COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(92) 418 final 
Brussels, 9 October 1992 
Proposal for a 
COUNCIL DECISION 
ON THE SIGNING AND CONCLUSION OF THE 
INTERNATIONAL SUGAR AGREEMENT, 1992 
(presented by the Commission) 
z 
EXPLANATORY MEMORANDUM 
1. The United Nations Sugar Conference was held in Geneva from 16 to 
20 March 1992. The Commission, assisted by the 113 Committee, 
negotiated on behalf of the European Economic Community, on the 
basis of the directives approved by the Council on 19 December 
1991. 
2. The Negotiating Conference concluded with the text of the 
international Sugar Agreement of 1992. 
3. Like the present agreement, which expires on 31.12.92, the new one 
will be of an administrative type, with no economic provisions such 
as quotas or prices. It does, however, permit the negotiation of 
an agreement with such provisions at any time in the future, 
although this will no longer be one of the specific objectives. A 
further change in the objectives is that "to encourage the 
consumption of sugar" now reads "to encourage increased demand for 
sugar, particularly for non-traditional uses". 
4. The agreement Is open for signature from 1 May until 31 December at 
the Headquarters of the United Nations in New York. 
5. In conformity with Article 40, the Agreement will enter into force 
automatically only if countries holding 60% of the votes have 
deposited the appropriate instruments to become members. 
3 
The Commission proposes to the Council : 
(i) to agree by 31 October at the latest on the signature and 
conclusion of the International Sugar Agreement of 1992; 
(ii) to designate the person empowered to sign the agreement for the 
Community before 31 December 1992. 
A draft decision is to be found in Annex. 
The text of the International Sugar Agreement of 1992 is attached to 
the draft decision. 
V 
Proposal for a 
COUNCIL DECISION 
OF 
ON THE SIGNING AND CONCLUSION OF THE 
INTERNATIONAL SUGAR AGREEMENT, 1992 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 113 thereof. 
Having regard to the proposal from the Commission, 
Whereas the International Sugar Agreement of 1992 wilt foster 
international co-operation In the sugar sector; whereas the Community, 
in view of its importance as producer, exporter and importer of this 
product, should be a member of this agreement, 
HAS DlCEDED AS FOLLOWS : 
Article 1 
The International Sugar Agreement, 1992 is hereby approved on behalf of 
the European Economic Community. 
The text of the Agreement is attached to this Decision. 
Article 2 
The President of the Council is hereby authorized to designate the 
person empowered to sign the agreement referred to in Article 1 and to 
deposit the instrument of approval by the ConraunTty. 
Article 3 
This Decision shall be published in the Official Journal of the 
European Community. 
Done at Brussels» 
For the CounclI 
The President 
s 
UNITED 
NATIONS m 
WÊ United Nations Conference 
on Trade and Development Dtstr. 
GENERAL 
TD/SUGAR.12/6 
3 Avril 1992 
Original: ENGLISH 
UNITED NATIONS SUGAR CONFERENCE, 1992 
INTERNATIONAL SUGAR AGREEMENT. 1992 
to 
TD/SUGAR.12/6 page iii 
INTERNATIONAL SUGAR AGREEMENT. 1992 
CONTENTS 
Article Page 
CHAPTER I. OBJECTIVES 
1. Objectives 1 
CHAPTER II. DEFINITIONS 
2. Definitions 2 
CHAPTER III. INTERNATIONAL SUGAR ORGANIZATION 
3. Continuation, headquarters and structure of the International 
Sugar Organization 3 
4. Membership of the Organization 3 
5. Membership by intergovernmental organizations 3 
6. Privileges and immunities 3 
CHAPTER IV. INTERNATIONAL SUGAR COUNCIL 
7. Composition of the International Sugar Council 5 
8. Powers and functions of the Council 5 
9. Chairman and Vice- Chairman of the Council 5 
10. Sessions of the Council 6 
1 i. Votes 6 
12. Voting procedure of the Council 6 
13. Decisions of the Council 7 
14. Cooperation with other organizations 7 
15. Relationship with the Common Fund for Commodities 7 
16. Admission of observers 7 
17. Quorum for the Council 8 
CHAPTER V. ADMINISTRATIVE COMMITTEE 
18. Composition of the Administrative Committee 9 
19. Election to the Administrative Committee 9 
20. Delegation of powers by the Council to the 
Administrative Committee 10 
21. Voting procedure and decisions of the Administrative Committee.... 11 
22. Quorum for the Administrative Committee 11 
CHAPTER VI. EXECUTIVE DIRECTOR AND STAFF 
23. Executive Director and staff 12 
CHAPTER VII. FINANCE 
24. Expenses 13 
2b. Adoption of the administrative budget and contributions of Members 13 
26. Payment of contributions 15 
27. Audit and publication of accounts 15 
TD/SUGAR.12/6 
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CONTENTS (continued) 
Article Page 
CHAPTER VII1. GENERAL UNDERTAKINGS OF MEMBERS 
28. Undertakings by Members 16 
29. Labour standards 16 
30. Environmental aspects 16 
31. Financial liabi lity of Members 16 
CHAPTER IX. INFORMATION AND STUDIES 
32. Information and studies 17 
33. Market evaluation, consumption and statistics 17 
CHAPTER X. RESEARCH AND DEVELOPMENT 
34 . Research and development 18 
CHAPTER XI. PREPARATIONS FOR A NEW AGREEMENT 
35. Préparât ions for a new agreement 19 
CHAPTER XII. FINAL PROVISIONS 
36. Depositary 20 
37. Signature 20 
38. Ratification, acceptance and approval 20 
39. Nofication of provisional application 20 
40. Entry into force 20 
41. Accession 21 
42. Withdrawal 21 
43. Settlement of accounts 21 
44. Amendment 22 
45. Duration, extension and termination 22 
46. Transitional measures 23 
ANNEX 
Allocation of votes for the purposes of article 25 24 
TD/SUGAR.12/6 
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CHAPTER I. OBJECTIVES 
Article 1 
Objectives 
The objectives of the International Sugar Agreement, 1992 (hereinafter 
referred to as this Agreement), in the light of the terms of resolution 93 
(IV) adopted by the United Nations Conference on Trade and Development, are: 
(a) To ensure enhanced International cooperation in connection with 
world sugar matters and related issues; 
(b) To provide a forum for Intergovernmental consultations on sugar and 
on ways to improve the world sugar economy; 
(c) To facilitate trade by collecting and providing information on the 
world sugar market and other sweeteners; 
(d) To encourage increased demand for sugar, particularly for 
non- traditional uses. 
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CHAPTER 11. DEFINITIONS 
Article 2 
Definitions 
For the purpose of this Agreement : 
1. "Organization" means the International Sugar Organization referred to in 
article 3; 
2. "Council" means the international Sugar Council referred to in article 
3, paragraph 3; 
3. "Member" means a Party to this Agreement; 
4. "special vote" means a vote requiring at least two thirds of the votes 
cast by Members present and voting, on condition that these votes are 
cast by at least two thirds of the number of Members present and voting; 
5. "simple majority vote" means a vote requiring more than half of the 
total votes of Members present and voting, on condition that these votes 
are cast by at least half of the number of Members present and voting; 
6. "year" means the calendar year; 
7. "sugar" means sugar in any of its recognized commercial forms derived 
from sugar cane or sugar beet, including edible and fancy molasses, 
syrups and any other form of liquid sugar, but does not include final 
molasses or low-grade types of non-centrifugal sugar produced by 
primitive methods; 
8. "entry into force" means the date on which this Agreement enters into 
force provisionally or definitively, as provided for in article 40; 
9. "free market" means the total of net imports of the world market, except 
those resulting from the operation of special arrangements as defined in 
chapter IX of the International Sugar Agreement. 1977; 
10. "world market" means the international sugar market and includes both 
sugar traded on the free market and sugar traded under special 
arrangements as defined in chapter IX of the International Sugar 
Agreement, 1977. 3 
TD/SUGAR.12/6 
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CHAPTER 111. INTERNATIONAL SUGAR ORGANIZATION 
Article 3 
Continuation, headquarters and structure of the 
International Sugar Organization 
1. The International Sugar Organization established under the International 
Sugar Agreement, 1968, and maintained in existence under the International 
Sugar Agreements, 1973, 1977, 1984 and 1987, shall continue in being for the 
purpose of administering this Agreement and supervising its operation, with 
the membership, powers and functions set out in this Agreement. 
2. The headquarters of the Organization shall be in London, unless the 
Council decides otherwise by special vote. 
3. The Organization shall function through the International Sugar council, 
its Administrative Committee and its Executive Director and staff. 
Article 4 
Membership of the Organization 
Each Party to this Agreement shall be a Member of the organization. 
Article 5 
Membership by intergovernmental organizations 
Any reference in this Agreement to a "Government" or "Governments" shall 
be construed as including the European Economic Community and any other 
intergovernmental organization having responsibilities in respect of the 
negotiation, conclusion and application of international agreements, in 
particular commodity agreements. Accordingly, any reference in this Agreement 
to signature, ratification, acceptance or approval, or to notification of 
provisional application or to accession shall, in the case of such 
intergovernmental organizations, be construed as including a reference to 
signature, ratification, acceptance, or approval, or to notification of 
provisional application, or to accession, by such intergovernmental 
organizations. 
Article 6 
Privileges and immunities 
i. The Organization shall have International Irgal p*»c r.onal It. y. 
2. The Organization shall have the capacity to contract, to acquire and 
dispose of movable and immovable property and to institute legal proceedings. 
3. The status, privileges and immunities of the Organization in the 
territory of the United Kingdom shall continue to be governed by the 
Headquarters Agreement between the Government of the United Kingdom of Great 
Britain and Northern Ireland and the International Sugar Organization signed 
at London on 29 May 1969, with such amendments as may be necessary for the 
proper functioning of this Agreement. 
4. If the seat of the Organization is moved to a country which is a Member 
of the Organization, that Member shall, as soon as possible, conclude with the 
Organization an agreement to be approved by the Council relating to the 
status, privileges and immunities of the Organization, of its Executive 
Director, staff and experts and of representatives of Members while in that 
country for the purpose of exercising their functions. 
TD/SUGAR.12/6 
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5. Unless any other taxation arrangements are implemented under the 
agreement envisaged in paragraph 4 of this article and pending the conclusion 
of that agreement the new host Member shall: 
(a) Grant exemption from taxation on the remuneration paid by the 
Organization to its employees, except that such exemption need not apply 
to its own nationals; and 
(b) Grant exemption from taxation on the assets, income and other 
property of the Organization. 
6. If the seat of the Organization is to be moved to a country which is not 
a Member of the Organization, the Council shall, before that move, obtain a 
written assurance from the Government of that country: 
(a) That it shall, as soon as possible, conclude with the Organization 
an agreement as described in paragraph 4 of this article; and 
(b) That, pending the conclusion of such an agreement, it shall grant 
the exemptions provided for in paragraph 5 of this article. 
7. The Council shall endeavour to conclude the agreement described in 
paragraph 4 of this article with the Government of Lhe country to which the 
seat of the Organization is to be moved before transferring the seat. 
TD/SUGAR.12/6 '/ <J 
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CHAPTER IV. INTERNATIONAL SUGAR COUNCIL 
Article 7 
Composition of the International Sugar Council 
1. The highest authority of the Organization shall be the International 
Sugar council, which shall consist of all the Members of the Organization. 
2. Each Member shall have one representative in the Council, and if it so 
desires, one or more alternates. Furthermore, a Member may appoint one or 
more advisers to its representatives or alternates. 
Article 8 
Powers and functions of the Council 
1. 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 
provisions of this Agreement and to pursue the liquidation of the Stock 
Financing Fund established under article 49 of the International Sugar 
Agreement, 1977, as delegated by the Council under that Agreement to the 
Council under the International Sugar Agreement, 1964, and the International 
Sugar Agreement, 1987. pursuant to article 8, paragraph 1, of the latter. 
2. The Council shall adopt, by special vote, such rules and regulations as 
are necessary to carry out the provisions of this Agreement and are consistent 
therewith, including rules of procedure for the Council and its committees, 
and the financial and staff regulations of the Organization. The Council may, 
in its rules of procedure, provide a procedure whereby it may, without 
meeting, decide specific questions. 
3. The Council shall keep such records as are required to perform its 
functions under this Agreement and such other records as it considers 
appropriate. 
4. The Council shall publish an annual report and such other information as 
it considers appropriate. 
Article 9 
Chairman and Vice-chairman of the Council 
1. For each year, the Council shall elect from among the delegations a 
Chairman and a vice Chairman, who may be re-elected and shall not be paid by 
the Organization. 
2. In the absence of the Chairman, the duties of the post shall be carried 
out by the Vice-chairman. In the temporary absence of both the Chairman and 
the Vice-chairman or the permanent absence of one or both, the Council may 
elect from among the delegations new officers, temporary or permanent as 
appropriate. 
3. Neither the Chairman nor any other officer presiding at meetings of the 
Council shall vote. They may, however, appoint another person to exercise the 
voting rights of the Member which they represent. 
TD/SUGAR.12/6 
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Article 10 
Sessions of the Council 
1. As a general rule, the Council shall hold one regular session in each 
year. 
2. In addition, the Council shall meet in special session whenever it so 
decides or at the request of: 
(a) Any five Members; 
(b) Two or more Members holding collectively 250 votes or more under 
article 11 as determined under article 25; or 
(c) The Administrative committee. 
3. Notice of sessions shall be given to Members at least 30 calendar days 
in advance, except in case of emergency, when such notice shall be given at 
least 10 calendar days in advance. 
4. Sessions shall be held at the headquarters of the Organization unless 
the Council decides otherwise by special vote. If any Member invites the 
Council to meet elsewhere than at the headquarters of the Organization, and 
the Council agrees so to do, that Member shall pay the additional costs 
involved. 
Article 11 
Votes 
1. For the purpose of voting under this Agreement, Members shall hold a 
total of 2,000 votes distributed as determined under article 25. 
2. Whenever a Member has its voting rights suspended under article 26, 
paragraph 2, of this Agreement, its votes shall be distributed among the other 
Members according to their shares as determined under article 25. The same 
procedure shall apply when the Member recovers its voting rights, the Member 
concerned being included in the distribution. 
Article 12 
Voting procedure of the Council 
1. Each Member shall be entitled to cast the number of votes it holds under 
article 11 as determined under article 25. It shall not be entitled to divide 
such votes. 
2. By informing the Chairman in writing, any Member may authorize any other 
Member to represent its interests and to cast its votes at any meeting or 
meetings of the Council. A copy of such authorizations shall be examined by 
any credentials committee that may be set up under the rules of procedure of 
the Courir: i I . 
3. A Member authorized by another Member to cast the votes held by the 
authorizing Member under article 11 as determined under article 25 shall cast 
such votes as authorized and in accordance with paragraph 2 of this article. 
K 
TD/SUGAR.12/6 
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Article 13 
Decisions of the Council 
1. All decisions of the Council shall be taken and all recommendations 
shall be made, in principle, by consensus. In the absence of consensus, 
decisions and recommendations shall be made by simple majority vote, unless 
this Agreement provides for a special vote. 
2. In arriving at the number of votes necessary for any decision of the 
Council, votes of Members abstaining shall not be reckoned and those Members 
shall not be considered as 'voting' for the purposes of article 2, definition 
4 or definition 5, as the case may be. Where a Member avails itself of the 
provisions of article 12, and its votes are cast at a meeting of the Council, 
such Member shall, for the purposes of paragraph 1 of this article, be 
considered as present and voting. 
3. All decisions of the Council under this Agreement shall be binding upon 
Members. 
Article 14 
Cooperation with other organizations 
1. The Council shall make whatever arrangements are appropriate for 
consultation or cooperation with the United Nations and its organs, in 
particular the United Nations Conference on Trade and Development, and with 
the Food and Agriculture Organization and such other specialized agencies of 
the United Nations and intergovernmental organizations as may be appropriate. 
2. The Council, bearing in mind the particular role of the United Nations 
Conference on Trade and Development in international commodity trade, shall as 
appropriate keep the United Nations Conference on Trade and Development 
informed of its activities and programmes of work. 
3. The Council may also make whatever arrangements are appropriate for 
maintaining effective contact with international organizations of sugar 
producers, traders and manufacturers. 
Article 15 
Relationship with the Common Fund for Commodit les 
1. The Organization shall take full advantage of the facilities of the 
Common Fund for Commodities. 
2. In respect of the implementation of any project under paragraph 1 of 
this article, the Organization shall not act as an executing agency, nor incur 
any financial obligation for guarantees given by individual Members or other 
entities. No Member shall be responsible by reason of its membership in the 
Organization for any liability arising from borrowing or lending by any other 
Member or entity in connection with such projects. 
Article 16 
Admission of observers 
1. The Council may invite any non member State to attend any of its 
meetings as an observer. 
,\. The Council may .i I :;o lnvM<* «"WiY ol UIP <>I <|,m i/.H lotir; t «-1 «» r f *»« 1 i<> in 
article 14, paragraph I, to al rond any ot its meetings as an observer. 
TD/SUGAR.12/6 
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Article 17 
Quorum for the Council 
The quorum for any meeting of the Council shall be the presence of more 
than two thirds of all Members, the Members thus present holding at least two 
thirds of the total votes of all Members under article 11 as determined under 
article 25. If there is no quorum on the day appointed for the opening of any 
Council session, or if in the course of any Council session there is no quorum 
at three successive meetings, the Council shall be convened seven days later; 
at that time, and throughout the remainder of that session, the quorum shall 
be the presence of more than half of all Members, the Members thus present 
representing more than half of the total votes of all Members under article 11 
as determined under article 25. Representation in accordance with article 12, 
paragraph 2. shall be considered as presence. 
AG 
TD/SUGAR.12/6 
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CHAPTER V. ADMINISTRATIVE COMMITTEE 
Article 18 
Composition of the Administrative Committee 
1. The Administrative Committee shall consist of 18 members. Ten shall, in 
principle, be the 10 largest financial contributing Members in each year, and 
8 members shall be elected from the remaining Membership of the Council. 
2. If one or more of the 10 largest financial contributing Members in each 
year does not wish to be automatically appointed to the Administrative 
Committee, the shortfall in membership shall be made good by appointing the 
next largest financial contributing Member or Members willing to serve. When 
those 10 members of the Administrative committee have thus been appointed, the 
other 8 members of the Committee shall be elected from the remaining 
Membership of the Council. 
3. The election of the additional 8 members shall take place each year on 
the basis of votes under article 11 as determined under article 25. The 
Members appointed to the Administrative Committee under the provisions of 
paragraphs 1 or 2 of this article shall not be entitled to vote in this 
election. 
4. No Member shall be eligible to sit on the Administrative Committee 
unless it has paid its contributions in full in accordance with article 26. 
5. Each member of the Administrative Committee shall appoint one 
representative and may appoint in addition one or more alternates and 
advisers. In addition, all Members of the Council shall be eligible to attend 
this Committee as observers and may be invited to speak. 
f). The Administrative Committee shall elect its chairman and Vice Chairman 
tor each year. The Chairman shall not have the right to vote and may be 
re-elected. In the absence of the Chairman, the duties of the post shall be 
carried out by the Vice-chairman. 
7. The Administrative Committee shall normally meet three times a year. 
8. The Administrative Committee shall meet at the headquarters of the 
Organization, unless it decides otherwise. If any Member invites the 
Administrative Committee to meet elsewhere than at the headquarters of the 
Organization, and the Administrative Committee agrees so to do, that Member 
shall pay the additional costs involved. 
Article 19 
Election to the Administrative Committee 
1. The Members selected from among the largest financial contributing 
Members in each year under the procedure in paragraphs 1 or 2 of article 18 
shall be appointed to the Administrative Committee. 
2. The election of the additional 8 members of the Administrative Committee 
shall take place in the Council. Each Member eligible pursuant to the 
provisions of article 18, paragraphs 1, 2, and 3. shall cast all the votes to 
which it is entitled under article 11 as determined under article 25 for a 
single candidate. A Member may cast for another candidate any votes which it 
exercises pursuant to article 12, paragraph 2. The 8 candidates receiving the 
largest number of votes shall be elected. 
TD/SUGAR.12/6 
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3. If a member of th«» Administrative Committee is suspended from the 
exercise of its voting rights under any of the relevant provisions of this 
Agreement, each Member which has voted for it or assigned its votes to it in 
accordance with this article may, during such time as that suspension is in 
force, assign its votes to any other member of the Committee. 
4. If a Member appointed to the Committee under the provisions of 
paragraphs I or 2 of article 18 ceases to be a Member of the Organization, it 
shall be replaced by the next largest financial contributing Member willing to 
serve and, if necessary, an election shall be held to select an additional 
elected member of the Committee. If a Member elected to the Committee ceases 
to be a Member of the Organization, an election shall be held to replace that 
Member on the Committee. Any Member which voted for or assigned its votes to 
the Member which has ceased to be a Member of the Organization, and which does 
not vote for the Member elected to fill the vacancy on the Committee, may 
assign its votes to another member of the Committee. 
5. in special circumstances, and after consultation with the member of the 
Administrative committee for which it voted or to which it assigned its votes 
in accordance with the provisions of this article, a Member may withdraw its 
votes from that member for the remainder of the year. That Member may then 
assign these votes to another member of the Administrative Committee but may 
not withdraw these votes from that other member for the remainder of that 
year. The member of the Administrative Committee from which the votes have 
been withdrawn shall retain its seat on the Administrative Committee for the 
remainder of that year. Any action taken pursuant to the provisions of this 
paragraph shall become effective after the Chairman of the Administrative 
Committee has been informed in writing thereof. 
Article 20 
Delegation of powers by the Council to the 
Administrative Committee 
1. The Council may, by special vote, delegate to the Administrative 
Committee the exercise of any or all of its powers, other than the following: 
(a) Location o£ the headquarters of the Organization under article 3, 
paragraph 2; 
(b) Appointment of the Executive Director and any senior official under 
article 23; 
(c) Adoption of the administrative budget and assessment of 
contributions under article 25; 
(d) Any request to the Secretary-General of the United Nations 
Conference on Trade and Development to convene a negotiating conference 
under article 35, paragraph 2; 
(e) Recommendation of an amendment under article 44; 
(f) Extension or termination of this Agreement under article 45. 
?.. The Council may at any time revoke the delegation of any power to the 
Admin I.M r«it I vc Comml \ t»M>. 
IB 
TD/SUGAR.12/6 
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Article 21 
Voting procedure and decisions of the Administrative committee 
1. Each member of the Administrative Committee shall be entitled to cast 
the number of votes received by it under article 19, and cannot divide these 
votes. 
2. Any decision taken by the Administrative Committee shall require the 
same majority as that decision would require if taken by the Council and shall 
be reported to the Council. 
3. Any Member shall have the right of appeal to the Council, under such 
conditions as the Council may prescribe in its rules of procedure, against any 
decision of the Administrative Committee. 
Article 22 
Quorum for the Administrative Committee 
The quorum for any meeting of the Administrative Committee shall be the 
presence of more than half of all members of the Committee, the members thus 
prosent representing at least two thirds of the total votes of all members of 
the Committee. 
TD/SUGAR.12/6 
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/]0) 
CHAPTER VI. EXECUTIVE DIRECTOR AND STAFF 
Article 23 
Executive Director and staff 
1. The Council shall appoint the Executive Director by special vote. The 
terms of appointment of the Executive Director shall be fixed by the council. 
2. The Executive Director shall be the chief administrative officer of the 
Organization and shall be responsible for the performance of the duties 
devolving upon him in the administration of this Agreement. 
3. The Council, after consulting the Executive Director, shall by special 
voce appoint any senior official on such terms as it shall determine. 
4. The Executive Director shall appoint other members of the staff in 
accordance with regulations and decisions of the Council. 
5. The Council, in accordance with article 8, shall adopt rules and 
regulations embodying the fundamental conditions of service and the basic 
rights, duties and obligations of all members of the Secretariat. 
6. Neither the Executive Director nor any member of the staff shall have 
any financial interest in the sugar industry or sugar trade. 
7. Neither the Executive Director nor any member of the staff shall seek or 
receive instructions regarding their duties under this Agreement from any 
Member or from any authority external to the Organization. They shall refrain 
from any action which might reflect on their position as international 
officials responsible only to the Organization. Each Member shall respect the 
exclusively international character of the responsibilities of the Executive 
Director and staff and shall not seek to influence them in the discharge of 
their responsibilities. 
TD/SUGAR.12/6 
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CHAPTER VII. FINANCE 
Article 24 
Expenses 
1. The expenses of delegations to the Council, the Administrative Committee 
or any of the committees of the Council or of the Administrative committee 
shall be met by the Members concerned. 
2. The expenses necessary for the administration of this Agreement shall be 
met by annual contributions from Members, assessed in accordance with article 
25. If, however, a Member requests special services, the Council may require 
that Member to pay for them. 
3. Appropriate accounts shall be kept for the administration of this 
Agreement. 
Article 25 
Adoption of the administrative budget and contributions of Members 
1. For the purpose of this article Members shall hold 2000 votes. 
2. (a) Each Member shall hold the number of votes specified in the annex, 
which shall be adjusted in accordance with sub-paragraph (d) below. 
(b) No Member shall hold fewer than 6 votes. 
(c) There shall be no fractional votes. Rounding shall be permitted in 
the process of calculation and to ensure that the full number of votes 
is allocated. 
(d) Votes in the annex which are not taken up at the time of the entry 
into force of this Agreement shall be apportioned among individual 
Members, other than those holding 6 votes in the annex. The unallocated 
votes shall be distributed in the proportion that the number of their 
votes in the annex bears to the total number of votes of all Members 
holding more than 6 votes. 
3. Votes shall be revised on an annual basis according to the following 
procedure: 
(a) Each year, including the year of entry into force of this 
Agreement, at the time of the publication of the Sugar Year Book by the 
International Sugar Organization, a composite tonnage basis shall be 
calculated for each Member which shall comprise: 
35 per cent of that Member's exports to the free market 
plus 
15 per cent of that Member's total exports under special 
arrangements 
plus 
35 per cent of that Member's free market imports 
plus 
15 per cent of that Member's total imports under special 
arrangements. 
TD/SUGAR.12/6 7 0 
page 14 I 
The data used to calculate the composite tonnage basis of each 
Member shall be, for each category above, the average of that category 
for the highest three of the four last years published in the most 
recent edition of the Organization's Sugar Year Book. The share of each 
Member in the total of all Members' composite tonnage bases shall be 
calculated by the Executive Director. All the above data will be 
distributed to Members at the time that the calculations are made. 
(b) For the second and subsequent years after the entry into force of 
this Agreement, the votes of each Member shall be adjusted by the change 
in their share in the total of all Members' composite tonnage bases from 
that for the same membership for the previous year. 
(c) Members holding 6 votes shall not be subject to an upward 
adjustment under the provisions of sub-paragraph (b) above unless their 
share of the total of all Members' composite tonnage bases exceeds 0.3 
per cent. 
4. In the event of the accession of a Member or Members after the entry 
into force of this Agreement, their votes shall be determined according to the 
annex as adjusted in the light of paragraphs 2 and 3 above. If the acceding 
Member or Members are not listed in the annex of this Agreement, the Council 
shall decide the number of votes to be allocated to that Member or Members. 
Following the acceptance by the acceding Member or Members not listed in the 
annex of the number of votes allocated by the Council, the votes of existing 
Members shall be re-calculated so that the total of votes remains at 2000. 
5. In the event of the withdrawal of a Member or Members, the votes of the 
withdrawing Member or Members shall bo redistributed to the remaining Members 
in proportion to their share in the total of all remaining Member votes so 
that the total of the votes of all Members remains at 2000. 
6. Transitional arrangements: 
(a) The following provisions apply only to Members of the International 
Sugar Agreement, 1987, as of 31 December 1992 and are limited to the 
first two calendar years after the entry into force of this Agreement 
(that is up to 31 December 1994). 
(b) The total number of votes allocated to each Member in 1993 shall 
not exceed 1.33 multiplied by that Member's votes in 1992 under the 
International Sugar Agreement, 1987, and in 1994 shall not excoed 1.66 
multiplied by that Member's votes In 1992 und».*r I h»? lnt«'r nat ion.i I :;ug#ir 
Agreement, 1987. 
(c) For the purpose of establishing the contribution per vote, votes 
not taken up due to the application of paragraph 6 (b) above shall not 
be redistributed to other Members. Hence, the contribution per vote 
will be determined on the basis of the reduced number of overall votes. 
7. The provisions of article 26, paragraph 2, relating to the suspension of 
voting rights for non-fulfillment of obligations, shall not apply to this 
article. 
8. During the second half of each year, the Council shall adopt the 
administrative budget of the Organization for the following year and shall 
determine the per vote contribution of Members required to meet that budget, 
in the first two years after taking into account the provisions of paragraph 6 
of this article. 
^ 
TD/SUGAR.12/6 
page 15 
9. The contribution of each Member to the administrative budget shall be 
calculated by multiplying the per vote contribution Dy the number of votes 
held by it under this article, as follows: 
(a) For those which are Members at the time of the final adoption of 
the administrative budget, the number of votes which they then hold; and 
(b) For those which become Members after the adoption of the 
administrative budget, the number of votes which they receive at the 
time of taking up membership, adjusted in proportion to the remainder of 
the period covered by the budget or budgets; assessments made upon other 
Members shall not be altered. 
10. If this Agreement enters into force more than eight months before the 
beginning of its first full year, the Council shall at its first session adopt 
an administrative budget covering the period up to the commencement of the 
first full year. Otherwise, the first administrative budget shall cover both 
the initial period and the first full year. 
11. The Council may, by special vote, take such measure as it might deem 
appropriate in order to mitigate the effects on Members' contributions 
resulting from a possibly limited membership at the time of the adoption of 
the administrative budget for the first year of this Agreement or from any 
major decrease of membership thereafter. 
Article 26 
Payment of contributions 
1. Members shall pay their contributions to the administrative budget for 
each year in accordance with their respective constitutional procedures. 
Contributions to the administrative budget for each year shall be payable in 
freely convertible currencies and shall become due on the first day of that 
year; contributions of Members in respect of the year in which they join the 
Organization shall be due on the date on which they become Members. 
2. If, at the end of four months following the date on which its 
contribution is due in accordance with paragraph 1 of this article, a Member 
has not paid its full contribution to the administrative budget, the Executive 
Director shall request the Member to make payment as quickly as possible. If, 
at the expiration of two months after the request of the Executive Director, 
the Member has still not paid its contribution, its voting rights in the 
Council and in the Administrative Committee shall be suspended until such time 
as it has made full payment of the contribution. 
3. The Council may decide, by special vote, thai «i Member with two years 
contributions unpaid shall cease to enjoy the rights of membership and/or 
cease to be assessed for budgetary purposes. It shall remain liable to meet 
any other of its financial obligations under this Agreement. By payment of 
the arrears the Member will regain the rights of membership. Any payments 
made by Members in arrears will be credited first to those arrears, rather 
than to current contributions. 
Article 27 
Audit and publication of accounts 
As soon as possible after the close of each year, the financial 
statements of the Organization for that year, certified by an independent 
auditor, shall be presented to the Council for approval and publication. 
TD/SUGAR.12/6 ^ 
page 16 P -N 
CHAPTER VIII. GENERAL UNDERTAKINGS OF MEMBERS 
Article 28 
Undertakings by Members 
Members undertake to adopt such measures as are necessary to enable them 
to fulfil their obligations under this Agreement and fully to cooperate with 
one another in securing the attainment of the objectives of this Agreement. 
Article 29 
Labour standards 
Members shall ensure that fair labour standards are maintained in their 
respective sugar industries and, as far as possible, shall endeavour to 
improve the standard of living of agricultural and industrial workers in the 
various branches of sugar production and of growers of sugar cane and sugar 
beet . 
Article 30 
Environmental aspects 
Members shall give due consideration to environmental aspects in all 
stages of sugar production. 
Article 31 
Financial liability of Members 
Each Member's financial liability to the Organization and to other 
Members is limited to the extent of its obligations concerning contributions 
to the administrative budgets adopted by the Council under this Agreement. 
TD/SUGAR.12/6 
page 17 *y 
CHAPTER IX. INFORMATION AND STUDIES 
Article 32 
Information and studies 
1. The Organization shall act as a centre for the collection and 
publication of statistical information and studies on world production. 
prices, exports and imports, consumption and stocks of sugar (including both 
raw and refined sugar as appropriate) and other sweeteners, as well as taxes 
on sugar and other sweeteners. 
2. Members undertake to supply within the time which may be prescribed in 
the rules of procedure all available statistics and information as may be 
identified in those rules as necessary to enable the Organization to discharge 
its functions under this Agreement. Should this become necessary, the 
Organization shall use such relevant information as may be available to it 
from other sources. No information shall be published by the Organization 
which might serve to identify the operations of persons or companies 
producing, processing or marketing sugar. 
Article 33 
Market evaluation, consumption and statistics 
i. The Council shall establish a Committee on Sugar Market Evaluation, 
Consumption and Statistics, composed of all Members, under the Chairmanship of 
the Executive Director. 
2. The Committee shall keep under continuous review matters relating to the 
world economy of sugar and other sweeteners and shall apprise Members of the 
outcome of its deliberations, for which purpose it shall hold meetings, 
normally twice a year. In its review, the Committee shall take account of all 
relevant information gathered by the Organization pursuant to article 32. 
3. The Committee shall undertake work in the following areas: 
(a) Preparation of sugar statistics and statistical analysis of sugar 
production, consumption, stocks, international trade and prices; 
(b) Analysis of market behaviour and factors which affect it, with 
special reference to participation of developing countries in world 
trade; 
(c) Analysis ot demand tor sugar. Including the ettocls ol the use ot 
any form of natural and artificial substitutes for sugar on world trade 
in, and consumption of, sugar; 
(d) Other issues as approved by the Council. 
4. Each year the Council shall consider a draft forward work programme, 
with estimated resource requirements, prepared by the Executive Director. 
TD/SUGAR.12/6 
page 18 ^ 
CHAPTER X. RESEARCH AND DEVELOPMENT 
Article 34 
Research and development 
In order to achieve the objectives set out in article 1, the Council may 
assist both in scientific research and development in the sugar economy and in 
the dissemination of the results obtained in this field. To this end, the 
Council may cooperate with international organizations and research 
institutions on condition that no additional financial obligations are 
incurred by the Council. 
TD/SUGAR.12/6 
page 19 
CHAPTER XI. PREPARATIONS FOR A NEW AGREEMENT 
Article 35 
Preparations for a new agreement 
1. The Council may study the feasibility of negotiating a new international 
sugar agreement, including a possible agreement with economic provisions, and 
report to the Members and make such recommendations as it deems appropriate. 
?.. The Council may, as soon as it considers appropriate, request the 
Secretary General of the United Nations Conference on Trade and Development to 
convene a negotiating conference. ^ 
TD/SUGAR.12/6 -> _, 
page 20 <rl 4-
CHAPTER XII. FINAL PROVISIONS 
Article 36 
Depositary 
The Secretary-General of the United Nations is hereby designated as the 
depositary of this Agreement. 
Article 37 
Signature 
This Agreement shall be open for signature at the United Nations 
Headquarters from 1 May until 31 December 1992 by any Government invited to 
the United Nations Sugar Conference, 1992. 
Article 38 
Ratification, acceptance and approval 
1. This Agreement shall be subject to ratification, acceptance or approval 
oy the signatory Governments in accordance with their respective 
constitutional procedures. 
2. Instruments of ratification, acceptance or approval shall be deposited 
with the depositary not later than 31 December 1992. The Council may, 
however, grant extensions of time to signatory Governments which are unable to 
deposit their instruments by that date. 
Article 39 
Notification of provisional application 
1. A signatory Government which intends to ratify, accept or approve this 
Agreement or a Government for which the Council has established conditions for 
accession but which has not yet been able to deposit its instrument may, at 
any time, notify the depositary that it will apply this Agreement 
provisionally either when it enters into force in accordance with article 40 
or, if it is already in force, at a specified date. 
?.. A Government which has notified under paragraph I of this article that 
it will apply this Agreement either when it enters into force or, if it is 
already in force, at a specified date shall, from that time, be a provisional 
Member until it deposits its instrument of ratification, acceptance, approval 
or accession and thus becomes a Member. 
ALL tel e_<LQ 
Entry into force 
1. This Agreement shall enter into force definitively on 1 January 1993, or 
on any date thereafter if, by that date instruments of ratification, 
acceptance, approval or accession have been deposited on behalf of Governments 
holding 60 per cent of the votes in accordance with the distribution 
established in the annex to this Agreement. 
2. If, by 1 January 1993, this Agreement has not entered into force in 
accordance with paragraph 1 of this article, it shall enter into force 
provisionally if by that date instruments of ratification, acceptance or 
approval or notifications of provisional application have been deposited on 
behalf of Governments satisfying the percentage requirements of paragraph 1 of 
this article. 
SX 
TD/SUGAR.12/6 
page 21 
3. If, by 1 January 1993, the required percentages for entry into force of 
this Agreement in accordance with paragraph i or paragraph 2 of this article 
are not met, the Secretary-General of the United Nations shall invite the 
Governments on whose behalf instruments of ratification, acceptance or 
approval or notifications of provisional application have been deposited to 
decide whether this Agreement shall enter into force definitively or 
provisionally among themselves, in whole or in part, on such date as they may 
determine. If this Agreement has entered into force provisionally in 
accordance with this paragraph, it shall subsequently enter into force 
definitively upon fulfilment of the conditions set out in paragraph 1 of this 
article without the necessity of a further decision. 
4. For a Government on whose behalf an instrument of ratification, 
acceptance, approval or accession or a notification of provisional application 
is deposited after the entry into force of this Agreement in accordance with 
paragraph 1, 2 or 3 of this article, the instrument or notification shall take 
effect on the date of deposit and, with regard to notification of provisional 
application, in accordance with the provisions of article 39, paragraph 1. 
Article 41 
Accession 
This Agreement shall be open to accession by the Governments ot all 
States upon conditions established by the Council. Upon accession, the State 
concerned shall be deemed to be listed in the annex to this Agreement, 
together with its votes as laid down in the conditions of accession. 
Accession shall be effected by the deposit of an instrument of accession with 
the depositary. Instruments of accession shall state that the Government 
accepts all the conditions established by the Council. 
Article 42 
Withdrawal 
1. Any Member may withdraw from this Agreement at any time after the entry 
into force of this Agreement by giving written notice of withdrawal to the 
depositary. The Member shall simultaneously inform in writing the Council of 
the action it has taken. 
?.. Withdrawal under this article shall be effective 30 days after the 
receipt of the notice by the depositary. 
Article 43 
Settlement of accounts 
I. The Council shall determine any settlement of accounts which it finds 
equitable with a Member which has withdrawn from this Agreement or has 
otherwise ceased to be Party to this Agreement. The Organization shall retain 
any amounts already paid by such Member. Such Member shall be bound to pay 
any amounts due from it to the Organization. 
?.. Upon termination of this Agreement, any Member referred to in paragraph 
1 of this article shall not be entitled to any share of the proceeds of the 
liquidation or the other assets of the Organization; nor shall it be burdened 
with any part of the deficit, if any, of the Organization. 
TD/SUGAR.12/6 -, 
page 22 ^3 
Article 44 
Amendment 
1. The Council may, by special vote, recommend to the Members an amendment 
of this Agreement. The Council may fix a time after which each Member shall 
notify the depositary of its acceptance of the amendment. The amendment shall 
become effective 100 days after the depositary has received notifications of 
acceptance from Members holding at least two thirds of the total votes of all 
Members under article 11 as determined under article 25, or on such later date 
as the Council may have determined by special vote. The Council may fix a 
time within which each Member shall notify the depositary of its acceptance of 
the amendment and, if the amendment has not become effective by such time, it 
shall be considered withdrawn. The Council shall provide the depositary with 
the information necessary to determine whether the notifications of acceptance 
received are sufficient to make the amendment effective. 
2. Any Member on behalf of which notification of acceptance of an amendment 
has not been made by the date on which such amendment becomes effective shall, 
as of that date, cease to be Party to this Agreement, unless such Member has 
satisfied the council that acceptance could not be secured in time owing to 
difficulties in completing its constitutional procedures and the council 
decides to extend for such Member the period fixed for acceptance. Such 
Member shall not be bound by the amendment before it has notified its 
acceptance thereof. 
Article 45 
Duration, extension and termination 
1. This Agreement shall remain in force until 31 December 1995, unless 
extended under paragraph 2 of this article or terminated earlier under 
paragraph 3 of this article. 
2. The Council may, by special vote, extend this Agreement beyond 
31 December 1995 for successive periods, not exceeding two years on each 
occasion. Any Member which does not accept any such extension of this 
Agreement shall so inform the Council in writing and shall cease to be a Party 
to this Agreement from the beginning of the period of extension. 
3. The Council may at any time decide, by special vote, to terminate this 
Agreement with effect from such date and subject to such conditions as it may 
determine. 
4. Upon termination of this Agreement, the Organization shall continue in 
being for such time as may be required to carry out its liquidation and shall 
have such powers and exercise such functions as may be necessary for that 
purpose. 
5. The Council shall notify the depositary of any action taken under 
paragraph 2 or paragraph 3 of this article. 
3c 
TD/SUGAR.12/6 
page 23 
Article 46 
Transitional measures 
I. Where in accordance with the International Sugar Agreement, 1987, the 
consequences of anything done, to be done or omitted to be done would, for the 
purposes of the operation of that Agreement, have taken effect in a subsequent 
year, those consequences shall have the same effect under this Agreement as if 
the provisions of the 1987 Agreement had continued in effect for those 
purposes. 
?.. The administrative budget of the Organization for 1993 shall be 
provisionally approved by the Council under the International Sugar Agreement. 
1987. at its last regular session in 1992. subject to final approval by the 
Council under this Agreement at its first session in 1993. 
IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have 
affixed their signatures under this Agreement on the dates indicated. 
DONE at Geneva, this twentieth day of March, one thousand nine hundred 
and ninety two. The texts of this Agreement in the Arabic, Chinese, English, 
French, Russian and Spanish languages shall be equally authentic. 
TD/SUGAR.12/6 
Annex 
page 24 3-i 
ANNEX 
Allocation of votes for the purposes of Article 25 
Algeria 
Argentina 
Australia 
Austria 
Barbados 
Belarus 
Belize 
Bolivia 
Brazil 
Bulgaria 
Cameroon 
Colombia 
Congo*/ 
Costa Rica*/ 
côte d'Ivoire 
Cuba 
Dominican Republic 
Ecuador 
Egypt 
El Salvador 
EEC 
Fiji 
Finland 
Ghana 
Guatemala 
Guyana 
Honduras*/ 
Hungary 
India 38 Indonesia 18 
22 Jamaica 6 
117 Japan 176 
14 Madagascar 6 
6 Malawi 6 
11 Mauritius 15 
6 Mexico 49 
6 Morocco 14 
94 Nicaragua 6 
18 Norway 19 
6 Panama*/ 6 
18 Papua New Guinea*/ 6 
6 Peru 9 
6 Philippines 12 
6 Republic of Korea 59 
151 Romania 18 
23 Russian Federation 135 
6 South Africa 46 
37 Swaziland 13 
6 Sweden 15 
332 Switzerland 18 
12 Thailand 85 
16 Turkey 21 
6 Uganda 6 
16 United Republic of Tanzania 6 
6 United States of America 178 
6 Uruguay 6 
9 Zimbabwe 8 
38 
Total 2000 
Mot participating in the United Nations Sugar Conference, 1992, but 
included because the country is a Member of the international Sugar 
Organization established by the International Sugar Agreement. 1987 
FINANCIAL IMPLICATIONS 
The Community contribution to the administrative budget of the 
International Sugar Organisation is covered by line B2-516 of the 
Community budget. The contribution arising from the new agreement will 
be higher than the present one in view of the fact that all 
participants at the Conference considered it appropriate to bring 
contributions more into line with their respective strengths on the 
international sugar market. This result is in conformity with the 
mandate given by the Council to the Commission for the negotiation of 
this Agreement. The votes of the Community will thus go from 238 in 
1987 to 332 (out of 2000) under the proposed new Agreement. However, 
in view of the savings made in the ISO in recent years, the amount 
proposed by the Commission for line B2-516 for the 1993 Community 
budget should suffice to cover the Community contribution. 
^3 
FINANCIAL S TATEMENT 
DATE: 
1. BUDGET HEADING: APPROPRIATIONS: 
B2-516 
2. TITLE: proposal for a Council Decision on the signing and conclusion of the 
International Sugar Agreement, 1992 
3. LEGAL BASIS: 
Treaty EEC, and in particular Article 113 thereof. 
4. AIMS OF PROJECT: 
Signature by the Community of the International Sugar Agreement of 1992, 
with a view to being a Member as from 1.1.93. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
- OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL Per led of 12 months 
19 Current Financial Year 
19 Following Financial Year 
1993 
(*•• ECU) 
160.000 
1994 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 168.000 ECU 1995 
176.000 ECU 1996 
185.000 ECU 1997 
195.000 ECU 
5.2 METHOD OF CALCULATION: 
The amounts indicated cover the EEC share of the ISO administrative budget drawn up 
annually on the basis of the number of votes (332) written into the Agreement. 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
1B/ND 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
UNO 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
;/ND 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YES/I 
OBSERVATIONS: 

s y 
ISSN 0254-1475 
COM(92) 418 final 
DOCUMENTS 
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Catalogue number : CB-CO-92-434-EN-C 
ISBN 92-77-47915-9 
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