on the position to be adopted, on behalf of the European Union, in the International Sugar Council as regards the extension of the International Sugar Agreement 1992

EXPLANATORY MEMORANDUM

1.Subject-matter of the proposal

The present proposal concerns the decision establishing the position to be adopted on behalf of the Union in the International Sugar Council in connection with the envisaged decision on the extension of the International Sugar Agreement 1992 by another two years.

2.Context of the proposal

2.1.The International Sugar Agreement 1992

The International Sugar Agreement 1992 (‘the Agreement’) aims to ensure enhanced international cooperation in connection with world sugar matters and related issues, provide a forum for intergovernmental consultations on sugar and on ways to improve the world sugar economy, to facilitate trade by collecting and providing information on the world sugar market and other sweeteners and to encourage increased demand for sugar, particularly for nontraditional uses. The agreement entered into force on 1 January 1993.

The European Union is a party to the Agreement.

2.2.The International Sugar Council

The International Sugar Council is the responsible body for the performance of all functions necessary to carry out the provisions of the Agreement. It adopts rules and regulations including rules of procedure for the Council and its committees and the financial and staff regulations of the Organization. The Council keeps the necessary records and publishes an annual report and other information if deemed appropriate.

Members to the Agreement hold 2000 votes in total. Each Member to the Agreement holds a specified number of votes which is annually adjusted following predefined criteria in the Agreement. All decisions of the Council shall be taken in principle by consensus unless stipulated otherwise in the Agreement. In the absence of consensus, decisions shall be made by simple majority vote unless the Agreement provides for a special vote.

2.3.The envisaged act of the International Sugar Council

Following its 51st session on 22 June 2017 the International Sugar Council is to take a decision regarding the extension of the International Sugar Agreement 1992 by another 2 years (‘the envisaged act’). The decision will be taken by written procedure.

The envisaged act shall become binding on the parties in accordance with Article 45 (2) of the Agreement, which provides: ‘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.Position to be adopted on behalf of the Union

The International Sugar Agreement 1992, (hereinafter: the “Agreement”) was concluded by the Community by Decision 92/580/EEC and entered into force on 1 January 1993 for a period of three years until 31 December 1995. Since then it has been regularly extended for further periods of two years. The Agreement was extended last time by decision of the International Sugar Council in June 2015 and remains into force until 31 December 2017. A further extension of the Agreement by up to two years is in the interest of the European Union.

The extension of the Agreement entails the prolongation of the EU contribution to the administrative budget of the Agreement and creates legal effects. That contribution is budgeted under item 05 06 01 of the EU budget (International agricultural agreements).

The purpose of this proposal is to seek the Council’s authorisation to the Commission to inform the International Sugar Council in writing, on behalf of the Union, that the Union is in favour of the extension of the Agreement up to 31 December 2019.

Since the extension of the Agreement creates legal effects for the Union a Union position is needed.

4.Legal basis