Commodity agreement

A form of economic cooperation designed to stabilize and raise the price of a commodity. Commodity agreements are of two basic types: producers’ alliances and international commodity control agreements (ICCAs). Producers’ alliances are exclusive memberships of producing and exporting countries. Examples are the Organization of Petroleum Exporting Countries (OPEC) and the Union of Banana Exporting Countries. ICCAs are based on cooperation between producing and consuming countries and provide for equal voting rights for both groups. Examples of ICCAs are the International Cocoa Organization and the International Sugar Organization.