# EUR-Lex - 52012PC0779 - EN

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# 52012PC0779

**Proposal for a COUNCIL DECISION establishing the position to be taken by the European Union within the International Grains Council with respect to the extension of the Grains Trade Convention 1995 /* COM/2012/0779 final - 2012/0362 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           The Grains Trade
Convention 1995 (hereinafter: the “Convention”) was concluded by the Community
by Council Decision 96/88/EC[1] until 30 June 1998 and, since then, it has
been regularly extended. The Convention was last extended by decision of the
International Grains Council in June 2011 and remains into force until 30 June 2013.

2.           A further extension of the
Convention by up to two years is in the interest of the Union.

3.           The extension of the
Convention entails the prolongation of the EU contribution to the
administrative budget of the International Grains Council, which covers both
the Grains Trade Convention 1995 and the Food Aid Convention 1999. That contribution
is budgeted under item 05 06 01 of the EU budget (International
agricultural agreements).

4.           The purpose of this
proposal is to seek the Council’s authorisation to the Commission to vote, on
behalf of the Union, in favour of the extension of the Grains Trade Convention
up to 30 June 2015 within the International Grains Council.

2012/0362
(NLE)

Proposal for a

COUNCIL DECISION

establishing the position to be taken by
the European Union within the International Grains Council with respect to the
extension of the Grains Trade Convention 1995

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 207 in conjunction
with Article 218(9) thereof,

Having regard to the proposal from the
Commission,

Whereas:

(1)       The Grains Trade Convention 1995 was concluded by the Community
by Council Decision 96/88/EC[2]
and was regularly extended for further periods of two-year. This Convention was
extended last time by decision of the International Grains Council in June 2011
and remains into force until 30 June 2013. A further extension is in the
interest of the Union. The Commission, which represents the Union in the Grains
Trade Convention, should therefore be authorised to vote in favour of such
extension,

HAS DECIDED AS FOLLOWS:

Article 1

The position to be taken by the Union within the International Grains Council shall be to vote in favour of the extension
of the Grains Trade Convention 1995 for a further period of up to 2 years.

The Commission is hereby authorised to
express this position within the International Grains Council.

Article
2

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

Done at Brussels,

For
the Council

The
President

LEGISLATIVE
FINANCIAL STATEMENT

Policy area: Agricultural and Rural Development Activity: International aspects of Agricultural and Rural Development policy area

Title of action: extension of the grains trade convention 1995

1.           BUDGET LINE + HEADING:

Heading 4 – The EU as a global partner

05 06 01: International agricultural
agreements

2.           OVERALL FIGURES

2.1.        Total allocation for action (Operational appropriations):
EUR million 0.833

2.2.        Period of application: 1.7.2013 to 30.06.2015

2.3.        Overall multi-annual estimate on expenditure (EUR
million), subject to the approval of Budget 2014 and 2015 by the Budgetary Authority

|| 2013/14 || 2014/15 || Total

Commitments || 0.406 || 0.427 || 0.833

Payments || 0.406 || 0.427 || 0.833

2.4.        Compatibility
with the financial programming and the financial perspective

X       Proposal
compatible with the existing financial programming

2.5.        Financial impact on revenue

X       No
financial implications (involves technical aspects regarding implementation of
a measure).

3.           BUDGET
CHARACTERISTICS

Type of expenditure || New || EFTA participation || Participation applicant countries || Heading Financial Perspective

Comp || Diff || NO || NO || NO || 4 The EU as a global partner

4.           LEGAL BASIS

Article 207 in conjunction with
Article 218(9) of the Treaty (TFEU).

5.           DESCRIPTION AND GROUNDS

5.1.        Need for Community intervention

Because of its economic importance,
especially in the agricultural sector, the EU must be represented in
international agricultural agreements, which represent an important means for
following global developments and defending Union interests for the products
concerned.

The payment of EU membership
contributions to the International Grains Council (IGC) enables the objectives
of the international agreements to be attained. The IGC, which is responsible
for administering the Grains Trade Convention 1995 and Food Aid Convention
1999, promotes the objectives of these agreements, including international
cooperation, exchange of statistical information, forecasting market trends,
etc. and for the Food Aid Convention the guarantee that developing countries
are ensured a minimum amount of food aid by the European Union. It is therefore
in the interests of the EU to be a part of these Conventions.

The membership contributions are
determined on an annual basis and are due as long as the EU is a member of the Conventions.

It is clear that if the EU had to carry
out on its own the same actions as are carried out by the IGC, the total cost
of these would be much greater than the cost of the membership contributions.

5.2.        Actions envisaged and arrangements for budget
intervention

The EU pays membership contributions on an
annual basis for the International Grains Council and they are due as long as
the EU remains a signatory of the Conventions.

The European Commission participates
fully in the activities of the IGC and takes full advantage of the benefits of
membership.

6.           FINANCIAL IMPACT

6.1.        Total financial impact
on Operational appropriations

Commitments (to the 3rd
decimal place): EUR 0.833 million for the period of two years: 0.406 for 2013/2014
and 0.427 for 2014/2015.

6.2.        Calculation

The expenditure involved in the
application of the two Conventions is covered by annual contributions from all
members of the Grains Trade Convention.

The contribution of a member country is
fixed in proportion to the number of votes attributed to the member concerned
and proportionally to its importance in the international market.

There are a total of 2000 votes in the Grains
Trade Convention, of which the European Union is estimated to hold 380 in 2013/14
and 2014/2015. The estimated cost per vote for 2013/2014 is EUR 1,070 resulting
in a EU contribution of EUR 0.406 million. For 2014/2015 and taking into
consideration the adjustment of the price per vote, the cost is estimated at
EUR 0.427 million. These amounts already include an increase of 10% safety
margin (exchange rates, unexpected changes in the organisation, etc.). We
estimated an exchange rate of EUR 1.25 = GBP 1 for the calculations.

7.           IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.        Impact on human resources

Types of post || Staff to be assigned to management of the action using existing resources || Total || Description of tasks deriving from the action

Number of permanent posts || Number of temporary posts ||

Permanent officials or temporary staff || A B C || 0.2 0.1 – || – – – || 0.2 0.1 – || Preparation for attendance at and follow up from meetings of the IGC

Other human resources || – || – || – ||

Total || 0.3 || – || 0.3 ||

7.2.        Overall financial impact
of human resources

Type of human resources || Amount EUR || Method of calculation

Officials Temporary staff || 36 600 || 0.3 x 122 000

Other human resources || ||

Total || 36 600 ||

8.           FOLLOW-UP AND EVALUATION

8.1.        Follow-up arrangements

The Commission services will participate
fully at the various meetings of the IGC (Administrative Committees, Council
meeting), which are the governing bodies of the organsiation responsible for
determining budgetary contributions.

Reports on these meetings and of the
decisions taken in the course of these meetings are published and are freely
available to members.

9.           ANTI-FRAUD MEASURES

The execution and the control of EU
contributions are checked in conformity of the rules foreseen by the IGC.

Specific modalities of audit and control
are laid down in the legal basis of this international organisation.

The accounts of this organisation are
certified by an independent external auditor. This certification is submitted
to the competent body of the IGC in view of its approval and subsequent
publication.

[1]               OJ L 21, 27.1.1996, p. 47.

[2]                      OJ L 21, 27.1.1996, p. 47.