THE INTERNATIONAL COFFEE AGREEMENT: A CASE HISTORY IN NEGOTIATION - Richard B. Bilder

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THE INTERNATIONAL COFFEE AGREEMENT: A CASE HISTORY IN NEGOTIATION
Richard B. Bilder
INTRODUCTION
On July i, 1963, the International Coffee Agreement, 1962 entered provisionally
into force among thirty-seven countries, thereby successfully culminating years of
effort to establish a global system regulating commerce in one of the world's most
important and troublesome commodities.
Briefly, the five-year Agreement, which replaces a more limited short-term Agreement,
is desigiied to stabilize the price of coffee and to bring about long-term
equilibrium between coffee production and consumption. Its most important feature
is a comprehensive system of export quotas which will limit supplies put on the
market by exporting Members to estimated levels of demand. In order to police
these quotas, all coffee shipments by Members must be accompanied by certificates
showing the coffee's origin. Importing Members will prohibit imports of coffee
from other Members without such certificates, and will, in certain circumstances,
impose limitations on imports of coffee from non-Members. The Members also
agree to study and to undertake measures to progressively reduce overproduction
and stocks and to increase coffee consumption. To administer the Agreement, a new
international institution-the International Coffee Organization-is established and
given broad powers.
Despite the Agreement's prosaic tide and technical character, it deserves study
for several reasons.
First, the Coffee Agreement is one of the most significant international economic
agreements negotiated in recent years. Its provisions will affect more than one and
three-quarter billion dollars in world trade and its membership may eventually
include more than seventy countries-two-thirds of the nations of the world. It will
have a vital and immediate impact on the lives of almost twenty million people
in over thirty countries, and an indirect effect on hundreds of millions more.
And because of the great dependence of many countries in Latin America and
Africa on coffee exports, the success or failure of the Agreement may profoundly
influence the political and economic future of two continents.
Second, the Coffee Agreement is the latest and most far-reaching of a growing
* LL.B. i956, Harvard Law School. Office of the Legal Adviser, United States Department of State.
Member of the U.S. Delegation and Chairman of the Legal and Drafting Group, United Nations Coffee
Conference, 1962.
The opinions expressed are solely those of the author and do not necessarily reflect the views or policies
of the

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