CIAO DATE: 10/2008

Seeking Common Grounds: Analysis of the Draft Proposals for the International Coffee Agreement

January 2007

Oxfam Publishing

Abstract

The International Coffee Agreement (ICA) establishes the only dedicated intergovernmental forum for coffee-related matters: the International Coffee Organization (ICO). The ICO brings together various stakeholders—including coffee-importing and coffee-exporting countries, the private sector, and nongovernmental organizations (NGOs)—to discuss, negotiate, and cooperate on shared strategies and

policies regarding the global coffee economy.

Coffee plays a crucial role in the livelihoods of millions of rural households in the developing world. Yet market volatility and declining terms of trade, along with inadequate access to infrastructure, financial resources, and market information, have increased the economic vulnerability of many of those households. Small-scale farmers and farmworkers have been particularly hard hit, and their condition has been linked to rural poverty, migration, and increased production of illicit crops, consequences which in turn contribute to a vicious cycle of social instability and conflict at the local, regional, and even global level.

The current ICA expires in September 2007. Negotiations regarding the next ICA are an excellent opportunity to implement policies to advance international cooperation on the development of a more sustainable, participatory, and equitable coffee supply chain. In May 2006, Oxfam International joined 12 coffee-producing and civil society organizations from around the globe in outlining policy recommendations for the next ICA in “Grounds for Change: Creating a Voice for Small Coffee Farmers and Farmworkers with the Next International Coffee Agreement” (available at Make Trade Fair).

In September 2006, the International Coffee Council (ICC) established a Working Group on the Future of the Agreement and gave it the mandate of submitting recommendations to the Council by May 2007. Oxfam urges ICC Member delegations participating in the Working Group to seize this opportunity by implementing reforms along three general themes:

• Enhancing participation by small-scale producers. The ICA should expand opportunities for small-scale farmer organizations to advocate for themselves to address the unique challenges and opportunities they face.
• Promoting sustainability. The ICA should further codify economic, social, and environmental sustainability as a focus of the ICO, and should provide for consultation with a range of stakeholders on these issues.
• Providing tools for small-scale farmers to compete in challenging and changing markets. The ICA should enhance information collection and dissemination, project selection and coordination, and quality improvement efforts. It should stimulate access to markets, rural financing, risk management tools, livelihood diversification, and technical assistance.

Resource link: Seeking Common Grounds: Analysis of the Draft Proposals for the International Coffee Agreement [PDF] - 49K