Proposal for a Council Decision on the signing and conclusion on behalf of the European Community of the International Cocoa Agreement 2001
Date: 2002-07-30
Institutions: European Commission
Subjects: cocoa, international agreement, signature of an agreement, trade policy

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Proposal for a Council Decision on the signing and conclusion on behalf of the European
Community of the International Cocoa Agreement 2001

(2002/C 331 E/22)

COM(2002) 438 final — 2002/0190(ACC)

(Submitted by the Commission on 30 July 2002)

EXPLANATORY MEMORANDUM

On 2 March 2001, during its second session in Geneva, the conference organised by UNCTAD to negotiate
a successor to the International Cocoa Agreement 1993, as extended, approved a new text. The current
Agreement is to remain in force until 30 September 2003 at the latest.

In the discussions the Community negotiated on the basis of the negotiating mandate and directives
proposed by the Commission and approved by the Council on 6 September 2000.

In the light of the discussions and the content of the new instrument, which reflects the Community's
position, the Commission considers the International Cocoa Agreement 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, although they are trade agreements covered by
Article 133 of the Treaty establishing the European Community, commodity agreements such as this have
been concluded by the Community jointly with the Member States under the arrangement between the
Council and the Commission known as PROBA 20.

In this case, since the international agreement in question expressly excludes a financial
instrument
supported by the Members, and the Member States' contributions to the operating budget of the Inter-
national Cocoa Organisation cannot
in themselves justify the Member States' participation in the
conclusion of the Agreement, the new Agreement 2001 should be concluded by the Community.

Consequently, under Article 133 of the Treaty establishing the European Community, this recommen-
dation is for a decision authorising the Commission to conclude, on behalf of the Community, the
International Cocoa Agreement 2001.

Under Article 58(3) of the International Cocoa Agreement 2001, the instrument of acceptance should be
signed and lodged as soon as possible, preferably before 1 September 2002. The Council is therefore
requested to adopt this decision before that deadline.

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:

(2) This new agreement has been negotiated to replace the
International Cocoa Agreement 1993, as extended, which
will remain in force until 30 September 2003 at the latest.

(3) The International Cocoa Agreement 2001 is open for
signature and deposit of the instruments of ratification,
acceptance or approval.

(1) On 2 March 2001 the UNCTAD negotiating conference
the International Cocoa

formally approved the text of
Agreement 2001.

(4) The Community is a member of the 1993 International
Agreement, as extended, and it is therefore in its interest
to approve the agreement which succeeds it,

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HAS DECIDED AS FOLLOWS:

Article 1

The International Cocoa Agreement 2001 is hereby approved
on behalf of
the
Agreement is attached to this Decision.

the European Community. The text of

Article 2

The President of the Council
person authorised to sign the agreement and deposit
instrument of approval on behalf of the Community.

is authorised to designate the
the

PART ONE

OBJECTIVES AND DEFINITIONS

CHAPTER I

OBJECTIVES

Article 1

Objectives

1.
The
Agreement are:

objectives

of

the

Sixth

International Cocoa

(a) To promote international cooperation in the world cocoa

economy;

(b) To provide an appropriate framework for the discussion of

all matters relating to all sectors thereof;

(c) To contribute to the strengthening of the national cocoa
economies of Member countries, in particular through the
preparation of appropriate projects to be submitted to the
relevant institutions for financing and implementation;

(d) To contribute to a balanced development of the world
cocoa economy in the interest of all Members through
appropriate measures, including:

(i) Promoting a sustainable cocoa economy;

(ii) Promoting research and the implementation of

its

findings;

(iii) Promoting transparency in the world cocoa economy
through the collection, analysis and dissemination of
relevant
statistics and undertaking of appropriate
studies; and

CHAPTER II

DEFINITIONS

Article 2

Definitions

For the purposes of this Agreement:

1. Cocoa means cocoa beans and cocoa products;

2. Cocoa products means products made exclusively from
cocoa beans, such as cocoa paste/liquor, cocoa butter,
unsweetened cocoa powder, cocoa cake and cocoa nibs,
as well as any other products containing cocoa as the
Council may determine;

3. Cocoa year means the period of 12 months from 1 October

to 30 September inclusive;

4. Contracting party means a Government, or an intergovern-
mental organization as provided for in article 4, which has
consented to be bound by this Agreement provisionally or
definitively;

5. Council means the International Cocoa Council referred to

in article 6;

6. Daily price is the representative indicator of

the inter-
this
and computed in accordance with the

national price of cocoa used for the purposes of
Agreement
provisions of article 40;

7. Entry into force means, except when qualified, the date on
first enters into force, whether

which this Agreement
provisionally or definitively;

8. Exporting country or exporting Member means a country or a
Member respectively whose exports of cocoa, expressed in
terms of beans, exceed its imports. However, a country
whose imports of cocoa, expressed in terms of beans,
exceed its exports but whose production exceeds
its
imports may, if it so chooses, be an exporting Member;

9. Export of cocoa means any cocoa which leaves the customs
territory of any country and import of cocoa means any
cocoa which enters the customs territory of any country;
provided that,
these definitions,
the purposes of
customs territory shall,
in the case of a Member which
comprises more than one customs territory, be deemed
to refer
that
Member;

to the combined customs territories of

for

(iv) Promoting and encouraging consumption of chocolate
and cocoa-based products in order to increase demand
for cocoa in close cooperation with the private sector.

10. Fine or flavour cocoa is cocoa recognized for its unique
flavour and colour, and produced in countries designated
in annex C of this Agreement;

2.
In pursuing these objectives, Members shall, within the
appropriate framework, encourage the greater participation of
the private sector in the work of the Organization.

11. Importing country or importing Member means a country or a
Member respectively whose imports of cocoa, expressed in
terms of beans, exceed its exports;

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12. Member means a Contracting Party as defined above;

There shall be two categories of Members of the Organ-

2.
ization, namely:

13. Organization means the International Cocoa Organization

referred to in article 5;

14. Private sector comprises all private sector entities which
have main activities
including
in the
farmers, traders, processors, manufacturers and research
institutes.
the
private sector also comprises public enterprises, agencies
and institutions which, in certain countries, fulfil roles that
are performed by private entities in other countries;

In the framework of

this Agreement,

cocoa sector,

15. Producing country means a country which grows cocoa in

commercially significant quantities;

16. Simple distributed majority vote means a majority of votes
cast by exporting Members and a majority of votes cast by
importing Members, counted separately;

17. Special Drawing Right (SDR) means the Special Drawing

Right of the International Monetary Fund;

18. Special vote means two thirds of the votes cast by exporting
Members and two thirds of the votes cast by importing
Members, counted separately, on condition that at least
importing
five exporting Members and a majority of
Members are present;

19. Sustainable cocoa economy is a system in which all stake-
levels that are econ-
holders maintain productivity at
omically
culturally
acceptable through the efficient management of resources;

ecologically

viable,

sound

and

20. Tonne means a mass of 1 000 kilograms or 2 204,6

pounds and pound means 453,597 grams;

21. Stocks of cocoa beans means all dry cocoa beans that can be
year
location, ownership or

irrespective of

last day of

cocoa

the

the

identified as
at
(30 September),
intended use.

PART TWO

CONSTITUTIONAL PROVISIONS

CHAPTER III

MEMBERSHIP

Article 3

Membership in the Organization

Each Contracting Party shall be a Member of the Organ-

1.
ization.

(a) Exporting Members; and

(b) Importing Members.

A Member may change its category on such conditions as

3.
the Council may establish.

Article 4

Membership by intergovernmental organizations

of

international

in respect of

the negotiation,

Any reference in this Agreement to ‘a Government’ or
1.
‘Governments’ shall be construed as including the European
Union and any intergovernmental organization having respon-
conclusion and
sibilities
application
particular
commodity agreements. Accordingly, any reference in this
Agreement to signature, ratification, acceptance or approval,
or to notification of provisional application or to accession
shall, in the case of such intergovernmental organizations, be
construed as including a reference to signature, ratification,
to notification of provisional
acceptance or approval, or
application, or to accession, by such intergovernmental organ-
izations.

agreements,

in

2.
In the case of voting on matters within their competence,
such intergovernmental organizations shall vote with a number
of votes equal to the total number of votes attributable to their
member States in accordance with article 10. In such cases, the
member States of such intergovernmental organizations shall
not exercise their individual voting rights.

Such organizations may participate in the Executive

3.
Committee on matters within their competence.

CHAPTER IV

ORGANIZATION AND ADMINISTRATION

Article 5

Establishment, headquarters and structure of the Inter-
national Cocoa Organization

1.
The International Cocoa Organization established by the
International Cocoa Agreement, 1972, shall continue in being
and shall administer the provisions and supervise the operation
of this Agreement.

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2.

The Organization shall function through:

(c) Revision of the list of producers of fine or flavour cocoa

under article 46;

(a) The International Cocoa Council and its subsidiary bodies;

and

(d) Relief from obligations under article 47;

(b) The Executive Director and other staff.

(e) Decision of disputes under article 50;

The headquarters of the Organization shall be in London

3.
unless the Council, by special vote, decides otherwise.

(f) Suspension of rights under paragraph 3 of article 51;

(g) Establishment of conditions for accession under article 56;

Article 6

(h) Exclusion of a Member under article 61;

Composition of the International Cocoa Council

The highest authority of the Organization shall be the
the

1.
International Cocoa Council, which shall consist of all
Members of the Organization.

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

Article 7

Powers and functions of the Council

1.
The Council shall exercise all such powers and perform
or arrange for the performance of all such functions as are
necessary to carry out
this
Agreement.

express provisions of

the

2.
The Council shall not have power, and shall not be taken
to have been authorized by the Members, to incur any obli-
gation outside the scope of this Agreement;
it
shall not have the capacity to borrow money. In exercising
incorporate in its
its capacity to contract, the Council shall
this provision and of article 24 in
contracts the terms of
such a way as to bring them to the notice of
the other
parties entering into contracts with the Council, but any
failure to incorporate such terms shall not invalidate such a
contract or render it ultra vires the Council.

in particular,

(i) Extension or termination of this Agreement under article

63; and

(j) Recommendation of amendments to Members under article

64.

The Council may, by special vote, decide on other
4.
exceptions in paragraph 3 above. It may revoke any delegation
of power under paragraph 3 above by the same vote.

5.
The Council shall, by special vote, adopt such rules and
regulations as are necessary to carry out the provisions of this
Agreement and are consistent therewith, including its rules of
procedure and those of its committees, and the financial and
staff regulations of the Organization. The Council may, in its
rules of procedure, provide for a procedure whereby it may,
without meeting, decide specific questions.

6.
The Council shall keep such records as are required for
the performance of its functions under this Agreement, and
such other records as it considers appropriate.

The Council may set up any working group(s) as appro-

7.
priate to assist it in carrying out its task.

Article 8

Chairman and Vice-Chairman of the Council

The Council may at any time, by special vote, delegate
the
its powers to the Executive Committee, except

3.
any of
following:

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

(a) Redistribution of votes under article 10;

(b) Approval of the administrative budget and assessment of

contributions under article 25;

Both the Chairman and the first Vice-Chairman shall be
2.
elected from among the representatives of
the exporting
Members or from among the representatives of the importing
Members and the second Vice-Chairman from among the
representatives of
shall
alternate each cocoa year between the two categories.

the other category. These offices

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In the temporary absence of both the Chairman and the
3.
two Vice-Chairmen or the permanent absence of one or more
of them, the Council may elect new officers from among the
representatives of the exporting Members or from among the
representatives of the importing Members, as appropriate, on a
temporary or permanent basis as may be required.

4.
Neither the Chairman nor any other officer presiding at
meetings of the Council shall vote. His or her alternate may
exercise the voting rights of the Member which he or she
represents.

Article 9

Sessions of the Council

As a general rule, the Council shall hold one regular

1.
session in each half of the cocoa year.

The Council shall meet in special session whenever it so

2.
decides or at the request of:

(a) Any five Members;

(b) A Member or Members having at least 200 votes;

(c) The Executive Committee; or

(d) The Executive Director, for the purposes of articles 23 and

60.

Notice of sessions shall be given at least 30 calendar days

3.
in advance, except in case of emergency.

4.
Sessions shall be held at the headquarters of the Organ-
ization unless the Council, by special vote, decides otherwise.
If, on the invitation of any Member,
the Council meets
elsewhere than at the headquarters of the Organization, that
Member shall pay the additional costs involved.

Article 10

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 Members — that
is,
respectively — in
importing Members,
exporting
accordance with the following paragraphs of this article.

and

the
published by the Organization in its
Quarterly Bulletin of Cocoa Statistics. For this purpose, exports
shall be calculated as net exports of cocoa beans plus net
exports of cocoa products, converted to beans equivalent
using the conversion factors as specified in article 41.

issue of

latest

3.
For each cocoa year, the votes of importing Members
shall be distributed as follows: 100 shall be divided equally
to the nearest whole vote for each Member. The remaining
votes shall be distributed on the basis of
the percentage
which the average of each importing Member's annual
imports,
in the preceding three cocoa years for which final
figures are available in the Organization, represents in the
total of the averages for all the importing Members. For this
purpose, imports shall be calculated as net imports of cocoa
beans plus gross imports of cocoa products, converted to beans
equivalent using the conversion factors as specified in article
41.

4.
If, for any reason, difficulties should arise in the deter-
mination or the updating of the statistical basis for the calcu-
lation of votes in accordance with the provisions of paragraphs
2 and 3 of this article, the Council may, by special vote, decide
on a different statistical basis for the calculation of votes.

5.
No Member shall have more than 400 votes. Any votes
above this figure arising from the calculations in paragraphs 2,
3 and 4 of this article shall be redistributed among the other
Members on the basis of those paragraphs.

6. When the membership in the Organization changes or
when the voting rights of a Member are suspended or restored
under any provision of
the Council shall
provide for the redistribution of votes in accordance with
this article.

this Agreement,

7.

There shall be no fractional votes.

Article 11

Voting procedure of the Council

Each Member shall be entitled to cast the number of
1.
votes it holds and no Member shall be entitled to divide its
votes. A Member may, however, cast differently from such
votes any votes which it
is authorized to cast under
paragraph 2 of this article.

For each cocoa year, the votes of exporting Members
2.
shall be distributed as follows: each exporting Member shall
have five basic votes. The remaining votes shall be divided
among all
in proportion to the
average volume of their respective exports of cocoa in the
for which data have been
preceding three cocoa years

the exporting Members

2.
By written notification to the Chairman of the Council,
any exporting Member may authorize any other exporting
Member, and any importing Member may authorize any
other importing Member,
its interests and to
cast its votes at any meeting of the Council. In this case the
limitation provided for in paragraph 5 of article 10 shall not
apply.

to represent

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A Member authorized by another Member to cast the
3.
votes held by the authorizing Member under article 10 shall
cast such votes in accordance with the instructions of the
authorizing Member.

national commodity trade, shall, as appropriate, keep that
organization informed of
its activities and programmes of
work.

Article 12

Decisions of the Council

3.
The Council may also make whatever arrangements are
appropriate for maintaining effective contact with international
organizations of cocoa producers, traders and manufacturers.

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

2.
In arriving at the number of votes necessary for any of
the decisions or recommendations of the Council, votes of
Members abstaining shall not be taken into consideration.

3.
The following procedure shall apply with respect to any
action by the Council which under this Agreement requires a
special vote:

(a)

If the required majority 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 simple distributed majority vote, be put to a
vote again within 48 hours;

(b) If the required majority is again not obtained because of
the negative vote of two or less exporting or two or less
importing Members, the proposal shall, if the Council so
decides by a simple distributed majority vote, be put to a
vote again within 24 hours;

(c)

If the required majority is not obtained in the third vote
because of the negative vote cast by one exporting or one
importing member,
shall be considered
the proposal
adopted; or

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

shall be considered rejected.

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

Article 13

Cooperation with other organizations

The Council

shall make whatever arrangements are
1.
appropriate for consultation or cooperation with the United
Nations and its organs,
the United Nations
Conference on Trade and Development, and with the Food
and Agriculture Organization of the United Nations and such
other specialized agencies of the United Nations and intergov-
ernmental organizations as may be appropriate.

in particular

2.
The Council, bearing in mind the particular role of the
United Nations Conference on Trade and Development in inter-

shall

The Council

4.
seek to involve the international
financial agencies and other parties with an interest in the
world cocoa economy in its work on cocoa production and
consumption policy.

Article 14

Admission of observers

The Council may invite any non-member State to attend

1.
any of its meetings as an observer.

2.
The Council may also invite any of the organizations
referred to in article 13 to attend any of its meetings as an
observer.

Article 15

Composition of the Executive Committee

1.
The Executive Committee shall consist of ten exporting
Members and ten importing Members. If, however, either the
number of exporting Members or the number of importing
Members in the Organization is less than ten, the Council
may, while maintaining parity between the two categories of
Members, decide, by special vote, the total number on the
Executive Committee. Members of the Executive Committee
shall be elected for each cocoa year
in accordance with
article 16 and may be re-elected.

Each elected member

2.
represented on the
Executive Committee by a representative and, if it so desires,
by one or more alternates. Each such member may also
appoint one or more advisers to its representative or alternates.

shall be

two categories of Members.

The Chairman and Vice-Chairman of

the Executive
3.
Committee, elected for each cocoa year by the Council, shall
both be chosen from among the representatives of
the
exporting Members or from among the representatives of the
importing Members. These offices shall alternate each cocoa
In the
year between the
temporary or permanent absence of the Chairman and the
the Executive Committee may elect new
Vice-Chairman,
officers from among the representatives of
the exporting
Members or from among the representatives of the importing
Members, as appropriate, on a temporary or permanent basis
as may be required. Neither the Chairman nor any other officer
presiding at meetings of the Executive Committee may vote.
His or her alternate may exercise the voting rights of the
Member which he or she represents.

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the Organization unless, by special vote,

The Executive Committee shall meet at the headquarters
4.
of
it decides
otherwise. If, on the invitation of any Member, the Executive
Committee meets elsewhere than at the headquarters of the
that Member shall pay the additional costs
Organization,
involved.

Any Member shall have the right of appeal to the Council
5.
against any decision of the Executive Committee. The Council
shall prescribe, in its rules of procedure, the conditions under
which such appeal may be made.

Article 18

Article 16

Competence of the Executive Committee

Election of the Executive Committee

The Executive Committee shall be responsible to, and

1.
work under the general direction of, the Council.

1.
The exporting and importing Members of the Executive
Committee shall be elected in the Council by the exporting and
importing Members respectively. The election within each
category shall be held in accordance with paragraphs 2 and
3 of this article.

Each Member shall cast all

is
2.
entitled under article 10 for a single candidate. A Member
may cast for another candidate any votes which it is authorized
to cast under paragraph 2 of article 11.

the votes to which it

The candidates receiving the largest number of votes shall

3.
be elected.

The Executive Committee shall follow up the adminis-
2.
trative, financial and structural matters of the Organization,
in particular:

(a) Examine the draft annual work programme of the Organ-

ization for submission to the Council for approval;

(b) Consider

and evaluate

the

Executive Director on the implementation of
programme and the list of priorities;

report presented by the
the work

Article 17

(c) Review and recommend annual administrative budgets;

Voting procedure

and decisions of

the Executive

Committee

(d) Monitor the execution of the budget; in particular, analyse

revenues and expenses;

Each Member of

the Executive Committee shall be
1.
entitled to cast the number of votes received by it under the
provisions of article 16, and no member of the Executive
Committee shall be entitled to divide its votes.

2. Without prejudice to the provisions of paragraph 1 of
this article and by written notification to the Chairperson, any
exporting or importing Member which is not a Member of the
Executive Committee and which has not cast its votes under
paragraph 2 of article 16 for any of the members elected may
authorize any exporting or importing Member of the Executive
Committee, as appropriate, to represent its interests and to cast
its votes in the Executive Committee.

3.
In the course of any cocoa year a Member may, after
consultation with the Member of the Executive Committee
for which it voted under article 16, withdraw its votes from
that member. The votes thus withdrawn may be reassigned to
another exporting or importing Member of
the Executive
Committee, as appropriate, but may not be withdrawn from
this Member for the remainder of that cocoa year. The Member
of the Executive Committee from which the votes have been
withdrawn shall nevertheless retain its seat on the Executive
Committee for the remainder of that cocoa year. Any action
taken pursuant
this paragraph shall
become effective after the Chairman has been informed in
writing thereof.

to the provisions of

4.
Any decisions taken by the Executive Committee shall
require the same majority as that decision would require if
taken by the Council.

(e) Assist the Council

in the appointment of the Executive

Director and senior officials of the Organization;

(f) Approve projects for financing by the Common Fund for
Commodities and other donor organizations between
Council sessions.

Article 19

Quorum for the Council and the Executive Committee

The quorum for the opening meeting of any session of
1.
the Council shall be constituted by the presence of at least five
exporting Members and a majority of
importing Members,
provided that such Members together hold in each category
at least two thirds of the total votes of the Members in that
category.

2.
If there is no quorum in accordance with paragraph 1 of
this article on the day appointed for the opening meeting of
any session, on the second day, and throughout the remainder
of the session, the quorum for the opening session shall be
constituted by the presence of exporting and importing
Members holding a simple majority of
the votes in each
category.

The quorum for meetings subsequent

to the opening
3.
meeting of any session pursuant
this
article shall be that prescribed in paragraph 2 of this article.

to paragraph 1 of

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Representation in accordance with paragraph 2 of article

4.
11 shall be considered as presence.

Article 21

Work Programme

least

The quorum for the opening meeting of any session of
5.
the Executive Committee shall be constituted by the presence
of at
importing
four exporting Members and four
Members, provided that such Members together hold in each
the
the simple majority of
category at
Members in that category.

the votes of

least

Article 20

The staff of the Organization

The Council shall appoint

1.
the Executive Director by
special vote for a period of not more than the duration of
for
the Agreement and its extensions,
selection of candidates and the terms of appointment of the
Executive Director shall be fixed by the Council.

if any. The rules

2.
The Executive Director shall be the chief administrative
officer of the Organization and shall be responsible to the
Council
this
Agreement in accordance with the decisions of the Council.

administration and operation of

the

for

The staff of the Organization shall be responsible to the

3.
Executive Director.

shall

appoint

The Executive Director

4.
in
accordance with regulations to be established by the Council.
In drawing up such regulations, the Council shall have regard
to those applying to officials of similar intergovernmental
organizations. Staff appointments shall be made in so far as
is practicable from exporting and importing Members.

staff

the

5.
Neither the Executive Director nor the staff shall have any
financial interest in the cocoa industry, the cocoa trade, cocoa
transportation or cocoa publicity.

6.
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
the responsibilities of
exclusively international character of
the Executive Director and the staff and not
to seek to
influence them in the discharge of their responsibilities.

7.
No information concerning the operation or adminis-
tration of this Agreement shall be revealed by the Executive
Director or the staff of the Organization, except as may be
authorized by the Council or as is necessary for the proper
discharge of their duties under this Agreement.

1.
At its last session of each cocoa year, and on the recom-
mendation of the Executive Committee, the Council shall adopt
a work programme for the Organization for the coming year
prepared by the Executive Director. The work programme shall
include projects, initiatives and activities to be undertaken by
the Organization in the following cocoa year. The Executive
Director shall implement the work programme.

During its last meeting of each cocoa year, the Executive
2.
Committee shall evaluate the implementation of
the work
programme for the current year on the basis of a report by
the Executive Director. The Executive Committee shall report
its findings to the Council.

At its first session under this Agreement and on the
3.
the Council
the Executive Committee,
recommendation of
shall adopt a list of priorities
the duration and in
accordance with the objectives of the Agreement. This list
shall serve as the basis for the elaboration of the yearly work
programme. During the last meeting of each cocoa year the
Executive Committee shall, on the basis of a report by the
Executive Director, review and update this list of priorities
with particular emphasis on the following year.

for

CHAPTER V

PRIVILEGES AND IMMUNITIES

Article 22

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.

in the territory of

2.
The status, privileges and immunities of the Organization,
its Executive Director,
its staff and experts and of represen-
tatives of Members whilst
the United
the
Kingdom of Great Britain and Northern Ireland for
purpose of exercising their functions, shall continue to be
governed by the Headquarters Agreement concluded between
the Government of the United Kingdom of Great Britain and
Northern Ireland
the host
Government) and the International Cocoa Organization in
London on 26 March 1975, with such amendments as are
necessary for the proper functioning of this Agreement.

(hereinafter

referred

to as

If

the headquarters of

3.
the Organization is moved to
another country, the new host Government shall, as soon as
possible, conclude with the Organization a headquarters
agreement to be approved by the Council.

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The Headquarters Agreement referred to in paragraph 2
4.
of this article shall be independent of this Agreement. It shall,
however, terminate:

Article 24

Liabilities of Members

(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.

5.
The Organization may conclude with one or more other
Members agreements to be approved by the Council relating to
such privileges and immunities as may be necessary for the
proper functioning of this Agreement.

PART THREE

FINANCIAL PROVISIONS

CHAPTER VI

FINANCE

Article 23

Finance

1.
There shall be kept an administrative account for the
administration of this Agreement. The expenses necessary for
the administration of this Agreement shall be brought into the
annual
administrative
from Members assessed in accordance with
contributions
article 25.
If, however, a Member requests special services,
the Council may decide to accede to the request and shall
require that Member to pay for them.

be met

account

shall

and

by

that

The Council may establish separate accounts for specific
2.
purposes
it may establish in accordance with the
objectives of the present Agreement. These accounts shall be
financed through voluntary contributions from Members or
other bodies.

The financial year of the Organization shall be the same

3.
as the cocoa year.

A Member's liability to the Council and to other Members is
limited to the extent of its obligations regarding contributions
specifically provided for
in this Agreement. Third parties
dealing with the Council shall be deemed to have notice of
the provisions of this Agreement regarding the powers of the
in particular,
Council and the obligations of the Members,
paragraph 2 of article 7 and the first sentence of this article.

Article 25

Approval of the administrative budget and assessment of
contributions

During the second half of each financial year, the Council
1.
shall approve the administrative budget of the Organization for
the following financial year, and shall assess the contribution of
each Member to that budget.

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. For the purpose of assessing contributions, the
votes of each Member shall be calculated without regard to the
suspension of any Member's voting rights and any redistri-
bution of votes resulting therefrom.

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 that Member and the period remaining
in the current financial year, but the assessment made upon
other Members for the current
financial year shall not be
altered.

4.
If this Agreement enters into force before the beginning
of the first full financial year, the Council shall, at its first
session, approve an administrative budget covering the period
up to the commencement of the first full financial year.

The expenses of delegations to the Council,

4.
to the
Executive Committee and to any of the Committees of the
Council or of the Executive Committee shall be met by the
Members concerned.

Article 26

Payment of contributions to the administrative budget

5.
If the financial position of the Organization is or appears
likely to be, insufficient to finance the remainder of the cocoa
year, the Executive Director shall call a special session of the
Council within 20 working days unless
is
otherwise scheduled to meet within 30 calendar days.

the Council

Contributions

to the administrative budget

1.
for each
financial year shall be payable in freely convertible currencies,
shall be exempt from foreign exchange restrictions and shall
become due on the
year.
first day of
Contributions of Members in respect of the financial year in
which they join the Organization shall be due on the date on
which they become Members.

financial

that

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Contributions

to the administrative budget approved
2.
under paragraph 4 of article 25 shall be payable within three
months of the date of assessment.

A summary of the audited accounts and balance sheet

3.
shall be published.

3.
If, at the end of five months after the beginning of the
financial year or, in the case of a new Member, three months
after the Council has assessed its contribution, a Member has
not paid its full contribution to the administrative budget, the
Executive Director shall request that Member to make payment
as quickly as possible. If, at the expiration of two months after
the request of the Executive Director, that Member has still not
paid its contribution, the voting rights of that Member in the
Council and the Executive Committee shall be suspended until
such time as it has made full payment of the contribution.

A Member whose voting rights have been suspended
4.
under paragraph 3 of this article shall not be deprived of
any of its other rights or relieved of any of its obligations
under this Agreement unless the Council, by special vote,
decides otherwise. It shall remain liable to pay its contribution
this
and to meet any other
Agreement.

financial obligations under

The Council shall consider the question of membership of
5.
any Member with two years' contributions unpaid, and by
special vote may decide that
this Member shall cease to
enjoy the rights of membership and/or cease to be assessed
It shall remain liable to meet any
for budgetary purposes.
other of
its financial obligations under this Agreement. By
payment of the arrears the Member will regain the rights of
membership. Any payments made by Members in arrears will
be credited first
than to current
contributions.

to those arrears,

rather

Article 27

Audit and publication of accounts

1.
As soon as possible, but not later than six months after
the close of each financial year, the statement of the Organ-
ization's accounts for that financial year and the balance sheet
at the close of that financial year under the accounts referred to
in article 23 shall be audited. The audit shall be carried out by
an independent auditor of recognized standing in cooperation
with two qualified auditors from Member Governments, one
from exporting Members and one from importing Members, to
be elected by the Council for each financial year. The auditors
from Member Governments shall not be paid by the Organ-
ization for their professional services. However,
travel and
subsistence costs may be reimbursed by the Organization
under terms and conditions to be determined by the Council.

Article 28

Relationship with the Common Fund and with other
multilateral and bilateral donors

The Organization shall take full advantage of the facilities
1.
of the Common Fund for Commodities in order to assist in the
preparation and financing of projects of interest to the cocoa
economy.

The Organization shall endeavour

2.
to cooperate with
other international organizations, as well as with multilateral
and bilateral donor agencies, in order to obtain financing for
programmes and projects of interest to the cocoa economy as
appropriate.

3.
Under no circumstances shall the Organization undertake
any financial obligations related to projects, either on its own
behalf or in the name of Members. No Member of the Organ-
ization 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.

Article 29

Role of the Organization concerning projects

The Organization shall endeavour to assist Members in
1.
preparing projects of interest to the cocoa economy, to be
financed by other agencies or bodies.

the Council

In exceptional cases,

shall approve the
2.
the Organization in the implementation of
involvement of
approved projects. Under no circumstances
this
involvement bring about any additional costs for the adminis-
trative budget of the Organization.

shall

CHAPTER VII

THE CONSULTATIVE BOARD ON THE WORLD COCOA
ECONOMY

Article 30

Establishment of the Consultative Board on the World
Cocoa Economy

The terms of appointment of the independent auditor of
2.
recognized standing, as well as the intentions and objectives of
the audit, shall be laid down in the financial regulations of the
Organization. The audited statement of
the Organization's
accounts and the audited balance sheet shall be presented to
the Council at its next regular session for approval.

The Council shall establish the Consultative Board on the
1.
World Cocoa Economy with a view to encouraging the active
participation of experts from the private sector, as defined in
article 2 of this Agreement, in the work of the Organization
and to promoting a continuous dialogue among experts from
the public and private sectors.

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The Board shall be a consultative body which may make
2.
recommendations to the Council on any matter within the
scope of this Agreement.

(b) Identify threats to supply and demand and propose actions

to meet the challenges;

Article 31

(c) Facilitate the exchange of

information on production,

consumption and stocks; and

Composition of the Consultative Board on the World
Cocoa Economy

The Consultative Board on the World Cocoa Economy
1.
shall be composed of experts from all sectors of the cocoa
economy, such as:

(a) Associations from the trade and industry;

(d) Advise on other cocoa-related matters within the scope of

the Agreement.

2.
The Board may set up ad hoc working groups to assist in
fulfilling its mandate provided that their operating costs have
no budgetary implications for the Organization.

(b) National and regional cocoa producer organizations, from

both the public and private sectors;

The Executive Director shall assist the Board as appro-

3.
priate.

(c) National cocoa exporter organizations;

Article 33

(d) Cocoa research institutes; and

(e) Other private sector associations or institutions having an

interest in the cocoa economy.

These experts shall act in their personal capacity or on

2.
behalf of their respective associations.

3. Members of
observers.

the Organization may participate

as

The Board shall be composed of seven members from
4.
exporting countries and seven members
from importing
countries as defined in paragraph 1 of this article, appointed
by the Council every two cocoa years. The members may
designate one or more alternates and advisers. In the light of
the experience of the Board, the Council may increase the
number of members of the Board.

Meetings of the Consultative Board on the World Cocoa
Economy

As a general rule, the Board shall meet twice a year at the
1.
headquarters of
the same time as the
regular sessions of the Council. The Board may hold additional
meetings with the approval of the Council.

the Organization at

2. When the Council accepts an invitation by a Member to
hold a meeting in its territory, the Board shall meet in that
territory. In this case, the additional costs involved, above those
incurred when the meeting is held at the headquarters of the
Organization, shall be borne by that Member.

The Chairman of the Board shall establish the agendas for

3.
its meetings in liaison with the Executive Director.

The Board shall report regularly to the Council on its

4.
proceedings.

The Board may

5.
personalities of high standing in a specific field,
public and private sectors, to participate in its work.

also invite

eminent

experts or
from the

The Chairman of the Board shall be chosen from among
alternate between

6.
its members. The
exporting and importing countries every two cocoa years.

chairmanship shall

7.
Upon its establishment, the Consultative Board shall draw
up its own rules and recommend them for adoption by the
Council.

Article 32

Mandate of the Consultative Board of the World Cocoa
Economy

1.

The Board, acting in an advisory capacity, shall inter alia:

(a) Contribute to the development of a sustainable cocoa

economy;

PART FOUR

MARKET-RELATED PROVISIONS

CHAPTER VIII

SUPPLY AND DEMAND

Article 34

Market Committee

1.
In order to contribute to the greatest possible growth of
economy and the balanced development of
the
cocoa
production and consumption so as to secure a sustainable
equilibrium between supply and demand, the Council shall
establish a Market Committee composed of all exporting and
importing Members. The aim of the Committee shall be to
review trends
cocoa production and
consumption,
stocks and prices, and to identify market
imbalances at an early stage as well as obstacles to the
expansion of cocoa consumption in both exporting and
importing countries.

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At its first session after the start of a new cocoa year, the
2.
Market Committee shall examine annual
forecasts of world
production and consumption for the next five cocoa years.
The Executive Director shall provide the data necessary for
these forecasts. The forecasts provided
the preparation of
shall be reviewed and revised, if necessary, every year.

The Executive Director shall also present, for illustrative
3.
purposes only, various scenarios based on indicative figures for
annual
levels of global production necessary to achieve and
maintain equilibrium between supply and demand at given
levels of real prices. The factors to be taken into consideration
in production and
shall
consumption in accordance with movements in real prices
and the estimated variations in stock levels.

include the expected variations

4.
On the basis of these forecasts, and in order to deal with
the problems of market imbalances in the medium and long
term,
the exporting Members may undertake to coordinate
their national production policies.

shall

endeavour

to encourage

countries. Each Member

cocoa
5.
All Members
consumption in their
shall be
responsible for the means and methods it employs for that
to
In particular,
purpose.
remove or
to the
reduce
expansion of cocoa consumption.
In this regard, Members
shall regularly provide the Executive Director with information
on pertinent domestic regulations and measures and with other
information
including
cocoa
domestic taxes and customs tariffs.

substantial domestic obstacles

consumption,

all Members

concerning

endeavour

shall

The Committee shall submit detailed reports to each
6.
the Council, on the basis of which the
regular session of
Council
in particular
assessing the movement of global supply and demand in the
light of the provisions of this article. The Council may make
recommendations to Members on the basis of this assessment.

review the general

situation,

shall

The Committee shall draw up its own rules and regu-

7.
lations.

The Executive Director shall assist

8.
required.

the Committee as

Article 35

Market transparency

In order to promote market transparency, the Organ-
1.
ization shall maintain up-to-date information on Members'
grindings,
(including
re-exports) and imports of cocoa and cocoa products and
stocks. For this purpose, in so far as possible, Members shall
provide the Executive Director with the relevant statistics

consumption,

production,

exports

within a reasonable time and in as detailed and accurate a
manner as is practicable.

fails

If a Member

to supply, or

finds difficulty in
2.
information
supplying, within a reasonable time, statistical
for the proper functioning of the
required by the Council
Organization,
the Member
concerned to explain the reasons for non-compliance. If it is
found that assistance is needed in the matter, the Council may
offer the necessary measures of support to overcome existing
difficulties.

the Council may

require

3.
The Council shall take such additional measures as it
deems necessary to deal with non-compliance with the
provisions of this article.

The Council shall make appropriate arrangements for the
it considers
the monitoring of market developments and
cocoa production and

4.
regular collection of other
relevant
assessing
consumption capacity.

information that

and potential

current

for

Article 36

Stocks

1.
In order to promote transparency in the market with
regard to levels of world cocoa stocks, each Member shall
assist the Executive Director in obtaining information on the
volume of cocoa stocks in its country. In so far as is possible,
Members shall provide the Executive Director, by not later than
the end of May, with information on stocks of cocoa held in
their respective countries as at the end of the previous cocoa
year in as detailed, timely and accurate a manner as is prac-
ticable.

fails

If a Member

to supply, or

2.
finds difficulty in
supplying, within a reasonable time, statistical information on
stocks 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 assistance is needed in the matter, the Council may
offer the necessary measures of support to overcome existing
difficulties.

3.
The Executive Director shall seek the full cooperation of
the private sector in this exercise, whilst fully respecting the
confidentiality associated with this
issues of commercial
information.

4.

The information shall pertain to stocks of cocoa beans.

5.
The Executive Director shall make an annual report to
the Market Committee on the information received on the
levels of cocoa stocks worldwide.

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Article 37

Promotion

CHAPTER IX

DEVELOPMENT OF A SUSTAINABLE COCOA ECONOMY

1. Members undertake to encourage the consumption of
to increase
chocolate and cocoa-based products
demand for cocoa by all possible means.

in order

Article 39

Sustainable cocoa economy

To achieve this purpose, the Council shall establish a

2.
Promotion Committee to promote cocoa consumption.

The Committee shall be open to all Members of the

3.
Organization.

4.
The Committee shall operate and through the Executive
Director administer a Promotion Fund which shall be used
solely to finance promotion campaigns, to sponsor research
and studies related to the consumption of cocoa and to
cover associated administrative expenses.

The Committee shall seek the collaboration of the private

5.
sector for the implementation of its activities.

The promotion activities of

6.
the Committee shall be
financed by resources which may be pledged by Members,
non-Members, other organizations and the private sector.
Private sector participants or institutions may also contribute
to the promotion programmes in accordance with modalities
to be established by the Committee.

All decisions of

7.
campaigns
contributing to the Fund.

and activities

the Committee related to promotion
taken by Members

shall be

8.
The Committee shall seek the approval of a country
before conducting a promotion campaign in the territory of
that country.

The Committee shall draw up its own rules and regu-

9.
lations, and shall report regularly to the Council.

The Executive Director shall assist the Committee as

10.
required.

Article 38

Cocoa substitutes

1. Members recognize that the use of substitutes may have
negative effects on the expansion of cocoa consumption and
the development of a sustainable cocoa economy.
In this
regard, Members shall take full account of the recommen-
dations and decisions of competent international bodies.

2.
The Executive Director shall make regular reports to the
Market Committee on the development of the situation. On the
basis of these reports, the Market Committee shall assess the
situation and,
if necessary, make recommendations to the
Council for appropriate decisions.

1. Members shall give due consideration to the sustainable
management of cocoa resources in order
to provide fair
economic returns to all stakeholders in the cocoa economy,
bearing in mind the principles and objectives of sustainable
development contained in Agenda 21, adopted by the United
Nations Conference on Environment
and Development
(UNCED) on 14 June 1992.

2.
for a
The Organization shall serve as a focal point
permanent dialogue among all stakeholders as appropriate to
foster the development of a sustainable cocoa economy.

The Council

review
and periodically
adopt
3.
programmes and projects
related to a sustainable cocoa
economy and in accordance with paragraph 1 of this Article.

shall

In doing so,

4.
bodies as necessary in order to avoid duplication of effort.

the Council shall coordinate with other

CHAPTER X

MARKET-MONITORING PROVISIONS

Article 40

Daily price

For the purposes of this Agreement and, in particular, for
1.
monitoring the evolution of the cocoa market, the Executive
Director shall compute and publish a daily price of cocoa
beans. This price shall be expressed in Special Drawing
Rights (SDRs) per tonne.

2.
The daily price shall be the average taken daily of the
quotations for cocoa beans of the nearest three active future
trading months on the London International Financial Futures
and Options Exchange (LIFFE) and on the Board of Trade of the
City of New York at the time of the London close. The London
prices shall be converted into United States dollars per tonne
by using the current six months forward rate of exchange in
London at closing time. The United States dollar-denominated
average of the London and New York prices shall be converted
into its SDR equivalent at the appropriate daily official United
States dollar/SDR exchange rate published by the International
Monetary Fund. The Council shall decide the method of calcu-
lation to be used when the quotations on only one of these
two cocoa markets are available or when the London Foreign
Exchange market is closed. The time for shift to the next
three-month period shall be the fifteenth of
the month
immediately preceding the nearest active maturing month.

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The Council may, by special vote, decide on any other
3.
method of computing the daily price if it considers such other
method to be more satisfactory than that prescribed in this
article.

Article 41

Conversion factors

1.
For the purpose of determining the beans equivalent of
cocoa products, the following shall be the conversion factors:
cocoa butter 1.33; cocoa cake and powder 1.18; cocoa paste/
liquor and nibs 1.25. The Council may determine, if necessary,
that other products containing cocoa are cocoa products. The
conversion factors for cocoa products other than those for
which conversion factors are set out in this paragraph shall
be fixed by the Council.

The Council may, by special vote, revise the conversion

2.
factors in paragraph 1 of this article.

CHAPTER XI

INFORMATION, STUDIES AND RESEARCH

Article 42

Information

1.
The Organization shall act as a global information centre
for the efficient collection, collation, exchange and dissemi-
nation of
factors relating to cocoa and
cocoa products. Such information shall include:

information on all

(a) Statistical information on world production, prices, exports

and imports, consumption and stocks of cocoa;

(b) In so far as is considered appropriate, technical information
on the cultivation, marketing, transportation, processing,
utilization and consumption of cocoa; and

(c)

Information on government policies,
standards, regulations and legislation relating to cocoa.

taxation, national

The Council shall at appropriate times, but not less than
2.
twice in any cocoa year, publish estimates of production of
cocoa beans and grindings for that cocoa year.

new uses, and the effects of the operation of this Agreement on
exporters and importers of cocoa,
including their terms of
It may submit recommendations to Members on the
trade.
subject of these studies.
In the promotion of these studies,
the Council may cooperate with international organizations
and other appropriate institutions and the private sector. The
Council may also promote studies likely to contribute to
greater market transparency.

Article 44

Scientific research and development

The Council shall encourage and promote scientific research
and development in the areas of cocoa production, transpor-
tation, processing and consumption as well as the dissemi-
nation and practical application of
the results obtained in
this field. To this end, the Organization may cooperate with
international organizations,
and the
private sector.

research institutions

Article 45

Annual report

The Council shall publish an Annual Report.

PART FIVE

OTHER PROVISIONS

CHAPTER XII

FINE OR FLAVOUR COCOA

Article 46

Fine or flavour cocoa

this Agreement,

review annex C of

The Council shall, at its first session following the entry
1.
into force of
this
Agreement and, if necessary, revise it by special vote, deter-
mining the proportions in which the countries listed therein
produce and export exclusively or partially fine or flavour
cocoa. Thereafter, the Council may at any time during the
lifetime of this Agreement review annex C and, if necessary,
revise it by special vote. The Council shall seek expert advice
on this matter, as appropriate.

Article 43

Studies

The Market Committee may make proposals for the
2.
Organization to devise and implement a system of statistics
on production of and trade in fine or flavour cocoa.

The Council shall, to the extent it considers necessary, promote
studies of the economics of cocoa production and distribution,
including trends and projections, the impact of governmental
measures
in exporting and importing countries on the
production and consumption of cocoa, the opportunities for
expansion of cocoa consumption for traditional and possible

3.
Giving due consideration to the importance of fine or
flavour cocoa, Members shall examine, and adopt as appro-
priate, projects relating to fine or flavour cocoa in accordance
with the provisions of articles 37 and 39.

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CHAPTER XIII

RELIEF

FROM OBLIGATIONS AND DIFFERENTIAL AND

REMEDIAL MEASURES

Article 47

Relief from obligations in exceptional circumstances

1.
The Council may, by special vote, relieve a Member of an
obligation on account of exceptional or emergency circum-
force majeure, or international obligations under the
stances,
Charter of
the United Nations for territories administered
under the trusteeship system.

The Council,

in granting relief

2.
to a Member under
paragraph 1 of this article, shall state explicitly the terms and
conditions on which, and the period for which, the Member is
relieved of the obligation and the reasons for which the relief is
granted.

Notwithstanding the foregoing provisions of this article,
3.
the Council shall not grant relief to a Member in respect of the
obligation under article 26 to pay contributions, or the conse-
quences of a failure to pay them.

4.
The basis for the calculation of the distribution of votes
of an exporting Member, for which the Council has recognized
a case of force majeure, shall be the effective volume of its
exports for the year in which the force majeure occurred and
subsequently for the ensuing three years following the force
majeure.

the
to the Executive Director.
matter may, at the request of either party, be referred to the
Council in accordance with article 50.

If no solution is reached,

Article 50

Disputes

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

2. When a dispute has been referred to the Council under
paragraph 1 of this article and has been discussed, Members
holding not less than one third of the total votes, or any five
Members, may require the Council, before giving its decision,
to seek the opinion on the issues in dispute of an ad hoc
advisory panel to be constituted as described in paragraph 3
of this article.

3. (a) Unless the Council by special vote decides otherwise, the

ad hoc advisory panel shall consist of:

(i) Two persons, one having wide

in
matters of
the kind in dispute and the other
having legal standing and experience, nominated
by the exporting Members;

experience

(ii) Two persons, one having wide

in
the kind in dispute and the other
matters of
having legal standing and experience, nominated
by the importing Members; and

experience

Article 48

Differential and remedial measures

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

Developing importing Members, and least developed countries
which are Members, whose interests are adversely affected by
measures taken under
this Agreement may apply to the
Council
for appropriate differential and remedial measures.
The Council shall consider taking such appropriate measures
in the light of the provisions of resolution 93 (IV) adopted by
the United Nations Conference on Trade and Development.

CHAPTER XIV

CONSULTATIONS, DISPUTES AND COMPLAINTS

Article 49

Consultations

Each member shall accord full and due consideration to any
representations made to it by another member concerning the
interpretation or application of this Agreement and shall afford
adequate opportunity for consultations. In the course of such
consultations, on the request of either party and with the
consent of the other, the Executive Director shall establish an
such a
appropriate conciliation procedure. The costs of
procedure shall not be chargeable to the Organization.
If
such a procedure leads to a solution, this shall be reported

(b) Nationals of Members shall not be ineligible to serve on

the ad hoc advisory panel.

(c) Persons appointed to the ad hoc advisory panel shall act
instructions

in their personal capacities and without
from any Government.

(d) The costs of the ad hoc advisory panel shall be paid by

the Organization.

4.
The opinion of the ad hoc advisory panel and the reasons
therefore shall be submitted to the Council, which, after
considering all
shall decide the
dispute.

the relevant

information,

Article 51

Complaints and action by the Council

1.
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 consider it and take a decision on the matter.

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Any finding by the Council that a Member is in breach of
2.
its obligations under this Agreement shall be made by a simple
distributed majority vote and shall specify the nature of the
breach.

3. Whenever the Council, whether as a result of a complaint
or otherwise, finds that a Member is in breach of its obligations
under this Agreement, it may, without prejudice to such other
measures as are specifically provided for in other articles of this
Agreement, including article 61, by special vote:

(a) Suspend that Member's voting rights in the Council and in

the Executive Committee; and

(b) If it considers it necessary, suspend additional rights of such
Member, including that of being eligible for, or of holding,
office in the Council or in any of its committees, until it
has fulfilled its obligations.

A Member whose voting rights are suspended under
4.
paragraph 3 of this article shall remain liable for its financial
and other obligations under this Agreement.

CHAPTER XV

STANDARD OF LIVING AND WORKING CONDITIONS

Article 52

Standard of living and working conditions

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

Furthermore, Members

agree

that

CHAPTER XVI

FINAL PROVISIONS

Article 53

Depositary

The Secretary-General of
designated as the depositary of this Agreement.

the United Nations

is hereby

Article 54

Signature

of this Agreement. The Council shall immediately notify the
depositary of such extension.

Article 55

Ratification, acceptance, approval

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

2.
Instruments of ratification, acceptance or approval shall
be deposited with the depositary not later than 31 December
2003. The Council under the International Cocoa Agreement,
1993, or the Council under this Agreement may, however,
grant extensions of time to signatory Governments which are
unable to deposit their instruments by that date.

Each Government depositing an instrument of ratifi-
the time of such
indicate whether it is an exporting Member or an

3.
cation, acceptance or approval shall, at
deposit,
importing Member.

Article 56

Accession

This Agreement

1.
Government of any State entitled to sign it.

shall be open to accession by the

2.
The Council shall determine under which of the annexes
to this Agreement the acceding State is to be deemed to be
listed, if such State is not listed in any of these annexes.

Accession shall be effected by deposit of an instrument of

3.
accession with the depositary.

Article 57

Notification of provisional application

1.
A signatory Government which intends to ratify, accept
or approve this Agreement or a Government which intends to
accede to the Agreement, but which has not yet been able to
deposit its instrument, may at any time notify the depositary
that, in accordance with its constitutional procedures and/or its
domestic laws and regulations,
it will apply this Agreement
provisionally either when it enters into force in accordance
with article 58 or, if it is already in force, at a specified date.
Each Government giving such notification shall at that time
an exporting Member or an
state whether
importing Member.

it will be

This Agreement shall be open for signature at United Nations
including
from 1 May 2001 until
Headquarters
31 December 2002 by parties to the International Cocoa
Agreement, 1993, and Governments invited to the United
Nations Cocoa Conference, 2000. The Council under the Inter-
national Cocoa Agreement, 1993, or the Council under this
Agreement may, however, extend once the period of signature

and

A Government which has notified under paragraph 1 of
2.
this article that it will apply this Agreement either when it
enters into force or at a specified date shall, from that time,
be a provisional Member. It shall remain a provisional Member
until
its instrument of ratification,
the date of deposit of
acceptance, approval or accession.

31.12.2002

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Article 58

Entry into force

written notice of withdrawal to the depositary. The Member
shall immediately inform the Council of the action it has taken.

least

This Agreement shall enter into force definitively on
1.
if by such date
1 October 2003, or any time thereafter,
Governments representing at
five exporting countries
accounting for at least 80 per cent of the total exports of
countries listed in annex A and Governments representing
total
importing countries having at
imports as set out in annex B have deposited their instruments
of ratification, acceptance, approval or accession with the
depositary. It shall also enter into force definitively once it
has entered into force provisionally and these percentage
instruments of
requirements are satisfied by the deposit of
ratification, acceptance, approval or accession.

least 60 per cent of

2.
This Agreement shall enter into force provisionally on
1 January 2002 if by such date Governments representing at
least five exporting countries accounting for at least 80 per
cent of the total exports of countries listed in annex A and
Governments representing importing countries having at least
imports as set out in annex B have
60 per cent of total
acceptance,
ratification,
deposited
approval or accession, or have notified the depositary that
they will apply this Agreement provisionally when it enters
into force. Such Governments shall be provisional Members.

instruments

their

of

of

those

the earliest

governments which

the Secretary-General of

If the requirements for entry into force under paragraph
3.
this article have not been met by
1 or paragraph 2 of
the United
1 September 2002,
time practicable, convene a
Nations shall, at
meeting
deposited
have
instruments of ratification, acceptance, approval or accession,
or have notified the depositary that
they will apply this
Agreement provisionally. These governments may decide
into force definitively or
whether
provisionally among themselves, in whole or in part, on such
date as they may determine or to adopt any other arrangement
as they may deem necessary.

this Agreement

to put

2. Withdrawal shall become effective 90 days after the
notice is received by the depositary. If, as a consequence of
withdrawal, membership in this Agreement
falls below the
requirements provided for in paragraph 1 of article 58 for
its entry into force, the Council shall meet in special session
to review the situation and to take appropriate decisions.

Article 61

Exclusion

If the Council finds, under paragraph 3 of article 51, 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 special vote, exclude
such Member
shall
immediately notify the depositary of any such exclusion.
Ninety days after the date of
that
the Council's decision,
Member shall cease to be a member of the Organization.

from the Organization. The Council

Article 62

Settlement of accounts with withdrawing or excluded
Members

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
to the Organization at
pay any amounts due from it
the
time the withdrawal or
the exclusion becomes effective,
in the case of a Contracting Party which is
except
unable to accept an amendment and consequently ceases to
participate
the provisions of
paragraph 2 of article 64, the Council may determine any
settlement of accounts which it finds equitable.

in this Agreement under

that,

4.
For a Government on whose behalf an instrument of
ratification, acceptance, approval or accession or a notification
of provisional application is deposited after the entry into force
of this Agreement in accordance with paragraph 1, paragraph
2 or paragraph 3 of this article, the instrument or notification
shall take effect on the date of such deposit and, with regard to
notification of provisional application, in accordance with the
provisions of paragraph 1 of article 57.

Article 63

Duration, extension and termination

1.
This Agreement shall remain in force until the end of the
fifth full cocoa year after its entry into force, unless extended
under paragraph 3 of this article, or terminated earlier under
paragraph 4 of this article.

Article 59

Reservations

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

Article 60

Withdrawal

1.
At any time after the entry into force of this Agreement,
any Member may withdraw from this Agreement by giving

2. While this Agreement is in force, the Council may, by
special vote, decide to renegotiate it with a view to having the
renegotiated agreement enter into force at the end of the fifth
cocoa year referred to in paragraph 1 of this article, or at the
end of any period of extension decided upon by the Council
under paragraph 3 of this article.

3.
The Council may, by special vote, extend this Agreement
in whole or in part for two periods not exceeding two cocoa
years each. The Council shall notify the depositary of any such
extension.

C 331 E/106

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Official Journal of the European Communities

31.12.2002

The Council may at any time, by special vote, decide to
4.
terminate this Agreement. Such termination shall take effect on
such date as the Council shall decide, provided that the obli-
gations of Members under article 26 shall continue until the
financial liabilities relating to the operation of this Agreement
have been discharged. The Council shall notify the depositary
of any such decision.

5.
Notwithstanding the termination of this Agreement by
any means whatsoever, the Council shall remain in being for
as long as necessary to carry out the liquidation of the Organ-
ization, settlement of its accounts and disposal of its assets. The
Council shall have during that period the necessary powers for
the conclusion of all administrative and financial matters.

6.
Notwithstanding the provisions of paragraph 2 of article
60, a Member which does not wish to participate in this
Agreement as extended under this article shall so inform the
depositary and the Council. Such Member shall cease to be a
party to this Agreement from the beginning of the period of
extension.

Article 64

Amendments

after

shall become

effective 100 days

received notifications of acceptance

The Council may, by special vote,

1.
recommend an
amendment of this Agreement to the Contracting Parties. The
the
amendment
depositary has
from
Contracting Parties representing at least 75 per cent of the
exporting Members holding at least 85 per cent of the votes
of the exporting Members, and from Contracting Parties repre-
senting at least 75 per cent of the importing Members holding
at least 85 per cent of the votes of the importing Members, or
on such later date as the Council may, by special vote, have
determined. The Council may fix a time within which
shall notify the depositary of
Contracting Parties
their
the amendment has
if
the amendment, and,
acceptance of
not become effective by such time,
it shall be considered
withdrawn.

Such Member shall not be bound by the amendment before
it has notified its acceptance thereof.

3.
Immediately upon adoption of a recommendation for an
amendment the Council shall communicate to the depositary
copies of the text of the amendment. The Council shall provide
the depositary with the information necessary to determine
whether the notifications of acceptance received are sufficient
to make the amendment effective.

CHAPTER XVII

SUPPLEMENTARY AND TRANSITIONAL PROVISIONS

Article 65

Special Reserve Fund

1.
A Special Reserve Fund shall be maintained for the sole
purposes of meeting the eventual liquidation expenses of the
Organization. The Council shall decide how the interest earned
on this Fund will be used.

The Special Reserve Fund established by the Council
2.
under the International Cocoa Agreement, 1993, shall be trans-
ferred to this Agreement
the purpose set out under
for
paragraph 1.

A non-member of the International Cocoa Agreement,
3.
1993, which becomes a Member of this Agreement shall be
required to contribute to the Special Reserve Fund. The
contribution of
shall be assessed by the
Council on the basis of the number of votes to be held by
the Member.

such Member

Article 66

Other supplementary and transitional provisions

This Agreement shall be considered as a replacement of

1.
the International Cocoa Agreement, 1993.

Any Member on behalf of which notification of
2.
acceptance of an amendment has not been made by the date
on which such amendment becomes effective shall, as of that
date, cease to participate in this Agreement, unless the Council
decides to extend the period fixed for acceptance for such
to complete its internal procedures.
Member

to enable it

All acts by or on behalf of the Organization or any of its
2.
organs under the International Cocoa Agreement, 1993, which
are in effect on the date of entry into force of this Agreement
and the terms of which do not provide for expiry on that date
shall remain in effect unless changed under the provisions of
this Agreement.

31.12.2002

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C 331 E/107

Exports of cocoa (a) calculated for the purposes of article 58 (Entry into force)

ANNEX A

Country (b)

1996/97

1997/98

1998/99

Average Three-year period
1996/97-1998/99

(tonnes)

(tonnes)

(tonnes)

(tonnes)

(Share)

Côte d'Ivoire
Ghana
Indonesia
Nigeria
Cameroon
Malaysia
Ecuador
Brazil
Dominican Republic
Papua New Guinea
Venezuela
Togo
Guinea
Peru
Equatorial Guinea
Sao Tome and Principe
Solomon Islands
Haiti
Sierra Leone
Tanzania
Congo, Dem. Rep. of
Madagascar
Honduras
Costa Rica
Liberia
Uganda
Vanuatu
Grenada
Congo
Jamaica
Colombia
Trinidad and Tobago
Gabon
Cuba
Dominica
Nicaragua
Belize
Benin
Fiji
Saint Lucia
Samoa

Notes:

m

m

m

m
m
m
m
m
m
m
m
m

m 1 080 296
323 906
m
321 431
145 670
115 373
89 201
107 965
59 770
43 712
28 220
10 162
9 000
6 260
6 865
3 630
2 850
3 729
4 070
4 100
3 200
2 500
1 853
2 737
3 746
670
1 260
960
1 020
870
1 248
5 567
809
700
387
230
98
40
– 5
50
1
7

m
m

m

m

m

1 162 008
381 174
304 558
133 784
110 334
57 761
24 069
58 972
56 328
25 727
8 133
5 924
9 000
7 302
5 240
3 520
4 036
3 275
2 110
3 160
2 600
3 187
1 679
2 476
1 980
710
1 207
1 134
1 085
1 034
804
973
542
466
165
49
140
193
20
22
2

1 325 710
409 578
379 181
189 311
119 834
71 705
69 897
16 736
22 120
35 206
9 624
6 849
5 090
4 699
4 140
4 600
2 680
1 682
2 700
2 410
2 460
2 482
2 766
– 936
2 000
2 030
1 416
966
950
496
– 3 809
615
668
179
100
159
50
– 5
105
2
—

1 189 338
371 553
335 057
156 255
115 180
72 889
67 310
45 159
40 720
29 718
9 306
7 258
6 783
6 289
4 337
3 657
3 482
3 009
2 970
2 923
2 520
2 507
2 394
1 762
1 550
1 333
1 194
1 040
968
926
854
799
637
344
165
102
77
61
58
8
3

47,72 %
14,91 %
13,44 %
6,27 %
4,62 %
2,92 %
2,70 %
1,81 %
1,63 %
1,19 %
0,37 %
0,29 %
0,27 %
0,25 %
0,17 %
0,15 %
0,14 %
0,12 %
0,12 %
0,12 %
0,10 %
0,10 %
0,10 %
0,07 %
0,06 %
0,05 %
0,05 %
0,04 %
0,04 %
0,04 %
0,03 %
0,03 %
0,03 %
0,01 %
0,01 %
—
—
—
—
—
—

Total (c)

2 394 158

2 386 883

2 696 446

2 492 496

100,00 %

(a) Three-year average, 1996/97-1998/99 of net exports of cocoa-beans plus net exports of cocoa products converted to beans equivalent

using the following conversion factors: cocoa butter 1,33; cocoa powder and cake 1,18; cocoa paste/liquor 1,25.

(b) List restricted to countries which individually exported cocoa in the three-year period 1996/97 to 1998/99, based on information

available to the ICCO Secretariat.

(c) Totals may differ from the sum of constituents due to rounding.
m Member of the International Cocoa Agreement, 1993 as at 31 January 2001.
– nil, negligible or less than the unit employed.
Source: International Cocoa Organization, Quarterly Bulletin of Cocoa Statistics, Vol. XXVII, No. 1, Cocoa Year 2000/01.

C 331 E/108

EN

Official Journal of the European Communities

31.12.2002

Imports of cocoa (a) calculated for the purposes of Article 58 (Entry into force)

ANNEX B

Country (b)

1996/97

1997/98

1998/99

Average Three-year period
1996/97-1998/99

(tonnes)

(tonnes)

(tonnes)

(tonnes)

(Share)

United States
Germany
Netherlands
France
United Kingdom
Belgium/Luxembourg
Italy
Spain
Canada
Russian Federation
Japan
Singapore
Poland
Switzerland
Australia
China
Austria
Argentina
Turkey
Sweden
Czech Republic
Estonia
Denmark
Ireland
South Africa
Philippines
Ukraine
Mexico (c)
Thailand
Hungary
Korea, Republic of
Finland
Greece
Chile
Norway
Romania
New Zealand
Slovak Republic
Israel
Egypt
Yugoslavia, Fed. Rep. of
Croatia
Algeria
Bulgaria
Portugal
Lithuania
Belarus
Syrian Arab Republic
Iran
Hong Kong
India (c)
Morocco

m
m
m
m
m
m
m

m
m

m

m

m
m

m
m

m

m
m

m

m

m

m

595 346
449 538
505 869
278 958
223 194
152 423
113 478
95 622
91 592
92 945
90 530
72 305
55 374
50 683
46 378
37 038
31 906
31 897
26 443
21 687
19 488
29 615
13 280
16 003
17 587
15 711
9 584
7 889
15 242
12 683
14 776
12 110
6 863
9 622
9 349
8 943
8 585
8 846
8 995
5 893
6 656
4 579
2 237
2 993
3 605
3 742
2 647
1 602
2 548
1 666
1 389
2 416

680 584
449 604
361 629
278 264
243 177
143 102
116 406
123 784
112 974
98 261
75 848
70 593
52 656
45 992
45 812
33 908
34 118
34 857
24 559
21 098
17 335
26 394
16 937
15 340
13 717
13 636
18 684
11 694
13 446
13 893
9 999
11 020
14 065
11 004
8 755
9 226
8 322
9 080
9 347
6 290
4 704
4 670
4 024
2 980
3 714
3 968
3 362
4 968
4 079
3 183
2 677
2 611

652 266
364 642
385 815
314 113
309 038
117 878
111 943
107 130
101 293
81 676
82 532
76 699
61 167
53 261
51 475
35 075
35 848
33 864
21 945
20 591
14 551
– 6 850
17 043
15 048
13 359
15 257
15 017
22 036
12 888
12 893
12 574
10 147
12 124
9 972
9 225
8 194
9 231
8 176
7 628
8 841
4 032
2 873
5 027
4 979
3 574
3 006
3 582
2 828
1 998
3 371
3 386
1 932

642 732
421 261
417 771
290 445
258 470
137 801
113 942
108 845
101 953
90 961
82 970
73 199
56 399
49 979
47 888
35 340
33 957
33 539
24 316
21 125
17 125
16 386
15 753
15 464
14 888
14 868
14 428
13 873
13 859
13 156
12 450
11 092
11 017
10 199
9 110
8 788
8 713
8 701
8 657
7 008
5 131
4 041
3 763
3 651
3 631
3 572
3 197
3 133
2 875
2 740
2 484
2 320

19,20 %
12,59 %
12,48 %
8,68 %
7,72 %
4,12 %
3,40 %
3,25 %
3,05 %
2,72 %
2,48 %
2,19 %
1,69 %
1,49 %
1,43 %
1,06 %
1,01 %
1,00 %
0,73 %
0,63 %
0,51 %
0,49 %
0,47 %
0,46 %
0,44 %
0,44 %
0,43 %
0,41 %
0,41 %
0,39 %
0,37 %
0,33 %
0,33 %
0,30 %
0,27 %
0,26 %
0,26 %
0,26 %
0,26 %
0,21 %
0,15 %
0,12 %
0,11 %
0,11 %
0,11 %
0,11 %
0,10 %
0,09 %
0,09 %
0,08 %
0,07 %
0,07 %

31.12.2002

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Official Journal of the European Communities

C 331 E/109

Country (b)

1996/97

1997/98

1998/99

Average Three-year period
1996/97-1998/99

(tonnes)

(tonnes)

(tonnes)

(tonnes)

(Share)

Latvia
Tunisia
Saudi Arabia
Uruguay
Lebanon
Kazakhstan
Slovenia
Macedonia (FYR)
Jordan
Iceland
Kenya
Vietnam
Pakistan
Republic of Moldova
Panama (c)
Cyprus
Bolivia
Sri Lanka (c)
Uzbekistan
Zimbabwe
Libyan Arab Jamahiriya
Albania
Guatemala (c)
Bosnia and Herzegovina
Georgia
Malta
El Salvador
Zambia
Saint Vincent/Grenadines
Barbados

Notes:

2 469
1 713
944
1 402
1 004
1 572
873
1 343
646
613
476
413
483
635
393
318
158
176
87
54
59
83
– 29
116
100
49
24
24
13
12

2 626
1 598
2 333
1 377
1 169
1 066
1 079
819
1 114
965
1 075
566
389
474
304
304
188
302
133
141
42
116
– 38
53
100
40
18
—
5
9

1 653
2 282
2 070
1 633
1 370
898
1 433
801
960
602
489
885
885
548
229
304
505
355
173
142
224
122
376
135
100
56
71
48
18
5

2 249
1 864
1 782
1 471
1 181
1 179
1 128
988
907
727
680
621
586
552
309
309
284
278
131
112
108
107
103
101
100
48
38
24
12
9

0,07 %
0,06 %
0,05 %
0,04 %
0,04 %
0,04 %
0,03 %
0,03 %
0,03 %
0,02 %
0,02 %
0,02 %
0,02 %
0,02 %
0,01 %
0,01 %
0,01 %
0,01 %
—
—
—
—
—
—
—
—
—
—
—
—

Total (d)

3 366 573

3 368 717

3 305 565

3 346 952

100,00 %

(a) Three-year average, 1996/97-1998/99 of net imports of cocoa-beans plus gross imports of cocoa products converted to beans

equivalent using the following conversion factors: cocoa butter 1,33; cocoa powder and cake 1,18; cocoa paste/liquor 1,25.

(b) List restricted to countries which individually imported cocoa in the three-year period 1996/97 to 1998/99, based on information

available to the ICCO Secretariat.

(c) Country may also qualify as an exporting country.
(d) Totals may differ from the sum of constituents due to rounding.
m Member of the International Cocoa Agreement, 1993 as at 31 January 2000.
– nil, negligible or less than the unit employed.
Source: International Cocoa Organization, Quarterly Bulletin of Cocoa Statistics, Vol. XXVII, No. 1, Cocoa Year 2000/01.

C 331 E/110

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Official Journal of the European Communities

31.12.2002

Producing countries exporting either exclusively or partially fine or flavour cocoa

ANNEX C

Costa Rica

Dominica

Ecuador

Grenada

Indonesia

Jamaica

Madagascar

Panama

Papua New Guinea

Saint Lucia

Saint Vincent and the Grenadines

Samoa

Sao Tome and Principe

Sri Lanka

Suriname

Trinidad and Tobago

Venezuela