I move:
That Dáil Éireann approves the terms if the International Cocoa Agreement, 1980, which has been laid before the Dáil.
Dáil approval of the terms of this agreement is necessary in accordance with Article 29.5.2º of the Constitution which stipulates that: "The State shall not be bound by an international agreement involving a charge upon public funds unless the terms of the agreement shall have been approved by Dáil Éireann". An explanatory memorandum has been prepared and circulated to Deputies. This outlines the provision of the agreement and covers the question of the costs of Irish Participation.
The International Cocoa Agreement, 1980, was concluded under the auspices of the United Nations Conference on Trade and Development (UNCTAD) at the United Nations Conference on Cocoa held in Geneva in November 1980. It was open for signature at United Nations Headquarters until 31 March 1981 by parties to the International Cocoa Agreement, 1975, and Governments invited to the United Nations Conference on Cocoa. Following a decision of the Council of the European Economic Community on 30 March 1981 to the effect that the agreement should be signed, subject to its being concluded at a later date, on the basis of joint competence by the Community and the member states, Ireland signed the agreement on 31 March, along with the nine other member states and the Commission, on behalf of the Community. Instruments of ratification, acceptance or approval must be deposited with the Secretary General of the United Nations not later than 31 May 1981.
Some 98 countries, including Ireland, representing 48 exporting countries and 50 importing countries, participated in the conference. The International Cocoa Agreement, 1980, which replaced the (Second) International Cocoa Agreement, 1975, will remain in force for a period of three years and may be extended for a further period of two years. This agreement will make a valuable contribution to the on-going debate on economic relationships between the developed and the developing countries. The agreement establishes the International Cocoa Organisation to administer its provisions and supervise its operations. The organisation will function though the International Cocoa Council, an executive committee, an executive director and staff.
The main objectives of this Agreement are to achieve a balanced growth between supply and demand for cocoa and to stabilise conditions in the trade by avoiding excessive price fluctuations. For the purpose of achieving these objectives an international buffer stock consisting of 250,000 tonnes will be established. The council of the organisation will appoint a buffer stock manager and he will offer to buy and sell cocoa in a manner designed to keep its price within an agreed price range. The buffer stock will be financed by way of a levy of one United States cent per lb on cocoa beans and proportionately on cocoa products, payable on first export by a member or on first import by a member. In addition, the funds accumulated under the two previous agreements, of the order of U.S. £230 million, are due to be transferred to the buffer stock account established under this agreement.
The administrative expenses of the Cocoa Organisation in its operation of the agreement shall be met by annual contributions by members. At this stage it is not possible to assess accurately Ireland's apportionment of these costs because of the variables involved, such as the number of countries likely to adhere to the agreement. However, based on experience of previous agreements, Ireland's annual contribution is estimated to be of the order of £6,000. The agreement will help stabilise raw material prices for a significant Irish industry. The Irish cocoa processing industry provides employment for 2,000 persons. In 1979, Ireland's exports of processed cocoa products amounted to £45 million.
Membership of the International Cocoa Agreement, 1980, will afford Ireland the opportunity to demonstrate its readiness to support international measures to stabilise primary commodity prices and to re-affirm the importance which it attaches to eliminating the economic imbalance between developed and developing countries.