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Article Comparison - International Cocoa Agreement

Part Four
Market-related provisions

Chapter VIII
Supply and demand

Article 34
Market Committee

1. In order to contribute to the greatest possible growth of the cocoa economy and the balanced development of production and consumption so as to secure a sustainable equilibrium between supply and demand, the Council shall establish a Market Committee composed of all exporting and importing Members. The aim of the Committee shall be to review trends and prospects of cocoa production and consumption, stocks and prices, and to identify market imbalances at an early stage as well as obstacles to the expansion of cocoa consumption in both exporting and importing countries.

2. At its first session after the start of a new cocoa year, the Market Committee shall examine annual forecasts of world production and consumption for the next five cocoa years. The Executive Director shall provide the data necessary for the preparation of these forecasts. The forecasts provided shall be reviewed and revised, if necessary, every year.

3. The Executive Director shall also present, for illustrative purposes only, various scenarios based on indicative figures for annual levels of global production necessary to achieve and maintain equilibrium between supply and demand at given levels of real prices. The factors to be taken into consideration shall include the expected variations in production and consumption in accordance with movements in real prices and the estimated variations in stock levels.

4. On the basis of these forecasts, and in order to deal with the problems of market imbalances in the medium and long term, the exporting Members may undertake to coordinate their national production policies.

5. All Members shall endeavour to encourage cocoa consumption in their countries. Each Member shall be responsible for the means and methods it employs for that purpose. In particular, all Members shall endeavour to remove or reduce substantial domestic obstacles to the expansion of cocoa consumption. In this regard, Members shall regularly provide the Executive Director with information on pertinent domestic regulations and measures and with other information concerning cocoa consumption, including domestic taxes and customs tariffs.

6. The Committee shall submit detailed reports to each regular session of the Council, on the basis of which the Council shall review the general situation, in particular assessing the movement of global supply and demand in the light of the provisions of this article. The Council may make recommendations to Members on the basis of this assessment.

7. The Committee shall draw up its own rules and regulations.

8. The Executive Director shall assist the Committee as required.