ABSTRACT
This chapter examines the evolution of commodity law and policy at the international level, and focuses on the Integrated Programme for Commodities (IPC). It deals with International Commodity Agreements (ICA), and discusses the structure and function of the Common Fund for Commodities. ICAs are the main instruments used in international trade to pursue the objective of stable, remunerative and equitable commodity prices. The possible early establishment of the Common Fund constitutes a positive development in an otherwise gloomy sky of intergovernmental efforts to overcome international commodity market instability. A somewhat related issue associated with international commodity trade is a tendency towards a long-term decline in commodity prices relative to the price of manufactured goods. The prices of many commodities suffer from a persistent instability in world markets. A key element in the pursuit of the IPC objectives was the establishment of a Common Fund for Commodities.
