International Tin Council
The International Tin Council (ITC) was an intergovernmental organisation established to regulate and stabilise the global tin market on behalf of major tin-producing and tin-consuming nations. Created in 1956 following the International Tin Agreement of 1954, the ITC served as a central mechanism for managing supply, stabilising prices and coordinating international policy on the production and consumption of tin. Its activities reflected the broader post-war trend of commodity regulation through formalised international agreements.
Objectives and Functions
The ITC was founded with several economic and social objectives aimed at stabilising the international tin industry. Its mandate included:
- Preventing or alleviating unemployment and underemployment arising from imbalances between global tin supply and demand.
- Reducing excessive fluctuations in the price of tin, thereby promoting a stable and predictable market.
- Ensuring adequate and reasonably priced supplies of tin at all times to industrial consumers.
- Providing an institutional framework to develop progressively more efficient production methods.
- Protecting global tin deposits from wasteful exploitation or premature depletion.
These goals reflected concerns about volatile commodity markets and the economic vulnerability of countries dependent on tin production.
Membership
The ITC’s membership evolved over time, reflecting changes in global industrial and political landscapes. Original consumer and producer members created the foundation of the organisation. Subsequent agreements brought in a wide range of additional states.
By the sixth International Tin Agreement of 1980, new consumer members included:
New producer members joining at this stage included:
Other countries held membership at various times, demonstrating the global scope of the organisation. These included Guinea, Mexico, the Republic of Korea, the United Arab Republic, Israel, Liberia, Panama, Yugoslavia, the Soviet Union, Poland, the Philippines, Czechoslovakia, Taiwan, Romania, Nicaragua, the German Democratic Republic and Austria. Ruanda-Urundi also belonged as a producer region.
Historical Background and Evolution
Efforts to regulate the international tin market began after the Second World War. In 1947, the International Tin Study Group was established to analyse global tin reserves and consumption trends. Its work informed the 1954 International Tin Agreement, which formally created the ITC in 1956. Subsequent agreements—signed in 1960, 1965, 1970, 1975 and 1980—renewed and modified the framework for market management.
Throughout its existence, the ITC attempted to maintain stable prices by buying tin on global metal exchanges when prices fell and releasing stocks when prices rose. This buffer-stock system aimed to counteract fluctuations in supply and demand.
By the early 1980s, structural changes in global manufacturing began to undermine the tin market. Key developments included:
- The increasing use of aluminium for packaging in place of tinplate.
- The introduction of polymer coatings inside cans, reducing reliance on tin linings.
- Growing industrial recycling, lowering fresh demand.
As demand for tin fell, the ITC struggled to sustain price floors. In October 1985, it could no longer defend the tin price and exhausted its financial reserves in efforts to support the market. The collapse of the buffer stock triggered a major crisis in the metals markets, and attempts to refinance the ITC ultimately failed. As a result, the organisation effectively ceased to function.
Decline of the Tin Market and Aftermath
Following the ITC’s collapse, international tin prices generally declined as alternative materials grew more popular. The failure of the Council also contributed to broader scepticism about commodity agreements and international market controls. The tin crisis of 1985 had significant economic consequences for producer countries whose economies relied heavily on tin exports.
Association of Tin Producing Countries
In 1984, prior to the ITC crisis, major tin-producing nations formed the Association of Tin Producing Countries (ATPC). Its founding members included:
- Australia
- Bolivia
- Indonesia
- Malaysia
- Nigeria
- Thailand
- Zaire
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