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The International Coffee Agreement: Economics of the Nonmember Market

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  • Bohman, Mary
  • Jarvis, Lovell

Abstract

This paper analyzes the proposals for reform to the 1983 International Coffee Agreement that were destined to eliminate exports to nonmember countries at discounted prices. Disagreement over such proposals led to the breakdown in July 1989 of negotiations for a new International Coffee Agreement. A model of the world coffee market is developed to illustrate the welfare effects of sales to the nonmarkets. Welfare calculations show that numerous exporters should oppose the allocation of quotas for the nonmember market unless they receive a large share of this market. Continuation of International Coffee Agreement export quotas probably depends on acceptance of price discounting. Copyright 1990 by Oxford University Press.

Suggested Citation

  • Bohman, Mary & Jarvis, Lovell, 1990. "The International Coffee Agreement: Economics of the Nonmember Market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(1), pages 99-118.
    • Handle: RePEc:oup:erevae:v:17:y:1990:i:1:p:99-118
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    Cited by:

    1. Mitsuru Igami, 2015. "Market Power in International Commodity Trade: The Case of Coffee," Journal of Industrial Economics, Wiley Blackwell, vol. 63(2), pages 225-248, June.
    2. Jarvis, Lovell S., 2003. "How Brazil Transferred Billions To Foreign Coffee Importers: The International Coffee Agreement, Rent Seeking And Export Tax Rebates," Working Papers 11967, University of California, Davis, Department of Agricultural and Resource Economics.
    3. José Antonio Ocampo & Rosario Córdoba, 1990. "La coyuntura cafetera internacional en perspectiva," Coyuntura Económica, Fedesarrollo, vol. 20(1), pages 87-104, March.
    4. Gilbert, Christopher L., 1996. "International Commodity Agreements: An obituary notice," World Development, Elsevier, vol. 24(1), pages 1-19, January.
    5. Jarvis, Lovell S., 2005. "The rise and decline of rent-seeking activity in the Brazilian coffee sector: Lessons from the imposition and removal of coffee export quotas," World Development, Elsevier, vol. 33(11), pages 1881-1903, November.
    6. Gilbert, Christopher L., 1995. "International commodity control : retrospect and prospect," Policy Research Working Paper Series 1545, The World Bank.

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