on the position to be taken on behalf of the European Union in the Council of Members of the International Olive Council (IOC) with respect to the accession of the Republic of Azerbaijan to the International Agreement on Olive Oil and Table Olives, 2015

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 Council of Members of the International Olive Council ("IOC") in connection with the accession of the Government of the Republic of Azerbaijan to the International Agreement on Olive Oil and Table Olives (‘the Agreement’).

2.Context of the proposal

2.1.The International Agreement on Olive Oil and Table Olives, 2015

The International Agreement on Olive Oil and Table Olives (‘the Agreement’) aims (i) to seek to achieve uniformity in national and international legislation relating to the physico-chemical and organoleptic characteristics of olive oils, olive pomace oils and table olives in order to prevent any obstacle to trade (ii) to conduct activities in the area of physico-chemical and organoleptic testing in order to add to the knowledge of the composition and quality characteristics of olive products, with a view to consolidating international standards, and (iii) to strengthen the role of the International Olive Council as a forum of excellence for the international scientific community in the area of olives and olive oil.

The renewed version of the Agreement entered into force on 1 January 2017.

The European Union is a party to the Agreement.

2.2.The Council of Members

The Council of Members of the International Olive Council ("the Council of Members") is the highest authority and decision-making organ of the IOC and shall exercise all such powers and functions as are necessary to achieve the objectives of this Agreement. As a party to the Agreement, the European Union is a member of the IOC and is represented in the Council of Members. The decisions of the Council of Members concerning the accession of a new member shall be taken by consensus. Pursuant to Article 10(4)(b) of the Agreement, if consensus cannot be reached within a time limit laid down by the Chair of the Council of Members, the members shall take a vote. The decision shall be considered to be adopted when at least the majority of the members representing at least 86 per cent of the participation shares of the members are in favour thereof.

There are currently 18 members in the IOC and the European Union has 678 participation shares out of a total of 1000.

2.3.The envisaged act of the Council of Members

Following the formal application of the Embassy of the Republic of Azerbaijan in the Kingdom of Spain dated 25 April 2022 to accede to the Agreement, it is expected that the Council of Members will adopt, during a future session of the Council of Members, or within the framework of a procedure for adoption of decisions by the Council of Members by exchange of correspondence, a decision concerning the accession of the Republic of Azerbaijan.

The purpose of the envisaged act is to establish the conditions for the accession of the Republic of Azerbaijan pursuant to Article 29 of the Agreement.

The envisaged act will become binding on the parties by changing the decisional balance within the Council of Members when decisions are not adopted by consensus in accordance with Article 10(4) of the Agreement.

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

Even though the olive oil and table olives sector remains modest in the Republic of Azerbaijan, there is potential for its development in a region with a long tradition of production and consumption of olive oil and table olives. The farming sector value added (% of GDP) in Azerbaijan, was reported at 6% of GDP in 2020, with a strong commitment from the country to increase the share of olive production.

Considering that the Republic of Azerbaijan is developing its olive sector as regards consumption and intends to develop its production, the accession of the Republic of Azerbaijan will under certain conditions reinforce the IOC, in particular as regards the achievement of uniformity in national and international legislation relating to the characteristics of olive products in order to prevent any obstacle to trade. This accession fits the objectives of the Union policy as regards standards for the marketing of agricultural products as provided for in Title II of Part II of Regulation (EU) No 1308/2013 of the European Parliament and of the Council.

A decision to be adopted by the Council of Members will establish the conditions for the accession of the Republic of Azerbaijan in respect of the participation shares in the IOC and the time limit for the deposit of the instrument of accession.