on the position to be taken on behalf of the European Union in the International Coffee Organization 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 Coffee Organization (ICO) Council in connection with the envisaged adoption of the extension of the International Coffee Agreement (ICA) 2007.

2.Context of the proposal

2.1.The International Coffee Agreement 2007

The International Coffee Agreement 2007 (ICA or ‘the Agreement’) aims to ensure enhanced international cooperation in connection with world coffee matters and related issues, provide a forum for intergovernmental consultations on coffee and on ways to improve the world coffee economy, to facilitate trade by collecting and providing information on the world coffee market and to encourage increased demand for coffee globally. Last but not least, a core objective of the agreement is to encourage members to develop a sustainable coffee sector in economic, social and environmental terms. The Agreement was signed in 2007 and entered into force on 2 February 2011 for a period of ten years (until 1 February 2021). According to Article 48, the Agreement can be extended for a maximum of eight years.

The European Union is a party to the Agreement.

2.2.The International Coffee Organization Council

As per Article 9 of the ICA, the International Coffee Organization Council is the responsible body for the performance of all functions necessary to carry out the provisions of the ICA as the highest authority of the ICA. The Council consists of all the Members of the Organization (Article 8 ICA). Pursuant to Article 48(3) ICA, the ICO Council may decide to extend the Agreement beyond its expiry date for one or more successive periods not to exceed eight years in total. Article 14 of the ICA stipulates that all decisions of the ICO shall be taken in principle by consensus. In the absence of consensus, decisions shall be made by distributed majority vote.

According to Article 12 of the ICA, Members to the ICO hold 2000 votes in total. Each Member to the ICO holds a specified number of votes, which is annually adjusted by the Council following predefined criteria in the ICA. The distribution of votes also determines a Member’s contribution (Article 20(2) ICA). Currently, the Union is the largest contributor to the ICO.

2.3.The envisaged act of the International Coffee Organization Council

In 2019, the ICO established a Working Group on the revision of the ICA.

On 04-05 June 2020, during its 126th session, the ICO Council recommended to extend the ICA beyond its current expiration date. This would allow for a more substantial revision in the future.

On 07-11 September 2020, during its 127th session, the ICO Council is to adopt a decision regarding the extension of the ICA 2007 (‘the envisaged act’).

The purpose of the envisaged act is to approve the extension of the ICA 2007.

The envisaged act will become binding on the parties in accordance with Article 14(3) of the Agreement, which provides: ‘Members are committed to accept as binding all decisions of the Council under the provisions of this 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 the International Coffee Agreement within the International Coffee Council.