US to Rejoin Coffee Pact

WASHINGTON - The United States plans to rejoin the international body that regulates the global coffee trade.

Assistant Secretary of State Anthony Wayne will make the formal announcement on Wednesday, the State Department said in a statement.

The United States withdrew from the International Coffee Organisation in the 1990s to protest what it regarded as an effort to use quotas to control prices.

The changed US attitude may have been influenced by the ICO's more market-oriented approach of recent years. The United States is the world's largest consumer of coffee.

Word of the American intention drew praise from Oxfam, the international assistance group.

It said the United States' rejoining the organisation will mark an important step towards international cooperation to deal with the crisis facing coffee farmers in poor countries.

Other analysts said a resumption of US membership will not necessarily lead to increased prices.

In recent years, Oxfam said, coffee prices have plunged to historic lows, causing increased poverty, hunger and dislocation among farmers.

The price of coffee still remains below the cost of production for millions of farming families, the organisation said.

"Coffee plays a crucial role in the economic health of communities in poor countries all over the world," said Seth Petchers, coffee programme coordinator for Oxfam America.

"With the US coming back to the table, the next step is development of a meaningful and comprehensive strategy to address the coffee crisis."

Oxfam urged the United States to provide technical aid for coffee farmers as a means of improving crop productivity and quality.