COMMODITIES: INTERNATIONAL ORGANISATIONS’ ACTIVITIES
INTRODUCTION
Raw materials, also called commodities, are processed natural substances or minerals used in a manufacturing process to supply finished products. Raw materials are of vital importance for the European Union’s economy and particularly crucial for developing modern environmentally friendly technologies.
Over the last few years, serious concerns have emerged about the volatility of commodity markets, also due to the increasing financialisation of the economy. Agricultural commodities, which were originally considered non-priority compared to energy commodities, are gaining in importance due to the strong upward trend in food commodities as well, with the possible exacerbation of food crises that are bound to have an impact at the social and political levels. Furthermore, the growing need for commodities in emerging Asian economies is affecting the adoption of export restrictive measures on the part of some of those countries.
In order to tackle the aforementioned problems, the European Union is defining new strategies for the supply of raw materials that concern the following areas: improving transparency and access to markets; implementing research and innovation activities to stimulate efficiency in the use of raw materials; developing cooperation with producing countries; improving the sustainable supply of commodities within the EU.
At the international level, the idea of specific Agreements, with the aim of regulating world commodity markets, was particularly developed within the United Nations Conference for Trade and Development (UNCTAD), a Geneva-based organisation which is the international forum of reference for cooperation between producing and consuming countries.
For decades the main instrument to avoid undesirable fluctuations in commodity prices was the “regulating stock”. Since the 1990s the Agreements have become an instrument of international cooperation mainly designed to strengthening the quality of products and their sustainable development, thus continuing to be of primary importance for both producing and consuming countries.
Considering the vital interest in the supply of raw materials for European industry, the EU is particularly active in contributing at international level to the definition of raw material strategies by participating in the works of the various commodity organisations.
Given Italy’s importance in the world commodities market, the Ministry of Foreign Affairs and International Cooperation ensures Italy’s participation in the aforementioned organisations, including the preparation and development of EU’s common positions in these organisations through the definition and representation of Italy’s position in the PROBA Working Group within the European Council.
In order to disseminate the activities and the information produced by the PROBA bodies, consisting of statistics, sectoral studies, regulations, this section contains the files of the individual bodies, links to their websites, as well as statistical data sheets, contributions to the analysis of commodity data, news on the bodies’ meetings, etc.
Contacts
Dott. Lucio LOIERO – HEAD of OFFICE 4 of DGUE – DCPCI
tel. +39 06/36915083 e-mail: lucio.loiero@esteri.it
D.ssa Tiziana Vecchio – Head of the PROBA Section– tel 06/36913230 tiziana.vecchio@esteri.it
International Commodity Bodies (ICBs) are the following:
- ICO – International Coffee Organization
- ICCO – International Cocoa Organization
- ISO – International Sugar Organisation
- IGC – International Grains Council
- ITTO – International Tropical Timber Organization
- ICAC – International Cotton Advisory Committee
- IOC – International Olive Council
- OIV – International Organisation of Vine and Wine
- ILZSG – International Lead and Zinc Study Group
- INSG – International Nickel Study Group
- ICSG – International Copper Study Group
- IRSG – International Rubber Study Group
- CFC – Common Fund for Commodities