Proposal for a Council Decision on the signing and conclusion on behalf of the Community of the Agreement establishing the terms of reference of the International Jute Study Group, 2001
Date: 2001-12-06
Institutions: European Commission
Subjects: international agreement, jute, textile product, trade agreement, world organisation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 06.12.2001
COM(2001) 738 final

2001/0286 (ACC)

Proposal for a

COUNCIL DECISION

on the signing and conclusion on behalf of the Community of the Agreement establishing
the terms of reference of the International Jute Study Group, 2001

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Unctad negotiating conference on the establishment of an International Jute Study Group
adopted the terms of reference of the new body on 13 March this year. This instrument is the
successor to the 1989 International Jute Agreement, which expired on 11 October.

The Community participated in the negotiations on the basis of the negotiating mandate and
directives proposed by the Commission and approved by the Council on 8 March 2001.

In  the  light  of  the  discussions  and  content  of  the  new  instrument,  which  reflects  the
Community's position,  the  Commission considers that  the  Agreement  establishing  the  terms
of reference of the International Jute Study Group 2001 should be signed and the instrument
of approval deposited with the Treaty Section of the United Nations in New York.

From  a  strictly  legal  viewpoint  it  should  be  noted  that  commodity  agreements  such  as  this,
although  they  are  trade  agreements  covered  by  Article  133  of  the  Treaty  establishing  the
European Community, have hitherto been concluded and  managed  jointly  with  the  Member
States under the arrangement between the Council and the Commission known as PROBA 20.

In  this  case,  given  that  the  International  Study  Group  expressly  excludes  any  financial
instrument funded by its members and that any contributions from the EU Member States to
the  operating  budget  of  the  Study  Group  cannot  of  themselves  justify  the  Member  States'
participation in the conclusion of the Agreement, the new Agreement establishing the terms of
reference  of  the  International  Jute  Study  Group  2001  ought  to  be  concluded  by  the
Community.

Consequently,  under  Article  133  of  the  Treaty  establishing  the  European  Community,  this
proposal for a Decision authorises the Commission to conclude, on behalf of the Community,
the International Jute Study Group 2001.

The deadline  for signing  and  depositing  the  instrument  of  acceptance  is  31  December  2001
and the Council is therefore requested to adopt this Decision before this deadline.

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2001/0286 (ACC)

Proposal for a

COUNCIL DECISION

on the signing and conclusion on behalf of the Community of the Agreement establishing
the terms of reference of the International Jute Study Group, 2001

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(1), thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

On  13  March  2001  the  negotiating  conference  set  up  by  Unctad  adopted  the
Agreement  establishing  the  terms  of  reference  of  the  International  Jute  Study  Group
2001.

This new Agreement has been negotiated to replace the International Jute Agreement,
1989, which went into liquidation on 11 October 2001.

The  Agreement  establishing  the  terms  of  reference  of  the  International  Jute  Study
Group  2001  is  open  for  signing  and  the  depositing  of  instruments  of  ratification,
acceptance or approval until 31 December 2001.

The Community is a member of the 1989 International Jute Agreement, as extended,
and it is therefore in its interest to approve the Agreement which replaces it,

HAS DECIDED AS FOLLOWS :

Article 1

The Agreement establishing the terms of reference of the International Jute Study Group 2001
is hereby approved on behalf of the Community. The text of the Agreement is annexed to this
Decision.

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Article 2

The  President  of  the  Council  is  authorised  to  designate  the  person  authorised  to  sign  the
agreement  and  deposit  the  instrument  of  approval  on  behalf  of  the  Community  by
31 December 2001.

Done at Brussels,

For the Council
The President

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AGREEMENT ESTABLISHING THE TERMS OF REFERENCE
OF THE INTERNATIONAL JUTE STUDY GROUP, 2001

PREAMBLE

The Parties to this Agreement,

Recognizing  the  importance  of  jute  and  jute  products  to  the  economies  of  a  number  of
countries,

Considering  that  close  international  cooperation  in  finding  solutions  to  the  problems  facing
this  commodity  will  further  the  economic  development  of  the  exporting  countries  and
strengthen cooperation between exporting and importing countries,

Considering further the contribution made by the International Agreements on Jute and Jute
Products,  1982  and  1989  towards  such  cooperation  between  exporting  and  importing
countries and the desirability of enhancing the effectiveness of such cooperation in the future,

Conscious of the need to promote and undertake projects and activities designed to increase
the jute-derived  earnings in developing  jute-producing  countries,  thereby contributing  to the
alleviation of poverty in these countries,

Have agreed as follows:

Establishment

1.

The International Jute Study Group, hereinafter referred to as “the Group”, is hereby
established to administer the provisions and supervise the operation of  these Terms
of  Reference.  For  legal,  administrative,  financial  and  operational  purposes,  the
Group,  when  these  Terms  of  Reference  enter  into  force,  shall  be  considered  as  the
successor entity to the International Jute Organization, initially established under the
International Agreement on Jute and Jute Products, 1982 and maintained in existence
under the International Agreement on Jute and Jute Products, 1989.

2.

For the purpose of these Terms of Reference:

Definitions

(a)

(b)

(c)

“Jute”  means  raw  jute,  kenaf  and  other  allied  fibres,  including  Urena  lobata,
Abutilon avicennae and cephalonema polyandrum;

“Jute  product”  means  a  product  made  wholly  or  almost  wholly  of  jute,  or
products whose substantial component by weight is jute;

“Member”  means  any  State, 
the  European  Community,  or  any
intergovernmental  organization  as  provided  for  in  paragraph  5  below  which
have  notified  their  acceptance  or  provisional  application  of  this  Agreement
pursuant to paragraph 23 below;

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(d)

(e)

(f)

“Associate  Member”  means  any  organization  or  any  entity  referred  to  in
paragraph 6 below;

“Special vote”  means  a vote  requiring at least two thirds  of  the  votes  cast  by
members present and voting provided that those votes are cast by a numerical
majority of members present and voting;

“Simple majority vote” means a vote requiring more than half of the total votes
of  members  present  and  voting  provided  that  these  votes  are  cast  by  a
numerical majority of members present and voting;

(g)

“Financial year” means the period from 1 July to 30 June inclusive;

(h)

(i)

“Jute year” means the international crop year for jute that runs from 1 July to
30 June inclusive;

“Terms  of  Reference”  means  this  Agreement  establishing  the  Terms  of
Reference of the International Jute Study Group, 2001

3.

The objectives of the Group shall be:

Objectives

(a)

To  provide  an effective framework  for international  cooperation,  consultation
and policy development among members with regard to all relevant aspects of
the world jute economy;

(b) To  promote  the  expansion  of  international  trade  in  jute  and  jute  products  by
maintaining  existing  markets  and  by  developing  new  markets,  including  the
introduction of new jute products and the development of new end-uses;

(c)

To  provide  a  forum  for  the  active  participation  of  the  private  sector  in  the
development of the jute sector;

(d) To address the issues of poverty alleviation, employment and development of

human resources, particularly women, in the jute sector;

(e)

(f)

To facilitate the improvement of structural conditions in the jute sector through
improvement of productivity and quality, and promotion of the  application of
new processes and technologies;

To create and increase awareness of the beneficial effects of the use of jute as
an environmentally friendly, renewable and biodegradable natural fibre;

(g) To improve market intelligence with a view to ensuring greater transparency in
the  international  jute  market  in  collaboration  with  other  organizations,
including the Food and Agriculture Organization of the United Nations (FAO).

6

4.

In pursuance of its objectives, the Group shall have the following functions:

Functions

(a)

To  develop  an  appropriate  strategy  for  the  improvement  of  the  world  jute
economy  with  particular  emphasis  on  generic  promotion  of  jute  and  jute
products;

(b) To  conduct  consultations  and  exchanges  of  information  on  the  international

jute economy;

(c)

To  initiate,  sponsor,  supervise,  monitor,  and  act  as  a  catalyst  with  respect  to
projects  and  related  activities  aimed  at  improving  the  structural  conditions  of
the  world  jute  economy  and  the  general  economic  well-being  of  those
employed  therein.  In  exceptional  cases,  the  involvement  of  the  Group  in  the
implementation of projects shall be approved by the Council, provided that this
involvement  shall  not  bring  about  any  additional  costs  for  the  administrative
budget of the Group;

(d) To  provide  and  improve  statistics  and  market  intelligence  on  jute  and  jute-
based products in consultation with the Food  and Agriculture Organization of
the United Nations and other appropriate bodies;

(e)

(f)

To undertake studies on various aspects of the world jute economy and related
issues; and

To  consider problems  or difficulties  which  may  arise  in  the  international  jute
economy.

In implementing its functions above, the Group shall take into account the activities
of  other  relevant  international  organizations,  including  the  Food  and  Agriculture
Organization of the United Nations (FAO).

Membership

5.

6.

Membership of the Group shall be open to all States and the European Community
which  are  interested  in  the  production  or  consumption  of,  or  international  trade,  in
jute  and  jute  products,  and,  with  the  agreement  of  the  Council,  to  any
intergovernmental organization having responsibilities in respect of  the negotiation,
conclusion  and  application  of  international  agreements,  in  particular  commodity
agreements.

Associate  membership  of  the  Group  shall  be  open,  with  the  agreement  of  the
Council, to those organizations and entities not entitled to full membership under the
provisions  of  paragraph  5  above.  The  Council  shall  make  rules  concerning  the
eligibility, rights and obligations of such associate members.

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Composition and Powers of the Council

7.

(a)

The highest authority of the Group established under these Terms of Reference
shall be vested in the Council comprising all members. The Council shall meet
at least once every year;

(b) The  Council  shall  exercise  such  powers  and  take  such  action  or  arrange  for
such  action  to  be  taken  as  may  be  necessary  to  carry  out  and  ensure  the
application of the provisions of these Terms of Reference;

(c)

The Council shall adopt, by special vote, such rules as are considered necessary
to  carry  out  the  functions  of  the  Group  which  shall  be  subject  to,  and  not
inconsistent  with  these  Terms  of  Reference.  These  rules  shall  include:  (i)  the
Rules of Procedure, (ii) Financial Rules and Rules relating to Projects, (iii) the
Staff Regulations and Rules and (iv) the Staff Provident Fund Rules;

(d) The  Council  shall  not  have  the  power  and  shall  not  be  deemed  to  have  been
authorized  by  its  members  to incur,  any  obligation  outside  the  scope  of  these
Terms of Reference or any of the rules referred to in subparagraph (c) above;

(e)

In order to achieve the objectives listed in paragraph 3 above, the Council shall
approve a work programme which shall be revised periodically.

Headquarters

8.

The  Headquarters  of the  Group shall be in  Dhaka,  Bangladesh,  unless  the  Council,
by  special  vote,  decides  otherwise.  The  Council  shall  conclude  a  Headquarters
Agreement  with  the  host  Government  as  soon  as  possible  after  these  Terms  of
Reference have entered into force.

Decision-making and Distribution of Votes

9.

(a)

Except  where  otherwise  specified,  and  subject 
the  provisions  of
subparagraph (d) below, the Council, the Committee on Projects referred to in
paragraph  10  below,  and  such  committees  and  subsidiary  bodies  as  may  be
established,  shall  wherever  possible  take  decisions  by  consensus.  Where  no
such consensus can be reached, any member may request that such a decision
be taken by a simple majority vote, unless a special vote is specified;

to 

(b) Each  member  shall  be  entitled  to  the  number  of  votes  allocated  to  it  in
accordance  with  the  provisions  of  sub-paragraph  (c)  below.  In  the  case  of
voting, the European Community and member intergovernmental organizations
shall vote with a number of votes equal to the total number of votes attributable
to their Member States;

8

(c) All members shall together hold 2,000 votes. Fifty per cent of the total votes of
members  shall  be  distributed  equally  among  all  members,  subject  to  the
provisions of subparagraph (b) above. The remaining Fifty per cent of the total
votes  shall  be  allocated  to  each  member  in  proportion  to  its  “Coefficient  of
Jute-related  Importance”  (COJI)  as  defined  in  sub-paragraph  (d)  below.  The
total  of  the  basic  votes  and  the  COJI-related  votes  of  each  member  shall  be
appropriately rounded so that there are no fractional votes and the total number
of votes of members does not exceed 2,000, subject, however, to the provision
of sub-paragraph (e) below;

(d)

For the purposes of these  Terms of Reference the “Coefficient of Jute-related
Importance”  (COJI)  of  each  member  shall  be  its  share  in  the  total  value
attributed to all member countries in accordance with the following formulae:

(i)

(ii)

In the case of jute-producing countries, the weighted average volume of
production of 40 per cent and the average volume of net trade of 60 per
cent of jute and jute products over the most recent three-year period for
which relevant statistics are available;

In  the  case  of  non-jute-producing  and  net  jute  importing-countries,  the
average  volume  of  their  net  imports  of  jute  and  jute  products  over  the
most recent three-year period for which relevant statistics are available.

(e) No member representing a single country shall have more than 450 votes. Any
votes  over  this  figure  arising  from  the  methodology  prescribed  in  sub-
paragraphs  (c)  and  (d),  and  provided  for  in  sub-paragraph  (i)  below,  shall  be
redistributed  among  all  other  members  on  the  same  basis  of  computation  as
provided for under those subparagraphs;

(f)

If, for any reason, difficulties should arise in the determination of votes through
the use of the methodology prescribed in sub-paragraphs (c), (d) and (e) above,
the  Group  may,  by  special  vote,  decide  on  a  different  methodology  for  the
distribution of votes;

(g) The presence of members holding together 1,000 votes shall be required for the
commencement  of  any  Council  meeting.  The  presence  of  members  holding
together  1,200  votes  shall  be  required  for  any  decision  to  be  taken  by  the
Council;

(h) The Council shall distribute the votes for each financial  year at the beginning
of the last session of the preceding  year  in accordance with the  provisions  of
this paragraph. Such distribution of votes shall remain in effect for the full jute
year, except as provided for in sub-paragraph (i) below;

(i) Whenever the membership of the Group changes or when any member has its
voting  rights  suspended  or  restricted  under  any  provisions  of  the  rules  of
procedure,  the  Council  shall  re-distribute  the  votes  of  all  other  members  in
accordance with the provisions of this paragraph. The Council shall decide the
date on which the redistribution of votes shall become effective;

9

(j) A  member  authorized  by  another  member  to  cast  the  votes  held  by  the
authorizing  member  under  this  paragraph  shall  cast  such  votes  in  accordance
with the instructions of the authorizing member.

Committee on Projects (COP)

10.

(a)

The  Council  shall  establish  a  Committee  on  Projects  (COP),  which  shall  be
open to all members. The Committee may invite associate members and other
interested parties to participate in its work;

(b) The Committee on Projects shall advise the Council on all aspects of projects
and  related  activities  in  accordance  with  the  rules  to  be  established  by  the
Council;

(c)

The  Council  may,  in  certain  circumstances,  delegate  to  the  Committee  on
Projects  its  powers  relating  to  the  approval  of  projects  and  related  activities.
The  Council  shall  establish  rules  governing  such  delegation  of  powers  to  the
Committee on Projects.

Private Sector Consultative Board

11.

(a)

To  facilitate  interaction  with  the  private  sector,  the  Council  shall  establish  a
Private Sector Consultative Board (hereinafter referred to as the “Consultative
Board”).  The  Consultative  Board  shall  be  a  consultative  body,  which  may
make  recommendations  to  the  Council  in  matters  related  to  these  Terms  of
Reference;

(b) The  Consultative  Board  shall  consist  of  associate  members.  Other  private

sector entities which express a relevant interest may participate by invitation;

(c)

The Consultative Board shall submit regular reports to the Council;

(d) The  Consultative  Board  shall  establish  its  own  rules  of  procedure,  consistent

with the provisions of these Terms of Reference.

Committees and Subsidiary Bodies

12.

The Council may establish other committees or subsidiary bodies, in addition to the
Committee on Projects and the Private Sector Consultative Board on such terms and
conditions as it may determine.

Secretariat

13.

(a)

The Group shall have a Secretariat consisting of a Secretary-General and such
staff as may be required;

(b) The Secretary-General shall be appointed by the Council by special vote. The
terms  and  conditions  of  appointment  of  the  Secretary-General  shall  be
governed by the rules of procedure of appointment except for the appointment
of the first Secretary-General;

10

(c)

The  Secretary-General  shall  be  the  chief  administrative  officer  of  the  Group
and  shall  be  responsible  to  it  for  the  administration  and  operation  of  these
Terms of Reference in accordance with the decisions of the Council;

(d) The  Secretary-General  shall  appoint  the  staff  in  accordance  with  the
regulations  established  by  the  Council.  The  staff  shall  be  responsible  to  the
Secretary-General.

Consultation and cooperation with others

14.

(a)

The Group may make arrangements for consultations and cooperation with the
its  organs  or  specialized  agencies,  and  with  other
United  Nations, 
intergovernmental organizations and institutions, as appropriate;

(b) The  Group  may  also  make  such  arrangements  as  it  considers  appropriate  for
maintaining  contact  with  interested  Governments  of  non-member  countries,
with  national  and  international  non-governmental  institutions,  with  private
sector  organizations  and  with  research  institutions  which  are  not  associate
members;

(c) Observers  may  be  invited  to  attend  meetings  of  the  Council  or  its  subsidiary
bodies on such terms and conditions as the Council or those bodies may decide.

Relationship with the Common Fund

15.

The Group may apply to be designated  as an  International Commodity Body (ICB)
under article 7(9) of the Agreement establishing the Common Fund for Commodities
(CFC),  for  the  purpose  of  sponsoring,  in  accordance  with  the  provisions  of  these
Terms of Reference, projects on jute and jute products to be financed by the Fund.
Decisions on the sponsoring of such projects shall normally be taken by consensus. If
consensus cannot be reached, decisions shall be taken by a special vote. No member
shall  be  responsible  by  reason  of  its  membership  in  the  Council  for  any  liability
arising from borrowing or lending by any other member or entity in connection with
projects. The Secretary-General is authorized to conclude Agreements with the Fund
for approved projects.

Legal Status

16.

(a)

The  Group  shall  have  international  legal  personality.  In  the  territory  of  each
member,  and  subject  to  its  national  legislation,  the  Group  shall,  in  particular,
but subject to paragraph 7(b) above, have the capacity to enter into contracts, to
acquire  and  to  dispose  of  movable  and  immovable  property,  and  to  institute
legal proceedings;

(b) The status of the Group in the territory of the host country shall be governed by
the  Headquarters  Agreement  between  the  host  Government  and  the  Council,
referred to in paragraph 8 above;

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(c) As the legal successor  to  the  International  Jute  Organization,  the  Group  shall
assume  responsibility  for  all  the  assets  and  liabilities  of  the  former
Organization.

Financial Accounts and Budget Contributions

17.

(a)

For  the  purposes  of  these  Terms  of  Reference,  the  Group  shall  establish  the
following accounts:

(i)

The Administrative Account; and

(ii) The Special Account

(b) Each  member  shall  contribute  to  the  Administrative  Account  in  accordance
with  the  provisions  of  the  rules  of  procedure,  within  the  framework  of  an
annual  administrative  budget  which  shall  be  approved  by  the  Council.  The
contribution of members shall be directly proportional to the votes allocated to
them under the provisions of paragraph 9. The payment of the contribution by
each member shall be made in accordance with its constitutional procedures;

(c)

In  addition  to  the  contributions  to  the  Administrative  Account  within  the
framework  of  the  Annual  Administrative  Budget,  the  Group  may  accept
contributions to the Special Account. The Special Account shall be established
for the purpose of financing projects, and pre-project and related activities. The
possible sources of finance for the Special Account may include:

(i) Voluntary  contributions  from  members,  associate  members  and  other

sources; and

(ii) Regional and  international  financial  institutions,  including  the  Common
Fund for Commodities, the United Nations Development Programme, the
World  Bank,  the  Asian  Development  Bank,  the  International  Fund  for
Agricultural  Development,  the  Inter-American  Development  Bank  and
the African Development Bank.

18.

(a)

Statistics, Studies and Market Information

The  Group  shall  analyse  and  process  jute  trade  information  and  statistics
collected  from  the  Food  and  Agriculture  Organization  of  the  United  Nations
(FAO), other international and national institutions and the private sector. The
Group  shall  provide  and  make  available  to  members,  associate  members  and
other  interested  parties  the  market  outlooks  and  intelligence,  including
information  on  stocks  and  consumption  by  specific  markets  and  end-use
industries.  The  Group  shall  also  encourage  national  institutions  in  producing
member  countries  to  improve  data  collection  in  the  jute  sector  and  to
disseminate the results to all interested  parties.  In  so doing,  every  effort shall
be made, as far as practicable, to minimize duplication.

(b) The  Group  shall  undertake  such  studies  related  to  the  international  jute

economy as may be agreed to by the Council;

12

(c)

The  Group  shall  endeavour  to  ensure  that  information  made  available  by  it
does  not  prejudice  the  confidentiality  of  the  operations  of  Governments  or
persons or enterprises producing, processing, marketing or consuming jute.

Annual Assessment and Reports

19.

(a)

The Group shall undertake an annual assessment of the world jute situation and
related  matters  in  the  light  of  information  supplied  by  members  and
supplemented  by  information  from  all  other  relevant  sources,  including
periodic  evaluation  reports  by  donors.  The  annual  assessment  shall  include  a
review of expected jute production capacity for future years and an outlook for
jute production, consumption and trade for the following calendar year, for the
purpose of assisting members in their  individual assessments of  the  evolution
of the international jute economy;

(b) The  Group  shall  prepare  a  report  incorporating  the  results  of  the  annual
assessment and distribute it to members. If the Group deems it appropriate, this
report,  as  well  as  other  reports  and  studies  distributed  to  members,  may  be
made  available  to  other  interested  parties  in  accordance  with  the  rules  of
procedure;

(c)

The  Group  shall  undertake  periodic  evaluations  of  its  activities  at  least  every
two years, and compare their conformity to the objectives and functions of the
Group as set out in paragraphs 3 and 4 above.

Market Development

20.

The  Group  shall,  in  consultation  with  members,  associate  members  and  interested
parties,  identify  constraints  and  opportunities  in  the  world  market  for  jute  and  jute
products with a view to undertaking  appropriate activities, with particular reference
to  increasing  the  demand  and  developing  the  market  for  jute  and  jute  products,  as
well as dissemination and commercial exploitation of emerging technologies.

Obligations of Members

21.

Members shall use their best endeavours to cooperate and to promote the attainment
of  the  objectives  of  the  Group,  in  particular  by  providing  the  data  referred  to  in
paragraph 19(a) above.

22.

No reservations may be made to any of the provisions of these Terms of Reference.

Reservations

13

Entry into force

23.

(a)

These  Terms  of  Reference  shall  enter  into  force  when  States,  the  European
Community  or  any  intergovernmental  organization  referred  to  in  paragraph  5
above  together  accounting  for  60  per  cent  of  trade  (imports  and  exports
combined) in jute and jute products, as set out in Annex A to these Terms of
Reference,  have  notified  the  Secretary-General  of  the  United  Nations
(hereinafter  referred  to  as  “the  depositary”)  pursuant  to  sub-paragraph  (b)
below of their provisional application or definitive acceptance of these Terms
of Reference;

(b) Any  State,  the  European  Community  or  any  intergovernmental  organization
referred  to  in  paragraph  5  above  which  desires  to  become  a  member  of  the
Group  shall  notify  the  depositary  that  it  accepts  definitively  these  Terms  of
Reference  or  that  it  accepts  to  apply  them  provisionally,  pending  the
conclusion of its internal procedures.  Any State, the  European  Community or
intergovernmental  organization  which  has  notified  its  provisional  application
of  these  Terms  of  Reference  shall  endeavour  to  complete  its  internal
procedures as soon as possible, and shall notify the depositary of its definitive
acceptance of these Terms of Reference;

(c)

If the requirements for entry into force of these Terms of Reference  have  not
been met on 31 December 2001, the Secretary-General of the United  Nations
Conference on Trade and Development shall invite those States, the European
Community  and  intergovernmental  organizations  that  have  notified  their
acceptance  or  provisional  application  of  these  Terms  of  Reference  to  decide
whether or not to put these Terms of Reference into force among themselves;

(d) When these Terms of Reference enter into force, the Secretary-General of the
United  Nations  Conference  on  Trade  and  Development  shall  convene  an
inaugural meeting of the Council as soon as possible thereafter. Members shall
be notified at least one month, where possible, prior to that meeting.

Amendment

24.

These Terms of Reference may be amended only by consensus of the Council. The
Secretary-General shall notify the depositary of any amendments adopted under this
paragraph.  An  amendment  shall  enter  into  force  90  days  after  the  depositary  has
received the notification of acceptance from members holding together at least 60 per
cent of the votes.

Duration, Extension and Renegotiation

25.

(a)

The Group shall remain in force for a period of eight years, unless the Council,
by special vote, decides to extend or renegotiate these Terms of Reference  as
provided  for  in  sub-paragraphs  (b)  and  (c)  below  or  to  terminate  them  as
provided for in paragraph 27 below;

(b) The Council may, by special vote, decide to extend the duration of these Terms

of Reference for not more than two periods of two years each;

14

(c)

The  Council  may,  by  special  vote,  decide  to  renegotiate  these  Terms  of
Reference.

26.

(a) A member may withdraw from the Group at any time by giving written notice
of withdrawal to the depositary and to the Secretary-General of the Group;

Withdrawal

(b) Withdrawal  shall  be  without  prejudice  to  any  financial  obligations  already
incurred by the withdrawing member and shall not entitle it to any rebate of its
contribution for the year in which the withdrawal occurs;

(c) Withdrawal  shall  become  effective  12  months  after  the  notice  is  received  by

the depositary;

(d) The Secretary-General of the Group shall promptly notify each member of any

notification received under this paragraph.

27.

28.

Termination

The  Council  may  at  any  time,  by  special  vote,  decide  to  terminate  these  Terms  of
Reference.  Such  termination  shall  take  effect  on  such  date  as  the  Council  shall
decide. The Secretary-General shall notify the decision taken under this paragraph to
the depositary.

Liquidation

Notwithstanding  the  expiry  or  the  termination  of  these  Terms  of  Reference,  the
Council  shall  continue  in  being  for  as  long  as  is  necessary,  but  not  exceeding  a
period of 12 months, to carry out liquidation of the Group including settlement of the
accounts.

DONE  at  Geneva,  this  thirteenth  day  of  March,  two  thousand  and  one,  the  texts  of  this
Agreement in Arabic, Chinese, English, French, Russian and Spanish languages being equally
authentic.

15

Annex A

Statistical information on net world trade (imports and exports)
in jute and jute products for the purposes of entry into force of
these Terms of Reference

Table 1: Net Exports of Jute and Allied Fibres

('000 Metric tonnes in fibre equivalent)

Country

World

1996/97

1997/98

1998/99

96/97-98/99

1 011.2

1 090.6

 997.9

1 033.2

100.0

Average of

Share (%)

A. Current Members of IJO*

Bangladesh

794.1

801.3

779.3

India

Nepal

193.3

262.6

192.6

11.7

10.7

10.7

791.6

216.2

11.0

Sub-total A:

999.1

1 074.6

982.6

1 018.8

B. Past Members of IJO

Thailand

Sub-total B:

C. Others

10.1

10.1

2.0

11.1

11.1

4.9

12.1

12.1

3.2

11.1

11.1

3.4

76.6

20.9

1.1

98.6

1.1

1.1

0.3

Total (A+B+C)

1 011.2

1 090.6

997.9

1 033.2

100.0

*

IJO means the International Jute Organization established under the International Agreement on Jute
and Jute Products 1989.

16

Table 2: Net Imports of Jute and Allied Fibres
('000 Metric tonnes in fibre equivalent)

World

A. Current Members of IJO

A.1 EC Members

Austria

Belgium-Luxembourg

Denmark

Finland

France

Germany

Greece

Italy

Ireland

Netherlands

Portugal

Spain

Sweden

United Kingdom of Great Britain & Northern Ireland

Sub-total A.1

A.2 Non-EC Members

China

Japan

Egypt

Indonesia

Switzerland

Norway

Sub-total A.2

Total A (A1+A2)

B. Past Members of IJO

Pakistan

Turkey

United States of America

Australia

Canada

Poland

Yugoslavia, Federal Republic of

Sub-total B

Average of 1996-98

Share (%)

992.3

100.00

0.8

86.3

1.2

0.2

19.3

17.5

2.9

10.3

1.4

22.0

1.5

10.0

0.2

43.5

0.08

8.70

0.12

0.02

1.94

1.76

0.29

1.04

0.14

2.22

0.15

1.01

0.02

4.38

217.1

21.87

85.6

37.1

24.2

12.7

0.3

0.2

160.1

377.2

92.2

65.1

62.8

43.2

7.9

4.9

2.2

8.77

3.74

2.44

1.28

0.03

0.02

16.28

38.15

9.29

6.56

6.33

4.35

0.80

0.49

0.22

278.3

28.04

17

C. Other Countries

Iran, Islamic Republic of
Syrian Arab Republic
Sudan
Former USSR*
[Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan,
Kyrgyzstan, Latvia, Lithuania, Moldova, Russian Federation,
Tajikistan, Turkmenistan, Ukraine, Uzbekistan]
Cote d'Ivoire
Morocco
Brazil
Ghana
Saudi Arabia
Philippines
Czech Republic
Malaysia
Republic of Korea
Senegal
Algeria

Sub-total C

D. Others

TOTAL (A+B+C+D)

Average of 1996-98

Share (%)

53.8
53.3
37.6
27.2

18.6
13.0
11.2
10.9
10.8
0.5
1.6
2.4
7.0
1.2
9.9

259.0

77.8

992.3

5.42
5.37
3.79
2.74

1.87
1.31
1.13
1.10
1.09
0.05
0.16
0.24
0.71
0.12
1.00

26.10

7.71

100.00

*

There are no jute statistics available for the individual countries of the former USSR. Their share of
net  imports  will  not  be  taken  into  account  for  the  entry  into  force  of  the  Terms  of  Reference  in
accordance with paragraph 23.

18

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): External aspects of certain Community policies

Activity(ies): International commodity agreements

TITLE  OF  ACTION:  EUROPEAN  COMMUNITY  CONTRIBUTION  TO  THE  INTERNATIONAL  JUTE

STUDY GROUP

1.

2.

2.1

2.2

2.3

BUDGET LINE(S) + HEADING(S): B7-821 – FINANCIAL OBLIGATIONS ARISING
FROM  AGREEMENTS  BETWEEN  THE  EUROPEAN  UNION  AND  INTERNATIONAL
ORGANISATIONS.  CREATION  OF  A  SUBSIDIARY  HEADING  AND  RELEVANT
APPROPRIATION

OVERALL FIGURES

Total allocation for action (Part B): € 0.245 million for commitment

Period of application: 2002 onwards No change assumed after 2003 There might
even be a reduction.

Overall multiannual estimate of expenditure:

a)
Schedule  of 
intervention) (see point 6.1.1)

commitment 

appropriations/payment 

appropriations 

(financial

€ million (to 3rd decimal place)

Year
2002

2003

2004

2005

2006

Commitments

0,245

0,245 0,245

0,245

0,245

2007
and
subs.
years
0,245

Total

1,47

Payments

0,245

0,245 0,245

0,245

0,245

0,245

1,47

b)

Technical and administrative assistance and support expenditure(see point 6.1.2)

Commitments

Payments

Subtotal a+b

Commitments

Payments

19

Overall financial impact of human resources and other administrative expenditure (see

c)
points 7.2 and 7.3)

0,036

0,036

0,036

0,036

0,036

0,036

0,216

Commitments/
payments

TOTAL a+b+c

Commitments

0,281

0,281

0,281

0,281

0,281

0,281

1,686

Payments

2.4

Compatibility with financial programming and financial perspective

X

Proposal compatible with the existing financial programming

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial

O
perspective.

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional

O
Agreement.

2.5

Financial impact on revenue

No financial implications (involves technical aspects regarding implementation

X
of a measure)

OR

(cid:1) Proposal has financial impact - the effect on revenue is as follows:

Note:  All  details  and  observations  pertaining  to  the  method  of  calculating  the
effect on revenue should be included in a separate annex.

€ million (to 1 decimal place)

Budget line Revenue

action
(Year n-
1)

Situation following implementation of action

Année
n3

n+1

n+2

n+3

n+4

n+5

Revenue in absolute terms

Change in Revenue

 (cid:1)

(Please state each budget line involved, adding the appropriate number of rows to
the table if there is an effect on more than one budget line)

20

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
contribution

Contribution
from
applicant
countries

Heading in
financial
perspective

Comp.

Diff.

YES

NO

NO

No 4

4.

LEGAL BASIS

Article 
of 
Council Decision of...

133 

the 

Treaty, 

in 

conjunction 

with 

Article 

300(1).

5.

5.1

DESCRIPTION AND GROUNDS

Need for Community intervention1

5.1.1. Objectives pursued

By virtue of its economic importance, particularly in  terms of  development cooperation, the
European Community ought to be represented in international commodity agreements, which
offer  one  way  of  monitoring  global  change,  stimulating  the  economic  development  of
producer  countries  and  defending  the  Community's  interests  in  relation  to  the  products
concerned.

The  Community's  payment  of  contributions  will  further  the  objectives  of  the  Agreement
establishing the International Jute Study Group. The International Jute Study Group,  which
administers  the  agreement,  was  set  up  to  promote  those  objectives,  primarily  international
cooperation,  the  expansion  of  world  trade  in  jute  and  jute  articles,  exchanges  of  statistics,
forecasting  market  trends,  marketing,  product  quality,  and  cooperation  with  the  private
sector. It is therefore in the European Community's interest to be Party to the Agreement.

The Agreement establishing the terms of reference of the International Jute Study Group was
negotiated in Geneva in March 2001 and is scheduled to enter into force in January 2002 on
condition that enough countries accede to it.

Up  to  now,  in  view  of  the  hybrid  nature  of  these  agreements,  the  Member  States  paid  the
administrative contributions. Furthermore, the Member States were not obliged to participate
in  international  study  groups;  it  was  left  to  the  discretion  of  the  individual  national
authorities.  But  according  to  an  assessment  by  the  Legal  Service  of  the  Commission,  the
grounds for which are fully shared by the Council's Legal Service, the new Agreement is more
weighted towards commercial policy  than,  say, development  policy  –  the  latter  is  important
but ancillary. The Council has already accepted this approach for the conclusion of another
international commodity agreement. For that reason, the Council should accept this proposal
for a decision on the grounds of exclusive competence. Accordingly, the contributions to the
administrative budget should come from the Community budget.

1 For further information, see separate explanatory note.

21

                                                
Members'  contributions  are  set  annually  and  must  be  paid  as  long  as  the  European
Community remains a party to the Agreement.

Obviously,  if  the  European  Community  were  to  undertake  the  work  conducted  by  the
International Study Group on its own account, it would cost rather more than its contribution
as member.

5.1.2. Measures taken in connection with ex ante evaluation

5.2

Actions envisaged and budget intervention arrangements

The  European  Community  will  pay  the  annual  membership  fee  for  the  International  Jute
Study Group. The fees will be due as long as the European Community is a signatory of the
Agreement.

The European Community and the Member States will participate fully in the activities of the
International Jute Study group and enjoy all the benefits of membership.

5.3

Methods of implementation

(Specify  the  methods  used  to  implement  the  planned  actions:  direct  management  by  the
Commission using either regular or outside staff or by externalisation. In the latter case, give
details  of  the  arrangements  envisaged  for  this  externalisation  (TAO,  Agencies,  Offices,
decentralised  implementing  units,  management  shared  with  Member  States  -  national,
regional and local authorities).
Indicate  the  effect  of  the  externalisation  model  chosen  on  the  financial  intervention,
management and support resources and on human resources (seconded officials, etc.).)

Direct management by the Commission using regular staff.

6.

6.1

FINANCIAL IMPACT

Total financial impact on Part B - (over the entire programming period)

(The method of calculating the total amounts set out in the table below must be explained by
the breakdown in Table 6.2. )

6.1.1. Commitments in € million (to the 3rd decimal place)

Breakdown

Year2002

2003

2004

2005

2006

Total

2007 and
subs.
years

Action 1 contribution

0,245

0,245

0,245

0,245

0,245

0,245

1,47

Action 2

Etc.

TOTAL 0,245

0,245

0,245

0,245

0,245

0,245

1,47

22

6.1.2. Technical and administrative assistance, support expenditure
and IT (commitments)

Year N

n + 1

 N + 2

n + 3

n + 4

Total

N + 5 and
subs.
years

1.Technical 
administrative assistance:
Technical assistance offices

and

and

technical 

Other 
administrative assistance:
- intra-muros:
- extra-muros:
of  which  for  construction
and 
of
maintenance 
computerised  management
systems

Subtotal 1

Support expenditure

a) Studies

b) Meetings of experts

c) Information and
publications

Subtotal 2

TOTAL

23

6.2.

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire
programming period)2

(Where there is more than one action, give sufficient detail of the individual measures to be
taken for each one to allow the volume and costs of the outputs to be estimated.)

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

Breakdown

Type of outputs
(projects, files)

1

Number of
outputs
(total for years
1…n)
2

Average unit
cost

Total cost
(total for years
1…n)

3

4=(2x3)

Action 1
- Measure 1
- Measure 2
Action 2
- Measure 1
- Measure 2
- Measure 3
Etc.

TOTAL COST

If necessary explain the method of calculation

The sum of €0.245 million has been calculated supposing that all the parties to the
International Jute Agreement 1989 will become members of the International Jute Study
Group 2001. If a member delayed its accession, the budgetary deficit could be covered by the
other members in the interim. In the same way, if new members joined, the Community's
contribution would fall.

2 For further information, see separate explanatory note.

24

                                                
7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Types of post

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

Number of
permanent posts

Number of
temporary posts

Officials or
temporary staff

A
B
C
Other human resources
Total

0,25
0,05

0,3

Description of tasks deriving from the
action

Preparation and participation in IJSG
meetings and follow-up to meetings.

Total

0,25
0,05

0,3

7.2

Overall financial impact of human resources

Type of human resources

Amount €

Method of calculation*

Officials
Temporary staff

Other human resources

32400

0.25 x 108.000 € + 0.05 x 108.000 €

(give budget line)

Total

32400

The amounts are total expenditure for twelve months.

7.3

Other administrative expenditure deriving from the action

Amount €

Method of calculation

On  average  5  days  of  meetings  in
Dhaka 
year.
Average  daily  cost  €634,  including
transport.

(Bangladesh) 

each 

Budget line
(number and heading)

Overall allocation (Title A7)
A0701 - Missions
A07030 - Meetings
A07031 - Compulsory committees (1)
A07032 - Non-compulsory committees (1)
A07040 - Conferences
A0705 - Studies and consultations
Other expenditure (state which)

Information systems (A-5001/A-4300)

Other expenditure - Part A (state which)

3170

Total

3170

The amounts are total expenditure for twelve months.

Specify the type of committee and the group to which it belongs.

I.
II.
III.

Annual total (7.2 + 7.3)
Duration of action
Total cost of action (I x II)

€35570
6 years
213420€

25

(In the estimate of human and administrative resources required for the action, DGs/Services
must take  into account the decisions taken  by  the  Commission  in  its  orientation  debate  and
when  adopting  the  preliminary  draft  budget  (PDB).  This  means  that  DGs  must  show  that
human  resources  can  be  covered  by  the  indicative  pre-allocation  made  when  the  PDB  was
adopted.

Exceptional cases, where the action concerned could not be foreseen when the PDB was being
prepared, will have to be referred to the Commission for a decision on whether and how (by
means of an amendment of the indicative pre-allocation, an ad hoc redeployment exercise, a
supplementary/amending budget or a letter of amendment to the draft budget) implementation
of the proposed action can be accepted.)

8.

8.1

FOLLOW-UP AND EVALUATION

Follow-up arrangements

(Adequate  follow-up  information  must  be  collected,  from  the  outset  of  each  action,  on  the
inputs,  outputs  and  results  of  the  intervention.  In  practice  this  means  (i)  identifying  the
indicators for inputs, outputs and results and (ii) putting in place methods for the collection of
data).

8.2

Arrangements and schedule for the planned evaluation

(Describe the planned schedule and arrangements for interim and ex post evaluations to assess
whether  the  intervention  has  achieved  the  objectives  set.  In  the  case  of  multiannual
programmes,  at  least  one  thorough  evaluation  is  needed  during  the  life  cycle  of  the
programme.  For  other  activities  an  ex  post  or  mid-term  evaluation  should  be  carried  out  at
intervals not exceeding six years).

The Commission will participate actively in work the Council of the International Jute Study
Group.  This  body  is  responsible  for  setting  the  budget  contributions.  The  administrative
budget,  spending  records,  financial  statements  and  decisions  adopted  by  the  Group  can  be
consulted by members.

9.

ANTI-FRAUD MEASURES

(Article 3(4) of the Financial Regulation:  "In order  to  prevent  risk  of  fraud  or  irregularity,
the  Commission  shall  record  in  the  financial  statement  any  information  regarding  existing
and planned fraud prevention and protection measures.")

The  Commission  will  monitor  the  administrative  and  financial  management  of  the
International Jute Study Group.

If necessary, the Secretariat of the International Jute Study Group is willing to grant UCLAF,
and any other Community financial and audit department, access to its accounts.

26