on the position to be taken on behalf of the European Union in the International Cocoa Council

EXPLANATORY MEMORANDUM

1.Subject matter of the proposal

This proposal concerns the decision establishing the position to be taken on the Union's behalf in the International Cocoa Organization’s (hereafter: ‘ICCO’) International Cocoa Council (hereafter: ‘ICCO Council’) in connection with the envisaged adoption of the extension of the International Cocoa Agreement (ICA, 2010).

2.Context of the proposal

2.1.The International Cocoa Agreement (ICA, 2010)

The International Cocoa Agreement (ICA, 2010) (hereafter ‘the ICA’ or ‘the Agreement’) aims to ensure enhanced international cooperation in connection with world cocoa matters and related issues, provide a forum for intergovernmental consultations on cocoa and on ways to improve the world cocoa economy, to facilitate trade by collecting and providing information on the world cocoa market and to encourage increased demand for cocoa. The ICA entered into force on 1 October 2012 for a period of ten years until 30 September 2022 (Article 62(1) ICA). The European Union is a party to the ICA.

2.2.The International Cocoa Council

As per Article 6(1) of the ICA, the International Cocoa Council shall consist of all the members of the Organization. As per Article 7 of the ICA, the Council shall exercise all such powers and perform or arrange for the performance of all such functions as are necessary to carry out the express provisions of the ICA.

As a general rule, the ICCO Council holds one regular session in each half of the cocoa year but has the possibility to meet in special session (Article 9 (1)(2) ICA). Article 12 of the ICA stipulates that all decisions of the ICCO Council are in principle by consensus. In the absence of consensus, decisions are made by a special vote according to the procedure as laid down in Article 12(1) ICA. Article 10 and 11 ICA provide for a specific distribution of votes and voting procedure between the Organization’s exporting and importing members.

2.3.The envisaged act of the International Cocoa Council

In September 2020, during its 102nd session, the ICCO Council recommended to extend the ICA beyond its current expiration date. This would allow for a substantial revision to be adopted in the future. The ICCO Council is to decide on the extension of the agreement, as per Article 62(4) ICA, which stipulates that the Council may extend the Agreement in whole or in part for two periods not exceeding two cocoa years each.

On 22-23 April 2021, during its 103rd session, the ICCO Council is to adopt a decision regarding the extension of the ICA 2010 (‘the envisaged act’). This decision may be postponed to the next sessions of the Council.

The purpose of the envisaged act is to approve the extension of the ICA 2010 in the ICCO Council. The extension of the ICA 2010 will give the appropriate time to ICCO Members to conduct the negotiations on the revision of the ICA.

The envisaged act will become binding on the parties in accordance with Article 12(3) ICA, which stipulates that Members are committed to accept as binding all decisions of the Council under the provisions of the Agreement.

3.Position to be taken on the Union's behalf

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 ICA within the ICCO Council.