Brazilian Senate approves International Coffee Agreement

The Brazilian Senate has approved the text of the International Coffee Agreement, originally signed in 2022. The agreement updates the rules of the International Coffee Organization (ICO) to align Brazil's operations with new multilateral standards.

Key changes include a reform of voting rights and financial quotas. By shifting the calculation from export/import volumes to total trade value, Brazil's financial contribution will decrease from 362,050 pounds sterling (approximately R$ 2.53 million) to 260,966 pounds sterling (approximately R$ 1.8 million).

The agreement also introduces a Public-Private Coffee Working Group to address price volatility and long-term sector sustainability. Additionally, private sector entities and civil society can now be recognized as affiliated members, allowing them to participate in activities and provide technical advice. The treaty covers various aspects including international cooperation, food security, climate change, traceability, and sustainable development.