Proposal for a Council Decision establishing the position to be adopted on behalf of the Community in the International Grains Council and in the Food Aid Committee
Date: 2003-06-02
Institutions: European Commission
Subjects: Community budget, European convention, cereals, food aid, renewal of an agreement, trade agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.6.2003
COM(2003) 308 final

Proposal for a

COUNCIL DECISION

establishing the position to be adopted on behalf of the Community
in the International Grains Council and in the Food Aid Committee

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  International  Grains  Agreement,  1995,  is  made  up  of  two  parts:  the  Grains  Trade
Convention, 1995 and the Food Aid Convention, 1999.

The  Food  Aid  Convention  of  1999  was  concluded  by  the  Community  by  Council  Decision
2000/421/EC. That Agreement remains in force until 30 June 2003, following its extension by
decision of the Food Aid Committee on 9 December 2002. Although, according to the interest
of both the Commission and Member States, some specific changes to the current Convention
are  required,  it  is  a  general  agreement  that  these  changes  should  be  discussed  amongst  the
members within the Food Aid Convention during the next two years. Therefore, the extension
of this Convention may be achieved by decision of the Food Aid Committee.

The Grains Trade Convention of 1995 was extended in 2001 for two years. This Convention
expires in June 2003 unless it is extended for a period of no more than two years.

Financial implications

The  Community  contribution  to  the  administrative  budget  of  the  International  Grains
Agreement,  which  covers  the  two  Conventions,  is  entered  under  item  B7-8210  of  the
European Union budget.

Conclusions

– 

– 

The  Commission  proposes  that  the  Council  authorise  the  Commission  to  vote  on
behalf of the European Community, in accordance with Article XXV(b) of the Food
Aid Convention, 1999, in favour of the extension of this Convention for a period of
up to two years.

Independently of this position, the Commission proposes that the Council authorise
the Commission to vote on behalf of the European Community, in accordance with
Article 33(2) of the Grains Trade Convention 1995, in favour of the extension of this
Convention for a period of up to two years.

The  extension  of  both  agreements  is  in  the  interest  of  the  Community.  The  Commission,
which represents the Community in the Food Aid Committee and in the International Grains
Council,  should  therefore  be  authorised  by  a  Council  Decision  to  vote  in  favour  of  such
extension.

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Proposal for a

COUNCIL DECISION

establishing the position to be adopted on behalf of the Community
in the International Grains Council and in the Food Aid Committee

THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular
Article 181 in conjunction with Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

The  Food  Aid  Convention,  1999  was  concluded  by  the  Community  by  Council
Decision  2000/421/EC1  and  extended  by  decision  of  the  Food  Aid  Committee  in
December  2002.  That  Agreement  remains  in  force  until  30  June  2003,  unless  it  is
extended beyond that date by decision of the Food Aid Committee for a period of no
more  than  two  years.  The  extension  of  that  agreement  is  in  the  interest  of  both  the
Community  and  its  Member  States.  The  Commission,  which  represents  the
Community in the Food Aid Committee, should therefore be authorised by a Council
Decision to vote in favour of such extension,

The  Grains  Trade  Convention,  1995  was  concluded  by  the  Community  by  Council
Decision  96/88/EC2,  amended  and  extended  in  June  1999  by  Council  Decision
1999/C262/01 for a two-year period3. This Agreement was extended again by decision
of  the  International  Grains  Council  in  June  2001  and  remains  in  force  until  30  June
2003, unless it is extended beyond that date for a period of no  more than two  years.
The  extension  of  that  agreement  is  in  the  interest  of  both  the  Community  and  its
Member  States.  The  Commission,  which  represents  the  Community  in  the  Grains
Trade  Convention,  should  therefore  be  authorised  by  a  Council  Decision  to  vote  in
favour of such extension,

1

2

3

OJ L 163, 4.7.2000, p. 37.
OJ L 21, 27.1.1996, p. 47.
OJ C 262, 16.9.1999, p. 1.

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HAS DECIDED AS FOLLOWS:

Sole Article

1.

2.

3.

The  European  Community  is  in  favour  of  the  extension  of  the  Grains  Trade
Convention, 1995 for a further period of up to two years.

The European Community is in favour of the extension of the Food Aid Convention,
1999 for a further period of up to two years.

The Commission is hereby authorised to express this position within the International
Grains Council and within the Food Aid Committee.

Done at Brussels,

For the Council
The President

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LEGISLATIVE FINANCIAL STATEMENT

Policy area: External aspects of certain Community policies

Activities: International Agricultural Agreements

TITLE  OF  ACTION: EUROPEAN COMMUNITY  CONTRIBUTION  TO  THE INTERNATIONAL  GRAINS

COUNCIL

1.

2.

2.1.

2.2.

2.3.

BUDGET LINE + HEADING: ARTICLE B7-8210: INTERNATIONAL  AGRICULTURAL
AGREEMENTS

OVERALL FIGURES

Total allocation for action (Part B): EUR 850 000 for the two years extension

Period of application: 1.7.2003 to 30.6.2005

Compatibility with the financial programming and the financial perspective

X

Proposal compatible with the existing financial programming

2.4.

Financial impact on revenue:

No financial implications (involves technical aspects regarding implementation

X
of a measure)

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
participation

Participation
applicant
countries

Comp

Diff

NO

NO

NO

Heading
Financial
Perspective

4 External
action

4.

LEGAL BASIS

Article 181 of the Treaty in conjunction with Article 300(2).

Council  Decision  96/88/EC  of  27.1.1996  (OJ  L  21  of  27.1.1996),  Council  Decision
2001/C 195/01 (OJ C 195 of 11.7.2001) and 2000/421/EC (OJ L 163 of 4.7.2000).

5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

Because  of  its  economic  importance,  especially  in  the  agricultural  sector,  the  EC  must  be
represented in international agricultural agreements, which  represent  an  important  means  for

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following  global  developments  and  defending  Community  interests  for  the  products
concerned.

The  payment  of  EC  membership  contributions  enables  the  objectives  of  the  International
Grains  Council  (IGC)  to  be  attained.  The  IGC,  which  is  responsible  for  administering  the
Agreements  relating  to  the  Grains  Trade  Convention,  1995  and  the  Food  Aid  Convention,
1999,  promotes  the  objectives  of  the  Agreements,  including  international  cooperation,
exchange of statistical information  and forecasting market trends, etc., and  for the  Food Aid
Convention  the  guarantee  that  developing  countries  are  ensured  a  minimum  amount  of  food
aid  by  the  European  Union.  It  is  therefore  in  the  interests  of  the  EC  to  be  a  part  of  the
Agreements.

The membership contributions are determined on an annual basis  and are due  for as long  as
the EC is a member of the Agreements.

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

5.2.

Actions envisaged and arrangements for budget intervention

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

The dues are paid for as long as the EC remains a signatory to the Agreements.

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

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B

Commitments  (to  the  3rd  decimal  place):  EUR 0.850  million  for  the  period  of  two  years  of
which 0.400 million for 2003 and 0.450 million for 2004.

6.2.

Calculation

The  expenditure  involved  in  the  application  of  the  two  Conventions  is  covered  by  annual
contributions from all members of the Grains Convention. The contribution of  each member
for each financial year is fixed in proportion to the number of votes attributed to that member
in relation to the total number of votes held by members on the basis of a cost of GBP 655 per
vote for 2002/03. The number of votes attributed to each member is adjusted on the basis of
the  composition  of  the  IGC  when  the  budget  for  the  financial  year  in  question  is  adopted.
There is a total of 2 000 votes in the Convention, of which the European Union holds 411 for
2002/03  but  379  are  projected  for  2003/04  and  409  are  projected  for  2004/05  (after
enlargement). An increase of 5% for 2004/05 is projected in the rate of contribution per vote.
This 5% increase is divided into two parts of 2,5% each during the period of extension. The
cost  is,  therefore,  379 x GBP 671  =  GBP 254 451  for  2003/04  and  411 x GBP  688  =
GBP 282 665  for  2004/05  (EUR 832 529.80  at  an  exchange  rate  of  1.55  €  =  1  GBP).  The
estimated  cost  is  rounded  up  in  order  to  cover  fluctuations  in  the  exchange  rate  of  pound
sterling and any amendment in the number of votes.

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7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Type 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

0.2
0.1
-

-

0.3

-
-
-

-

-

Total

0.2
0.1
-

-

0.3

7.2.

Overall financial impact of human resources

Description of tasks deriving
from the action

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

Type of human resources

Amount in EUR

Method of calculation *

Officials
Temporary staff

Other human resources

32 400

0.3 x 108 000

*

Human  resources  and  administrative  requirements  will  be  covered  from  the  allocation  given  to  the
managing  DG  under  the  annual  allocations  procedure.  The  amounts  are  total  expenditure  for  twelve
months.

Total

32 400

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

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

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

8.2.

Details and frequency of planned evaluations

In  view  of  the  specific  nature  of  the  proposed  intervention  (extension  of  Community
contribution  to  the  administrative  budget  of  the  International  Grains  Agreement)  and  of  the
relatively small sum involved, an external  evaluation  does  not  seem  justified.  The  relevance
and  usefulness  of  continuing  with  a  contribution  to  the  administrative  budget  of  this
Agreement will be evaluated internally, at regular intervals, by means of  active Commission
involvement in the management committees and in the International Grains Council.

9.

ANTI-FRAUD MEASURES

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

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