Proposal for a Council Decision establishing the Community position in respect to the prolongation of the International Sugar Agreement, 1992
Date: 2003-10-30
Institutions: European Commission
Subjects: commodity agreement, international agreement, renewal of an agreement, sugar

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 30.10.2003
COM(2003) 647 final

Proposal for a

COUNCIL DECISION

establishing the Community position in respect to the prolongation
of the International Sugar Agreement, 1992

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

2.

3.

4.

The  International  Sugar  Agreement  entered  into  force  on  1  January  1993  until
31 December  1995  and  has  been  prolonged  four  times  for  a  two-year  period.  This
means that the Agreement is due to expire on 31 December 2003.

At  the  meeting  of  the  International  Sugar  Council  on  29  May  2003  it  has  been
proposed to prolong the Agreement for a further two-year period until 31 December
2005 under the provisions of Article 45.2 of the Agreement.

The  European  Community's  contribution  to  the  administrative  budget  of  the
International Sugar Organisation, shown under budget line  B7-821 of the European
Union budget, will not be  affected  as such by the proposed  decision. However, the
contribution will have to be increased as a result of enlargement.

The  purpose  of  this  proposal  is  to  authorise  the  Commission  to  approve  the
prolongation of the International Sugar Agreement on behalf of the Community.

2

Proposal for a

COUNCIL DECISION

establishing the Community position in respect to the prolongation
of the International Sugar Agreement, 1992

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:

The  1992  International  Sugar  Agreement  was  concluded  by  the  Community  by  Council
Decision 92/580/EEC1, and was prolonged most recently in 2001 for an additional period of
two years. This Agreement remains in force until 31 December 2003, unless it is prolonged
beyond that date by decision of the International Sugar Council for a period of no more than
two  years.  The  prolongation  of  that  agreement  is  in  the  interest  of  the  Community.  The
Commission,  representing  the  Community  in  the  International  Sugar  Council,  should
therefore be authorised to approve such extension,

HAS DECIDED AS FOLLOWS:

Sole Article

1.

2.

The  prolongation  of  the  International  Sugar  Agreement  for  a  period  of  up  to  two
years is hereby approved.

The Commission is hereby authorised to express this position within the International
Sugar Council.

Done at Brussels,

1

OJ L 379, 23.12.1992, p. 15.

For the Council
The President

3

                                                
LEGISLATIVE FINANCIAL STATEMENT

Policy area: External aspects of certain Community policies

Activity: International Agricultural Agreements

TITLE  OF  ACTION:  EUROPEAN  COMMUNITY  CONTRIBUTION  TO  THE  INTERNATIONAL  SUGAR

ORGANISATION

1.

BUDGET LINE + HEADING:

Article 05 06 01 (ex B7-821): International agricultural agreements

2.

2.1.

2.2.

2.3.

OVERALL FIGURES

Total allocation for action (Part B): EUR 1.313 million for commitment

Period of application: 1.1.2004 to 31.12.2005

Overall multi-annual estimate on expenditure (EUR million) (*):

Commitments

Payments

2004

0.460

0.460

2005

0.469

0.469

Total

0.929

0.929

(*) Account has been taken of the enlarged EUR-25 on the basis of ISO estimates

of future contributions for the new Member States.

2.4.

Compatibility with the financial programming and the financial perspective

X

Proposal compatible with the existing financial programming

2.5.

Financial impact on revenue

X

No financial implications (involves technical aspects regarding implementation
of a measure).

3.

BUDGET CHARACTERISTICS

Type of
expenditure

New

EFTA
participation

Participation
applicant countries

Heading Financial
Perspective

Comp

Diff

NO

NO

NO

4 External action

4

4.

LEGAL BASIS

– 

– 

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

Council Decision 92/580/EEC of 13 November 19922.

5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

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

The  payment  of  EC  membership  contributions  enables  the  objectives  of  the  International
Sugar Agreement to be attained. The  International Sugar Organisation, which is responsible
for  administering  the  Agreement,  promotes  the  objectives  of  the  Agreement,  such  as
international cooperation, exchange of statistical information, forecasting market trends,  etc.
It is therefore in the interests of the EC to be a part of the Agreement.

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

It is clear that if the EC had to carry out on its own the same actions as are carried out by the
ISO,  the  total  coast  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 Sugar Agreement.

The dues are paid for as along as the EC remains a signatory to the Agreement.

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

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B (*)

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

Breakdown

Year 2004

Year 2005

EC Contribution

TOTAL

0.460

0.460

0.469

0.469

Total

0.929

0.929

(*)

Account  has  been  taken  of  the  enlarged  EUR-25  on  the  basis  of  ISO  estimates  of  future
contributions for the new Member States.

2

OJ L 379, 23.12.1992, p. 15.

5

                                                
7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Types of post

Permanent
officials or
temporary staff

Other human
resources

A
B
C

Total

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

Number of
permanent posts

Number of
temporary posts

0.3
–
–

–

0.3

–
–
–

–

–

Total

0.3
–
–

–

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 ISO

Type of human resources

Amount EUR

Method of calculation

Officials
Temporary staff

Other human resources

32 400

Total

32 400

The amounts are total expenditure for twelve months.

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

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

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

9.

ANTI-FRAUD MEASURES

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

6