# EUR-Lex - 52012PC0379 - EN

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# 52012PC0379

**Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, of the Food Assistance Convention /* COM/2012/0379 final - 2012/0182 (NLE) */**

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EXPLANATORY MEMORANDUM

1) Background

The Food Aid
Convention (FAC 1999) is a multilateral agreement which came originally into
effect in the 1960s as an instrument for a coordinated and acceptable disposal
of agricultural surpluses from developed countries to developing countries in
need. The FAC 1999 was initially to remain in force until 30 June 2002 and has
been extended five times, with the latest extension
running until 30 June 2012.

On 14 December
2010, the Parties to the FAC 1999 - the USA, Canada, Japan, Switzerland,
Australia and the EU - agreed to negotiate a new convention that would aim at
providing appropriate and effective food assistance to vulnerable populations,
based on identified needs.

On the basis of
the recommendation submitted by the Commission to the Council, the Council
authorised the Commission to open negotiations for a new Food Assistance
Convention.

On 25 April
2012 the negotiations were successfully completed.

2) Nature of
the Food Assistance Convention (FAC 2012)

The FAC 2012
reflects a modernised approach to food assistance. It aims at responding to
food and nutrition needs of vulnerable populations in an effective and
efficient manner, going beyond the mere provision of food aid, in keeping with
the EU's Humanitarian Food Assistance Policy (SEC(2010)374). Other key elements
are improved access to and consumption of adequate, safe and nutritious food on
the basis of proper needs analysis, an approach based on (humanitarian)
principles and full respect for WTO obligations. The Convention will be
implemented by means of annual commitments in kind or in cash to be made by
Parties.

The FAC 2012
will enter into force on 1 January 2013 if, by 30 November 2012, five
Signatories have ratified the Convention. The Convention will be open for
signature from 11 June till 31 December 2012; it will also be open for
signature and ratification by individual EU Member States, making commitments
stemming directly from their respective budgets.

There is likely
to be a time gap between the expiry date of the current FAC 1999 (30 June 2012)
and the likely date of entry into force of the Food Assistance Convention (1
January 2013). The question of a possible further extension of the FAC 1999
will be formally addressed by the Food Aid Committee at its meeting in June
2012. A proposal from the Commission to the Council authorising the Commission,
on behalf of the EU, not to support a further extension of the FAC 1999 is
pending before the Council.

3) Procedure

The Commission
considers the results of the negotiations to be satisfactory and in accordance
with the negotiating directives from the Council and requests therefore the
Council to sign the Food Assistance Convention, on behalf of the European
Union, subject to its conclusion.

2012/0182 (NLE)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European
Union, of the Food Assistance Convention

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 214(4), in conjunction
with Article 218(5), thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)
The Union is a party to the Food Aid Convention
1999 ("FAC 1999"), which should no longer be in force as from 1 July
2012.

(2)
On 17 November 2010 the Council authorised the
Commission to conduct negotiations with a view to agree upon a Food Assistance
Convention ("the Convention") incorporating and reflecting a
modernised approach to food assistance, which would replace the FAC 1999.

(3)
The negotiations were successfully concluded on
25 April 2012.

(4)
It is in the interest of the Union to sign the
Convention as the latter would help to achieve humanitarian aid objectives
referred to in Article 214(1) of the Treaty on the Functioning of the European
Union.

(5)
The Convention is open for signature until 31
December 2012.

(6)
The Convention should be signed on behalf of the
European Union, subject to its conclusion at a later date,

HAS ADOPTED THIS DECISION:

Article 1

The signing of the Food Assistance
Convention is hereby authorised on behalf of the European Union, subject to the
conclusion of the said Convention.

The text of the Agreement to be signed is
attached to this Decision.

Article 2

The Council Secretariat General shall
establish the instrument of full powers to sign the Agreement, subject to its
conclusion, for the person(s) indicated by the negotiator of the Agreement.

Article 3

This Decision shall enter into force on the
day of its adoption.

Done at Brussels,

For
the Council

The
President

ANNEX

FOOD
ASSISTANCE CONVENTION

PREAMBLE

The Parties to this Convention,

Confirming their continued commitment to the still valid objectives
of the Food Aid Convention, 1999, to contribute to world food security,
and to improve the ability of the international community to respond to
emergency food situations and other food needs of developing countries;

Seeking to improve the effectiveness, efficiency, and quality of
food assistance in preserving the lives and alleviating the suffering of the
most vulnerable populations, especially in emergency situations, by
strengthening international cooperation and coordination, in particular among
the Parties and stakeholders;

Recognising that vulnerable populations have particular
food and nutritional needs;

Affirming that States have the primary responsibility for
their own national food security, and therefore for the progressive realisation
of the right to adequate food as set out in the Food and Agriculture
Organization (FAO) Voluntary Guidelines to support the Progressive Realization
of the Right to Adequate Food in the Context of National Food Security adopted
by the FAO Council in November 2004;

Encouraging governments of food insecure countries to
develop and implement country-owned strategies that address the root causes of
food insecurity through long-term measures, and that ensure proper linkages
between relief, recovery and development activities;

Referring to international humanitarian law and the
fundamental humanitarian principles of humanity, impartiality, neutrality and
independence;

Referring to the Principles and Good Practice of
Humanitarian Donorship, endorsed in Stockholm on 17 June 2003;

Recognising that the Parties have their own policies related
to providing food assistance in emergency and non-emergency situations;

Considering the World Food Summit Plan of Action
adopted in Rome in 1996, as well as the Five Rome Principles for Sustainable
Global Food Security identified in the Declaration of the World Summit on
Food Security of 2009, in particular the commitment to achieve food
security in all countries and the ongoing effort to reduce poverty and
eradicate hunger that was reaffirmed by the United Nations General Assembly in
the United Nations Millennium Declaration;

Considering the commitments made by donor and recipient
countries to improve development aid effectiveness by applying the principles
of the Organisation for Economic Cooperation and Development’s (OECD) Paris
Declaration on Aid Effectiveness adopted in 2005;

Determined to act in accordance with their World Trade Organization (WTO)
obligations, in particular any WTO disciplines on food aid;

Have agreed as follows:

Article 1

Objectives

The objectives
of this Convention are to save lives, reduce hunger, improve food security, and
improve the nutritional status of the most vulnerable populations by:

(a)
addressing the food and nutritional needs of the
most vulnerable populations through commitments made by the Parties to provide
food assistance that improves access to, and consumption of, adequate, safe and
nutritious food;

(b)
ensuring that food assistance provided to the
most vulnerable populations is appropriate, timely, effective, efficient, and
based on needs and shared principles; and

(c)
facilitating information-sharing, cooperation,
and coordination, and providing a forum for discussion in order to improve the
effective, efficient, and coherent use of the Parties’ resources to respond to
needs.

Article
2

Principles
of Food Assistance

The Parties, in providing and
delivering food assistance to the most vulnerable populations, should always
adhere to the following principles:

(a)
General principles of food assistance:

(i)      provide food assistance only when it
is the most effective and appropriate means of addressing the food or nutrition
needs of the most vulnerable populations;

(ii)     provide food assistance, taking into
account the long-term rehabilitation and development objectives of the
recipient countries, while supporting the broader goal of achieving food
security, whenever appropriate;

(iii)     provide food assistance in a manner
that protects livelihoods and strengthens the self-reliance and resilience of
vulnerable populations, and local communities, and that prevents, prepares for,
mitigates and responds to food security crises;

(iv)    provide food assistance in such a way
as to avoid dependency and minimise direct and indirect negative impacts on
beneficiaries and others;

(v)     provide food assistance in a way that
does not adversely affect local production, market conditions, marketing
structures and commercial trade or the price of essential goods for vulnerable
populations;

(vi)    provide food aid in fully grant form,
whenever possible;

(b)
Principles of food assistance effectiveness:

(i)      in order to increase the amount
available to spend on food assistance for vulnerable populations and to promote
efficiency, minimise associated costs as much as possible;

(ii)     actively seek to cooperate,
coordinate and share information to improve the effectiveness and efficiency of
food assistance programs, and the coherence between food assistance and related
policy areas and instruments;

(iii)     purchase food and other components
of food assistance locally or regionally, whenever possible and appropriate;

(iv)    increasingly provide untied
cash-based food assistance, whenever possible and based on needs;

(v)     only monetise food aid where there is
an identified need to do so, and to improve the food security of vulnerable
populations; base monetisation on transparent and objective market analysis and
avoid commercial displacement;

(vi)    ensure food assistance is not used to
promote the market development objectives of the Parties;

(vii)    avoid re-exportation of food
aid to the maximum extent possible except to prevent or respond to an emergency
situation; only re‑export food aid in a manner that avoids commercial
displacement;

(viii)   acknowledge, where appropriate, that
relevant authorities or relevant stakeholders have the primary role and
responsibility for the organisation, coordination and implementation of food
assistance operations;

(c)
Principles on the provision of food assistance:

(i)      target food assistance according to
the food and nutrition needs of the most vulnerable populations;

(ii)     involve beneficiaries in the
assessment of their needs and in the design, implementation, monitoring and
evaluation of food assistance, as well as other relevant stakeholders, where
appropriate;

(iii)     provide food assistance that meets
applicable safety and quality standards, and that respects cultural and local
dietary habits and the nutritional needs of the beneficiaries;

(iv)    uphold the dignity of beneficiaries of
food assistance;

(d)
Principles of food assistance accountability:

(i)      take specific and appropriate
measures to strengthen the accountability and transparency of food assistance
policies, programs, and operations;

(ii)     monitor, evaluate, and communicate,
on a regular and transparent basis, the outcomes and the impact of food
assistance activities in order to further develop best practices and maximise
their effectiveness.

Article
3

Relationship
with WTO Agreements

Nothing in this Convention shall
derogate from any existing or future WTO obligations applicable between
Parties. In case of conflict between such obligations and this Convention, the
former shall prevail. Nothing in this Convention will prejudice the positions
that a Party may adopt in any negotiations in the WTO.

Article
4

Eligible
Country, Eligible Vulnerable Populations, Eligible Products, Eligible
Activities, and Associated Costs

1.
“Eligible Country” means any country on the OECD’s
Development Assistance Committee (DAC) list of Official Development Assistance
Recipients, or any other country identified in the Rules of Procedure and
Implementation.

2.
“Eligible Vulnerable Populations” means
vulnerable populations in any Eligible Country.

3.
 “Eligible Products” means products for human
consumption that comply with relevant national policies and legislation of the
country of operation, including, as appropriate, applicable international food
safety and quality standards as well as products that contribute to meeting
food needs and protecting livelihoods in emergency and early recovery
situations. The list of Eligible Products is provided in the Rules of Procedure
and Implementation.

4.
Eligible Activities for the fulfilment of a
Party’s minimum annual commitment in accordance with Article 5 shall be
consistent with Article 1, and shall include at least the following activities:

(a)
the provision and distribution of Eligible
Products;

(b)
the provision of cash and vouchers; and

(c)
nutritional interventions.

These Eligible Activities are further elaborated
in the Rules of Procedure and Implementation.

5.         Associated Costs eligible for the
fulfilment of a Party’s minimum annual commitment according to Article 5 shall
be consistent with Article 1, and shall be limited to costs directly linked to
the provision of Eligible Activities, as further elaborated in the Rules of
Procedure and Implementation.

Article
5

Commitment

1.
To meet the objectives of this Convention, each
Party agrees to make an annual commitment of food assistance, set in accordance
with its laws and regulations. Each Party’s commitment is referred to as its
“minimum annual commitment”.

2.
The minimum annual commitment shall be expressed
in terms of value or quantity as further elaborated in the Rules of Procedure
and Implementation. A Party may choose to express either a minimum value or a
minimum quantity, or a combination of both for its commitment.

3.
Minimum annual commitments in terms of value can
be expressed in the currency chosen by the Party. Minimum annual commitments in
terms of quantity can be expressed in tonnes of grain equivalent or other units
of measure provided under the Rules of Procedure and Implementation.

4.
Each Party shall notify the Secretariat of its
initial minimum annual commitment as soon as possible and no later than six
months following the entry into force of this Convention, or within three
months of its accession to this Convention.

5.
Each Party shall notify the Secretariat of any
change to its minimum annual commitment for subsequent years no later than the
fifteenth day of December of the year preceding the change.

6.
The Secretariat shall communicate the updated
minimum annual commitments to all of the Parties as soon as possible and no
later than the first day of January of each year.

7.
Contributions made to meet minimum annual
commitments should be made in fully grant form whenever possible. With respect
to food assistance counted towards a Party’s commitment, not less than 80 per
cent provided to Eligible Countries and Eligible Vulnerable Populations, as
further elaborated in the Rules of Procedure and Implementation, shall be in
fully grant form. To the extent possible, the Parties shall seek progressively
to exceed this percentage. Contributions that are not made in fully grant form
should be accounted for in each Party’s annual report.

8.
The Parties shall undertake to conduct all food
assistance transactions under this Convention in such a way as to avoid harmful
interference with normal patterns of production and international commercial
trade.

9.
The Parties shall ensure that the provision of
food assistance is not tied directly or indirectly, formally or informally,
explicitly or implicitly, to commercial exports of agricultural products or
other goods and services to recipient countries.

10.
To meet its minimum annual commitment, whether
expressed in value or quantity, a Party shall make contributions that are
consistent with this Convention and that consist of funding for Eligible
Products and Activities, and Associated Costs, as set forth in Article 4,
and as further elaborated in the Rules of Procedure and Implementation.

11.
Contributions provided to meet the minimum
annual commitment under this Convention may only be directed at Eligible
Countries or Eligible Vulnerable Populations, as set forth in Article 4
and as further elaborated in the Rules of Procedure and Implementation.

12.
The Parties’ contributions may be provided
bilaterally, through intergovernmental or other international organisations, or
through other food assistance partners, but not through other Parties.

13.
Each Party shall make every effort to meet its
minimum annual commitment. If a Party is unable to meet its minimum annual
commitment for a particular year, it shall describe the circumstances of its
failure to do so in its annual report for that year. The unfulfilled amount
shall be added to the Party’s minimum annual commitment for the following year
unless the Committee established under Article 7 decides otherwise, or unless
extraordinary circumstances justify not doing so.

14.
If a Party’s contribution exceeds its minimum
annual commitment, the amount of the excess, but not more than five per cent of
its minimum annual commitment, may be counted as part of the Party’s
contribution for the following year.

Article
6

Annual
Reporting and Information Sharing

1.
Within ninety days after the end of the calendar
year, each Party shall provide an annual report, in accordance with the Rules
of Procedure and Implementation, to the Secretariat, detailing how it met its
minimum annual commitment under this Convention.

2.
This annual report shall contain a narrative
component that may include information on how the Party’s food assistance
policies, programs and operations contribute to the objectives and principles
of this Convention.

3.
The Parties should, on an ongoing basis,
exchange information on their food assistance policies and programs and the
results of their evaluations of these policies and programs.

Article
7

Food
Assistance Committee

1.
A Food Assistance Committee (the “Committee”),
consisting of all of the Parties to this Convention, is hereby established.

2.
The Committee shall make the decisions at its
formal sessions and perform the functions that are required to carry out the
provisions of this Convention in accordance with the principles and objectives
of the Convention.

3.
The Committee shall adopt rules governing its
proceedings; it may also adopt rules elaborating further the provisions of this
Convention to ensure that they are properly implemented. Document FAC(11/12)1 –
25 April 2012 of the Food Aid Committee of the Food Aid Convention,
1999 shall serve as the initial Rules of Procedure and Implementation for
this Convention. The Committee may subsequently decide to modify those Rules of
Procedure and Implementation.

4.
The Committee shall make decisions by consensus,
meaning that no Party formally opposes the proposed decision of the Committee
on a matter under discussion at a formal session. Formal opposition may occur
either at the formal session or within thirty days after the circulation of the
minutes of a formal session recording the proposed decisions concerned.

5.
For each year, the Secretariat shall prepare a
summary report for the Committee, to be drafted, adopted and published, in
accordance with the Rules of Procedure and Implementation.

6.
The Committee should provide a forum for
discussion among the Parties with respect to food assistance matters, such as
the need to mobilise appropriate and timely resource commitments to address the
food and nutritional needs, especially in specific emergency and crisis
situations. It should facilitate information-sharing with and dissemination to
other stakeholders, and should consult with and receive information from them
to support its discussions.

7.
Each Party shall designate a representative to
receive notices and other communications from the Secretariat.

Article
8

Chairperson
and Vice-Chairperson of the Committee

1.
At the last formal session held in each year,
the Committee shall decide on a Chairperson and a Vice-Chairperson for the following
year.

2.
The Chairperson shall have
the following duties:

(a)
to approve the draft agenda for each formal
session or informal meeting;

(b)
to preside at formal sessions or informal
meetings;

(c)
to open and close each formal session or
informal meeting;

(d)
to submit the draft agenda to the Committee for
adoption at the beginning of each formal session or informal meeting;

(e)
to direct discussions and ensure that the
procedures specified in the Rules of Procedure and Implementation are observed;

(f)
to invite the Parties to speak;

(g)
to rule on points of order in accordance with
the relevant Rules of Procedure and Implementation; and

(h)
to ask questions and announce decisions.

3.
If the Chairperson is absent from all or part of
a formal session or an informal meeting, or is temporarily unable to fill the
office of Chairperson, the Vice-Chairperson shall act as Chairperson. In the
absence of the Chairperson and the Vice-Chairperson, the Committee shall
appoint a temporary Chairperson.

4.
If, for any reason, the Chairperson is unable to
continue to fill the office of Chairperson, the Vice-Chairperson shall become
Chairperson until the end of the year.

Article
9

Formal
Sessions and Informal Meetings

1.
The Committee shall hold formal sessions and
informal meetings according to the Rules of Procedure and Implementation.

2.
The Committee shall hold at least one formal
session a year.

3.
The Committee shall hold additional formal
sessions and informal meetings at the request of the Chairperson or at the
request of at least three of the Parties.

4.
The Committee may invite observers and relevant
stakeholders who wish to discuss particular food assistance related matters to
attend its formal sessions or informal meetings in accordance with the Rules of
Procedure and Implementation.

5.
The Committee shall meet at a location
determined in accordance with the Rules of Procedure and Implementation.

6.
The agenda for formal sessions and informal
meetings shall be developed in accordance with the Rules of Procedure and
Implementation.

7.
The minutes of a formal session, which shall
include any proposed decisions of the Committee, shall be circulated within
thirty days after the formal session.

Article
10

Secretariat

1.
The Committee shall designate a Secretariat and
request its services, in accordance with the Rules of Procedure and
Implementation. The Committee shall request of the International Grains Council
(IGC) that its Secretariat act as the initial Secretariat of the Committee.

2.
The Secretariat shall perform the duties that
are set out in this Convention and the Rules of Procedure and Implementation,
perform any administrative duties, including the processing and distribution of
documents and reports, and carry out other functions identified by the
Committee.

Article
11

Resolution
of Disputes

The Committee shall seek to resolve
any dispute among the Parties concerning the interpretation or implementation
of this Convention or the Rules of Procedure and Implementation, including any
claim of failure to perform the obligations set out in this Convention.

Article
12

Signature
and Ratification, Acceptance, or Approval

This Convention shall be open for
signature by Argentina, Australia, the Republic of Austria, the Kingdom of
Belgium, the Republic of Bulgaria, Canada, the Republic of Croatia, the
Republic of Cyprus, the Czech Republic, the Kingdom of Denmark, the European
Union, the Republic of Estonia, the Republic of Finland, the French Republic,
the Federal Republic of Germany, the Hellenic Republic, Hungary, Ireland, the
Italian Republic, Japan, the Republic of Latvia, the Republic of Lithuania, the
Grand Duchy of Luxembourg, the Republic of Malta, the Kingdom of the
Netherlands, the Kingdom of Norway, the Republic of Poland, the Portuguese
Republic, Romania, the Slovak Republic, the Republic of Slovenia, the Kingdom
of Spain, the Kingdom of Sweden, the Swiss Confederation, the United Kingdom of
Great Britain and Northern Ireland, and the United States of America, at United
Nations Headquarters in New York from 11 June 2012 until 31 December
2012. This Convention shall be subject to ratification, acceptance or approval
by each Signatory. Instruments of ratification, acceptance or approval shall be
deposited with the Depositary.

Article
13

Accession

1.
Any State listed in Article 12 that has not
signed this Convention by the end of the signature period, or the European
Union if it has not signed by that time, may accede to it at any time after
that period. Instruments of accession shall be deposited with the Depositary.

2.
Once this Convention has entered into force in
accordance with Article 15, it shall be open for accession by any State other
than those referred to in Article 12 or by a Separate Customs Territory
possessing full autonomy in the conduct of its external commercial relations
that is deemed eligible by a decision of the Committee. Instruments of
accession shall be deposited with the Depositary.

Article
14

Notification
of Provisional Application

Any State referred to in Article 12, or the European Union, that intends to ratify, accept, or approve this
Convention or accede thereto, or any
State or Separate Customs Territory
deemed eligible under Article 13(2) for accession by a decision of the Committee
but has not yet deposited its instrument, may at any time deposit a
notification of provisional application of this Convention with the Depositary.
The Convention shall apply provisionally for that State, Separate Customs
Territory, or the European Union from the date of deposit of its notification.

Article
15

Entry
into Force

1.
This Convention shall enter into force on 1 January
2013 if by 30 November 2012 five Signatories have deposited instruments of
ratification, acceptance, or approval.

2.
If this Convention does not enter into force in
accordance with paragraph 1, the Signatories to this Convention that have
deposited instruments of ratification, acceptance, or approval and States or
the European Union that have deposited instruments of accession pursuant to
Article 13(1) may decide by unanimous consent that it shall enter into
force among themselves.

3.
For any State or Separate Customs Territory, or
the European Union, that ratifies, accepts, approves, or accedes to the
Convention after the Convention enters into force, this Convention shall enter
into force on the date of the deposit of its instrument of ratification, approval,
acceptance, or accession.

Article 16

Assessment and
Amendment Procedure

1.
At any time after the entry into force of
this Convention, a Party may propose an assessment of the relevance of this
Convention or propose amendments to it. Any proposed amendments shall be
circulated by the Secretariat to all of the Parties at least six months in
advance and discussed at the next formal session of the Committee following the
end of the notice period.

2.
Proposals for amendment to this Convention
shall be adopted by decision of the Committee. The Secretariat shall
communicate to all of the Parties, and to the Depositary, any proposals for
amendment adopted by the Committee. The Depositary shall circulate any adopted
amendment to all Parties.

3.
Notification of acceptance of an amendment
shall be sent to the Depositary. An adopted amendment shall enter into force
for those Parties having sent that notification, ninety days after the date on
which the Depositary has received such notifications from not less than four fifths
of the number of Parties to this Convention on the date of adoption of the
proposed amendment by the Committee. Such an amendment shall enter into force
for any other Party ninety days after that Party deposits its notification with
the Depositary. The Committee may decide that a
different threshold be used for the number of notifications required to trigger
the entry into force of a specific amendment. The Secretariat shall communicate
such a decision to all Parties and the Depositary.

Article
17

Withdrawal
and Termination

1.
Any Party may withdraw from this Convention at
the end of any year by giving written notice of withdrawal to the Depositary
and the Committee at least ninety days prior to the end of that year. That
Party shall not be released from its minimum annual commitment or reporting
obligations incurred under this Convention, while it was a Party, that have not
been discharged by the end of that year.

2.
At any time after the entry into force of this
Convention, a Party may propose the termination of this Convention. Such a
proposal shall be communicated in writing to the Secretariat and shall be
circulated by it to all of the Parties at least six months in advance of its
consideration by the Committee.

Article
18

Depositary

1.
The Secretary-General of the United Nations is
designated as the Depositary of this Convention.

2.
The Depositary shall receive notice of any
signature, ratification, acceptance, approval, notification of provisional
application of, and accession to, this Convention, and notify all Parties and
Signatories of these notices.

Article
19

Authentic
texts

The originals of this Convention, of
which the English and French texts are equally authentic, shall be deposited
with the Secretary-General of the United Nations.

IN WITNESS THEREOF the undersigned,
being duly authorised, have signed this Convention.

DONE at London, 25 April 2012.

LEGISLATIVE FINANCIAL STATEMENT

FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

INTRODUCTORY REMARKS

The EU has been the driving force pushing for the
negotiation of the Food Aid Convention 1999. This effort has been made in line
with EU Humanitarian Food Assistance Policy, which promotes the most
effective and efficient mix of tools to respond to a specific crisis.

The new Convention reflects a modern approach to food
assistance and has a humanitarian focus, envisaging short term activities
of one year maximum. It aims at improving the effectiveness of food assistance
practices and foresees the eligibility of a wider range of food assistance
tools (including cash and vouchers). The Convention promotes the provision of
food assistance that is firmly needs-based, based on objectively identified
needs and sensitive to local contexts. It further promotes the respect for
humanitarian principles, encourages local and regional purchase and reflects
nutrition concerns in the context of food assistance. It further encourages
partnership with stakeholders, includes adequate monitoring and evaluation
tools; encourages sharing of best practices.

The new Food
Assistance Convention will be open for individual signature and ratification
to the EU, the EU Member States and third countries, each taking
commitments stemming from their respective budgets. Upon ratification of the
Convention, one becomes a party and has to notify the secretariat about one's minimum
annual commitment of food assistance, expressed in tonnage and/or value.
The minimum annual commitment is flexible and can be modified through
notification to the secretariat.

Based on the
EU's budget, a conservative approach is envisaged for the European Union's
minimum annual commitment, i.e. an amount of EUR 200 million, which
corresponds to some 80% of average Humanitarian Food Aid Budget Line over the
past few years. Given the Convention's humanitarian focus, the ex-post
reporting concerns food assistance activities of a short-term nature, which are
supported by the EU and eligible to be counted under the Convention. In
reality, the fulfilment of the annual minimum commitment and the reporting
ex-post primarily concerns humanitarian food assistance activities. Only very
specific elements of food security operations may exceptionally be deemed
eligible under the Convention but this would have to be assessed on a
case-by-case basis.

Each year, a
party has to report ex-post on the fulfilment of its annual commitment and
the food assistance activities undertaken or supported. The Convention's
secretariat draws up a report on the basis of the individual reporting by
parties, and this report is subsequently made public. The EU will undertake the
reporting on the fulfilment of the EU minimum annual commitments and EU Member
States will do a similar individual reporting on the fulfilment of their
commitment.

1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the proposal/initiative

Proposal of the Commission for a Council decision on the Signing and
Conclusion of the Food Assistance Convention

1.2.
Policy area(s) concerned in the ABM/ABB
structure[1]

Humanitarian Aid - Food Assistance

1.3.
Nature of the proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The proposal/initiative
relates to a new action following a pilot project/preparatory action[2]

 ̈ The proposal/initiative relates to the
extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.
Objectives
1.4.1.
The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative

(a)
Giving the EU an effective voice in the wider
world.

The proposal fits in the overarching objective of "giving the
EU an effective voice in the wider world" that is governing the
Commission's annual programme of work 2012

1.4.2.
Specific objective(s) and ABM/ABB activity(ies)
concerned

Specific objective No..

ABM/ABB activity(ies) concerned

1.4.3.
Expected result(s) and impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

In line with the EU policy on Humanitarian Food Assistance, the new
Food Assistance Convention encourages the use of innovative food assistance
tools and enhances the effectiveness of food assistance practices, based on
objectively identified needs; sensitive to local contexts; includes adequate
monitoring and evaluation tools; and encourages sharing of best practices of
the Food Assistance Convention (FAC).

"Predictability" lies in particular in the fact that
donors who become parties to the Convention commit themselves to a determined
level of food assistance support per year. They are also held accountable on
the basis of annual report that will be made public.

1.4.4.
Indicators of results and impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

Donors becoming parties to the FAC commit themselves to a determined
level of food assistance support per year; they are held accountable on the
basis of annual report that will be made public (though no sanctions foreseen
for non-fulfilment).

1.5.
Grounds for the proposal/initiative
1.5.1.
Requirement(s) to be met in the short or long
term

Ensure that the most effective and efficient food assistance is put
in place and/or supported by main donors to respond to food and nutrition needs
of the most vulnerable based on identified needs and with respect of
fundamental principles and in compliance with WTO obligations.

1.5.2.
Added value of EU involvement

- The EU, one of the main humanitarian food assistance donors, has
together with EU Member States advocated for the renegotiation of the Food Aid
Convention, 1999 and have been the main driver of the process towards a modern
Food Assistance Convention both at EU and international level, in accordance
with the procedure laid down in Article 218 of the TFEU;

- The Food Assistance Convention is instrumental in allowing the EU
to pursue at international level, as contemplated by Article 214(4) TFEU, the
advancement of its humanitarian aid policy objectives as laid down in Article
214(1) TFEU.

- The EU involvement contributes to foster greater coherence between
EU and Member States food assistance related activities;

- Action at the international level, under the auspices of the Food
Assistance Convention, lays down the conditions for greater transparency and
predictability of food assistance related actions;

- In response to food and nutrition insecurity needs, the EU has
encouraged the move from a merely product-based approach to a more varied
approach, using a broader, more appropriate mix of response tools.

- The EU's actions at international level, in the context of the
Food Assistance Convention, together with other major international donors,
will contribute to engage further other donors a view to fostering a modernised
approach to food assistance.

1.5.3.
Lessons learned from similar experiences in the
past

DG ECHO experience on the involvement of the EU in international
conventions and fora on food assistance-related matters relate (in particular
to the Food Aid Convention, 1999 to which the EU has been party) led to the
following lessons being drawn, which contributed to the EU's push towards a
modernised international instrument to support food assistance policy: the
clear focus on meeting in the most efficient and effective manner
beneficiaries' needs is confirmed to be at the forefront (as opposed to the
need, in the past, of donating to dispose of excessive food supplies); the need
to allow time for all parties to adjust existing instrument to reflect the new
needs and try to meet them through a modernised policy approach.

1.5.4.
Coherence and possible synergy with other
relevant instruments

Trade and Agriculture. The new Convention will be WTO compatible and
fosters best practices that seek to minimize the distorting or harmful effects
on local populations, markets and the broader society.

For the time being, the secretariat of the Convention will be the
International Grains Council, which is established and financed by the Grains
Trade Convention, that is managed by the European Commission (DG AGRI).

Where appropriate and feasible, synergies with the Food Security
Thematic Programme under the DCI will be sought to foster longer-term solutions
to food and nutrition security.

1.6.
Duration and financial impact

 ̈ Proposal/initiative of limited
duration

–
 ̈  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

–
 ̈  Financial impact from YYYY to YYYY

 ̈ Proposal/initiative of unlimited
duration

–
Entry into force with a start-up period from 01
January 2013 if five parties have ratified by 30 November 2012.

–
followed by full-scale operation.

1.7.
Management mode(s) envisaged[3]

 ̈ Centralised direct management by the Commission

 ̈ Centralised indirect management with the delegation of implementation tasks to:

–
 ̈  executive agencies

–
 ̈  bodies set up by the Communities[4]

–
 ̈  national public-sector bodies/bodies with public-service mission

–
 ̈  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

 ̈ Shared management with the Member States

 ̈ Decentralised management with third countries

 ̈ Joint management with international organisations (UN organisations and the
ICRC/IFRC)

Comments

The
Convention foresees setting up a Food Assistance Committee, composed of the
parties to the Convention, that administers the Convention and that functions
as the main forum for discussions and exchange of information amongst parties
to the Convention.

Commission (DG ECHO) operations are managed through CDM when
implementation is ensured by NGOs or joint management when implementation is
done through the UN organisations or IFRC/ICRC.

2.
MANAGEMENT MEASURES
2.1.
Monitoring and reporting rules

Specify frequency
and conditions.

Article 6 of the Convention foresees annual reporting. The specific
requirements for the reporting are detailed in Rules of Procedure (rule 9 and
10) that will be adopted in the first meeting of the Food Assistance Committee.

2.2.
Management and control system
2.2.1.
Risk(s) identified

No specific risk has been identified. The FAC does not imply any
activity bringing additional risk than the ones identified in the yearly
exercise performed for DG ECHO as a whole.

2.2.2.
Control method(s) envisaged

There is no change of the general control structure of DG ECHO that
can be attributed to the FAC]

2.3.
Measures to prevent fraud and irregularities

Specify existing or
envisaged prevention and protection measures.

There is no change of the general control structure of DG ECHO that
can be attributed to the FAC

3.
ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE
3.1.
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number  [Description...................] || Diff./non-diff. ([5]) || from EFTA[6] countries || from candidate countries[7] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

4 || 23.02.02 Food Aid || Diff. || NO || NO || NO || NO

· New budget lines requested

Not applicable

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading............................................] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

|| [XX.YY.YY.YY] || || YES/NO || YES/NO || YES/NO || YES/NO

3.2.
Estimated impact on expenditure
3.2.1.
Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || 4 || Global Europe

DG ECHO || || || Year N[8] || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || Year N+7 || Subsequent years || TOTAL

Ÿ Operational appropriations || || || || || || || || || ||

23 02 02 || Commitments || (1) || 200 || 200 || 200 || 200 || 200 || 200 || 200 || 200 || || 1600

Payments || (2) || 130 || 160 || 180 || 200 || 200 || 200 || 200 || 200 || 130 || 1600

Payments || (2a) || || || || || || || || || ||

Appropriations of an administrative nature financed  from the envelope for specific programmes[9] || || || || || || || || || ||

N/A || || (3) || || || || || || || || || ||

TOTAL appropriations for DG ECHO || Commitments || =1+1a +3 || 200 || 200 || 200 || 200 || 200 || 200 || 200 || 200 || || 1600

Payments || =2+2a +3 || 130 || 160 || 180 || 200 || 200 || 200 || 200 || 200 || 130 || 1600

Ÿ TOTAL operational appropriations || Commitments || (4) || 200 || 200 || 200 || 200 || 200 || 200 || 200 || 200 || || 1600

Payments || (5) || 130 || 160 || 180 || 200 || 200 || 200 || 200 || 200 || 130 || 1600

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || || || ||

TOTAL appropriations under HEADING 4 of the multiannual financial framework || Commitments || =4+ 6 || 200 || 200 || 200 || 200 || 200 || 200 || 200 || 200 || || 1600

Payments || =5+ 6 || 130 || 160 || 180 || 200 || 200 || 200 || 200 || 200 || 130 || 1600

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || ||

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || || || || || || || ||

Payments || =5+ 6 || || || || || || || ||

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

|| || || Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || Year N+7 || TOTAL

DG: ECHO || ||

Ÿ Human resources || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,248

Ÿ Other administrative expenditure || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,016

TOTAL DG ECHO || Appropriations || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,264

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,264

EUR million (to 3 decimal places)

|| || || Year N[10] || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || Year N+7 || Subsequent years || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 200,033 || 200,033 || 200,033 || 200,033 || 200,033 || 200,033 || 200,033 || 200,033 || || 1600,264

Payments || 130,033 || 160,033 || 180,033 || 200,033 || 200,033 || 200,033 || 200,033 || 200,033 || 130,033 || 1600,264

3.2.2.
Estimated impact on operational appropriations

–
 ̈  The proposal/initiative does not require the use of operational
appropriations

–
x   The proposal/initiative requires the use of
operational appropriations, as explained below:

Commitment appropriations in EUR million (to 3 decimal
places)

Indicate objectives and outputs ò || || || Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || Year N+7 || TOTAL ||

||

Type of output[11] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Type of output || Cost || Type of output || Cost || Type of output || Cost || Type of output || Cost || Number of outputs || Cost || Total number of outputs || Total cost ||

SPECIFIC OBJECTIVE No 1[12]... || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°1 || || || || || || || || || || || || || || || || || || ||

SPECIFIC OBJECTIVE No 2... || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°2 || || || || || || || || || || || || || || || || || || || || ||

TOTAL COST || || 200 || || 200 || || 200 || || 200 || || 200 || || 200 || || 200 || || 200 || || 1600 ||

3.2.3.
Estimated impact on appropriations of an
administrative nature
3.2.3.1.
Summary

–
The proposal/initiative does not require the use
of administrative appropriations

–
x   The proposal/initiative requires the use of
administrative appropriations, as explained below:

EUR million (to 3
decimal places)

|| Year N [13] || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || Year N+7 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || || ||

Human resources || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,031 || 0,248

Other administrative expenditure || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,002 || 0,016

Subtotal HEADING 5 of the multiannual financial framework || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,264

Outside HEADING 5[14] of the multiannual financial framework || || || || || || || || ||

Human resources || || || || || || || || ||

Other expenditure of an administrative nature || || || || || || || || ||

Subtotal outside HEADING 5 of the multiannual financial framework || || || || || || || || ||

TOTAL || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,033 || 0,264

3.2.3.2.
 Estimated requirements of human resources

–
The proposal/initiative does not require the use
of human resources

–
x   The proposal/initiative requires the use of
human resources, as explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6 || Year N+7

Ÿ Establishment plan posts (officials and temporary agents)

XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 0,3 || 0,3 || 0,3 || 0,3 || 0,3 || 0,3 || 0,3 || 0,3

XX 01 01 02 (Delegations) || || || || || || || ||

XX 01 05 01 (Indirect research) || || || || || || || ||

10 01 05 01 (Direct research) || || || || || || || ||

Ÿ External personnel (in Full Time Equivalent unit: FTE)[15]

XX 01 02 01 (CA, INT, SNE from the "global envelope") || || || || || || || ||

XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || || ||

XX 01 04 yy [16] || - at Headquarters[17] || || || || || || || ||

- in delegations || || || || || || || ||

XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || || ||

10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || || ||

Other budget lines (specify) || || || || || || || ||

TOTAL || 0,3 || 0,3 || 0,3 || 0,3 || 0,3 || 0,3 || 0,3 || 0,3

23 is the policy area or budget title
concerned.

The human resources required
will be met by staff from the DG who are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || Prepare the EU's participation in meetings of the Food Assistance Committee and attend the meetings. Prepare and deliver the annual reporting on the fulfilment of the annual minimum commitment and on the food assistance activities that have been supported

External personnel ||

3.2.4.
Compatibility with the current multiannual
financial framework

–
X  Proposal/initiative is compatible the current
multiannual financial framework.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant heading
in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[18].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.
Third-party contributions

–
The proposal/initiative does not provide for
co-financing by third parties

–
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to 3 decimal places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations cofinanced || || || || || || || ||

3.3.
Estimated impact on revenue

–
x   Proposal/initiative has no financial impact
on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

 ̈         on own resources

 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[19]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

Specify the method for
calculating the impact on revenue.

[1]               ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[2]               As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.

[3]               Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[4]               As referred to in Article 185 of the Financial
Regulation.

[5]               Diff. = Differentiated appropriations / Non-diff. =
Non-Differentiated Appropriations

[6]               EFTA: European Free Trade Association.

[7]               Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[8]               Year N is the year in which implementation of the
proposal/initiative starts.

[9]               Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[10]             Year N is the year in which implementation of the
proposal/initiative starts.

[11]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[12]             As described in Section 1.4.2. "Specific
objective(s)..."

[13]             Year N is the year in which implementation of the
proposal/initiative starts.

[14]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[15]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[16]             Under
the ceiling for external personnel from operational
appropriations (former "BA" lines).

[17]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[18]             See points 19 and 24 of the Interinstitutional
Agreement.

[19]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.