International Coffee Agreement 2001
Date: 2000-09-28
Institutions: Angola, Austria, Belgium, Benin, Bolivia, Brazil, Bulgaria, Burundi, Cameroon, Central African Republic, Colombia, Congo, Costa Rica, Cuba, Cyprus, Czechia, Côte d’Ivoire, Democratic Republic of the Congo, Denmark, Dominican Republic, Ecuador, El Salvador, Estonia, Ethiopia, European Community, Finland, France, Gabon, Germany, Ghana, Greece, Guatemala, Guinea, Haiti, Honduras, Hungary, India, Indonesia, Ireland, Italy, Jamaica, Japan, Kenya, Latvia, Lithuania, Luxembourg, Madagascar, Malawi, Malta, Mexico, Netherlands, Nicaragua, Nigeria, Panama, Papua New Guinea, Paraguay, Philippines, Poland, Portugal, Romania, Rwanda, Slovakia, Slovenia, Spain, Sweden, Switzerland, Tanzania, Thailand, Togo, Uganda, United Kingdom, United States, Venezuela, Viet Nam, Zambia, Zimbabwe
Subjects: agreement (EU), coffee, commodity agreement, international agreement, trade by product

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CONTENTS

Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

CHAPTER I — OBJECTIVES

CHAPTER II — DEFINITIONS

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

CHAPTER III — GENERAL UNDERTAKINGS BY MEMBERS

General undertakings by Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

CHAPTER IV — MEMBERSHIP

Membership of the Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Separate membership in respect of designated territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Group membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

CHAPTER V — THE INTERNATIONAL COFFEE ORGANIZATION

Seat and structure of the International Coffee Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Privileges and immunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

CHAPTER VI — THE INTERNATIONAL COFFEE COUNCIL

Composition of the International Coffee Council
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Powers and functions of the Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Chairman and Vice-Chairmen of the Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Sessions of the Council
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Votes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Voting procedure of the Council
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Decisions of the Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Cooperation with other organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

CHAPTER VII — THE EXECUTIVE BOARD

Composition and meetings of the Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Election of the Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Competence of the Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Voting procedure of the Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

CHAPTER VIII — THE PRIVATE COFFEE SECTOR

The World Coffee Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
The Private Sector Consultative Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

CHAPTER IX — FINANCE

Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Determination of the Administrative Budget and assessment of contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Payment of contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Audit and publication of accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

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The Executive Director and the staff

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CHAPTER X — GENERAL PROVISIONS

CHAPTER XI — INFORMATION, STUDIES AND SURVEYS

Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Certificates of Origin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Studies and surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

CHAPTER XII — GENERAL PROVISIONS

Preparations for a new Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Removal of obstacles to consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Measures related to processed coffee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Mixtures and substitutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Consultation and cooperation with non-governmental organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Established coffee trade channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Sustainable coffee economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Standard of living and working conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

CHAPTER XIII — CONSULTATIONS, DISPUTES AND COMPLAINTS

Consultations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Disputes and complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

CHAPTER XIV — FINAL PRIVISIONS

Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Ratification, acceptance or approval
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Entry into force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Accession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Reservations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Extension to designated territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Voluntary withdrawal
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Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Settlement of accounts with withdrawing or excluded Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Duration and termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Supplementary and transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Authentic texts of the Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

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ANNEX I

Conversion factors for roasted, decaffeinated,
national Coffee Agreement 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

liquid and soluble coffee as defined in the Inter-

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INTERNATIONAL COFFEE AGREEMENT 2001

PREAMBLE

THE GOVERNMENTS PARTY TO THIS AGREEMENT,

Recognizing the exceptional importance of coffee to the economies of many countries which are largely dependent upon
this commodity for their export earnings and thus for the continuation of their development programmes in the social
and economic fields;

Recognizing the importance of the coffee sector to the livelihoods of millions of people, particularly in developing
countries, and bearing in mind that in many of these countries production is on small-scale family farms;

Recognizing the need to foster the development of productive resources and the promotion and maintenance of
employment and income in the coffee industry in Member countries, thereby bringing about fair wages, higher living
standards and better working conditions;

Considering that close international cooperation on trade in coffee will foster the economic diversification and develop-
ment of coffee-producing countries, will contribute to the improvement of political and economic relations between
coffee exporting and importing countries, and will provide for increasing consumption of coffee;

Recognizing the desirability of avoiding disequilibrium between production and consumption which can give rise to
pronounced fluctuations in prices harmful both to producers and to consumers;

Considering the relationship between the stability of the trade in coffee and the stability of markets for manufactured
goods;

Noting the advantages derived from the international cooperation which resulted from the operation of the International
Coffee Agreements 1962, 1968, 1976, 1983 and 1994,

HAVE AGREED AS FOLLOWS:

CHAPTER I

OBJECTIVES

Article 1

Objectives

The objectives of this Agreement are:

1. to promote international cooperation on coffee matters;

2. to provide a forum for intergovernmental consultations,
and negotiations when appropriate, on coffee matters and
on ways to achieve a reasonable balance between world
supply and demand on a basis which will assure adequate
supplies of coffee at fair prices to consumers and markets
for coffee at remunerative prices to producers, and which
will be conducive to long-term equilibrium between
production and consumption;

3. to provide a forum for consultations on coffee matters

with the private sector;

4. to facilitate the expansion and transparency of

inter-

national trade in coffee;

5. to act as a centre for and promote the collection, dissemi-
nation and publication of economic and technical informa-
tion, statistics and studies, as well as research and develop-
ment,

in coffee matters;

6. to encourage Members to develop a sustainable coffee

economy;

7. to promote, encourage and increase the consumption of

coffee;

8. to analyse and advise on the preparation of projects for
the benefit of the world coffee economy, for their subse-
quent submission to donor or financing organizations, as
appropriate;

9. to promote quality; and

10. to promote

training

information programmes
designed to assist the transfer to Members of technology
relevant to coffee.

and

CHAPTER II

DEFINITIONS

Article 2

Definitions

For the purposes of this Agreement:

1. Coffee means the beans and cherries of the coffee tree,
roasted, and includes
whether parchment, green or
ground, decaffeinated,
liquid and soluble coffee. The
Council shall, as soon as possible after this Agreement
enters into force, and again three years after such date,
review the conversion factors for the types of coffee listed
in subparagraphs (d), (e), (f) and (g) below. Following such
review the Council shall, by a distributed two-thirds
majority vote, determine and publish appropriate conver-
sion factors. Prior to the initial review, and should the
Council be unable to reach a decision on this matter, the
conversion factors will be those used in the International
Coffee Agreement 1994, which are listed in Annex I to
this Agreement. Subject to these provisions, the terms
listed below shall have the following meaning:

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(a) green coffee means all coffee in the naked bean form

before roasting;

(b) dried coffee cherry means the dried fruit of the coffee
tree; to find the equivalent of dried coffee cherry to
the dried
green coffee, multiply the net weight of
coffee cherry by 0,50;

(c) parchment coffee means the green coffee bean contained
in the parchment skin; to find the equivalent of parch-
ment coffee to green coffee, multiply the net weight of
the parchment coffee by 0,80;

(d) roasted coffee means green coffee roasted to any degree

and includes ground coffee;

(e) decaffeinated coffee means green, roasted or soluble
coffee from which caffeine has been extracted;

(f) liquid coffee means the water-soluble solids derived
from roasted coffee and put into liquid form; and

(g) soluble

coffee means the dried water-soluble solids

derived from roasted coffee.

2. Bag means 60 kilogrammes or 132,276 pounds of green
tonne means a mass of 1 000 kilogrammes or

coffee;
2 204,6 pounds; and pound means 453,597 grammes.

3. Coffee year means the period of one year, from 1 October

to 30 September.

4. Organization and Council mean, respectively,

the Inter-
national Coffee Organization and the International Coffee
Council.

5. Contracting Party means a Government or intergovern-
mental organization referred to in paragraph 3 of Article 4
which has deposited an instrument of ratification, accep-
tance, approval or provisional application of this Agree-
ment in accordance with the provisions of Articles 44 and
45 or has acceded thereto in accordance with the provi-
sions of Article 46.

6. Member means a Contracting Party; a designated territory
or territories in respect of which separate membership has
been declared under the provisions of Article 5; or two or
more Contracting Parties or designated territories, or both,
which participate in the Organization as a Member group
under the provisions of Article 6.

7. Exporting Member or exporting country means a Member or
country, respectively, which is a net exporter of coffee;
that is, a Member or country whose exports exceed its
imports.

8. Importing Member or importing country means a Member or
country, respectively, which is a net importer of coffee;
that is, a Member or country whose imports exceed its
exports.

9. Distributed simple majority vote means a vote requiring more
than half of the votes cast by exporting Members present
and voting and more than half of
the votes cast by
importing Members present and voting, counted sepa-
rately.

10. Distributed two-thirds majority vote means a vote requiring
more than two-thirds of
the votes cast by exporting
Members present and voting and more than two-thirds of
the votes cast by importing Members present and voting,
counted separately.

11. Entry into force means, except as otherwise provided, the
date on which this Agreement enters into force, whether
provisionally or definitively.

CHAPTER III

GENERAL UNDERTAKINGS BY MEMBERS

Article 3

General undertakings by Members

1. Members undertake to adopt such measures as are neces-
sary to enable them to fulfil their obligations under this Agree-
ment and fully cooperate with one another in securing the
attainment of the objectives of this Agreement; in particular,
Members undertake to provide all
information necessary to
facilitate the functioning of this Agreement.

2. Members recognize that Certificates of Origin are impor-
tant sources of information on the trade in coffee. Exporting
Members,
therefore, assume responsibility for ensuring the
proper issuing and use of Certificates of Origin according to
the rules established by the Council.

recognize further

3. Members
information on re-
exports is also important for the proper analysis of the world
coffee economy. Importing Members, therefore, undertake to
supply regular and accurate information on re-exports, in the
form and manner determined by the Council.

that

CHAPTER IV

MEMBERSHIP

Article 4

Membership of the Organization

Each Contracting Party, together with those territories to
1.
which this Agreement is extended under the provisions of
paragraph 1 of Article 48, shall constitute a single Member of
the Organization, except as otherwise provided for under the
provisions of Articles 5 and 6.

A Member may change its category of membership on

2.
such conditions as the Council may agree.

Any reference in this Agreement to a Government shall
3.
be construed as
including a reference to the European
Community, or any intergovernmental organization having
the negotiation,
comparable responsibilities
conclusion and application of
in
particular commodity agreements.

international agreements,

in respect of

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Such intergovernmental organization shall not itself have
4.
any votes but in the case of a vote on matters within its
competence it shall be entitled to cast collectively the votes of
its Member States. In such cases, the Member States of such
intergovernmental organization shall not be entitled to exercise
their individual voting rights.

5.
Such intergovernmental organization shall not be eligible
for election to the Executive Board under the provisions of
paragraph 1 of Article 17 but may participate in the discus-
sions of the Executive Board on matters within its competence.
In the case of a vote on matters within its competence, and
notwithstanding the provisions of paragraph 1 of Article 20,
the votes which its Member States are entitled to cast in the
Executive Board may be cast collectively by any one of those
Member States.

Article 5

Separate membership in respect of designated territories

Any Contracting Party which is a net importer of coffee may,
at any time, by appropriate notification in accordance with the
provisions of paragraph 2 of Article 48, declare that it is
participating in the Organization separately with respect to any
of the territories for whose international relations it is respon-
sible, which are net exporters of coffee and which it designates.
In such case, the metropolitan territory and its non-designated
territories will have a single membership, and its designated
territories, either individually or collectively as the notification
indicates, will have separate membership.

Article 6

Group membership

1.
Two or more Contracting Parties which are net exporters
of coffee may, by appropriate notification to the Council and
to the Secretary-General of the United Nations at the time of
deposit of their respective instruments of ratification, accep-
tance, approval, provisional application or accession, declare
that they are participating in the Organization as a Member
group. A territory to which this Agreement has been extended
under the provisions of paragraph 1 of Article 48 may consti-
tute part of such Member group if the Government of the State
responsible for its international relations has given appropriate
notification thereof under the provisions of paragraph 2 of
Article 48. Such Contracting Parties and designated territories
must satisfy the following conditions:

(a) they shall declare their willingness to accept responsibility
for group obligations in an individual as well as a group
capacity; and

(b) they shall subsequently provide satisfactory evidence to the

Council that:

(i) the group has the organization necessary to implement
a common coffee policy and that they have the means
of complying, together with the other parties to the
group, with their obligations under this Agreement; and

(ii) they have a common or coordinated commercial and
economic policy in relation to coffee and a coordinated
monetary and financial policy, as well as the organs

the
necessary to implement such policies, so that
Council is satisfied that the Member group is able to
comply with the group obligations involved.

Any Member group recognized under the International
2.
Coffee Agreement 1994 shall continue to be recognized as a
group unless it notifies the Council that it no longer wishes to
be so recognized.

The Member group shall constitute a single Member of
3.
the Organization, except that each party to the group shall be
treated as if it were a single Member in relation to matters
arising under the following provisions:

(a) Articles 11 and 12; and

(b) Article 51.

The Contracting Parties and designated territories joining
4.
as a Member group shall specify the Government or organ-
ization which will represent them in the Council on matters
arising under this Agreement other than those specified in
paragraph 3 of this Article.

The voting rights of

5.
follows:

the Member group shall be as

(a) the Member group shall have the same number of basic
votes as a single Member country joining the Organization
in an individual capacity. These basic votes shall be attrib-
uted to and cast by the Government or organization repre-
senting the group; and

(b) in the event of a vote on any matters arising under the
provisions of paragraph (3) of this Article, the parties to the
Member group may cast separately the votes attributed to
them under the provisions of paragraph 3 of Article 13 as
if each were an individual Member of the Organization,
except for the basic votes, which shall remain attributable
only to the Government or organization representing the
group.

6.
Any Contracting Party or designated territory which is a
party to a Member group may, by notification to the Council,
withdraw from that group and become a separate Member.
Such withdrawal shall take effect upon receipt of the noti-
fication by the Council. If a party to a Member group with-
draws from that group or ceases to participate in the Organ-
ization, the remaining parties to the group may apply to the
Council to maintain the group; the group shall continue to
exist unless the Council disapproves the application.
If the
Member group is dissolved, each former party to the group will
become a separate Member. A Member which has ceased to be
a party to a group may not, as long as this Agreement remains
in force, again become a party to a group.

7.
Any Contracting Party which wishes to become party to a
Member group after this Agreement has entered into force may
do so by notification to the Council provided that:

(a) other Members of the group declare their willingness to
accept the Member concerned as party to the Member
group; and

(b) it notifies the Secretary-General of the United Nations that

it is participating in the group.

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Two or more exporting Members may, at any time after
8.
this Agreement has entered into force, apply to the Council to
form a Member group. The Council shall approve the applica-
tion if it finds that the Members have made a declaration and
have provided satisfactory evidence in accordance with the
this Article. Upon such
requirements of paragraph 1 of
approval, the Member group shall be subject to the provisions
of paragraphs 3, 4, 5 and 6 of this Article.

such privileges and immunities as may be necessary for the
proper functioning of this Agreement.

5.
The Governments of Member countries other than the
host Government shall grant the Organization the same facili-
ties in respect of currency or exchange restrictions, mainte-
nance of bank accounts and transfer of monies, as are accorded
to the specialized agencies of the United Nations.

CHAPTER V

CHAPTER VI

THE INTERNATIONAL COFFEE ORGANIZATION

THE INTERNATIONAL COFFEE COUNCIL

Article 7

Article 9

Seat and structure of the International Coffee Organ-
ization

1.
The International Coffee Organization established under
the International Coffee Agreement 1962 shall continue in
being to administer the provisions and supervise the operation
of this Agreement.

2.
The seat of the Organization shall be in London unless
the Council by a distributed two-thirds majority vote decides
otherwise.

3.
The Organization shall function through the International
Coffee Council and the Executive Board. They shall be assisted
as appropriate by the World Coffee Conference, the Private
the Promotion Committee, and
Sector Consultative Board,
specialized committees.

Article 8

Privileges and immunities

1.
The Organization 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 Organization,
of its Executive Director, its staff and experts, and of represen-
tatives of Members while in the territory of the host country
for the purpose of exercising their functions, shall continue to
be governed by the Headquarters Agreement concluded
between the host Government and the Organization on 28
May 1969.

3.
The Headquarters Agreement referred to in paragraph 2
of this Article shall be independent of this Agreement. It shall
however terminate:

(a) by agreement between the host Government and the

Organization;

(b) in the event of the headquarters of the Organization being
moved from the territory of the host Government; or

(c) in the event of the Organization ceasing to exist.

4.
The Organization may conclude with one or more other
Members agreements to be approved by the Council relating to

Composition of the International Coffee Council

The highest authority of the Organization shall be the
1.
International Coffee Council, which shall consist of all the
Members of the Organization.

2.
Each Member shall appoint one representative on the
Council and, if it so desires, one or more alternates. A Member
may also designate one or more advisers to its representative or
alternates.

Article 10

Powers and functions of the Council

All powers specifically conferred by this Agreement shall
1.
be vested in the Council, which shall have the powers and
perform the functions necessary to carry out the provisions of
this Agreement.

The Council shall delegate to its Chairman the task of
2.
assuring, with the assistance of the Secretariat, the validity of
the written communications made with respect to the provi-
sions of paragraph 2 of Article 9, paragraph 3 of Article 12
and paragraph 2 of Article 14. The Chairman shall report to
the Council.

The Council may set up any committees or working

3.
groups as it considers necessary.

The Council shall, by a distributed two-thirds majority
4.
vote, establish such rules and regulations,
including its own
rules of procedure and the financial and staff regulations of the
Organization, as are necessary to carry out the provisions of
this Agreement and are consistent therewith. The Council may,
in its rules of procedure, provide the means whereby it may,
without meeting, decide specific questions.

5.
The Council shall also keep such records as are required
to perform its functions under this Agreement and such other
records as it considers desirable.

Article 11

Chairman and Vice-Chairmen of the Council

1.
The Council shall elect, for each coffee year, a Chairman
and a first, a second and a third Vice-Chairman, who shall not
be paid by the Organization.

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As a general rule,

the Chairman and the first Vice-
2.
Chairman shall both be elected either from among the repre-
sentatives of exporting Members or from among the represen-
tatives of importing Members and the second and the third
Vice-Chairmen shall be elected from among representatives of
the other category of Member. These offices shall alternate each
coffee year between the two categories of Member.

Neither the Chairman nor any Vice-Chairman acting as
3.
Chairman shall have the right to vote. His or her alternate will
in such case exercise the voting rights of the Member.

Article 12

Sessions of the Council

1.
As a general rule, the Council shall hold regular sessions
twice a year. It may hold special sessions should it so decide.
Special sessions shall also be held at the request of the Execu-
tive Board, of any five Members, or of a Member or Members
having at least 200 votes. Notice of sessions shall be given at
least 30 days in advance except in cases of emergency when
such notice shall be given at least 10 days in advance.

Article 13

Votes

1.
The exporting Members shall together hold 1 000 votes
and the importing Members shall together hold 1 000 votes,
distributed within each category of Member — that
is,
exporting and importing Members, respectively — as provided
for in the following paragraphs of this Article.

2.

Each Member shall have five basic votes.

3.
The remaining votes of exporting Members shall be
divided among such Members in proportion to the average
volume of their respective exports of coffee to all destinations
in the preceding four calendar years.

The remaining votes of

4.
importing Members shall be
divided among such Members in proportion to the average
volume of their respective imports of coffee in the preceding
four calendar years.

5.
The distribution of votes shall be determined by the
Council in accordance with the provisions of this Article at the
beginning of each coffee year and shall remain in effect during
that year, except as provided for in paragraph 6 of this Article.

6.
The Council shall provide for the redistribution of votes
in accordance with the provisions of this Article whenever
there is a change in the membership of the Organization or if
the voting rights of a Member are suspended or regained under
the provisions of Article 25 or 42.

2.
Sessions shall be held at the seat of the Organization,
unless the Council decides otherwise by a distributed two-
thirds majority vote. If a Member invites the Council to meet in
its territory, and the Council agrees, the additional costs to the
Organization involved above those incurred when the session
is held at the seat shall be borne by that Member.

7.

8.

No Member shall hold more than 400 votes.

There shall be no fractional votes.

Article 14

Voting procedure of the Council

The Council may invite any non-member country or any
3.
of the organizations referred to in Article 16 to attend any of
its sessions as an observer. In case such invitation is accepted,
the country or organization concerned shall send a communi-
cation to that effect in writing to the Chairman. If it so wishes
it may in that communication request permission to make
statements to the Council.

two-thirds of

the votes for each category.

The quorum required for a Council session to take deci-
4.
sions shall be the presence of more than half of the number of
exporting and importing Members representing respectively at
least
If on the
opening of a Council session or of any plenary meeting there is
no quorum, the Chairman shall postpone the opening of the
session or plenary meeting for at least two hours. If there is still
no quorum at the new time set, the Chairman may again
postpone the opening of the session or plenary meeting for at
least a further two hours. If at the end of this new postpone-
ment there is still no quorum, the quorum required for taking
decisions shall be the presence of more than half of
the
number of exporting and importing Members representing
respectively at least half of the votes for each category. Repre-
sentation in accordance with paragraph 2 of Article 14 shall be
considered as presence.

Each Member shall be entitled to cast the number of
1.
votes it holds and shall not be entitled to divide its votes.
However, a Member may cast differently any votes which it
holds under the provisions of paragraph 2 of this Article.

Any exporting Member may authorize

2.
any other
exporting Member, and any importing Member may authorize
any other importing Member, to represent its interests and to
exercise its right to vote at any meeting or meetings of the
Council. The limitation provided for in paragraph 7 of Article
13 shall not apply in this case.

Article 15

Decisions of the Council

1.
All decisions of the Council shall be taken, and all recom-
mendations shall be made, by a distributed simple majority
vote unless otherwise provided for in this Agreement.

2.
The following procedure shall apply with respect to any
decision by the Council which under the provisions of this
Agreement requires a distributed two-thirds majority vote:

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(a) if a distributed two-thirds majority vote is not obtained
because of the negative vote of three or less exporting or
three or less importing Members, the proposal shall, if the
Council so decides by a majority of the Members present
and by a distributed simple majority vote, be put to a vote
again within 48 hours;

(b) if a distributed two-thirds majority vote is again not
obtained because of
two or less
exporting or two or less importing Members, the proposal
the
shall,
Members present and by a distributed simple majority vote,
be put to a vote again within 24 hours;

the Council so decides by a majority of

the negative vote of

if

(c) if a distributed two-thirds majority vote is not obtained in
the third vote because of the negative vote of one exporting
or one importing Member, the proposal shall be considered
adopted; and

(d) if the Council fails to put a proposal to a further vote, it

shall be considered rejected.

3. Members undertake to accept as binding all decisions of
the Council under the provisions of this Agreement.

Article 16

Cooperation with other organizations

1.
The Council may make arrangements for consultation
and cooperation with the United Nations and its specialized
agencies and with other appropriate intergovernmental organ-
izations. It shall take full advantage of the facilities of the
Common Fund for Commodities and other sources of funding.
Such arrangements may include financial arrangements which
the Council considers appropriate for achieving the objectives
of this Agreement. However, in respect of the implementation
of any project under such arrangements the Organization shall
not incur any financial obligations for guarantees given by
individual Members or other entities. No Member shall be
responsible by reason of its membership of the Organization
for any liability arising from borrowing or lending by any other
Member or entity in connection with such projects.

2. Where possible, the Organization may also collect from
Members, non-members, and from donor and other agencies,
information on development projects
and programmes
focussing on the coffee sector. Where appropriate, and with the
agreement of the parties concerned, the Organization may
make this information available to such other organizations as
well as to Members.

CHAPTER VII

THE EXECUTIVE BOARD

Article 17

year in accordance with the provisions of Article 18. Members
represented in the Executive Board may be re-elected.

2.
Each Member represented in the Executive Board shall
appoint one representative and, if it so desires, one or more
alternates. Each Member represented in the Executive Board
may also designate one or more advisers to its representative or
alternates.

The Executive Board shall have a Chairman and a Vice-
3.
Chairman, who shall be elected by the Council for each coffee
year and may be re-elected. These officers shall not be paid by
the Organization. Neither the Chairman nor the Vice-Chairman
acting as Chairman shall have the right to vote in the meetings
of the Executive Board. His or her alternate will in such case
exercise the voting rights of the Member. As a general rule, the
Chairman and the Vice-Chairman for each coffee year shall be
elected from among the representatives of the same category of
membership.

4.
The Executive Board shall normally meet at the seat of
the Organization, but may meet elsewhere if the Council so
decides by a distributed two-thirds majority vote. In case of
acceptance by the Council of an invitation by a Member to
host the meeting of the Executive Board, the provisions of
paragraph 2 of Article 12 concerning Council sessions shall
also apply.

5.
The quorum required for an Executive Board meeting to
take decisions shall be the presence of more than half of the
number of exporting and importing Members elected to the
Executive Board representing respectively at least two-thirds of
the votes for each category. If on the opening of an Executive
Board meeting there is no quorum, the Chairman of the Execu-
tive Board shall postpone the opening of the meeting for at
least two hours. If there is still no quorum at the new time set,
the Chairman may again postpone the opening of the meeting
for at least a further two hours. If at the end of this new
postponement there is still no quorum, the quorum required
for taking decisions shall be the presence of more than half of
the number of exporting and importing Members elected to the
Executive Board representing respectively at least half of the
votes for each category.

Article 18

Election of the Executive Board

1.
The exporting and the importing Members of the Execu-
tive Board shall be elected in the Council by the exporting and
the importing Members of the Organization respectively. The
election within each category shall be held in accordance with
the provisions of the following paragraphs of this Article.

2.
Each Member shall cast for a single candidate all the votes
to which it is entitled under the provisions of Article 13. A
Member may cast for another candidate any votes which it
holds under the provisions of paragraph 2 of Article 14.

Composition and meetings of the Executive Board

1.
The Executive Board shall consist of eight exporting
Members and eight importing Members elected for each coffee

3.
The eight candidates receiving the largest number of
votes shall be elected; however, no candidate shall be elected
on the first ballot unless it receives at least 75 votes.

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If, under the provisions of paragraph 3 of this Article, less
4.
than eight candidates are elected on the first ballot, further
ballots shall be held in which only Members which did not
vote for any of the candidates elected shall have the right to
vote. In each further ballot the minimum number of votes
required for election shall be successively diminished by five
until eight candidates are elected.

5.
Any Member which did not vote for any of the Members
elected shall assign its votes to one of them, subject to the
provisions of paragraphs 6 and 7 of this Article.

6.
A Member shall be deemed to have received the number
of votes cast for it when it was elected and, in addition, the
number of votes assigned to it, provided that the total number
of votes shall not exceed 499 for any Member elected.

If

7.
the votes deemed received by an elected Member
exceed 499, Members which voted for, or assigned their votes
to, such elected Member shall arrange among themselves for
one or more of
them to withdraw their votes from that
Member and assign or re-assign them to another elected
Member so that the votes received by each elected Member
shall not exceed the limit of 499.

Article 19

Competence of the Executive Board

The Executive Board shall be responsible to and work

1.
under the general direction of the Council.

The Council may, by a distributed two-thirds majority
2.
vote, delegate to the Executive Board the exercise of any or all
of its powers other than the following:

(a) approval of the Administrative Budget and assessment of

contributions under the provisions of Article 24;

(b) suspension of the voting rights of a Member under the

provisions of Article 42;

(c) decisions on disputes under the provisions of Article 42;

(d) establishment of conditions for accession under the provi-

sions of Article 46;

(e) a decision to exclude a Member under the provisions of

Article 50;

(f) a decision concerning the negotiation of a new Agreement
under the provisions of Article 32, or the extension or
termination of this Agreement under the provisions of
Article 52; and

(g) recommendation of amendments to Members under the

provisions of Article 53.

Council under the terms of paragraph 2 of this Article, and
examine projects and programmes on coffee matters, which
shall be submitted to the Council for approval. The Executive
Board shall report to the Council. Decisions of the Executive
Board shall enter into force if no objection from a Member of
the Council is received within five working days of the report
of the Executive Board to the Council, or within five working
days of circulation of the summary of the decisions reached by
the Executive Board should the Council not meet during the
same month as the Executive Board. Nevertheless all Members
to the Council against any
shall have the right of appeal
decision of the Executive Board.

The Executive Board may set up any committees or

5.
working groups, as it considers necessary.

Article 20

Voting procedure of the Executive Board

1.
Each Member of the Executive Board shall be entitled to
cast the number of votes received by it under the provisions of
paragraphs 6 and 7 of Article 18. Voting by proxy shall not be
allowed. A Member of the Executive Board shall not be entitled
to divide its votes.

Any decision taken by the Executive Board shall require
2.
the same majority as such decision would require if taken by
the Council.

CHAPTER VIII

THE PRIVATE COFFEE SECTOR

Article 21

The World Coffee Conference

1.
The Council shall make arrangements to hold, at appro-
priate intervals, a World Coffee Conference (hereinafter referred
to as the Conference), which shall be composed of exporting
and importing Members, private sector representatives, and
other interested participants, including participants from non-
member countries. The Council,
in coordination with the
Chairman of the Conference, shall ensure that the Conference
contributes to furthering the objectives of this Agreement.

The Conference shall have a Chairman who shall not be
2.
paid by the Organization. The Chairman shall be appointed by
the Council for an appropriate period, and shall be invited to
participate in meetings of the Council as an observer.

3.
The Council may, by a distributed simple majority vote,
at any time revoke any powers which have been delegated to
the Executive Board.

The Executive Board shall examine the draft Adminis-
4.
trative Budget presented by the Executive Director and submit
it to the Council with its recommendations for approval, elabo-
rate the annual work plan of the Organization, decide on
administrative and financial matters concerning the operation
of the Organization other than those matters reserved for the

3.
The Council shall decide on the form, title, subject matter
and timing of the Conference, in consultation with the Private
Sector Consultative Board. The Conference shall be held
normally at the seat of the Organization, during a session of
the Council. If the Council decides to accept an invitation by a
Member to hold a session in its territory, the Conference may
also be held in that territory, in which case the additional costs
to the Organization involved above those incurred when the
session is held at the seat of the Organization shall be borne by
the country hosting the session.

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Unless the Council by a distributed two-thirds majority
4.
vote decides otherwise, the Conference shall be self-financing.

The Chairman of the Conference shall report the conclu-

5.
sions of each session to the Council.

Article 22

The Private Sector Consultative Board

1.
The Private Sector Consultative Board (hereinafter
referred to as the PSCB) shall be a consultative body which may
make recommendations on any consultations made by the
Council and may invite the Council to give consideration to
matters related to this Agreement.

The PSCB shall consist of eight representatives of the
2.
private sector in exporting countries and eight representatives
of the private sector in importing countries.

3. Members of the PSCB shall be representatives of associa-
tions or bodies designated by the Council every two coffee
years, and may be re-appointed. The Council in so doing shall
endeavour to designate:

(a) two private sector coffee associations or bodies from
exporting countries or regions representing each of the
four groups of coffee, preferably representing both growers
and exporters, together with one or more alternates for
each representative; and

(b) eight private sector coffee associations or bodies from
importing countries, whether Members or non-members,
preferably representing both importers
and roasters,
together with one or more alternates for each repres-
entative.

Each member of the PSCB may designate one or more

4.
advisers.

5.
The PSCB shall have a Chairman and a Vice-Chairman
elected from among its members, for a period of one year.
These officers may be re-elected. The Chairman and the Vice-
Chairman shall not be paid by the Organization. The Chairman
shall be invited to participate in meetings of the Council as an
observer.

the Council.

The PSCB shall normally meet at the seat of the Organ-
6.
In case of
ization, during regular sessions of
acceptance by the Council of an invitation by a Member to
hold a meeting in its territory, the PSCB shall also meet in that
territory, in which case the additional costs to the Organization
involved above those incurred when the meeting is held at the
seat of the Organization shall be borne by the country or
private sector organization hosting the meeting.

The PSCB may hold special meetings subject to approval

7.
by the Council.

8.

The PSCB shall submit regular reports to the Council.

CHAPTER IX

FINANCE

Article 23

Finance

The expenses of delegations to the Council, representa-
1.
tives on the Executive Board and representatives on any of the
committees of the Council or the Executive Board shall be met
by their respective Governments.

The other expenses necessary for the administration of
2.
this Agreement shall be met by annual contributions from the
Members assessed in accordance with the provisions of Article
24, together with revenues from sales of specific services to
Members and the sale of information and studies generated
under the provisions of Articles 29 and 31.

The financial year of the Organization shall be the same

3.
as the coffee year.

Article 24

Determination of the Administrative Budget and assess-
ment of contributions

1.
During the second half of each financial year, the Council
shall approve the Administrative Budget of the Organization
for the following financial year and shall assess the contribu-
tion of each Member to that Budget. A draft Administrative
Budget shall be prepared by the Executive Director under the
supervision of the Executive Board in accordance with the
provisions of paragraph 4 of Article 19.

2.
The contribution of each Member to the Administrative
Budget for each financial year shall be in the proportion which
the number of its votes at the time the Administrative Budget
for that financial year is approved bears to the total votes of all
the Members. However, if there is any change in the distribu-
tion of votes among Members in accordance with the provi-
sions of paragraph 5 of Article 13 at the beginning of the
financial year for which contributions are assessed, such contri-
butions shall be correspondingly adjusted for that year.
In
determining contributions, the votes of each Member shall be
calculated without regard to the suspension of the voting rights
of any Member or any redistribution of votes resulting there-
from.

The initial contribution of any Member

joining the
3.
Organization after the entry into force of this Agreement shall
be assessed by the Council on the basis of the number of votes
to be held by it and the period remaining in the current
financial year, but the assessments made upon other Members
for the current financial year shall not be altered.

Article 25

Payment of contributions

The PSCB shall establish its own rules of procedure,

9.
consistent with the provisions of this Agreement.

Contributions to the Administrative Budget

1.
for each
financial year shall be payable in freely convertible currency
and shall become due on the first day of that financial year.

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If any Member fails to pay its full contribution to the
2.
Administrative Budget within six months of the date on which
the contribution is due, its voting rights, its right to be eligible
for election to the Executive Board and its right to have its
votes cast in the Executive Board shall be suspended until its
contribution has been paid in full. However, unless the Council
by a distributed two-thirds majority vote so decides, such
Member shall not be deprived of any of its other rights nor
relieved of any of its obligations under this Agreement.

Any Member whose voting rights have been suspended
3.
either under the provisions of paragraph 2 of this Article or
under the provisions of Article 42 shall nevertheless remain
responsible for the payment of its contribution.

Article 26

Liabilities

1.
The Organization, functioning as specified in paragraph 3
of Article 7, shall not have power to incur any obligation
outside the scope of this Agreement, and shall not be taken to
have been authorized by the Members to do so; in particular, it
shall not have the capacity to borrow money. In exercising its
capacity to contract, the Organization shall incorporate in its
contracts the terms of this Article in such a way as to bring
them to the notice of the other parties entering into contracts
with the Organization, but any failure to incorporate such
terms shall not invalidate such a contract or render it ultra vires.

2.
A Member's liability is limited to the extent of its obliga-
tions regarding contributions specifically provided for in this
Agreement. Third parties dealing with the Organization shall
be deemed to have notice of the provisions of this Agreement
regarding the liabilities of Members.

Article 27

Audit and publication of accounts

As soon as possible and not later than six months after the
close of each financial year, an independently audited statement
of the Organization's assets, liabilities, income and expenditure
during that financial year shall be prepared. This statement
shall be presented to the Council for approval at its earliest
forthcoming session.

CHAPTER X

THE EXECUTIVE DIRECTOR AND THE STAFF

Article 28

The Executive Director and the staff

1.
The Council shall appoint the Executive Director. The
terms of appointment of the Executive Director shall be estab-
lished by the Council and shall be comparable to those
applying to corresponding officials of similar intergovern-
mental organizations.

2.
The Executive Director shall be the chief administrative
officer of the Organization and shall be responsible for the
performance of any duties devolving upon him in the adminis-
tration of this Agreement.

The Executive Director shall appoint the staff in accord-

3.
ance with regulations established by the Council.

4.
Neither the Executive Director nor any member of the
staff shall have any financial interest in the coffee industry, the
coffee trade or the transportation of coffee.

5.
In the performance of their duties, the Executive Director
and the staff shall not seek or receive instructions from any
Member or from any other authority external to the Organ-
ization. They shall refrain from any action which might reflect
on their position as international officials responsible only to
the Organization. Each Member undertakes to respect
the
exclusively international character of the responsibilities of the
Executive Director and the staff and not to seek to influence
them in the discharge of their responsibilities.

CHAPTER XI

INFORMATION, STUDIES AND SURVEYS

Article 29

Information

The Organization shall act as a centre for the collection,

1.
exchange and publication of:

(a) statistical information on world production, prices, exports,
imports and re-exports, distribution and consumption of
coffee; and

(b) in so far as is considered appropriate, technical information
on the cultivation, processing and utilization of coffee.

2.
The Council may require Members to furnish such infor-
mation as it considers necessary for its operations, including
regular statistical reports on coffee production, production
trends, exports, imports and re-exports, distribution, consump-
tion, stocks, prices and taxation, but no information shall be
published which might serve to identify the operations of
persons or companies producing, processing or marketing
coffee. Members, in so far as is possible, shall furnish informa-
tion requested in as detailed, timely and accurate a manner as is
practicable.

3.
The Council shall establish a system of indicator prices
and shall provide for the publication of a daily composite
indicator price which should reflect actual market conditions.

4.
If a Member fails to supply or finds difficulty in supplying
within a reasonable time statistical and other information
required by the Council for the proper functioning of the
Organization, the Council may require the Member concerned
to explain the reasons for non-compliance. If it is found that
technical assistance is needed in the matter, the Council may
take any necessary measures.

Article 30

Certificates of Origin

1.
In order to facilitate the collection of statistics on the
international coffee trade and to ascertain the quantities of
coffee which have been exported by each exporting Member,
the Organization shall establish a system of Certificates of
Origin, governed by rules approved by the Council.

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Every export of coffee by an exporting Member shall be
2.
covered by a valid Certificate of Origin. Certificates of Origin
shall be issued, in accordance with the rules established by the
Council, by a qualified agency chosen by the Member and
approved by the Organization.

3.
Each exporting Member shall notify the Organization of
the government or non-governmental agency which is to
perform the functions specified in paragraph 2 of this Article.
The Organization shall specifically approve a non-govern-
mental agency in accordance with the rules approved by the
Council.

4.
An exporting Member, on an exceptional basis and with
proper justification, may submit, for approval by the Council, a
request
to allow data conveyed in Certificates of Origin
concerning its exports of coffee to be transmitted to the Organ-
ization using an alternative method.

Article 31

Studies and surveys

1.
The Organization shall promote the preparation of
studies and surveys concerning the economics of coffee
production and distribution, the impact of governmental meas-
ures in producing and consuming countries on the production
and consumption of coffee, and the opportunities for expan-
sion of coffee consumption for traditional and possible new
uses.

the Council shall adopt, at

In order to carry out the provisions of paragraph 1 of
2.
this Article,
its second regular
session of each coffee year, a draft annual work programme of
studies and surveys, with estimated resource requirements,
prepared by the Executive Director.

3.
The Council may approve the undertaking by the Organ-
ization of studies and surveys to be conducted jointly or in
cooperation with other organizations and institutions. In such
cases, the Executive Director shall present to the Council a
detailed account of the resource requirements from the Organ-
ization and from the partner or partners involved with the
project.

to the provisions of

The studies and surveys to be promoted by the Organ-
4.
ization pursuant
this Article shall be
financed by resources included in the Administrative Budget,
prepared in accordance with the provisions of paragraph 1 of
Article 24, and shall be undertaken by members of the staff of
the Organization and consultants as required.

CHAPTER XII

GENERAL PROVISIONS

Article 32

Preparations for a new Agreement

The Council may examine the possibility of negotiating a

1.
new International Coffee Agreement.

In order to carry out this provision, the Council shall
2.
examine the progress made by the Organization in achieving
the objectives of this Agreement as specified in Article 1.

Article 33

Removal of obstacles to consumption

1. Members recognize the utmost importance of achieving
the greatest possible increase of coffee consumption as rapidly
as possible, in particular through the progressive removal of
any obstacles which may hinder such increase.

2. Members recognize that there are at present in effect
measures which may to a greater or lesser extent hinder the
increase in consumption of coffee,

in particular:

(a) import arrangements applicable to coffee, including prefer-
ential and other tariffs, quotas, operations of government
monopolies and official purchasing agencies, and other
administrative rules and commercial practices;

(b) export arrangements as regards direct or indirect subsidies
and other administrative rules and commercial practices;
and

(c) internal trade conditions and domestic and regional legal
and administrative provisions which may affect consump-
tion.

Having regard to the objectives stated above and to the
3.
provisions of paragraph 4 of
this Article, Members shall
endeavour to pursue tariff reductions on coffee or to take other
action to remove obstacles to increased consumption.

their mutual

Taking into account

4.
interest, Members
undertake to seek ways and means by which the obstacles to
increased trade and consumption referred to in paragraph 2 of
this Article may be progressively reduced and eventually, wher-
ever possible, eliminated, or by which the effects of such
obstacles may be substantially diminished.

5.
Taking into account any commitments undertaken under
the provisions of paragraph 4 of this Article, Members shall
inform the Council annually of all measures adopted with a
view to implementing the provisions of this Article.

6.
The Executive Director shall prepare periodically a survey
of the obstacles to consumption to be reviewed by the Council.

7.
The Council may, in order to further the purposes of this
Article, make recommendations to Members which shall report
as soon as possible to the Council on the measures adopted
with a view to implementing such recommendations.

Article 34

Promotion

1. Members recognize the need to promote, encourage and
increase the consumption of coffee, and shall endeavour to
encourage activities undertaken in this respect.

The Promotion Committee, which shall be composed of
2.
all Members of
shall promote coffee
consumption by appropriate activities, including information
campaigns, research and studies related to coffee consumption.

the Organization,

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Such promotion activities shall be financed by resources
3.
which may be pledged by Members, non-members, other
organizations and the private sector at meetings of the Promo-
tion Committee.

Specific promotion projects may also be financed by
4.
voluntary contributions from Members, non-members, other
organizations and the private sector.

The Council shall establish separate accounts for the

5.
purposes of paragraphs 3 and 4 of this Article.

6.
The Promotion Committee shall establish its own rules of
procedure, as well as establish the pertinent regulations for the
participation of non-members, other organizations and the
private sector consistent with the provisions of this Agreement.
It shall report regularly to the Council.

Article 35

Measures related to processed coffee

recognize the need of developing countries

Members
to
broaden the base of their economies through, inter alia, indus-
trialization and the export of manufactured products, including
the processing of coffee and the export of processed coffee, as
referred to in subparagraphs (d), (e), (f) and (g) of paragraph 1
of Article 2. In this connection, Members shall avoid the adop-
tion of governmental measures which could cause disruption
to the coffee sector of other Members. Members are encour-
aged to consult on the introduction of any such measures
which might be considered to pose a risk of disruption. If these
consultations do not lead to a mutually satisfactory solution,
parties may invoke the procedures provided for in Articles 41
and 42.

Article 36

Mixtures and substitutes

1. Members shall not maintain any regulations requiring the
mixing, processing or using of other products with coffee for
commercial resale as coffee. Members shall endeavour to
prohibit the sale and advertisement of products under the
name of coffee if such products contain less than the equiva-
lent of 95 % green coffee as the basic raw material.

2.
The Council may request any Member to take the steps
necessary to ensure observance of the provisions of this Article.

The Executive Director shall submit to the Council a
this

3.
periodic report on compliance with the provisions of
Article.

Article 37

Consultation and cooperation with non-governmental
organizations

Without prejudice to the provisions of Articles 16, 21 and 22,
the Organization shall maintain links with appropriate non-
governmental organizations
concerned with international
commerce in coffee and with experts in coffee matters.

Article 38

Established coffee trade channels

Members shall conduct their activities within the framework of
this Agreement in a manner consonant with established trade
channels and shall refrain from discriminatory sales practices.

In carrying out these activities they shall endeavour to take due
account of the legitimate interests of the coffee trade and
industry.

Article 39

Sustainable coffee economy

Members
shall give due consideration to the sustainable
management of coffee resources and processing, bearing in
mind the principles and objectives on sustainable development
contained in Agenda 21 agreed at the United Nations Confer-
ence on Environment and Development, held in Rio de Janeiro
in 1992.

Article 40

Standard of living and working conditions

Members shall give consideration to improving the standard of
living and working conditions of populations engaged in the
coffee sector, consistent with their stage of development,
bearing in mind internationally recognized principles on these
matters. Furthermore, Members agree that labour standards
shall not be used for protectionist trade purposes.

CHAPTER XIII

CONSULTATIONS, DISPUTES AND COMPLAINTS

Article 41

Consultations

Each Member shall accord sympathetic consideration to, and
shall afford adequate opportunity for, consultation regarding
such representations as may be made by another Member with
respect to any matter relating to this Agreement. In the course
of such consultation, on request by either party and with the
consent of the other, the Executive Director shall establish an
independent panel which shall use its good offices with a view
to conciliating the parties. The costs of the panel shall not be
chargeable to the Organization. If a party does not agree to the
establishment of a panel by the Executive Director, or if the
consultation does not lead to a solution, the matter may be
referred to the Council in accordance with the provisions of
Article 42. If the consultation does lead to a solution, it shall be
reported to the Executive Director who shall distribute the
report to all Members.

Article 42

Disputes and complaints

1.
Any dispute concerning the interpretation or application
of this Agreement which is not settled by negotiation shall, at
the request of any Member party to the dispute, be referred to
the Council for decision.

2.
In any case where a dispute has been referred to the
Council under the provisions of paragraph 1 of this Article, a
majority of Members, or Members holding not less than one
third of the total votes, may require the Council, after discus-
sion, to seek the opinion of the advisory panel referred to in
paragraph 3 of this Article on the issues in dispute before
giving its decision.

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3.

(a) Unless the Council unanimously agrees otherwise, the

advisory panel shall consist of:

(i) two persons, one having wide experience in matters
of the kind in dispute and the other having legal
the
standing
exporting Members;

experience, nominated

and

by

(ii) two such persons nominated by the importing

Members; and

(iii) a chairman selected unanimously by the four
persons nominated under
the provisions of
subparagraphs (i) and (ii) or, if they fail to agree, by
the Chairman of the Council.

(b) Persons

from countries whose Governments

are
Contracting Parties to this Agreement shall be eligible to
serve on the advisory panel.

(c) Persons appointed to the advisory panel shall act in
their personal capacities and without instructions from
any Government.

(d) The expenses of the advisory panel shall be paid by the

Organization.

The opinion of

the advisory panel and the reasons
4.
therefor shall be submitted to the Council which, after consid-
ering all the relevant information, shall decide the dispute.

5.
The Council shall rule on any dispute brought before it
within six months of submission of such dispute for its consid-
eration.

6.
Any complaint that any Member has failed to fulfil its
obligations under this Agreement shall, at the request of the
Member making the complaint, be referred to the Council
which shall make a decision on the matter.

7.
No Member shall be found to have been in breach of its
obligations under this Agreement except by a distributed
simple majority vote. Any finding that a Member is in breach
of its obligations under this Agreement shall specify the nature
of the breach.

If the Council finds that a Member is in breach of its
8.
obligations under this Agreement, it may, without prejudice to
other enforcement measures provided for in other Articles of
this Agreement, by a distributed two-thirds majority vote,
suspend such Members voting rights in the Council and its
right to have its votes cast in the Executive Board until it fulfils
its obligations, or the Council may decide to exclude such
Member from the Organization under the provisions of Article
50.

A Member may seek the prior opinion of the Executive
9.
Board in a matter of dispute or complaint before the matter is
discussed by the Council.

CHAPTER XIV

FINAL PROVISIONS

Article 43

Signature

This Agreement shall be open for signature at the United
Nations headquarters
from 1 November 2000 until and
including 25 September 2001 by Contracting Parties to the

International Coffee Agreement 1994 or the International
Coffee Agreement 1994 as extended, and Governments invited
to the session of the International Coffee Council at which this
Agreement was negotiated.

Article 44

Ratification, acceptance or approval

1.
This Agreement shall be subject to ratification, accep-
tance or approval by the signatory Governments in accordance
with their respective constitutional procedures.

the United Nations not

Except as provided for in Article 45,

2.
instruments of
ratification, acceptance or approval shall be deposited with the
Secretary-General of
later than 25
September 2001. However, the Council may decide to grant
extensions of time to signatory Governments which are unable
to deposit their instruments by that date. Such decisions shall
be transmitted by the Council to the Secretary-General of the
United Nations.

Article 45

Entry into force

1.
This Agreement shall enter into force definitively on 1
October 2001 if by that date Governments representing at least
15 exporting Members holding at least 70 % of the votes of the
exporting Members and at least 10 importing Members holding
at least 70 % of the votes of the importing Members, calculated
as at 25 September 2001, without
reference to possible
suspension under the terms of Articles 25 and 42, have depos-
ited instruments of ratification, acceptance or approval. Alter-
natively, it shall enter into force definitively at any time after 1
October 2001 if it is provisionally in force in accordance with
the provisions of paragraph 2 of
this Article and these
percentage requirements are satisfied by the deposit of instru-
ments of ratification, acceptance or approval.

2.
This Agreement may enter into force provisionally on 1
October 2001. For this purpose, a notification by a signatory
Government or by any other Contracting Party to the Inter-
national Coffee Agreement 1994 as extended, containing an
undertaking to apply this new Agreement provisionally,
in
accordance with its laws and regulations, and to seek ratifica-
tion, acceptance or approval in accordance with its constitu-
tional procedures as rapidly as possible, which is received by
the Secretary-General of the United Nations not later than 25
September 2001, shall be regarded as equal
in effect to an
instrument of ratification, acceptance or approval. A Govern-
ment which undertakes to apply this Agreement provisionally,
in accordance with its laws and regulations, pending the
deposit of an instrument of ratification, acceptance or approval
shall be regarded as a provisional Party thereto until it deposits
its instrument of ratification, acceptance or approval, or until
and including 30 June 2002 whichever is the earlier. The
Council may grant an extension of the time within which any
Government which is applying this Agreement provisionally
may deposit
ratification, acceptance or
approval.

instrument of

its

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If this Agreement has not entered into force definitively
3.
or provisionally on 1 October 2001 under the provisions of
paragraph 1 or 2 of this Article, those Governments which
have deposited instruments of ratification, acceptance, approval
or accession or made notifications containing an undertaking
to apply this Agreement provisionally, in accordance with their
laws and regulations, and to seek ratification, acceptance or
approval may, by mutual consent, decide that it shall enter into
force among themselves. Similarly,
this Agreement has
entered into force provisionally but has not entered into force
definitively on 31 March 2002, those Governments which have
deposited instruments of ratification, acceptance, approval or
accession or made the notifications referred to in paragraph 2
of this Article, may, by mutual consent, decide that it shall
continue in force provisionally or enter into force definitively
among themselves.

if

United Nations, declare that this Agreement shall cease to
extend to the territory named in the notification. This Agree-
ment shall cease to extend to such territory from the date of
such notification.

4. When a territory to which this Agreement has been
extended under the provisions of paragraph 1 of this Article
subsequently attains its independence, the Government of the
new State may, within 90 days after the attainment of indepen-
dence, declare by notification to the Secretary-General of the
United Nations that it has assumed the rights and obligations
of a Contracting Party to this Agreement. It shall, as from the
date of such notification, become a Contracting Party to this
Agreement. The Council may grant an extension of the time
within which such notification may be made.

Article 46

Accession

1.
The Government of any State member of the United
Nations or of any of its specialized agencies may accede to this
Agreement upon conditions which shall be established by the
Council.

2.
Instruments of accession shall be deposited with the
Secretary-General of the United Nations. The accession shall
take effect upon deposit of the instrument.

Article 47

Reservations

Reservations may not be made with respect to any of the
provisions of this Agreement.

Article 48

Extension to designated territories

1.
Any Government may, at the time of signature or deposit
of an instrument of ratification, acceptance, approval, provi-
sional application or accession, or at any time thereafter, by
notification to the Secretary-General of the United Nations,
declare that this Agreement shall extend to any of the terri-
tories for whose international relations it is responsible; this
Agreement shall extend to the territories named therein from
the date of such notification.

2.
Any Contracting Party which desires to exercise its rights
under the provisions of Article 5 in respect of any of the
territories for whose international relations it is responsible or
which desires to authorize any such territory to become part of
a Member group formed under the provisions of Article 6, may
do so by making a notification to that effect to the Secretary-
General of the United Nations, either at the time of the deposit
of its instrument of ratification, acceptance, approval, provi-
sional application or accession, or at any later time.

3.
Any Contracting Party which has made a declaration
under the provisions of paragraph 1 of this Article may at any
time thereafter, by notification to the Secretary-General of the

Article 49

Voluntary withdrawal

Any Contracting Party may withdraw from this Agreement at
any time by giving a written notice of withdrawal to the
the United Nations. Withdrawal shall
Secretary-General of
become effective 90 days after the notice is received.

Article 50

Exclusion

If the Council decides that any Member is in breach of its
obligations under this Agreement and decides further that such
breach significantly impairs the operation of this Agreement, it
may, by a distributed two-thirds majority vote, exclude such
Member from the Organization. The Council shall immediately
notify the Secretary-General of the United Nations of any such
decision. Ninety days after the date of the Councils decision,
such Member shall cease to be a Member of the Organization
and,
if such Member is a Contracting Party, a Party to this
Agreement.

Article 51

Settlement of accounts with withdrawing or excluded
Members

1.
The Council shall determine any settlement of accounts
with a withdrawing or excluded Member. The Organization
shall retain any amounts already paid by a withdrawing or
excluded Member and such Member shall remain bound to pay
any amounts due from it to the Organization at the time the
withdrawal or
the exclusion becomes effective; provided,
however, that in the case of a Contracting Party which is
unable to accept an amendment and consequently ceases to
participate in this Agreement under the provisions of para-
graph 2 of Article 53, the Council may determine any settle-
ment of accounts which it finds equitable.

2.
A Member which has ceased to participate in this Agree-
ment shall not be entitled to any share of the proceeds of
liquidation or the other assets of the Organization; nor shall it
be liable for payment of any part of the deficit, if any, of the
Organization upon termination of this Agreement.

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Article 52

Duration and termination

1.
This Agreement shall remain in force for a period of six
years until 30 September 2007 unless extended under the
provisions of paragraph 2 of this Article or terminated under
the provisions of paragraph 3 of this Article.

2.
The Council may, by a vote of a majority of the Members
having not less than a distributed two-thirds majority of the
total votes, decide to extend this Agreement beyond 30
September 2007 for one or more successive periods not to
exceed six years in total. Any Member which does not accept
any such extension of this Agreement shall so inform the
Council and the Secretary-General of the United Nations in
writing before the commencement of the period of extension
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, by a vote of a majority of
the Members having not less than a distributed two-thirds
majority of the total votes, decide to terminate this Agreement.
Termination shall take effect on such date as the Council shall
decide.

Notwithstanding the termination of this Agreement, the
4.
Council shall remain in being for as long as necessary to take
such decisions as are needed during the period of time required
for the liquidation of
its
accounts and disposal of its assets.

the Organization, settlement of

5.
Any decision taken with respect to the duration and/or
termination of this Agreement and any notification received by
the Council pursuant to this Article shall be duly transmitted
by the Council to the Secretary-General of the United Nations.

Article 53

Amendment

Contracting Parties representing at least 70 % of the importing
countries holding at least 75 % of the votes of the importing
Members. The Council
time within which
Contracting Parties shall notify the Secretary-General of the
United Nations of their acceptance of the amendment. If, on
expiry of such time limit, the percentage requirements for the
entry into effect of the amendment have not been met, the
amendment shall be considered withdrawn.

fix a

shall

2.
Any Contracting Party which has not notified acceptance
of an amendment within the period fixed by the Council, or
any territory which is either a Member or a party to a Member
group on behalf of which such notification has not been made
by that date, shall cease to participate in this Agreement from
the date on which such amendment becomes effective.

The Council shall notify the Secretary-General of

the
any amendments distributed to the

3.
United Nations of
Contracting Parties under this Article.

Article 54

Supplementary and transitional provisions

The following shall apply in relation to the International Coffee
Agreement 1994, as extended:

(a) all acts by or on behalf of the Organization or any of its
organs under the International Coffee Agreement 1994 as
extended, in effect on 30 September 2001, the terms of
which do not provide for expiry on that date, shall remain
in effect unless changed under the provisions of this Agree-
ment; and

(b) all decisions required to be taken by the Council during
coffee year 2000/01 for application in coffee year 2001/02
shall be taken by the Council in coffee year 2000/01 and
applied on a provisional basis as if this Agreement had
already entered into force.

The Council may, by a distributed two-thirds majority
1.
vote, recommend an amendment of this Agreement to the
Contracting Parties. The amendment shall become effective
100 days after the Secretary-General of the United Nations has
received notifications of acceptance from Contracting Parties
representing at least 70 % of the exporting countries holding at
least 75 % of the votes of the exporting Members, and from

Article 55

Authentic texts of the Agreement

The texts of this Agreement in the English, French, Portuguese
and Spanish languages shall all be equally authentic. The origi-
nals shall be deposited with the Secretary-General of the United
Nations.

IN WITNESS WHEREOF the undersigned, having been duly authorized to this effect by their respective
Governments, have signed this Agreement on the dates appearing opposite their signatures.

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ANNEX I

CONVERSION FACTORS FOR ROASTED, DECAFFEINATED, LIQUID AND SOLUBLE COFFEE AS DEFINED
IN THE INTERNATIONAL COFFEE AGREEMENT 1994

Roasted coffee

To find the equivalent of roasted coffee to green coffee, multiply the net weight of roasted coffee by 1,19.

Decaffeinated coffee

To find the equivalent of decaffeinated coffee to green coffee, multiply the net weight of the decaffeinated coffee in green,
roasted or soluble form by 1,00, 1,19 or 2,6 respectively.

Liquid coffee

To find the equivalent of liquid coffee to green coffee, multiply the net weight of the dried coffee solids contained in the
liquid coffee by 2,6.

Soluble coffee

To find the equivalent of soluble coffee to green coffee, multiply the net weight of the soluble coffee by 2,6.