INTERNATIONAL TRIPARTITE RUBBER COUNCIL: OBSTACLES OF THE AGREED EXPORT TONNAGE SCHEME POLICY, IMPLICATIONS ON THE EXPORTING COUNTRIES
DOI:
https://doi.org/10.29121/granthaalayah.v8.i8.2020.1193Keywords:
Rubber Council, Export Price, Economy AtmosphereAbstract [English]
The export price of natural rubber, which fell sharply at the end of 2015, has prompted the International Tripartite Rubber Council (ITRC) to make an Agreed Export Tonnage Scheme (AETS) policy, which is to limit the volume of natural rubber exports from its members. Global rubber prices were bad at the end of 2015, causing the ITRC to implement AETS on a high quota scale in 2016. Did AETS in 2016 increase the price of natural rubber? if not why?. what are the implications for the exporting country? This study uses a descriptive method, which systematically describes a cause and effect event which is the topic of study.
It was found that AETS was unable to raise the price of global rubber exports, failing to create price stability. The implication is that the ITRC has agreed to reduce natural rubber exports with all the consequences. For this reason, even the best trade policy scheme design can fail, if the global economic and political atmosphere and the presence of new competitors are missed.
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