Following a decision taken by the International Jute Council at its session held from 8 to 10 April, the International Jute Organization (IJO), in existence since 1984, has entered a liquidation period of 18 months commencing 12 April.
The decision was taken in light of the inability of the European Union to endorse the International Instrument of Cooperation adopted by the United Nations Conference on Jute and Jute Products 2000 at the closing of a resumed session held from 6 to 8 April in Dhaka (Bangladesh). The Conference previously met at UNCTAD in Geneva from 27 to 31 March (see TAD/INF/2844) to negotiate a successor agreement to the International Agreement on Jute and Jute Products, 1989, which expired on 11 April 2000.
The successor Instrument, like the 1984 and 1989 Agreements, establishes a framework of cooperation and consultation between jute producing and consuming countries. Its objective is to promote the expansion and diversification of international trade in jute, kenaf and other allied fibres.
The new international instrument of cooperation was adopted by jute producing and consumer countries, representing 98.5 per cent of world exports and 20.7 per cent of world imports, respectively. Exporting countries participating in the Conference were Bangladesh, India, Nepal and Vietnam. Importing participants were Belarus, China, the Czech Republic, Egypt, Indonesia, Japan, Malaysia, the Philippines, the Republic of Korea, Romania, the Russian Federation, Senegal and Switzerland.
The European Union, which accounted for about one third of the financing of the IJO, did not participate in the Conference. The International Instrument of Cooperation on Jute and Jute Products, 2000 will not enter into force if it is not signed or ratified by the members States of the European Union in the coming months.
While this constitutes the beginning of the end of the IJO, the Conference has provided for the possibility of a future consensus on "an instrument", such as a study group.
In the past, the focus of cooperation under the IJO had been on research and development on jute, covering both the agriculture and industry sectors and market promotion activities. In more recent times, the IJO was increasingly acting as a catalyst in developing new products, processes and technologies to strengthen the competitive position of jute products vis-à-vis synthetic substitutes.
Only one third (one million tonnes in 1998) of global production (3 million tonnes in 1998) of jute enters world trade. World trade in jute and jute products in 1998 amounted to US$541.5 million.
