Proposal for a Council Decision establishing the position to be adopted on behalf of the Community  in the International Grains Council
Date: 2001-05-07
Institutions: European Commission
Subjects: Member States' contribution, cereals, food aid, international agreement, international cooperation, international organisation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 7.5.2001
COM(2001) 246 final

Proposal for a

COUNCIL DECISION

establishing the position to be adopted on behalf of the Community
in the International Grains Council

(presented by the Commission)

EXPLANATORY MEMORANDUM

The International Grains Agreement, 1995, is made up of two parts: the Grains Trade
Convention, 1995 and the Food Aid Convention, 1995.

The Food Aid Convention of 1995 was renegotiated and covers the period until July 2002.
The Grains Trade Convention, 1995 was extended in 1999 for two years. This Convention
expires in June 2001 unless it is extended for a period of no more than two years. Since no
changes to the current Convention are required, extension may be achieved by decision of the
International Grains Council.

Financial implications

The EC-15 contribution to the administrative budget shown under item B7-821 of the
European Union budget, will increase slightly in principal and at any event will not exceed
the estimated level of 2002. On the contrary, a reduction of the contribution could be
envisaged in case of new accessions to the Convention.

Conclusions

The Commission proposes to the Council to authorise the Commission to vote on behalf of
the European Community in accordance with Article 33(2) of the Grains Trade Convention in
favour of the extension of this Convention for the period from 1 July 2001 to 30 June 2003.

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Proposal for a

COUNCIL DECISION

establishing the position to be adopted on behalf of the Community
in the International Grains Council

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 in conjunction with Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

The Grains Trade Convention, 1995 was concluded by the Community by Council Decision
96/88/EC1, amended and extended in June 1999 by Council Decision 1999/C262/01 for a
two-year period2. This Agreement remains in force until 30 June 2001, unless it is extended
beyond that date by decision of the Grains Trade Council for a period of no more than two
years. The extension of that agreement is in the interest of the Community. The Commission,
which represents the Community in the Grains Trade Convention, should therefore be
authorised by a Council Decision to vote in favour of such extension.

HAS DECIDED AS FOLLOWS:

Sole Article

1.

2.

The European Community is hereby in favour of the extension of the Grains Trade
Convention, 1995 for a further two-year period.

The Commission is hereby authorised to express this position within the Grains
Trade Council.

Done at Brussels,

1

2

OJ L 21, 27.1.1996, p. 47.
OJ C 262, 16.9.1999, p. 1.

For the Council
The President

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LEGISLATIVE FINANCIAL STATEMENT

Policy area: External aspects of certain Community policies

Activities: International Agricultural Agreements

TITLE OF ACTION: EUROPEAN COMMUNITY CONTRIBUTION TO THE INTERNATIONAL

GRAINS COUNCIL

1.

2.

2.1.

2.2.

2.3.

BUDGET LINE + HEADING: ARTICLE B7-821:
AGRICULTURAL AGREEMENTS

INTERNATIONAL

OVERALL FIGURES

Total allocation for action (Part B): EUR 1.034 million for commitment

Period of application: 1.7.2001 to 30.6.2003

Overall multiannual estimate on expenditure (EUR million):

Commitments

Payments

2002

0.517

0.517

2003

0.517

0.517

Total

1.034

1.034

2.4.

Compatibility with the financial programming and the financial perspective

X

Proposal compatible with the existing financial programming

2.5.

Financial impact on revenue:

X

financial

No
implications
implementation of a measure)

(involves

technical

aspects

regarding

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
participation

Participation
applicant
countries

Comp

Diff

NO

NO

NO

Heading
Financial
Perspective

4 External
action

4.

–

–

LEGAL BASIS

Article 133 of the Treaty in conjunction with Article 300(2),

Council Decision 96/88/EC of .27.1.1996 (OJ L21 of 27.1.1996) and Council
Decision 1999/C262/01 (OJ C262 of 16.9.1999).

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5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

Because of its economic importance, especially in the agricultural sector, the EC must be
represented in international agricultural agreements, which represent an important means
for following global developments and defending Community interests for the products
concerned.

The payment of EC membership contributions enables the objectives of the International
Grains Council to be attained. The International Grains Council, which is responsible for
administering the Agreements, Grains Trade Convention, 1995 and Food Aid
Convention, 1999, promotes the objectives of the Agreements, such as international co-
operation, exchange of statistical
is
therefore in the interests of the EC to be a part of the Agreements.

information, forecasting market

trends, etc. It

The membership contributions are determined on an annual basis and are due for as long
as the EC is a member of the Agreements and in particular for 2 years (1.7.2001 –
30.6.2003).

It is clear that if the EC had to carry out on its own the same actions as are carried out by
the IGC, the total cost of these would be much greater than the cost of the membership
contributions.

5.2.

Actions envisaged and arrangements for budget intervention

The EC pays membership dues on an annual basis for the International Grains Council.

The dues are paid for as along as the EC remains a signatory to the Agreements and at
present for 2 years (1.7.2001 – 30.6.2003).

The European Commission and the Member States participate fully in the activities of the
IGC and take full advantage of the benefits of membership.

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B

Commitments in EUR million (to the 3rd decimal place)

Breakdown

Year
2002

Year
2003

EC Contribution

0.517

0.517

TOTAL

0.517

0.517

Total

1.034

1.034

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7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Types of post

A

B

C

Permanent
officials or
temporary staff

Other human
resources

Total

Staff to be assigned to management
of the action using existing and/or
additional resources

Number of
permanent posts

Number of
temporary posts

0.2

0.1

-

-

0.3

-

-

-

-

-

Total

0.2

0.1

-

-

0.3

Description of tasks deriving
from the action

Preparation for attendance at and
follow-up from meetings of the IGC

7.2.

Overall financial impact of human resources

Type of human resources

Amount EUR

Method of calculation

Officials

Temporary staff

Other human resources

324 000

(give budget line)

Total

324 000

The amounts are total expenditure for twelve months.

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

The Commission services will participate fully in the Administrative Committees and
Council of the IGC;
these are the bodies responsible for determining budgetary
contributions.

A report of these meetings and of the decisions taken at them is published and is freely
available to members.

9.

ANTI-FRAUD MEASURES

Payments will only be made directly to the bank account of the IGC on receipt of a
written request, after verification that the request coincides with the figure agreed by the
Council of the International Grains.

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