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International Commodity Agreements (ICAS)
International Commodity Agreements (ICAS) represents attempts to modify the operation of the commodity markets so as to achieve various objectives such as price stabilization of price enhancement. Support for such intervention stems from apparent weaknesses in the operation of market forces in achieving an efficient allocation of resources, appropriate levels of privately held stocks in some commodities and an equitable distribution of income from their export as between exporters and importing countries.
ICAS are to be distinguished from producers' or exporters' cartels by the feature of consumer agreement to the scheme and representation on the governing body.
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