US commodity trade policy and the developing countries

and LDC interests in commodities coincide and diverge. The analysis discusses ways to resolve commodity problems through international action, and it gives U.S. policy alternatives for commodity issues of importance to developing countries. The traditional U.S. view has been that free markets tend to promote both developed and developing country interests. The LDC"s have challenged this view and have called for the implementation of an integrated program of action which involves market intervention through commodity agreements. It also involves setting up a common fund to pay for the buffer stocks to support the commodity agreements. The basic U.S. objective in the commodity field has been the development of secure and adequate supplies of raw materials and commodities at reasonable prices for U.S. industries and consumers. A second objective has been the promotion of the economic development of LDC"s; LDC"s are often the sources of supply of commodities and raw materials. This objective deserves more attention than it has received because developing countries have made commodity issues central to their discussions with the U.S. and other developed countries over broad aspects of economic development. This paper explores the perceptions of LDC"s, and it covers problems and proposals.