COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 29.06.1995 
COM(95) 280 final 
95/0157 (ACC) 
Proposal for a 
COUNCIL DECISION 
on the signing of the Grains Trade Convention, 1995, and the Food Aid Convention, 
1995, constituting the International Grains Agreement, 1995, and the deposit of a 
declaration of provisional application of those Conventions 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. The International Wheat Agreement, 1949 was revised, renewed, updated and 
extended several times, resulting in the conclusion of the International Wheat 
Agreement, 1986. 
The International Wheat Agreement, 1986, comprising the Wheat Trade 
Convention, 1986, and the Food Aid Convention, 1986, as extended, expires on 
30 June 1995. 
2. The signatories to the present Agreement have agreed that the International Wheat 
Agreement, 1986, should be updated and entitled the International Grains 
Agreement, 1995 and that it should comprise two distinct legal instruments: 
(a) the Grains Trade Convention, 1995, and 
(b) the Food Aid Convention, 1995. 
One or both of the two Agreements, as agreed, will be presented for the signature 
and ratification, acceptance or approval of the governments (including the 
European Community) referred to in the Annex (as regards the Grains Trade 
Convention) and of interested governments (as regards the Food Aid Convention) 
in accordance with their constitutional or institutional procedures. 
3. The text of the two legal instruments was adopted at a meeting and at a 
conference of governments, organized by the International Wheat Council on 6 
and 7 December 1994, in which the Community participated. 
The new Agreement differs from the previous Agreement in three ways: 
the Wheat Convention is extended to all cereals and becomes the Grains 
Trade Convention, 
the basis for the calculation of votes and therefore of contributions to the 
administrative budget has been reviewed and will be regularly adjusted to 
take account of developments in trade, 
the rules of procedure have been updated. 
4. The new International Grains Agreement, comprising the two legal acts, will be 
open for signature by governments wishing to become members of the Agreement 
at the headquarters of the United Nations Organization in New York from 1 May 
to 30 June 1995 inclusive. 
During that period, the governments signing the Agreements must deposit their 
instruments of ratification, acceptance or approval at the headquarters of the 
United Nations Organization in New York. Signatories may, however, be granted 
an extension of the time limit. They may also deposit a declaration of provisional 
application to ensure application of the Agreement on 1 July 1995. 
5. A governmental conference will take place as soon as possible after 30 June 1995 
to determine whether the conditions necessary for the entry into force of the 
Agreement on 1 July 1995 have been fulfilled. For the Grains Trade Convention 
to enter into force automatically on that date, governments holding at least 88% 
of the votes must have deposited an instrument of ratification, acceptance, 
approval, accession or provisional application before 30 June 1995. For the Food 
Aid Convention, the figure is 75%. 
Pursuant to Article 26 of the Grains Trade Convention and Article XIX of the 
Food Aid Convention, all signatories may deposit a declaration of provisional 
application. It is proposed that the Community sign the Agreement and avail itself 
of the possibility of depositing a declaration of provisional application, since it 
will probably be impossible to meet the deadline of 30 June 1995 given that the 
European Parliament must be consulted before the Agreement can be concluded. 
The Member States are also requested to become signatories to the Food Aid 
Convention in view of the food aid measures provided for, although the 
simultaneous accession of the Community and the Member States is not 
obligatory. 
Financial impact: annual contribution to the administrative budget. 
Proposal for a 
COUNCIL DECISION 
on the signing of the Grains Trade Convention, 1995, and the Food Aid Convention, 
1995, constituting the International Grains Agreement, 1995, and the deposit of a 
declaration of provisional application of those Conventions 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Articles 113 and 130 and in conjunction with the first sentence of Article 228(2) thereof, 
Having regard to the proposal from the Commission, 
Whereas the International Wheat Agreement, 1949 was revised, renewed, updated and 
extended several times resulting in the conclusion of the International Wheat Agreement, 
1986; 
Whereas the International Wheat Agreement, 1986, comprising the Wheat Trade 
Convention, 1986, and the Food Aid Convention, 1986, as extended, expires on 30 June 
1995; 
Whereas a new Agreement entitled the International Grains Agreement, 1995, comprising 
two distinct legal instruments: 
(a) the Grains Trade Convention, 1995 and 
(b) the Food Aid Convention, 1995 
has been negotiated; 
Whereas the new International Grains Agreement will be open for signature at the 
headquarters of the United Nations Organization in New York from 1 May to 30 June 
1995 inclusive; whereas during that period signatories must deposit their instruments of 
ratification, acceptance or approval; whereas signatories to the Agreement may, however, 
be granted an extension of the time limit; whereas signatories may also deposit a 
declaration of provisional application to ensure application of the Agreement on 1 July 
1995; 
Whereas the Community should avail itself of that possibility so as to be able to apply 
the new Agreement from 1 July 1995 in the event that the approval procedure has not 
been completed, 
HAS DECIDED AS FOLLOWS: 
Sole Article 
1. The President of the Council is hereby authorized to designate the person 
empowered to sign and deposit the declaration of provisional application contained 
in the Annex with the Secretary-General of the United Nations Organization. 
2. The text of the Agreement is annexed to this Decision. 
Done at 
For the Council 
The President 
DECLARATION OF PROVISIONAL APPLICATION 
by the European Community of the Grains Trade Convention, 1995, and the 
Food Aid Convention, 1995, constituting the International Grains 
Agreement, 1995 
It will not be possible for the European Community to complete before 30 June 1995 the 
institutional procedures of approval laid down in Article 25 of the Grains Trade 
Convention, 1995, and Article XVIII of the Food Aid Convention, 1995. 
In accordance with Articles 25 and XIX of the said Conventions, the Community 
therefore makes this declaration of provisional application. By depositing such a 
declaration, the Community regards itself to be provisionally a party to the Conventions 
concerned, with all the rights and obligations which result therefrom, until such time as 
it has taken a final decision on the matter. 
At the same time, pursuant to Articles 25(2) and XVIII respectively of the Conventions, 
the Community requests an extension of the time limit for the deposition of its instrument 
of approval to 31 December 1995. 
The Community also declares that the Republic of Austria, the Republic of Finland and 
the Kingdom of Sweden, having become Member States of the European Community on 
1 January 1995, will no longer accede individually to the Grains Trade Convention but 
will be covered by the accession of the Community to that Convention. The Community 
therefore undertakes to exercise the rights and fulfil the obligations laid down in the 
Convention for the three countries concerned. 
FINANCIAL STATEMENT 
Date: 
1. BUDGET HEADING: B2 - 516 APPROPRIATIONS: 
TITLE: Communication to the Council regarding EC participation in negotiation 
work on a New Agreement to replace the International Wheat Agreement, 1986 
LEGAL BASIS: Treaty establishing the European Community, particularly Article 113 
AIMS: Authorization for the Commission to participate in the negotiation 
of a new agreement - see par. 2 
5. FINANCIAL IMPLICATIONS: 
5.0... EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL AUTHORITIES 
-OTHER PERIOD OF 12 
MONTHS CURRENT 
FINANCIAL 
YEAR 
(95) FOLLOWING 
FINANCIAL 
YEAR 
(96) 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 
1995 
5.0.1. ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE 455,000 1996 
477,000 1997 
500,000 1998 
525,000 
52. METHOD OF CALCULATION: 
Calculation based on experience of budgetary policy of the International Wheat 
Council in recent years, as well as the new calculation of contributions to be 
negociated. 
6.0. CAN THE PROJECT BE FINANCED PROM APPROPRIATIONS ENTERED IN THF RELEVANT 
CHAPTER, OF THE CITOENT BUDGET? 
6.1. «CAN THE PROJECT BE FINANCED BY TB ft VSFER BETWEEN CHAPTERS OF THE CURRENT 
JIUDGET? 
6.2. im,L A SUPFLEMFNTftPY BUDGET U& NECESSARY? 
6.3. WILL FUTUR1: BUDGET APPROPRIATIONS BE NECESSARY? YES 
OBSERVATIONS The amounts indicated cover the participation of the EC 
to the administrative budget of the Agreement 
> 
INTERNATIONAL GRAINS AGREEMENT, 1995 
PREAMBLE 
THE SIGNATORIES TO THIS AGREEMENT 
Considering that the International Wheat Agreement, 1949 was revised, 
renewed, updated or extended on successive occasions leading to the conclusion of 
the International Wheat Agreement, 1986 
Considering that the provisions of the International Wheat Agreement, 
1986, consisting of the Wheat Trade Convention, 1986, on the one hand, and the 
Food Aid Convention, 1986, on the other, as extended, will expire on 30th June 
1995, and that it is desirable to conclude an agreement for a new period, 
Have agreed that the International Wheat Agreement, 1986 shall be updated and 
renamed the International Grains Agreement, 1995, which shall consist of two 
separate legal instruments 
(a) the Grains Trade Convention, 1995 and 
(b) the Food Aid Convention, 1995, 
and that each of these two Conventions, or either of them as appropriate, 
shall be submitted for signature and ratification, acceptance or approval, in 
conformity with their respective constitutional or institutional procedures, by the 
Governments concerned. 
GRAINS TRADE CONVENTION, 1995 
PART I - GENERAL 
ARTICLE 1 
Objectives 
The objectives of this Convention are: 
(a) to further international co-operation in ail aspects of trade in grains, 
especially insofar as these affect the food grain situation; 
(b) to promote the expansion of international trade in grains, and to secure the 
freest possible flow of this trade, including the elimination of trade barriers 
and unfair and discriminatory practices, in the interest of ail members, in 
particular developing members; 
(c) to contribute to the fullest extent possible to the stability of international 
grain markets in the interests of all members, to enhance world food security, 
and to contribute to the development of countries whose economies are 
heavily dependent on commercial sales of grain; and 
(d) to provide a forum for exchange of information and discussion of 
members' concerns regarding trade in grains. 
ARTICLE 2 
Definitions 
For the purposes of this Convention: 
(1) (a) "Council" means the International Grains Council established by the 
International Wheat Agreement, 1949 and continued in being by 
Article 9 
(b) (i) "member" means a party to this Convention; 
(ii) "exporting member" means a member so designated under 
Article 12; 
(Hi) "importing member" means a member so designated under 
Article 12; 
3 
(c) "Executive Committee" means-the Committee established under-
Artide15; 
(d) "Market Conditions Committee" means the Committee established 
under Article 16; 
(e) "grain" or "grains" means barley, maize, millet, oats,- rye, sorghum, 
triticale and wheat,, and their products, and such other grains and 
products as the Council may decide; 
(f) (i) "purchase" means a purchase of grain for* import - or the 
quantity of grain so purchased, as the context requires; 
(H) "sale" means a sale of grain for export" or the quantity of such -
grain so sold, as the context requires; 
(iit) where reference is made in this Convention to a purchase 
or sale, it shall be understood to refer not only to purchases-
or sales concluded-between the Governments concemedr-
but also to purchases: or sales concluded between private 
traders, and-to purchases or-sales concluded between a 
private trader and the.Government concerned; 
(g) "special vote" means a vote requiring at least two thirds of the votes 
(as calculated under Article 12) cast by the exporting members 
present and voting, and at least two thirds of the votes (as calculated 
under Article .12) cast-by the importing members present and voting, 
counted separately; 
(h) "crop year" or "fiscal year" means the period from 1 July to the 
following 30 June; * 
* 
(i) "working day" means a working day at the headquarters of the 
Council. 
(2) Any reference in ~ this Convention- to a "Government" or "Governments" 
or "member" snail be construed as including a reference to the European Community 
(hereinafter referred to as the EC). Accordingly, any reference in this Convention to 
"signature" or to the "deposit of instruments of ratification, acceptance, or approval" 
-or "an instrument of accession" or "a .declaration of provisional.application" by a 
Government shall, inthe case of"the-EC^be'construed as including signature or 
declaration ofprovisionai application on behalf of the EC by its competent authority 
and the deposit of the instalment required by the institutional procedures of the EC: 
to be deposited for the conclusion of an international agreement. 
(3) Any reference in this Convention to "Government"/ "Governments" or 
"member" shall be construed, where required, as covering all separate 
customs territory within the weaning of the General Agreement on Tarfffs 
and Trade or the Agreement establishing the World Trade Organization. 
<lo 
ARTICLE 3 
Information, reports and studies 
(1) To facilitate the achievement of the objectives in Article 1, make possible a 
fuller exchange of views at Council sessions, and provide information on a 
continuing basis to serve the general interest of members, arrangements shall be 
made for regular reports and exchange of information, and also special studies, as 
appropriate, covering grains, focusing primarily upon the following: 
(a) supply, demand and market conditions; 
(b) developments in national policies and their effects on the international 
market; 
(c) developments concerning the improvement and expansion of trade, 
utilization, storage and transportation, especially in developing 
countries. 
(2) To improve the collection and presentation of information for those reports 
and studies referred to in paragraph (1) of this Article, to make it possible for 
more members to participate directly in the work of the Council, and to supplement 
the guidance already given by the Council in the course of its sessions, there shall 
be established a Market Conditions Committee, whose meetings shall be open to ail 
members of the Council. The Committee shall have the functions specified in Article 
16. 
ARTICLE 4 
Consultations on market developments 
(1) If the Market Conditions Committee, in the course of its continuous review of 
the market under Article 16, is of the opinion that developments in the international 
grain market seriously threaten to affect the interests of members, or if such 
developments are called to the Committee's attention by the Executive Director on 
his own initiative or at the request of any member of the Council, it shall immediately 
report the facts concerned to the Executive Committee. The Market Conditions 
Committee, in so informing the Executive Committee, shall give particular regard 
to those circumstances which threaten to affect the interests of members. 
(2) The Executive Committee shall meet within ten working days to review such 
developments and, if it deems it appropriate, request the Chairman of the Council 
to convene a session of the Council to consider the situation. 
M 
ARTICLE-5 
Commercial purchases and special transactions 
(1) A commercial purchase for the purposes of this Convention is a purchase as 
defined in Article 2 which conforms to the usual commercial practices in 
international trade and which does not include those transactions referred to in 
paragraph (2) of this Article. 
(2) A special transaction for the purposes of this Convention is one which 
includes features introduced by the Government of a member concerned which do 
not conform to usual commercial practices. Special transactions include the 
following: 
(a) sales on credit in which, as a result of government intervention, 
the interest rate, period of payment, or other related terms do not 
conform to the commercial rates, periods or terms prevailing in the 
world market; 
(b) sales in which the funds for the purchase of grain are obtained under 
a loan from the Government of the exporting member tied to the 
purchase of grain; 
(c) sales for currency of the importing member which is not transferable 
or convertible into currency or goods for use in the exporting member; 
(d) sales under trade agreements with special payments 
arrangements which include clearing accounts for settling credit 
balances bilaterally through the exchange of goods, except where the 
exporting member and the importing member concerned agree that 
the sale shall be regarded as comrnercial; 
(e) barter transactions: 
(i) which result from the intervention of Governments where 
grain is exchanged at other than prevailing world prices, or 
(ii) which involve sponsorship under a government purchase 
programme, except where the purchase of grain results from a 
barter transaction in which the country of final destination was 
not named in the original barter contract; 
(f) a gift of grain or a purchase of grain out of a monetary grant by the 
exporting member made for that specific purpose; 
(g) any other categories of transactions, as the Council may prescribe, 
that include features introduced by the Government of a member 
concerned which do not conform to usual commercial practices. 
yi£ 
|3) Any question raised by the Executive Director or by any member as to 
whether a transaction is a commercial purchase-as defined in paragraph (1) of this 
Article or a special transaction as defined in paragraph (2) of this Article shall be 
decided by the Council. 
ARTICLES 
Guidelines relating to concessional transactions 
(1) Members undertake to conduct any concessional transactions in grains in 
such a way as to avoid harmful interference with normal patterns of production and 
international commercial trade. 
(2) To this end both supplying and recipient members shall undertake 
appropriate measures to ensure that concessional transactions are additional to 
commercial sales which could reasonably be anticipated in the absence of such 
transactions, and would increase consumption or stocks in the recipient country. 
Such measures shall, for countries which are members of FAO, be consistent 
with the FAO Principles of Surplus Disposal and Guiding Lines and the consultative 
obligations of FAO members, and may include the requirement that a specified level 
of commercial imports of grains agreed with the recipient country be maintained 
on a global basis by that country. In establishing or adjusting this level, full regard 
shall be had to the commercial import levels in a representative period, to recent 
trends in utilisation and imports, and to the economic circumstances of the 
recipient country, including, in particular, its balance-of-payments situation. 
(3) Members, when engaging in concessional export transactions, shall 
consult with exporting members whose commercial sales might be affected by such 
transactions to the maximum possible extent before such arrangements are 
concluded with recipient countries. 
(4) The Secretariat shall periodically report to the Council on developments in 
concessional transactions in grains. 
ARTICLE 7 
Reporting and recording 
(1) Members shall provide regular reports, and the Council shall maintain 
records for each crop year, showing separately commercial and special 
transactions, of all shipments of grain by members and ail imports of grain from 
non-members. The Council shall also maintain, to the extent possible, records of 
all shipments between non-members. 
•*> 
(2) Members shall provide, as far as possible, such information as the Council 
may require concerning their grain supply and demand, and report promptly all 
changes in their national grain policies. 
(3) For the purposes of this Article: 
(a) members shall send to the Executive Director such information 
concerning the quantities of grain involved in commercial sales and 
purchases and special transactions as the Council within its 
competence may require, including: 
(i) in relation to special transactions, such detail of the 
transactions as will enable them to be classified in accordance 
with Article 5; 
(ii) such information as may be available as to the type, class, 
grade and quality of the grains concerned; 
(b) any member when exporting grain shall send to the Executive Director 
such information relating to their export prices as the Council may 
require; 
(c) the Council shall obtain regular information on currently prevailing 
grain transportation costs, and members shall report such 
supplementary information as the Council may require. 
(4) In the case of any grain which reaches the country of final destination after 
resale in, passage through, or transhipment from the ports of, a country other than 
that in which it originated, members shall to the maximum extent possible make 
available such information as will enable the shipment to be entered in the records 
as a shipment between the country of origin and the country of final destination. In 
the case of a resale, the provisions of this paragraph shall apply if the grain 
originated in the country of origin during the same crop year. 
(5) The Council shall make rules of procedure for the reports and records 
referred to in this Article. Those rules shall prescribe the frequency and the manner 
in which those reports shall be made and shall prescribe the duties of members with 
regard thereto. The Council shall also make provision for the amendment of any 
records or statements kept by it, including provision for the settlement of any dispute 
arising in connection therewith. If any member repeatedly and unreasonably fails to 
make reports as required by this Article, the Executive Committee shall arrange 
consultations with that member to remedy the situation. 
4ij 
ARTICLE 8 
Disputes and complaints 
(1) Any dispute concerning the interpretation or application of this Convention 
which is not settled by negotiation shall, at the request of any member which is a 
party to the dispute, be referred to the Council for decision. 
(2) Any member which considers that its interests as a party to this Convention 
have been seriously prejudiced by actions of any one or more members affecting the 
operation of this Convention may bring the matter before the Council. In such a 
case, the Council shall immediately consult with the members concerned in order 
to resolve the matter. If the matter is not resolved through such 
consultations, the Council shall consider the matter further and may make 
recommendations to the members concerned. 
A€ 
PART II - ADMINISTRATION 
ARTICLE 9 
Constitution of the Council 
(1) The Council (formerly the International Wheat Council, as established by the 
International Wheat Agreement, 1949, and now renamed the International Grains 
Council) shall continue in being for the purposes of administering this Convention 
with the membership, powers and functions provided in this Convention. 
(2) Members may be represented at Council meetings by delegates, alternates 
and advisers. 
(3) The Council shall elect a Chairman and a Vice-Chairman who shall hold 
office for one crop year. The Chairman shall have no vote and the Vice-Chairman 
shall have no vote while acting as Chairman. 
ARTICLE 10 
Powers and functions of the Council 
(1) The Council shall establish its Rules of Procedure. 
(2) The Council shall keep such records as are required by the terms of this 
Convention and may keep such other records as it considers desirable. 
(3) In order to enable the Council to discharge its functions under this 
Convention, the Council may request, and members undertake to supply, subject to 
the provisions of paragraph (2) of Article 7, such statistics and information as are 
necessary for this purpose. 
(4) The Council may, by special vote, delegate to any of its committees, or 
to the Executive Director, the exercise of powers or functions other than the 
following: 
(a) decisions on matters Under Article 8; 
(b) review, under Article 11, of the votes of members listed in the Annex; 
(c) determination of exporting and importing members and distribution 
of their votes under Article 12; 
(d) location of the seat of the Council under paragraph (1 ) of Article 13; 
Aio 
(e) appointment of the Executive Director under paragraph (2) of 
Article 17; 
(f) adoption of the budget and assessment of members' 
contributions under Article 21 ; 
(g) suspension of the voting rights of a member under paragraph (6) 
of Article 21; 
(h) any request to the Secretary-General of UNCTAD to convene a 
negotiating conference under Article 22; 
(i) exclusion of a member from the Council under Article 30; 
(j) recommendation of an amendment under Article 32; 
(k) extension or termination of this Convention under Article 33. 
The Council may at any time revoke such delegation by a majority of the votes cast. 
(5) Any decision made under any powers or functions delegated by the Council 
in accordance with paragraph (4) of this Article shall be subject to review by the 
Council at the request of any member made within a period which the Council shall 
prescribe. Any decision in respect of which no request for review has been made 
within the prescribed period shall be binding on ail members. 
(6) In addition to the powers and functions specified in this Convention the 
Council shall have such other powers and perform such other functions as are 
necessary to carry out the terms of this Convention. 
ARTICLE 11 
Votes for entry into force and budgetary procedures 
(1) For the purposes of the entry into force of this Convention, the calculations 
under paragraph (1) of Article 28 shall be based on the votes as set out in part A of 
the Annex. 
(2) For the purposes of the assessment of financial contributions under Article 
21, the votes of members shall be based on those set out in the Annex, subject to 
the provisions of this Article and the associated Rules of Procedure. 
(3) Whenever this Convention is extended under paragraph (2) of Article 33, the 
Council shall review and adjust the votes of members under this Article. Such 
adjustments shall bring the distribution of votes more closely into line with current 
grain trade patterns, and shall be in accordance with the methods specified in the 
Rules of Procedure. 
•W 
(4) If the Council decides that a significant shift in world grain trading patterns 
has occurred it shall review, and may adjust, the votes of members. Such 
adjustments shall be regarded as amendments to this Convention, and shall be 
subject to the provisions of Article 32, except that an adjustment of votes may take 
effect only at the beginning of a fiscal year. After any adjustment to member's votes 
under this paragraph has taken effect, no further such adjustment may be put into 
effect before three years have elapsed. 
(5) All redistributions of votes under this Article shall be conducted in accordance 
with the Rules of Procedure. 
(6) For all purposes regarding the administration of this Convention, other than 
its entry into force under paragraph (1) of Article 28 and the assessment of financial 
contributions under Article 21, the votes to be exercised by members shall be as 
determined under Article 12. 
ARTICLE 12 
Determination of exporting and importing members and 
distribution of their votes 
(1) At the first session held under this Convention, the Council shall establish 
which members shall be exporting members and which members shall be 
importing members for the purposes of this Convention. In so deciding, the 
Council shall take account of the grain trading patterns of those members and of 
their own views. 
(2) As soon as the Council has determined which members shall be exporting 
and which shall be importing members under this Convention, the exporting 
members, on the basis of their votes under Article 11, shall divide their votes among 
them as they shall decide, subject to the conditions laid down in paragraph (3) of this 
Article, and the importing members shall similarly divide their votes. 
(3) For the purposes of the allocation of votes under paragraph (2) of this 
Article, the exporting members shall together hold 1,000 votes, and the 
importing members shall together hold 1,000 votes. No member shall hold 
more than 333 votes as an exporting member or more than 333 votes as an 
importing member. There shall be no fractional votes. 
(4) The lists of exporting and importing members shall be reviewed by the 
Council, in the light of changing patterns in their grain trade, after a period of three 
years following the entry into force of this Convention. They shall also be 
reviewed whenever this Convention is extended under paragraph (2) of Article 33. 
(5) At the request of any member, the Council may, at the beginning of any fiscal 
year, agree by special vote to the transfer of that member from the list of exporting 
members to the list of importing members, or from the list of importing members 
to the list of exporting members, as appropriate. 
(6) The distribution of the votes of exporting and importing members shall be 
reviewed by the Council whenever the lists of the exporting and importing members ^ 
A% 
are changed under paragraphs (4) or (5) of this Article. Any redistribution of votes 
under this paragraph shall be subject to the conditions set out in paragraph (3) of this 
Article. 
(7) Whenever any Government becomes, or ceases to be, a party to this 
Convention, the Council shall redistribute the votes of the other exporting or 
importing members, as appropriate, in proportion to the number of votes held by 
each member, subject to the conditions set out in paragraph (3) of this Article. 
(8) Any exporting member may authorize any other exporting member, and any 
importing member may authorise any other importing member, to represent its 
interests and to exercise its votes at any meeting or meetings of the Council. 
Satisfactory evidence of such authorisation shall be submitted to the Council. 
(9) If at any meeting of the Council a member is not represented by an 
accredited delegate and has not authorized another member to exercise its votes 
in accordance with paragraph (8) of this Article, or if at the date of any meeting any 
member has forfeited, has been deprived of, or has recovered its votes under any 
provisions of this Convention, the total votes to be exercised by the exporting 
members at that meeting shall be adjusted to a figure equal to the total of votes to be 
exercised at that meeting by the importing members and redistributed among 
exporting members in proportion to their votes. 
ARTICLE 13 
Seat sessions and quorum 
(1) The seat of the Council shall be in London unless the Council decides 
otherwise. 
(2) The Council shall meet at least once during each half of each fiscal year and 
at such other times as the Chairman may decide, or as otherwise required by this 
Convention. 
(3) The Chairman shall convene a session of the Council if so requested by 
(a) five members or (b) one or more members holding a total of not less than 10 per 
cent of the total votes or (c) the Executive Committee. 
(4) The presence of delegates with a majority of the votes held by the exporting 
members and a majority of the votes held by the importing members, prior to 
any adjustment of votes under paragraph (9) of Article 12, shall be necessary to 
constitute a quorum at any meeting of the Council. 
AJb 
ARTICLE 14 
Decisions 
(1) Except where otherwise specified in this Convention, decisions of the 
Council shall be by a majority of the votes cast by the exporting members and a 
majority of the votes cast by the importing members, counted separately. 
(2) Without prejudice to the complete liberty of action of any member in the 
determination and administration of its agricultural and price policies, each member 
undertakes to accept as binding all decisions of the Council under the provisions of 
this Convention. 
ARTICLE 15 
Executive Committee 
(1) The Council shall establish an Executive Committee consisting of not more 
than six exporting members elected annually by the exporting members and not 
more than eight importing members elected annually by the importing members. 
The Council shall appoint the Chairman of the Executive Committee and may 
appoint a Vice-Chairman. 
(2) The Executive Committee shall be responsible to and work under the general 
direction of the Council. It shall have such powers and functions as are expressly 
assigned to it under this Convention and such other powers and functions as the 
Council may delegate to it under paragraph (4) of Article 10. 
(3) The exporting members on the Executive Committee shall have the same 
total number of votes as the importing members. The votes of the exporting 
members on the Executive Committee shall be divided among them as they shall 
decide, provided that no such exporting member shall have more than 40 per cent 
of the total votes of those exporting members. The votes of the importing 
members on the Executive Committee shall be divided among them as they shall 
decide, provided that no such importing member shall have more than 40 per cent of 
the total votes of those importing members. 
(4) The Council shall prescribe rules of procedure regarding voting in the 
Executive Committee and may make such other provision regarding rules of 
procedure in the Executive Committee as it thinks fit. A decision of the Executive 
Committee shall require the same majority of votes as this Convention prescribes for 
the Council when making a decision on a similar matter. 
(5) Any member of the Council which is not a member of the Executive 
Committee may participate, without voting, in the discussion of any question before 
the Executive Committee whenever the latter considers that the interests of that 
member are affected. 
SCO 
ARTÎCLE-16 
Market Conditions Committee 
(1) The Council shall establish a Market Conditions Committee, which shall be a 
Committee of the whole. The Chairman of the Market Conditions Committee shall 
be the Executive Director, unless the Council decides otherwise. 
(2) Invitations to attend the meetings of the Market Conditions Committee as 
observers may be extended to representatives of non-member Governments and 
international organizations, as the Chairman of the Committee considers 
appropriate. 
(3) The Committee shall keep under continuous review, and report to members 
on, all matters affecting the world grain economy. The Committee shall take account 
in its review of relevant information supplied by any member of the Council. 
(4) The Committee shall supplement the guidance given by the Council to assist 
the Secretariat in carrying out the work envisaged in Article 3. 
(5) The Committee shall advise in accordance with the relevant Articles of this 
Convention and on any matters which the Council or the Executive Committee may 
refer to it. 
ARTICLE 17 
Secretariat 
(1) The Council shall have a Secretariat consisting of an Executive Director, who 
shall be its chief administrative officer, and such staff as may be required for the 
work of the Council and its Committees. 
(2) The Council shall appoint the Executive Director who shall be responsible for 
the performance of the duties devolving upon the Secretariat in the administration of 
this Convention, and for the performance of such other duties as are assigned to 
him by the Council and its Committees. 
(3) The staff shall be appointed by the Executive Director in accordance 
with regulations established by the Council. 
(4) It shall be a condition of employment of the Executive Director and of the staff 
that they do not hold or shall cease to hold financial interest in the grain trade and 
that they shall not seek or receive instructions regarding their duties under this 
Convention from any Government or from any other authority external to the 
Council. 
XA 
ARTICLE 18 
Admission of observers 
The Council may invite any non-member State, and any intergovernmental 
organization, to attend any of its meetings as an observer. 
ARTICLE 19 
Co-operation with other intergovernmental organisations 
(1) The Council may make whatever arrangements are appropriate for 
consultation or co-operation with the United Nations, its organs, and such other 
specialized agencies and intergovernmental organisations as may be appropriate, in 
particular the United Nations Conference on Trade and Development, the Food and 
Agriculture Organization, the Common Fund for Commodities and the World Food 
Programme. 
(2) The Council, bearing in mind the particular role of the United Nations 
Conference on Trade and Development in international commodity trade, will, as 
it considers appropriate, keep the United Nations Conference on Trade and 
Development informed of its activities and programmes of work. 
(3) If the Council finds that any terms of this Convention are materially 
inconsistent with such requirements as may be laid down by the United Nations 
through its appropriate organs or by its specialised agencies regarding 
intergovernmental commodity agreements, the inconsistency shall be deemed to be 
a circumstance affecting adversely the operation of this Convention and the 
procedure prescribed in Article 32 shall be applied. 
ARTICLE 20 
Privileges and immunities 
(1) The Council shall have legal personality. It shall in particular have the 
capacity to contract, acquire and dispose of movable and immovable property and to 
institute legal proceedings. 
(2) The status, privileges and immunities of the Council 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 Wheat Council signed at London on 28 November 1968. 
(3) The Agreement referred to in paragraph (2) of this Article shall be 
independent of the present Convention. It shall however terminate: 
8ÛL 
(a) by agreement between the Government of the United Kingdom of 
Great Britain and Northern Ireland and the Council, or 
(b) in the event of the seat of the Council being moved from the United 
Kingdom, or 
(c) in the event of the Council ceasing to exist. 
(4) In the event of the seat of the Council being moved from the United Kingdom, 
the Government of the member in which the seat of the Council is situated shall 
conclude with the Council an international agreement relating to the status, privileges 
and immunities of the Council, its Executive Director, its staff and representatives of 
members at meetings convened by the Council. 
ARTICLE 21 
Finance 
(1) The expenses of delegations to the Council and of representatives on its 
Committees and working groups shall be met by their respective Governments. The 
other expenses necessary for the administration of this Convention shall be met 
by annual contributions from all members. The contribution of each member for 
each fiscal year shall be in the proportion which the number of its votes in the Annex 
bears to the total of the votes of members in the Annex, as adjusted under Article 11 
to reflect the membership of the Convention at the time when the budget for that 
fiscal year is adopted. 
(2) At its first session after this Convention comes into force, the Council shall 
approve its budget for the fiscal year ending 30 June 1996, and assess the 
contribution to be paid by each member. 
(3) The Council shall, at a session during the second half of each fiscal year, 
approve its budget for the following fiscal year and assess the contribution to be paid 
by each member for that fiscal year. 
(4) The initial contribution of any member acceding to this Convention under 
paragraph (2) of Article 27 shall be assessed on the basis of the votes agreed with 
the Council as a condition for its accession, and the period of the current fiscal year 
remaining at the time of accession, but the assessments of contributions to be paid 
by the other members in that fiscal year shall not be altered. 
(5) Contributions shall be payable immediately upon assessment. 
(6) If, at the end of six months following the date on which its contribution is due 
in accordance with paragraph (5) of this Article, a member has not paid its full 
contribution, the Executive Director shall request the member to make payment as 
quickly as possible. If, at the expiration of six months after the request of the 
Executive Director, the member has still not paid its contribution, its voting rights in 
S3 
the Council and in the Executive Committee shall be suspended until such 
time as it has made full payment of the contribution. 
(7) A member whose voting rights have been suspended under paragraph (6) of 
this Article shall not be deprived of any of its other rights or relieved of any of its 
obligations under this Convention, unless the Council so decides by special vote. It 
shall remain liable to pay its contribution and to meet any other of its financial 
obligations under this Convention. 
(8) The Council shall, each fiscal year, publish an audited statement of its 
receipts and expenditures in the previous fiscal year. 
(9) The Council shall, prior to its dissolution, provide for the settlement of its 
liabilities and the disposai of its records and assets. 
ARTICLE 22 
Economic provisions 
The Council may, at an appropriate time, examine the possibility of the 
negotiation of a new international agreement or convention with economic 
provisions, and report to members, making such recommendations as it deems 
appropriate. The Council may, when it is judged that such a negotiation could be 
successfully concluded, request the Secretary-General of the United Nations 
Conference on Trade and Development to convene a negotiating conference. 
IH 
PART III - FINAL PROVISIONS 
ARTICLE 23 
Depositary 
(1) The Secretary-General of the United Nations is hereby designated as the 
depositary of this Convention. 
(2) The depositary shall notify ait signatory and acceding Governments of each 
signature, ratification, acceptance, approval, provisional application of, and 
accession to, this Convention, as well as each notification and notice received 
under Articles 29 and 32. 
ARTICLE 24 
Signature 
This Convention shall be open for signature at United Nations Headquarters 
from 1 May 1995 until and including 30 June 1995 by the Governments listed in the 
Annex. 
ARTICLE 25 
Ratification, acceptance, approval 
(1) This Convention shall be subject to ratification, acceptance or approval by 
each signatory Government in accordance with its respective constitutional 
procedures. 
(2) Instruments of ratification, acceptance or approval shall be deposited with 
the depositary not later than 30 June 1995. The Council may, however, grant one 
or more extensions of time to any signatory Government which is unable to deposit 
its instrument by that date. The Council shall inform the depositary of all such 
extensions of time. 
xs 
ARTICLE 26 
Provisional application 
Any signatory Government and any other Government eligible to sign this 
Convention, or whose application for accession is approved by the Council, may 
deposit with the depositary a declaration of provisional application. Any Government 
depositing such a declaration shall provisionally apply this Convention in accordance 
with its laws and regulations and be provisionally regarded as a party thereto. 
ARTICLE 27 
Accession 
(1) Any Government listed in the Annex may accede to the present Convention 
until and including 30 June 1995, except that the Council may grant one or more 
extensions of time to any Government which has not deposited its instrument by 
that date. 
(2) This Convention shall be open for accession after 30 June 1995 by the 
Governments of all States upon such conditions as the Council considers 
appropriate. Accession shall be effected by the deposit of an instrument of 
accession with the depositary. Such instruments of accession shall state that the 
Government accepts all the conditions established by the Council. 
(3) Where, for the purposes of the operation of this Convention, reference is 
made to members listed in the Annex, any member the Government of which has 
acceded to this Convention on conditions prescribed by the Council in accordance 
with this Article shall be deemed to be listed in the Annex. 
ARTICLE 28 
Entry into force 
(1) This Convention shall enter into force on 1 July 1995 if instruments of 
ratification, acceptance, approval or accession, or declarations of provisional 
application have been deposited not later than 30 June 1995 on behalf of 
Governments listed in part A of the Annex holding, at least, 88 per cent of the total 
votes set out in part A of the Annex. 
(2) If this Convention does not enter into force in accordance with paragraph (1) 
of this Article, the Governments which have deposited instruments of ratification, 
acceptance, approval or accession, or declarations of provisional application, may 
decide by mutual consent that it shall enter into force between themselves, or 
may take whatever action they consider the situation requires. 
&r 
ARTICLE 29 
Withdrawal 
Any member may withdraw from this Convention at the end of any fiscal year 
by giving written notice of withdrawal to the depositary at least ninety days prior to 
the end of that fiscal year, but shall not thereby be released from any obligations 
under this Convention which have not been discharged by the end of that fiscal year. 
The member shall simultaneously inform the Council of the action it has taken. 
ARTICLE 30 
Exclusion 
If the Council finds that any member is in breach of its obligations under 
this Convention and decides further that such breach significantly impairs the 
operation of this Convention, it may, by special vote, exclude such member from 
the Council. The Council shall immediately notify the depositary of any such 
decision. Ninety days after the date of the Council's decision, that member shall 
cease to be a member of the Council. 
ARTICLE 31 
Settlement of accounts 
(1) The Council shall determine any settlement of accounts which it finds 
equitable with a member which has withdrawn from this Convention or which 
has been excluded from the Council, or has otherwise ceased to be a party to this 
Convention. The Council shall retain any amounts already paid by such member. 
Such member shall be bound to pay any amounts due from it to the Council. 
(2) ' Upon termination of this Convention, 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 Council; nor shall it be burdened with any part of the deficit, if 
any, of the Council. 
fy 
ARTICLE 32 
Amendment 
(1) The Council may by special vote recommend to members an 
amendment of this Convention. The amendment shall become effective 100 days 
after the depositary has received notifications of acceptance from exporting 
members which hold two thirds of the votes of the exporting members and by 
importing members which hold two thirds of the votes of the importing members, 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 a party to this Convention, 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 33 
Duration, extension and termination 
(1) This Convention shall remain in force until 30 June 1998, unless extended 
under paragraph (2) of this Article, or terminated earlier under paragraph (3) of this 
Article, or replaced before that date by a new agreement or convention negotiated 
under Article 22. 
(2) The Council may, by special vote, extend this Convention beyond 30 June 
1998 for successive periods not exceeding two years on each occasion. Any 
member which does not accept such extension of this Convention shall so inform the 
Council at least thirty days prior to the extension coming into force. Such a member 
shall cease to be a party to this Convention from the beginning of the period of 
extension, but it shall not thereby be released from any obligations under this 
Convention which have not been discharged prior to that date. 
(3) The Council may at any time decide, by special vote, to terminate this 
Convention with effect from such date and subject to such conditions as it may 
determine. 
xs 
ANNEX TO THE 
GRAINS TRADE CONVENTION, 1995 
VOTES UNDER ARTICLE 11 
(from 1 July 1995 to 30 June 1998) 
PART A 
Algeria 15 
Argentina 97 
Australia 122 
Austria 5 
Barbados 5 
Bolivia 5 
Canada 243 
Côte d'Ivoire 5 
Cuba 6 
Ecuador 5 
Egypt (Arab Republic of) 55 
European Community 443 
Finland 5 
Hungary 13 
India 32 
Iran : 9 
Iraq 9 
Israel 8 
Japan 187 
Korea, Republic 26 
Malta. 5 
Mauritius 5 
Morocco 10 
Norway : 11 
Pakistan 14 
Panama 5 
Russian Federation 100 
Saudi Arabia 17 
South Africa 16 
Sweden 10 
Switzerland 15 
Tunisia 5 
Turkey 7 
United States of America 475 
Vatican City 5 
Yemen Arab Republic 5 
2,000 
2^ 
PARTB 
Bangladesh 9 
Belarus 5 
Brazil 32 
Bulgaria : 7 
Chile 6 
China (People's Republic of)..... , 77 
Colombia.... 5 
Cyprus 5 
Czech Republic 6 
Dominican Republic 5 
El Salvador ,5 
Estonia . 5 
Ethiopia 5 
Ghana 5 
Guatemala......... 5 
Indonesia... 9 
Jamaica 5 
Jordan 5 
Kazakhstan 5 
Kenya 5 
Kuwait 5 
Latvia 5 
Lithuania 5 
Malaysia 8 
Mexico 28 
New Zealand 5 
Nigeria 6 
Paraguay 5 
Peru 9 
Philippines 7 
Poland....... 31 
Romania 14 
Senegal 5 
Slovakia 6 
Sri Lanka 5 
Sudan... .................: 5 
Syrian Arab Rep.... 7 
Taiwan ;........ 26 
Tanzania 5 
Thailand . 17 
Trinidad and Tobago 5 
Ukraine 8 
Uruguay 5 
Uzbekistan 14 
Venezuela 13 
Viet Nam 5 
Zaire 5 
Zambia 5 
Zimbabwe 5 
~$o 
FOOD AID CONVENTION, 1995 
PART I - OBJECTIVE AND DEFINITIONS 
ARTICLE I 
Objective 
The objective of this Convention is to secure, through a joint effort by the 
international community, the achievement of the World Food Conference target of at least 
10 million tonnes of food aid annually to developing countries in the form of grain suitable for 
human consumption, and as determined by the provisions of this Convention. 
ARTICLE II 
Definitions 
For the purposes of this Convention: 
(1) (a) "c.i.f." means cost, insurance and freight; 
(b) "Committee" means the Food Aid Committee referred to in Article IX of this 
Convention; 
(c) "Convention" means the Food Aid Convention, 1995; 
(d) "developing country", unless the Committee decides otherwise, means any 
country or territory which is recognised by the Development Assistance 
Committee of OECD as a developing country or territory. 
(e) "Executive Director" means the Executive Director of the International Grains 
Council; 
(f) "f.o.b." means free on board; 
*M 
(g) "pulses" includes the following species: 
Cicer arietinum 
Lens culinaris 
Lupins angustifolius/albus 
Phaseolus vulgaris/lunatus 
Pisum sativum 
Vicia faba 
Vigna angularis/sinensis/unguiculata 
Vigna radiata/mungo 
and any other species which the Committee may decide. 
(h) "member" means a party to this Convention; 
(i) "products of primary processing" include: 
(i) cereal flours; 
(ii) cereal groats and cereal meal; 
(Hi) other worked cereal grains (e.g. rolled, flaked, polished, pearled and 
kibbled, but not further prepared) except husked, glazed, polished or 
broken rice; 
(iv) germ of cereals, whole, rolled, flaked or ground; 
(v) bulgur; and 
(vi) any other similar grain product which the Committee may decide; 
(j) "products of secondary processing" include: 
(i) macaroni, spaghetti and similar products; and 
(ii) any other product, whose manufacture involves the use of a product 
of primary processing, which the Committee may decide; 
(k) "rice" includes husked, glazed, polished or broken rice; 
(I) "Secretariat" means the Secretariat of the International Grains Council; 
(m) "tonne" means a metric ton of 1,000 kilograms; 
(n) "Usual Marketing Requirement" or "UMR" is the term, as currently used by 
the FAO and other responsible international organisations, for the 
commitment by a country receiving a concessional transaction to maintain the 
normal level of commercial imports of the commodity concerned, in addition 
to the imports provided under the concessional transaction. 
(o) "wheat equivalent" means the amount of a member's contribution, whether 
provided in grain, in grain products, in rice or in cash, as evaluated in terms 
of wheat in accordance with the provisions of Article VI of this Convention; 
(p) "year" means the period from 1 July to the following 30 June, unless 
otherwise stated. 
b^. 
(2) Any reference in this Convention to a "Government" or "Governments" or a 
"member" shall be construed as including a reference to the European Community 
(hereinafter referred to as the EC). Accordingly, any reference in this Convention to 
"signature" or to the "deposit of instruments of ratification, acceptance or approval" or "an 
instrument of accession" or to a "declaration of provisional application" by a Government 
shall, in the case of the EC, be construed as including signature or declaration of provisional 
application on behalf of the EC by its competent authority, and the deposit of the instrument 
required by the institutional procedures of the EC to be deposited for the conclusion of an 
international agreement. 
PART II - MAIN PROVISIONS 
ARTICLE III 
Contributions of members 
(1) The members of this Convention agree to contribute to developing countries grains 
as food aid, suitable for human consumption and of an acceptable type and quality, or the 
cash equivalent thereof, in the minimum annual amounts specified in paragraph (4) below. 
In supplying grain under this Convention, priority is to be given to countries or territories with 
food import needs which are classified by the Development Assistance Committee of the 
OECD as least developed countries (LDCs), other low-income countries (LICs) or lower 
middle-income countries (LMICs). 
(2) For the purposes of paragraph (1) of this Article, "grain" or "grains" means wheat, 
barley, maize, millet, oats, rye, sorghum and rice, or the products (including products of 
primary and secondary processing) derived therefrom, and also pulses, subject to the 
provisions of paragraph (3) of this Article, and any other type of grain or grain product, 
suitable for human consumption and of an acceptable type and quality, that the Committee 
may decide. 
(3) At the request of recipient countries, donors may provide limited quantities of pulses 
against their obligations under this Convention, provided these are of an acceptable type 
and quality and are suitable for human consumption. The Committee shall establish a Rule 
of Procedure to determine the maximum percentage of the wheat equivalent of members' 
minimum annual contributions, as set out in paragraph (4) of this Article, which may be 
provided in the form of pulses. 
^ 
(4) The minimum annual contribution, in wheat equivalent, of each member towards the 
achievement of the objective of Article I is as follows, subject to paragraph (9) of this Article: 
Member Tonnes 
Argentina 35,000 
Australia 300,000 
Canada 400,000 
European Community and its 
member States 1,755,000 
Japan 300,000 
Norway 20,000 
Switzerland 40,000 
United States of America 4,470,000 
(5) For the purposes of the operation of this Convention, any member which has 
acceded to this Convention pursuant to paragraph (2) of Article XX shall be deemed to be 
listed in paragraph (4) of this Article together with its minimum contribution as determined 
under the provisions of Article XX. 
(6) Contributions in the form of grains shall be placed in a f.o.b. forward position by 
members. However, donors are encouraged, as appropriate, to bear the costs of 
transporting their grain contributions under this Convention beyond the f.o.b. stage, 
especially in emergency situations or in the case of shipments to low-income, food deficit 
countries. Due reference to the payment of such costs shall be made in any review of the 
performance of members in this Convention. 
(7) Cash contributions under sub-paragraph (b) of Article IV: 
(a) shall be used, as far as possible, to buy grain from developing countries. 
Preference shall be given to developing members of the Grains Trade and Food Aid 
Conventions, with first priority to developing members of the Food Aid Convention. 
However, in all transactions resulting from cash contributions, special regard shall be 
had, when deciding on a source of supply, to the quality of the grain, the c.i.f. price 
advantages of using that particular supplier, the possibilities of speedy delivery to the 
recipient country and the specific requirements of the recipient country. 
(b) shall not normally be made to purchase grain which is of the same type that 
the country that is the source of supply has received as bilateral or multilateral food 
aid in the same year as the purchase, or in a previous year if the grain then received 
is still being used. 
^q 
(8) To the maximum extent possible, contributions shall be made by members on a 
forward planning basis, so that recipient countries may be able to take account, in their 
development programmes, of the likely flow of food aid they will receive during each year of 
this Convention. Furthermore, members should, to the extent possible, indicate in advance 
the amount of their contributions to be made in the form of gifts, and the grant element of 
any aid which is not in the form of gifts. 
(9) If a member is unable to provide the amount specified in paragraph (4) of this Article 
in a particular year, the unfulfilled amount shall be added to its amount in the following year, 
unless the Committee decides otherwise owing to high transport costs. 
(10) Members shall provide regular and timely reports to the Committee on the amount, 
content, channelling and terms of their contributions under this Convention. 
ARTICLE IV 
Terms of food aid contributions 
Food aid under this Convention may be supplied on any of the following terms: 
(a) gifts of grain; 
(b) gifts or grants of cash to be used to purchase grain for the recipient country. 
(c) sales of grain for the currency of the recipient country which is not 
transferable and is not convertible into currency or goods and services for 
use by the donor members^ 
(d) sales of grain on credit, with payment to be made in reasonable annual 
amounts over periods of 20 years or more and with interest at rates which are 
below commercial rates prevailing in world markets^; 
on the understanding that such aid shall be supplied to the maximum extent possible by way 
of gifts, especially in the case of least developed countries, low per capita income countries 
and other developing countries in serious economic difficulties. 
1/ Under exceptional circumstances an exemption of not more than 10% may be granted. This limitation may 
be waived for transactions which are to be used for the expansion of economic development activity in the 
recipient country, provided that the currency of the recipient country is not transferable or convertible in less 
than 10 years. 
^ The credit sales agreement may provide for payment of up to 15% of principal upon delivery of the grain. 
5 
ARTICLE V 
Channelling of contributions 
(1) Members may, in respect of their contributions under this Convention, specify a 
recipient country or countries. 
(2) Members may make their contributions bilaterally or through intergovernmental 
organizations and/or non-governmental organizations. 
(3) Members shall give full consideration to the advantages of directing a greater 
proportion of food aid through multilateral channels, in particular the World Food 
Programme. 
ARTICLE VI 
Wheat equivalents 
(1) For the purposes of this Convention, all contributions under Article III shall be 
evaluated in terms of their wheat equivalent. The evaluation shall take account, where 
appropriate, of the grain content of grain products, and the commercial value of the 
contribution relative to wheat. 
(2) Contributions of rice shall be evaluated in terms of wheat equivalent in accordance 
with the international export price relationship between rice and wheat. The Committee 
shall establish a Rule of Procedure for the annual determination of the wheat equivalent of 
rice. 
(3) Contributions of cash under sub-paragraph (b) of Article IV shall be evaluated at 
prevailing international market prices of wheat. The Committee shall establish a Rule of 
Procedure for the annual determination of the "prevailing international market price". 
(4) The Committee shall establish Rules of Procedure for the determination of the wheat 
equivalent of contributions made in forms other than wheat, rice or cash. 
ARTICLE VII 
Impact on trade and agricultural production, and conduct 
of aid transactions 
(1) Members undertake to conduct all aid transactions under this Convention in such a 
way as to avoid harmful interference with normal patterns of production and international 
commercial trade. 
£<? 
(2) Members shall ensure in particular: 
(a) that the provision of international food aid is not tied directly or indirectly to 
commercial exports of agricultural products to recipient countries; 
(b) that international food aid transactions, including bilateral food aid which is 
monetised, shall be carried out in a manner consistent with the FAO 
"Principles of Surplus Disposal and Consultative Obligations" including, 
where appropriate, the system of Usual Marketing Requirements (UMRs). 
(3) Members shall, as appropriate, act in accordance with the current guidelines and 
criteria for food aid, as approved by the governing body of the World Food Programme. 
ARTICLE VIII 
Special provision for exceptional needs 
(1) The Committee shall keep the food situation in developing countries under regular 
review. 
(2) If it appears that, because of a substantial food production shortfall, or other 
circumstances, a particular country, region or regions is faced with exceptional food needs, 
the Committee shall consider the matter. The Committee may recommend that members 
should respond to the situation by increasing the amount of food aid available. 
ARTICLE IX 
Food Aid Committee 
(1) The Food Aid Committee, established by the Food Aid Convention of the 
International Grains Arrangement, 1967, shall continue in being for the purpose of 
administering this Convention, with the powers and functions provided in this Convention. 
(2) The membership of the Committee shall consist of all parties to this Convention. 
(3) The Committee shall appoint a Chairman and a Vice-Chairman. 
ARTICLE X 
Powers and functions of the Committee 
(1) The Committee shall keep under review the way in which the obligations undertaken 
under this Convention have been fulfilled; 
3^ 
(2) The Committee shall exchange information on a regular basis on the functioning of 
the food aid arrangements under this Convention; 
(3) The Committee may receive information from recipient countries and consult with 
them; 
(4) The Committee shall issue reports as necessary; 
(5) The Committee shall establish such Rules of Procedure as are necessary to carry 
out the provisions of this Convention; 
(6) In addition to the powers and functions specified in this Article, the Committee shall 
have such other powers and perform such other functions as are necessary to carry out the 
provisions of this Convention. 
ARTICLE XI 
Seat, sessions and quorum 
(1 ) The seat of the Committee shall be in London. 
(2) The Committee shall meet at least twice a year in conjunction with the statutory 
sessions of the International Grains Council. The Committee shall meet also at such other 
times as the Chairman shall decide; or at the request of three members; or as otherwise 
required by this Convention. 
(3) The presence of delegates representing two thirds of the membership of the 
Committee shall be necessary to constitute a quorum at any session of the Committee. 
ARTICLE XII 
Decisions 
The decisions of the Committee shall be reached by consensus. 
ARTICLE XIII 
Admission of observers 
The Committee may, when appropriate, invite any non member state and 
representatives from other international organizations to attend its open meetings as 
observers. 
*» 
ARTICLE XIV 
Administrative provisions 
The Committee shall use the services of the Secretariat for the performance of such 
administrative duties as the Committee may request, including the processing and 
distribution of documentation and reports. 
ARTICLE XV 
Defaults and disputes 
In the case of a dispute concerning the interpretation or application of this 
Convention, or of a default in obligations under this Convention, the Committee shall meet 
and take appropriate action. 
PART III - FINAL PROVISIONS 
ARTICLE XVI 
Depositary 
The Secretary-General of the United Nations is hereby designated as the depositary 
of this Convention. 
ARTICLE XVII 
Signature 
This Convention shall be open for signature at United Nations headquarters from 1 
May 1995 until and including 30 June 1995 by the Governments refenred to in paragraph (4) 
of Article ill. 
!>
 
ARTICLE XVIII 
Ratification, acceptance or approval 
This Convention shall be subject to ratification, acceptance or approval by each 
signatory Government in accordance with its constitutional procedures. Instruments of 
ratification, acceptance or approval shall be deposited with the depositary not later than 30 
June 1995, except that the Committee may grant one or more extensions of time to any 
signatory Government that has not deposited its instrument of ratification, acceptance or 
approval by that date. 
ARTICLE XIX 
Provisional application 
Any signatory Government may deposit with the depositary a declaration of 
provisional application of this Convention. Any such Government shall provisionally apply 
this Convention in accordance with its laws and regulations and be provisionally regarded as 
a party thereto. 
ARTICLE XX 
Accession 
(1) This Convention shall be open for accession by any Government referred to in 
paragraph (4) of Article ill that has not signed this Convention. Instruments of accession 
shall be deposited with the depositary not later than 30 June 1995, except that the 
Committee may grant one or more extensions of time to any Government that has not 
deposited its instrument of accession by that date. 
(2) Once this Convention has entered into force in accordance with Article XXI, it shall 
be open for accession by any Government other than those referred to in paragraph (4) of 
Article III, upon such conditions as the Committee considers appropriate. Instruments of 
accession shall be deposited with the depositary. 
(3) Any Government acceding to this Convention under paragraph (1) of this Article, or 
whose accession has been agreed by the Committee under paragraph (2) of this Article, 
may deposit with the depositary a declaration of provisional application of this Convention 
pending the deposit of its instrument of accession. Any such Government shall provisionally 
apply this Convention in accordance with its laws and regulations and be provisionally 
regarded as a party thereto. 
UjO 
ARTICLE XXI 
Entry into force 
(1) This Convention shall enter into force on 1 July 1995 if by 30 June 1995 the 
Governments, whose combined minimum contributions, as listed in paragraph (4) of Article 
III, equal at least 75% of the total contributions of all governments listed in that paragraph, 
have deposited instruments of ratification, acceptance, approval or accession, or 
declarations of provisional application, and provided that the Grains Trade Convention, 1995 
is in force. 
(2) If this Convention does not enter into force in accordance with paragraph (1) of this 
Article, the Governments which have deposited instruments of ratification, acceptance, 
approval or accession, or declarations of provisional application, may decide by unanimous 
consent that it shall enter into force among themselves provided that the Grains Trade 
Convention, 1995 is in force. 
ARTICLE XXII 
Duration, extension and termination 
(1) This Convention shall remain in force until and including 30 June 1998, unless 
extended under paragraph (2) of this Article or terminated earlier under paragraph (4) of this 
Article, provided that the Grains Trade Convention, 1995, or a new Grains Trade Convention 
replacing it, remains in force until and including that date. 
(2) The Committee may extend the Convention beyond 30 June 1998 for successive 
periods not exceeding two years on each occasion, provided always that the Grains Trade 
Convention, 1995, or a new Grains Trade Convention replacing it, remains in force during 
the period of the extension. 
(3) If the Convention is extended under paragraph (2) of this Article, the annual 
contributions of members under paragraph (4) of Article III may be subject to review by 
members before the entry into force of each extension. Their respective obligations, as 
reviewed, shall remain unchanged for the duration of each extension. 
(4) In the event of this Convention being terminated, the Committee 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. 
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ARTICLE XXIII 
Withdrawal and rejoining 
(1) Any member may withdraw from this Convention at the end of any year by giving 
written notice of withdrawal to the depositary at least ninety days prior to the end of that 
year, but shall not thereby be released from any obligations incurred under this Convention 
which have not been discharged by the end of that year. The member shall simultaneously 
inform the Committee of the action it has taken. 
(2) Any member which withdraws from this Convention may thereafter rejoin by giving 
notice to the Committee. It shall be a condition of rejoining the Convention that the member 
shall be responsible for fulfilling its full annual obligations with effect from the year in which it 
rejoins. 
ARTICLE XXIV 
Relationship of this Convention to the 
International Grains Agreement, 1995 
This Convention shall replace the Food Aid Convention, 1986, as extended, and 
shall be one of the constituent instruments of the International Grains Agreement, 1995. 
ARTICLE XXV 
Notification by depositary 
The Secretary-General of the United Nations as depositary shall notify ail signatory 
and acceding Governments of each signature, ratification, acceptance, approval, provisional 
application of, and accession to, this Convention. 
ARTICLE XXVI 
Authentic texts 
The texts of this Convention in the English, French, Russian and Spanish languages 
shall all be equally authentic. 
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ISSN 0254-1475 
COM(95) 280 final 
DOCUMENTS 
EN 11 03 
Catalogue number : CB-CO-95-311-EN-C 
ISBN 92-77-90749-5 
Office for Officiai Publications of the European Communities 
L-2985 Luxembourg 
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