agreement under paragraph 5 of article 
67 prior to such a refund, in which case the provisions of article 
40 and paragraph 6 of article 67 shall apply. 
(c) Such refund to a member which is excluded shall be made within 60 
days after a member ceases to be a contracting party to this 
Agreement. 
4. In the event that the Buffer Stock Account is unable to settle the 
payment in cash due under subparagraph (à), (b) or (c) of paragraph 3 of this 
article without either undermining the viability of the Buffer Stock Account 
or leading to a call-up of additional contributions from members to cover such 
refunds, payment shall be deferred until the requisite amount of natural 
rubber in the Buffer Stock can be sold at or above the upper intervention 
price. In the event that, before the end of the one-year period specified in 
article 64, the Council informs a withdrawing member that payment will have 
to be deferred in accordance with this paragraph, the period of one year 
between notification of intention to withdraw and the actual withdrawal may, 
if the withdrawing member so wishes, be extended until such time as the 
Council informs that member that payment of its share can be effected within 
60 days. 
5. A member which has received an appropriate refund under this article 
shall not be entitled to any share of the proceeds of liquidation of the 
Organization. Nor shall such a member be liable for any deficit incurred by 
the Organization after such refund has been made. 
Article 67 
Duration, extension and termination 
1. This Agreement shall remain in force for a period of four years after 
its entry into force, unless extended under paragraph 3 or terminated under 
paragraph 4 or paragraph 5 of this article. 
2. Before the expiry of the four-year period referred to in paragraph 1 of 
this article, the Council may, by special vote, decide to renegotiate this 
Agreement. 
3. The Council may, by special vote, extend this Agreement by a period or 
periods not exceeding two years in all, commencing from the date of expiry of 
the four-year period specified in paragraph 1 of this article. 
4. If a new international natural rubber agreement is negotiated and enters 
into force during any period of extension of this Agreement pursuant to 
paragraph 3 of this article, this Agreement, as extended, shall terminate upon 
the entry into force of the new agreement. 
5. The Council may at any time, by special vote, decide to terminate this 
Agreement with effect from such date as it may determine. 
42 
6. Notwithstanding the termination of this Agreement, the Council shall 
continue in being for a period not exceeding three years to carry out the 
liquidation of the Organization, including the settlement of accounts, and the 
disposal of assets in accordance with the provisions of article 40 and subject 
to relevant decisions to be taken by special vote, and shall have during that 
period such powers and functions as may be necessary for these purposes. 
7. The Council shall notify the depositary of any decision taken under this 
article. 
Article 68 
Reservations 
No reservations may be made with respect to any of the provisions of 
this Agreement. 
IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have 
affixed their signatures under this Agreement on the dates indicated. 
DONE at Geneva, this seventeenth day of February, one thousand nine hundred 
and ninety-five, the texts of this Agreement in the Arabic, Chinese, English, 
French, Russian and Spanish languages being equally authentic. 
43 
ANNEXES 
Annex A 
Shares of individual exporting countries in total 
net exports of countries, as established for 
the purposes of article 61 
Percentage 
Bolivia 0.040 
Cameroon 0.867 
Côte d'Ivoire 1.764 
Indonesia 31.108 
Malaysia 27.971 
Nigeria 2.946 
Singapore 0.000 
Sri Lanka 2.096 
Thailand 33.208 
TOTAL 100.000 
Shares are percentages of total net exports of natural rubber in the five-
year period, 1989-1993. 
44 
Annex B 
Shares of individual importing countries and groups 
of countries in total net imports of countries, 
as established for the purposes of article 61 
Argentina 
China 
Colombia 
Cuba 
Democratic People's Republic of Korea 
European Community: 
Austria 
Belgium-Luxembourg 
Denmark 
Finland 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlands 
Portugal 
Spain 
Sweden 
United Kingdom 
India 
Japan 
Lebanon 
Morocco 
Norway 
Pakistan 
Republic of Korea 
Russian Federation 
Slovakia. 
Switzerland 
United States of America Percentage 
0.943 
8.843 
0.700 
0.043 
0.195 
26.968 
0.723 
1.535 
0.067 
0.221 
5.559 
6.437 
0.276 
0.224 
3.754 
0.321 
0.239 
3.397 
0.292 
3.923 
0.450 
21.694 
0.003 
0.237 
0.022 
0.715 
8.830 
1.149 
0.334 
0.059 
28.815 
TOTAL 100.000 
Shares are percentages of total net imports of natural rubber in the 
three-year period, 1991-1993. 
45 
v; 
Annex C 
Cost of the Buffer Stock as estimated bv the President of 
the United Nations Conference on Natural Rubber, 1994 
Based on the cost of acquiring and operating the Buffer Stock of 
roughly 360,000 tonnes from 1982 until March 1987 and 221,000 tonnes from 1990 
through December 1994, the cost of acquiring and operating a Buffer Stock of 
550,000 tonnes might be calculated by multiplying this figure by the lower 
trigger action price and adding a further 30 per cent thereof. 
46 

ISSN 0254-1475 
COM(95) 616 final 
DOCUMENTS 
EN 11 03 
Catalogue number : CB-CO-95-651-EN-C 
ISBN 92-77-97083-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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