Proposal for a Council Decision concerning the conclusion of the International Agreement on Olive Oil and Table Olives, 2005
Date: 2005-09-30
Institutions: European Commission
Subjects: commodity agreement, international agreement, olive, olive oil

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.9.2005 
COM(2005) 463 final 

2005/0193 (ACC) 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion of the International Agreement  
on Olive Oil and Table Olives, 2005 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

The Council authorised the Commission on 25 November 2003 to negotiate on behalf 
of the European Community the revision of the International Agreement on Olive Oil 
and Table Olives, 1986, as amended and extended in 1993, and last prolonged, 2004. 

The attached proposal for the conclusion of the International Agreement on Olive Oil 
and  Table  Olives,  2005,  is  the  outcome  of  the  negotiations  conducted  by  the 
Commission.  

The  annual  average  expenditure  to  be  charged  to  European  Communities  budget  is 
about 5,5 M€.  

The budgetary implications of this agreement in 2006 were taken into consideration 
in the Preliminary Draft General Budget of the European Communities for 2006. The 
implications  for  the  period  2007–2013  were  foreseen  and  are  compatible  with  the 
proposed financial perspectives. 

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2005/0193 (ACC) 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion of the International Agreement  
on Olive Oil and Table Olives, 2005 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

On 25 November 2003, the Council authorised the Commission to negotiate on behalf 
of the European Community the revision of the International Agreement on Olive Oil 
and  Tables  Olives,  1986,  as  amended  and  extended  in  1993,  and  last  prolonged  in 
2004. 

On 29 April 2005, the New International Agreement on Olive oil and Tables Olives has 
been  adopted  by  the  United  Nations  Conference  for  the  Negotiation  of  a  Successor 
Agreement to the International Agreement on Olive Oil and Tables Olives. 

The  International  Agreement  on  Olive  Oil  and  Table  Olives,  2005,  promotes 
international  co-operation,  contributes  to  the  development  and  the  stability  of  the 
markets for the product concerned and contributes to the attainment of the Community 
commercial and agricultural policy. 

(4) 

It  is  therefore  in  the  interest  of  the  Community  to  approve  the  Agreement  of  2005, 
which replaces the Agreement of 1986 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  International  Agreement  on  Olive  Oil  and  Table  Olives,  2005  is  hereby  approved  on 
behalf of the European Community. The text of the Agreement is annexed to this Decision. 

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Article 2 

The President of the Council is hereby authorised to designate the person empowered to sign 
the  International  Agreement  on  Olive  Oil  and  Table  Olives,  2005  in  order  to  express  the 
consent of the Community to be bound thereby. 

Done at Brussels, 

For the Council 
The President 

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ANNEX 

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 

INTERNATIONAL AGREEMENT  
ON OLIVE OIL AND TABLE OLIVES, 2005 

UNITED NATIONS 

Geneva, 2005 

NOTE 

Symbols of United Nations documents are composed of capital letters combined with figures. 
Mention of such a symbol indicates a reference to a United Nations document. 

TD/OLIVE OIL.10/6

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PREAMBLE 

The Parties to this Agreement, 

Emphasizing  that  olive  cultivation  governs  the  existence  and  standard  of  living  of  millions  of 
families which are dependent on the measures taken to maintain and expand the consumption of 
olive products and to enhance the world economy for such products, 

Bearing in mind that the olive tree is a plant that is indispensable for the continuous maintenance 
and conservation of soils, due to its perennial nature, and that it is also instrumental in developing 
land  that  will  not  bear  other  crops  and  which,  even  under  non-intensive  farming  conditions, 
responds favourably to any improvement in cultivation, 

Mindful that olive oil and table olives are essential basic commodities in the regions where olive 
growing  is  established  and  that  they  are  basic  constituents  of  the  Mediterranean  diet  and 
recently also of other diets, 

Bearing in mind that olive production is irregular, which gives rise to special difficulties that may 
seriously  harm  the  interests  of  producers  and  consumers  and  jeopardize  general  policies  of 
economic expansion in countries of the regions where olive growing is established, 

Emphasizing  in  this  connection  the  major  importance  of  olive  production  to  the  economies  of 
many countries, 

Mindful that the measures to be taken in the light of the particular characteristics of olive growing 
and  of  the  market  for  its  products  transcend  the  national  sphere,  and  international  action  is 
essential, 

Being  of  the  view  that  it  is  essential  to  continue  and  develop  the  work  undertaken  within  the 
framework  of  the  previous  agreements  concluded  since  the  1956  Agreement  until  the  1986 
Agreement, as amended in 1993, and that it is necessary to negotiate a new updated agreement in 
the light of the changes in the industry, 

Taking into account the provisions of the São Paulo Consensus of the eleventh session of the 
United Nations Conference on Trade and Development, 

Have agreed as follows: 

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CHAPTER I – GENERAL OBJECTIVES 

Article 1 
General objectives 

The general objectives of this Agreement are indicated hereafter:  

1. 

With respect to international technical cooperation: 

– 

– 

– 

– 

– 

– 

– 

– 

to  foster  international  cooperation  for  the  integrated,  sustainable  development 
of world olive growing; 

to foster the coordination of production, industrialisation, storage and marketing 
policies for olive oils, olive-pomace oils and table olives; 

to encourage research and development and to foster the transfer of technology 
and  training  activities  in  the  olive  products  sector  with  the  aim,  inter  alia,  of 
modernising  olive  growing  and  the  olive  products  industry  and  of  improving 
the quality of production; 

to lay the foundations of international cooperation in international trade in olive 
oils,  olive-pomace  oils  and  table  olives  to  create,  in  this  context,  close 
cooperative ties with the representatives of the various stakeholders of the olive 
products sector, in compliance with the corresponding international agreements 
and accords; 

to  further  the  efforts  made  and  steps  taken  to  improve  and  draw  notice  to 
product quality; 

to further the efforts made and steps taken to improve the interaction between 
olive growing and the environment, particularly with a view to protecting and 
conserving the environment; 

to  examine  and  foster  the  integral  utilisation  of  the  products  derived  from  the 
olive tree; 

to conduct activities for the preservation of the gene sources of olive trees; 

2. 

With respect to the standardisation of international trade in olive products: 

– 

to carry on conducting collaborative activities in the area of physico-chemical 
and  sensory  testing  in  order  to  add  to  the  knowledge  of  the  composition  and 
quality  characteristics  of  olive  products,  with  a  view 
to  establishing 
international standards enabling: 

– 

– 

– 

– 

product quality control, 

fair international trading, 

protection of consumer rights, 

prevention of fraudulent practices. 

– 

to facilitate the study and application of measures for harmonising national and 
international laws relating, in particular, to the marketing of olive oil and table 
olives; 

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– 

– 

to  encourage  harmonisation  of  the  criteria  for  the  definition  of  geographical 
indications  granted  by  the  Members  with  a  view  to  their  international 
protection; 

to  lay  the  foundations  of  international  cooperation  to  prevent  and,  where 
appropriate,  to  combat  any  fraudulent  practices  in  international  trade  in  any 
edible olive products by establishing close cooperative ties in this context with 
the representatives of the various stakeholders of the olive products sector. 

3. 

With  respect  to  the  expansion  of  international  trade  and  the  promotion  of  olive 
products: 

– 

– 

– 

– 

– 

to promote any activities conducive to the harmonious, sustainable expansion of 
the  world  olive  products  economy  by  every  means  in  the  power  of  the 
International  Olive  Council  in  the  fields  of  production,  consumption  and 
international trade, having regard to the ways in which they are interrelated; 

to facilitate the study and application of measures for balancing production and 
consumption  and  the  establishment  of  procedures  for  information  and 
consultation in order to enhance the transparency of the market; 

to implement measures designed to expand international trade in olive products 
and to adopt whatever measures are appropriate to enhance the consumption of 
olive oil and table olives; 

to  undertake  activities  fostering  a  better  understanding  of  the  nutritional, 
therapeutic and other properties of olive oil and table olives; 

to maintain and amplify the role of the International Olive Council as a meeting 
point  for  all  the  operators  in  the  sector  and  as  a  world  documentation  and 
information centre on the olive tree and its products. 

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CHAPTER II – DEFINITIONS 

Article 2 
Definitions 

For the purposes of this Agreement: 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

“International  Olive  Council”  means  the  international  Organisation  referred  to  in 
Article 3(1), established for the purpose of applying the provisions of this Agreement; 

“Council  of  Members”  means  the  decision-making  organ  of  the  International  Olive 
Council; 

“Member” means a Contracting Party to this Agreement;  

“Olive  oils”  means  the  oils  obtained  solely  from  the  fruit  of  the  olive  tree,  to  the 
exclusion of oils obtained by solvent or re-esterification processes and of any mixture 
with oils of other kinds; 

“Table  olives”  means  the  product  prepared  from  the  sound  fruits  of  varieties  of  the 
cultivated olive tree which are chosen for their production of olives particularly suited 
to  curing,  and  which  are  suitably  treated  or  processed  and  offered  for  trade  and  for 
final consumption; 

“Olive  products”  means  all  edible  olive  products,  in  particular  olive  oils, 
olive-pomace oils and table olives; 

“Olive by-products” means, in particular, the products derived from olive pruning and 
the  olive  products  industry  and  the  products  resulting  from  alternative  uses  of  the 
products of the sector; 

“Olive crop year” means the period from 1 October of each year to 30 September of 
the following year. 

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PART ONE – INSTITUTIONAL PROVISIONS 

CHAPTER III – INTERNATIONAL OLIVE COUNCIL 

SECTION I – ESTABLISHMENT, ORGANS, FUNCTIONS,  
PRIVILEGES AND IMMUNITIES 

Article 3 
Establishment, headquarters and structure of the International Olive Council 

1. 

The International Olive Council shall act through: 

2. 

1. 

2. 

– 

– 

– 

its Chairperson; 

its  Council  of  Members  and,  as  the  case  may  be,  its  committees  and 
subcommittees; 

its Executive Secretariat; 

in accordance with the provisions laid down in sections II to V. 

The  headquarters  of  the  International  Olive  Council  shall  be in  Madrid  (Spain) unless 
the Council of Members decides otherwise. 

Article 4 
Representation of the Members in the International Olive Council 

Each Member shall designate its representative in the International Olive Council. 

including 

international  agreements, 

the  European  Community  and  any 

Any  reference  in  this  Agreement  to  a  "Government"  or  "Governments"  shall  be 
intergovernmental 
construed  as 
organisation  having  responsibilities  in  respect  of  the  negotiation,  conclusion  and 
application  of 
in  particular  commodity  agreements. 
Accordingly,  any  reference  in  this  Agreement  to  signature,  ratification,  acceptance  or 
approval, to notification of provisional application or to accession shall, in the case of 
the  European  Community  or  such  intergovernmental  organisations,  be  construed  as 
including a reference to signature, ratification, acceptance or approval, to notification of 
provisional  application  or  to  accession  by  the  European  Community  or  such 
intergovernmental organisations. 

Article 5 
Privileges and immunities 

1. 

The International Olive Council shall have international legal personality. It shall, in 
particular,  have  the  capacity  to  contract,  to  acquire  and  dispose  of  movable  and 
immovable property and to institute legal proceedings. It shall not have the power to 
borrow money. 

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2. 

3. 

4. 

5. 

1. 

2. 

In the territory of each Member, and in so far as that Member's legislation allows, the 
International Olive Council shall have the legal capacity necessary for the performance 
of the functions conferred upon it by this Agreement. 

For  the  purpose  of  its  proper  functioning,  the  status,  privileges  and  immunities  of  the 
International Olive Council, of its Executive Director, senior officials and other staff of 
its  Executive  Secretariat,  of  experts  and  of  the  delegations  of  the  Members  in  the 
territory of Spain shall be governed by a Headquarters Agreement. 

The  Government  of  the  State  in  which  the  headquarters  of  the  International  Olive 
Council  is  situated  shall,  in  so  far  as  the  legislation  of  that  State  allows,  exempt  the 
remuneration  paid  by  the  International  Olive  Council  to  its  employees  and  the  assets, 
income and other property of the International Olive Council from taxation. 

The International Olive Council may conclude with one or more Members agreements 
relating  to  such  privileges  and  immunities  as  may  be  necessary  for  the  proper 
application of this Agreement. 

SECTION II – COUNCIL OF MEMBERS 

Article 6 
Composition and functions 

The  Council  of  Members  shall  be  composed  of  one  delegate  per  Member. 
Furthermore,  each  Member  may  appoint  one  or  more  alternates  and  one  or  more 
advisers to its delegate. 

The  Council  of  Members  shall  be  the  principal  decision-making  organ  of  the 
International Olive Council. It shall exercise all such powers and perform or arrange for 
the performance of all such functions as are necessary to achieve the objectives of this 
Agreement.  The  Council  of  Members  shall  take  any  decisions,  adopt  any 
recommendations  or  make  any  suggestions  provided  for,  or  envisaged  in,  this 
Agreement,  unless  powers  or  functions  are  explicitly  vested  in  the  Executive 
Secretariat or the Executive Director. 

Any  decisions,  recommendations  or  suggestions  adopted  in  accordance  with  the 
International Agreement which preceded this Agreement1 and which are still in force 
at  the  time  of  the  entry  into  force  of  this  Agreement  shall  continue  to  apply  unless 
they are contrary to this Agreement or they are repealed by the Council of Members. 

3. 

The Council of Members shall, in accordance with the provisions of this Agreement, 
adopt: 

(a)  Rules of Procedure, 

(b)  Staff  Regulations  having  regard  to  those  applying  to  officials  of  similar 

intergovernmental organisations, 

(c) 

an organisation chart. 

1 

International Agreement on Olive Oil and Table Olives, 1986, as amended and extended, 1993, and last 
prolonged, 2004. 

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4. 

5. 

6. 

1. 

2. 

3. 

4. 

5. 

The Council of Members shall undertake or arrange for the undertaking of studies or 
other  work,  including  the  collection  of  detailed  information  on  the  various  kinds  of 
aid  for  activities  relating  to  olive  growing  and  olive  products,  so  as  to  enable  it  to 
formulate  any  recommendations  and  suggestions  it  may  consider  appropriate  for 
achieving the general objectives set forth in Article 1. Any such studies and work shall, 
in particular, cover as many countries or groups of countries as possible and take into 
account the general, social and economic conditions of the countries concerned. 

The Members shall inform the Council of Members, in accordance with a procedure 
defined by the aforesaid Council, of the conclusions they reach after considering the 
recommendations and suggestions arising from the application of this Agreement. 

The  Council  of  Members  shall  publish  an  annual  report  on  its  activities  and  on  the 
operation of this Agreement. 

The Council of Members shall draw up, prepare and publish in the official languages 
of  the  International  Olive  Council  such  reports,  studies  and  other  documents  as  it 
deems useful and necessary, and shall keep up to date such records as it requires to 
perform its functions under this Agreement. 

Article 7 
Sessions of the Council of Members 

The  Council  of  Members  shall  meet  at  the  headquarters  of  the  International  Olive 
Council unless it decides otherwise. If, on the invitation of any Member, the Council 
of Members decides to meet elsewhere, that Member shall bear the extra expenditure 
this  entails  for  the  budget  of  the  International  Olive  Council  over  and  above  that 
incurred in holding a session at the headquarters. 

The  Council  of  Members  shall  hold  a  regular  session  at  least  once  a  year,  in  the 
autumn. 

Any Member may authorise the delegate of another Member to represent its interests 
and to exercise its right to participate in decisions of the Council of Members at one 
or more of its sessions. Evidence of such authorisation acceptable to the Council of 
Members shall be submitted thereto. 

The  delegate  of  a  Member  may  not  represent  the  interests  or  exercise  the  right  to 
participate in decisions of the Council of Members of more than one other Member. 

The  Council  of  Members  may  be  convened  at  any  time  at  the  discretion  of  its 
Chairperson.  The  Chairperson  may  also  convene  the  Council  of  Members  if  so 
requested by various Members or by one single Member supported by at least two other 
Members. 

The expenses of delegations to the Council of Members shall be met by the Members 
concerned. 

Notice of any sessions provided for in paragraph 2 of this Article shall be given at least 
60 days before the date of the first meeting of each such session. Notice of the sessions 
provided for in paragraph 3 of this Article shall be given at least 21 days before the date 
of the first meeting of each such session. 

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6. 

The quorum required for every session of the Council of Members shall be the presence 
of the delegates of the majority of the Members holding at least 90 per cent of the total 
participation shares allotted to the Members. 

If  this  quorum  does  not  exist,  the  session  shall  be  postponed  for  24  hours  and  the 
quorum  required  shall  be  the  presence  of  the  delegates  of  the  Members  holding  at 
least 85 per cent of the total participation shares allotted to the Members. 

7. 

The following may, with the prior consent of the Council of Members, attend as an 
observer all or part of any of the sessions of the Council of Members: 

(a) 

(b) 

the international organisations and institutions referred to in Article 14 of this 
Agreement; 

the Government of any member or  observer State of the United Nations or of 
one  of  the  organisations  referred  to  in  Article  14  of  this  Agreement  which 
envisages  becoming  a  Party  to  this  Agreement,  following  written  consultation 
between  the  date  on  which  the  notice  of  the  session  is  sent  and  the  date  on 
which the session is held. 

Observers  shall  not  be  entitled  to  address  the  sessions  of  the  Council  of 
Members unless so authorised by the Chairperson. 

Article 8 
Participation shares 

1. 

The Members shall together hold 1 000 participation shares. 

The  participation  shares  shall  be  divided  among  the  Members  in  proportion  to  the 
source data of each Member, calculated according to the following formula: 

q = p1 + e1 + p2 + e2  

The parameters in this formula are averages expressed in thousands of metric tonnes, 
any fraction of 1 000 tonnes above a whole number being disregarded. There may be 
no fractions of participation shares. 

q: 

source data used for proportionately calculating the participation shares 

p1:  average olive oil production of the last six olive crop years 

e1: 

average (customs) olive oil exports of the last six calendar years corresponding 
to the end years of the olive crop years considered for calculating p1 

p2:  average table olive production of the last six olive crop years converted into its 
olive oil equivalent by the application of a conversion coefficient of 16 per cent 

e2: 

table  olive  exports  of 

average  (customs) 
last  six  calendar  years 
corresponding to the end years of the olive crop years considered for calculating 
p2,  and  converted  into  their  olive  oil  equivalent  by  the  application  of  a 
conversion coefficient of 16 per cent 

the 

2. 

However, no Member shall hold less than five participation shares. For that purpose, 
if the calculation based on paragraph 1 should give a result of less than 5 participation 

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3. 

4. 

1. 

2. 

3. 

shares for an individual Member, that Member’s share shall be increased to five and 
the participation shares of the other Members shall be decreased proportionately. 

The  Council  of  Members  shall,  at  its  annual  session,  adopt  the  participation  shares 
calculated  under  this  Article.  Such  distribution  shall  be  in  force  for  the  following 
year. 

The initial participation shares are contained in Annex A to this Agreement. They are 
determined  on  the  basis  of  paragraphs  1  and  2  of  this  Article  in  the  light  of  the 
average of the data for the last six olive crop years and calendar years for which final 
data  are  available.  Each  year  the  Council  of  Members  shall  modify  the  shares  as 
appropriate, in compliance with paragraphs 1, 2 and 3 of this Article. 

Article 9 
Decisions of the Council of Members 

Unless otherwise provided in this Agreement,  decisions  of  the  Council  of  Members 
shall  be  taken  by  consensus  of  the  Members  within  a  time  limit  laid  down  by  the 
Chairperson. Such time limit may not exceed the duration of the session at which the 
draft decision is submitted to the Council of Members. 

If consensus is not reached within this time limit, Members shall take a vote. 

Any  decision  shall  be  considered  to  be  adopted  when  at  least  50  per  cent  of  the 
Members accounting for 82 per cent of the participation shares are in favour thereof. 

The  Council  of  Members  may  take  decisions  by  an  exchange  of  correspondence 
between the Chairperson and the Members without holding a session, provided that no 
Member objects to this procedure. 

The rules for the application of this consultation procedure shall be laid down by the 
Council of Members in its Rules of Procedure. 

Any  decision  so  taken  shall  be  communicated  to  all  the  Members  by  the  Executive 
Secretariat as quickly as possible and shall be entered in the final report of the following 
session of the Council of Members. 

SECTION III – CHAIRPERSON AND VICE-CHAIRPERSON 

Article 10 
Chairperson and Vice-Chairperson 

1. 

The Council of Members shall elect a Chairperson from among the delegations of the 
Members.  In  the  event  of  the  Chairperson  being  the  Head  of  Delegation,  his  or  her 
right  of  participation  in  decisions  of  the  Council  of  Members  shall  be  exercised  by 
another member of his or her delegation. 

Without prejudice to the powers or functions vested in the Executive Director in, or in 
accordance  with,  this  Agreement,  the  Chairperson  shall  exercise  the  powers  or 
functions set out  in  this  Agreement and further specified in the Rules of Procedure. 
Furthermore, the Chairperson shall represent the International Olive Council legally 
and shall chair the sessions of the Council of Members. 

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2. 

3. 

4. 

1. 

2. 

3. 

1. 

2. 

The  Council  of  Members  shall  also  elect  a  Vice-Chairperson  from  among  the 
delegations of the Members. In the event of the Vice-Chairperson being the Head of 
Delegation, the Vice-Chairperson shall have the right to participate in decisions of the 
Council of Members except when acting as Chairperson, in which case he or she shall 
delegate this right to another member of his or her delegation. 

The Vice-Chairperson shall replace the Chairperson in the event of his or her absence. 

The Chairperson and the Vice-Chairperson shall not receive any remuneration. 

In the event of the temporary absence of both the Chairperson and the Vice-Chairperson 
or  of  the  permanent  absence  of  one  or  both,  the  Council  of  Members  shall  elect  new 
officers,  temporary  or  permanent  as  appropriate,  from  among  the  delegations  of  the 
Members. 

SECTION IV – COMMITTEES AND SUBCOMMITTEES 

Article 11 
Financial Committee 

The  Council  of  Members  shall  establish  a  Financial  Committee  comprising  one 
delegate of each Member. 

The  Financial  Committee  shall  be  responsible  for  the  financial  control  of  the 
International Olive Council and for the control of the application of chapter IV of this 
Agreement. 

In  this  context,  it  shall  be  in  charge  of  analyzing  and  studying  the  draft  annual 
budgets of the International Olive Council proposed by the Executive Secretariat. Only 
the draft budgets resulting from the discussions of the Financial Committee shall be 
submitted to the Council of Members for adoption. 

The Financial Committee shall likewise be responsible for examining the accounts of 
the International Olive Council in accordance with the provisions of Article 18. 

Each  year,  the  Financial  Committee  shall  submit  the  accounts  for  the  preceding 
financial year to the Council of Members for adoption at its annual session together 
with any other measure dealing with financial matters. 

Detailed rules for the application of these provisions shall be established and adopted 
by the Council of Members in its Rules of Procedure. 

Article 12 
Other committees and subcommittees 

The Council of Members may establish such committees and subcommittees as it deems 
useful for assisting it in the exercise of its functions under this Agreement. 

Detailed rules for the application of this provision shall be established and adopted by 
the Council of Members in its Rules of Procedure. Such rules shall: 

(a) 

ensure the fair allocation of the committee chairs among the different Members; 

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(b) 

establish the provisions governing the admission of observers to the meetings of 
its committees and subcommittees. 

SECTION V – EXECUTIVE SECRETARIAT 

Article 13 
Executive Secretariat 

The  International  Olive  Council  shall  have  an  Executive  Secretariat  comprising  an 
Executive Director, senior officials and such staff as are required to perform the tasks 
arising  from  this  Agreement.  The  posts  of  the  Executive  Director  and  of  the  senior 
officials  shall  be  defined  in  the  Rules  of  Procedure  adopted  by  the  Council  of 
Members. 

The Council of Members shall appoint the Executive Director and senior officials on 
the  basis  of  the  principle  of  proportionate  alternation  among  the  Members  and  of 
geographical equilibrium. 

The  Council  of  Members  shall  fix  their  terms  of  appointment  in  the  light  of  those 
applying to corresponding officials of similar intergovernmental organisations. Their 
profile shall be described in the Rules of Procedure. 

The  Executive  Director  shall  be  the  chief  administrative  officer  of  the  International 
Olive  Council.  The  Executive  Director  shall  carry  out  his  or  her  duties  and  take 
management decisions on a collegiate basis with the senior officials. 

The Executive Director shall appoint the staff in accordance with the Staff Regulations. 

The Executive Director, the senior officials and the other members of the staff shall not 
carry  out  any  gainful  activity  in  any  of  the  various  sectors  of  the  olive-growing  and 
olive-products industry. 

The  Executive  Director  and  the  senior  officials  and  staff  shall  not  seek  or  receive 
instructions regarding their duties under this Agreement from any Member or from any 
authority external to the International Olive Council. They shall refrain from any action 
which  might  reflect  on  their  position  as  international  officials  responsible  only  to  the 
Council  of  Members.  Members  shall  respect  the  exclusively  international  character  of 
the responsibilities of the Executive Director, senior officials and staff and shall avoid 
influencing them in the discharge of their responsibilities. 

SECTION VI – COOPERATION AND RELATIONSHIP  
WITH OTHER ORGANISATIONS 

Article 14 
Cooperation with other organisations 

The International Olive Council shall make whatever arrangements are appropriate for 
consultation  or  cooperation  with  the  United  Nations  and  its  organs,  in  particular  the 
United Nations Conference on Trade and Development (UNCTAD), the United Nations 
Development  Programme  (UNDP),  the  World  Health  Organisation  (WHO),  the  Food 
and  Agriculture  Organisation  of  the  United  Nations  (FAO),  the  Joint  FAO/WHO 

1. 

2. 

3. 

4. 

5. 

6. 

1. 

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Programme  of  the  Codex  Alimentarius  Commission,  the  International  Labour 
the  United  Nations  Educational,  Scientific  and  Cultural 
Organisation  (ILO), 
Organisation (UNESCO) and other specialised agencies of the United Nations and with 
such  intergovernmental,  governmental  and  non-governmental  organisations  as  may  be 
appropriate  for  the  olive  sector  and  as  may  strive  to  provide  funds  to  support  the 
activities of the International Olive Council for the benefit of all the Members. 

2. 

The  International  Olive  Council  shall  establish  relations  and  draw  up,  as  appropriate, 
special  collaborative  agreements  with  international  or  regional  organisations  or 
institutions of a financial nature, in particular with the Common Fund for Commodities. 

Any collaborative agreement established between the International Olive Council and 
the  aforementioned  international  organisations  or  institutions  shall  receive  the  prior 
approval of the Council of Members. 

In respect of the implementation of any project under this Article, the International Olive 
Council shall not, in its capacity as an international commodity body, incur any financial 
obligation  for  guarantees  given  by  individual  Members  or  other  entities.  No  Member 
shall be responsible by reason of its membership in the International Olive Council for 
any  liabilities  arising  from  borrowing  or  lending  by  any  other  Member  or  entity  in 
connection with such projects. 

3. 

The  International  Olive  Council  shall,  if  necessary,  keep  UNCTAD  informed  of  its 
activities  and  programs  of  work,  bearing  in  mind  the  particular  role  of  UNCTAD  in 
international commodity trade. 

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PART TWO – FINANCIAL PROVISIONS 

CHAPTER IV – BUDGETS OF THE INTERNATIONAL OLIVE COUNCIL 

Article 15 
Budgets of the International Olive Council 

1. 

The  Council  of  Members  shall  adopt  the  following  annual  budgets  to  achieve  the 
general objectives laid down in chapter I of this Agreement: 

– 

– 

– 

an administrative budget; 

a technical cooperation budget; 

a promotion budget. 

2. 

The administrative budget shall be financed by the contributions of the Members and 
by  any  other  related  revenues  generated.  The  amount  of  the  contribution  of  each 
Member  shall  be  established  in  proportion  to  its  participation  share  as  set  in 
compliance with Article 8 of this Agreement. 

3. 

The technical cooperation budget shall be financed by: 

(a) 

(b) 

the amount of the contribution of each Member, which shall be established in 
proportion to its participation share as set in compliance with Article 8 of this 
Agreement; 

subsidies, voluntary contributions of the Members, which shall be governed by 
the provisions embodied in an agreement established between the International 
Olive Council and the donor Member, and donations; and 

(c) 

any other related revenues generated. 

4. 

The promotion budget shall be financed by: 

(a) 

(b) 

the amount of the contribution of each Member, which shall be established in 
proportion to its participation share as set in compliance with Article 8 of this 
Agreement; 

the  voluntary  contributions  of  the  Members,  which  shall  be  governed  by  the 
provisions  embodied  in  an  agreement  established  between  the  International 
Olive Council and the donor Member; 

(c) 

donations from Governments and/or other sources; and 

(d) 

any other related revenues generated. 

5. 

The  International  Olive  Council  may  also  receive  other  forms  of  supplementary 
contributions, including services, scientific and technical equipment and/or staff that 
may meet the requirements of approved programs. 

The  International  Olive  Council  shall,  in  addition,  as  part  of  the  development  of 
international  cooperation,  endeavour  to  procure  such  essential  financial  and/or 
technical assistance as may be obtainable from the competent international, regional 
or national organisations, whether financial or of some other kind. 

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The above contributions shall be allocated by the Council of Members either to the 
technical cooperation budget, or to the promotion budget, or to both budgets. 

6. 

The amounts of the administrative budget, of the technical cooperation budget and of the 
promotion  budget  that  are  not  committed  during  one  calendar  year  may  be  carried 
forward  to  the  following  calendar  years  as  advance  financing  of  the  corresponding 
budgets  and  shall  be  assigned  thereto  according  to  the  participation  shares  of  each 
Member for the calendar year concerned. 

Such  amounts  may  not,  under  any  circumstances,  be  transferred  to  other  budgets 
unless the Council of Members decides otherwise. 

Article 16 
Administrative funds 

In  addition  to  the  budgets  referred  to  in  Article  15,  the  International  Olive  Council  may  be 
provided with the funds for administrative purposes for which provision is made in its Rules of 
Procedure. 

1. 

2. 

3. 

4. 

Article 17 
Payment of contributions 

Each year, at its annual session, the Council of Members shall determine the amount 
of the contribution to be paid by each Member for the following calendar year, which 
shall be calculated on the basis of the number of participation shares corresponding to 
each Member as established pursuant to Article 8. 

The initial conditions of any Member which becomes a Party to this Agreement after its 
entry into force shall be assessed by the Council of Members. The contribution of the 
new Member shall be calculated on the basis of the share allotted to that Member and of 
the  unexpired  portion  of  the  year  in  question  at  the  time  of  the  accession  of  the  new 
Member, but the assessments made upon the other Members for that calendar year shall 
not be altered. 

The  contributions  provided  for  in  Article  15  shall  fall  due  upon  the  first  day  of  the 
calendar  year  for  which  they  are  assessed.  They  shall  be  determined  in  Euros  and  be 
payable  in  that  currency  or  in  the  equivalent  amount  of  another  freely  convertible 
currency. 

The Council of Members shall, at the start of the calendar year, request the Members 
to  settle  their  contribution  as  soon  as  possible  to  enable  the  International  Olive 
Council  to  operate  normally  and  to  enable  the  implementation  of  the  activities 
planned by it for the calendar year concerned. 

If  a  Member  does  not  settle  its  contribution  within  six  months  of  the  start  of  the 
calendar  year,  the  Council  of  Members  shall  invite  it  to  make  payment  within  the 
following  three  months.  If  these  two  deadlines  are  not  met,  the  matter  shall  be 
brought to the attention of the Council of Members at its regular session. The right of 
the Member in arrears to participate in decisions of the Council of Members and to 
hold elective office in the Council of Members and its committees and subcommittees 
shall be suspended automatically until the contribution is paid in full. The Council of 

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Members  shall,  after  hearing  the  Member  in  arrears,  take  any  other  appropriate 
decisions, which shall be applied. 

5. 

No  decision  of  the  Council  of  Members  may  relieve  a  Member  of  its  financial 
obligations under this Agreement. 

Article 18 
Financial control 

1. 

2. 

The  financial  control  of  the  International  Olive  Council  shall  be  carried  out  by  the 
Financial Committee in accordance with Article 11. 

The financial statements of the International Olive Council for the previous calendar 
year,  certified  by  an  independent  auditor,  shall  be  presented  to  the  Financial 
Committee which, after analyzing the accounts, shall submit them to the Council of 
Members at its annual session for approval and publication. 

The Council of Members shall designate the independent auditor by holding a tender 
in which at least three relevant specialised firms shall take part. 

The independent auditor may not be designated for more than three years. 

No  firm  chosen  to  audit  the  accounts  of  the  International  Olive  Council  may  be  re-
selected to act as auditor in the course of the following nine years, during the life of 
this Agreement. 

3. 

Furthermore, the Council of Members shall, at its annual session, examine and adopt 
the report relating to: 

– 

– 

the  verification  of  the  management  of  the  funds,  assets  and  cash  of  the 
International Olive Council; 

the  regularity  of  financial  operations  and  their  conformity  with  the  rules  and 
regulations and budgetary provisions in force. 

Article 19 
Liquidation 

1. 

2. 

The  Council  of  Members  shall,  if  dissolved,  first  take  the  steps  stipulated  in 
Article 47(5). 

On the expiry of this Agreement, and unless it is prolonged, extended or renewed, the 
assets  of  the  International  Olive  Council  and  any  uncommitted  sums  proceeding  from 
the  funds  referred  to  in  Article  16  as  well  as  any  uncommitted  sums  of  the  budgets 
referred  to in Article 15 shall be repaid to Members in proportion  to the total  of their 
participation  shares  in  force  at  the  time.  The  voluntary  contributions  referred  to  in 
Article 15(4)(b) and 15(5)(b) and the donations referred to in Article 15(5)(c) shall be 
repaid to the Member or donor concerned. 

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PART THREE – ECONOMIC AND 
STANDARDISATION PROVISIONS 

CHAPTER V – DESIGNATIONS AND DEFINITIONS OF OLIVE OILS, 
OLIVE-POMACE OILS AND TABLE OLIVES – 
GEOGRAPHICAL INDICATIONS 

Article 20 
Use of the designation "olive oil" 

1. 

2. 

3. 

The designation "olive oil" shall be restricted to oil obtained solely from the olive, to 
the  exclusion  of  oil  obtained  by  solvent  or  re-esterification  processes  and  of  any 
mixture with oils of other kinds. 

In no case shall the designation "olive oil" be used alone to refer to olive-pomace oils. 

The Members undertake to suppress in their internal and international trade any use 
of the designation "olive oil", alone or in combination with other words, which is not 
in conformity with this Article. 

Article 21 
Designations and definitions of olive oils, olive-pomace oils and table olives 

1. 

The  definitions  of  the  following  different  categories  of  olive  oils  and  olive-pomace 
oils are described in Annex B: 

I. 

Olive oil: 

A. 

virgin olive oils: 

(a) 

virgin olive oils fit for consumption as they are: 

(i) 

extra virgin olive oil, 

(ii)  virgin olive oil, 

(iii)  ordinary virgin olive oil; 

(b)  virgin olive oils not fit for consumption as they are: 

lampante virgin olive oil; 

B. 

C. 

refined olive oil; 

olive oil. 

II.  Olive-pomace oil: 

A. 

crude olive-pomace oil; 

B. 

C. 

refined olive-pomace oil; 

olive-pomace oil. 

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2. 

The definitions of the following types of table olives are described in Annex C: 

(i) 

green olives, 

(ii)  olives turning colour, 

(iii)  black olives. 

3. 

1. 

2. 

3. 

4. 

5. 

6. 

The  Council  of  Members  may  make  all  such  amendments  as  it  deems  necessary  or 
appropriate  to  the  categories  of  oils  and  types  of  table  olives  provided  for  in  this 
Article and to the definitions laid down in Annexes B and C. 

Article 22 
Undertakings by Members 

The Members of the International Olive Council undertake to apply the designations 
prescribed in Annexes B and C in their international trade and shall encourage their 
application in their internal trade. 

The  Council  of  Members  shall  determine  quality  criteria  standards  applicable  to  the 
international trade of the Members, in accordance with Article 25(3). 

The  Members  undertake  to  analyze  in  detail  the  definition  of  the  designations  and 
geographical indications that may be of economic interest to the Members as well as 
the minimum national legal provisions required to ensure, or ensuring, the protection 
of  such  indications.  To  this  end,  the  International  Olive  Council  shall  secure  the 
means to develop a scheme of mutual recognition of such indications. 

Geographical indications, when given, may only be applied to virgin olive oils and to 
table olives belonging to the Extra trade category which are produced in accordance 
with the relevant provisions for these products. 

Geographical indications may only be used in conformity with the conditions prescribed 
by the law of the country of origin. 

The Members undertake, in particular, to develop a scheme for the mutual recognition of 
geographical  indications  to  ensure  protection,  ex  officio,  of  geographical  indications 
protected under the national law of the Members, and to prohibit and repress the use in 
their territories, for the purposes of international trade, of such geographical indications 
and designations of olive oils, olive-pomace oils and table olives as conflict with these 
principles. 

This  undertaking  shall  apply  to  all  inscriptions  placed  on  packagings,  invoices, 
consignment  notes  and  commercial  documents  or  used  in  advertising,  and  to  trade 
marks, registered names and illustrations connected with the international marketing 
of olive oils, olive-pomace oils and table olives, in so far as such inscriptions might 
constitute false statements or give rise to confusion as to the origin, source or quality 
of the olive oils, olive-pomace oils or table olives concerned. 

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Article 23 
Disputes and conciliation 

Any dispute regarding geographical indications arising from the interpretation of the 
provisions of this chapter or from difficulties in their application shall, if the dispute 
has not been settled by direct negotiation, be examined by the Council of Members. 

The Council of Members shall endeavour to reconcile the dispute, after seeking the 
opinion of an advisory panel as provided for in Article 37(1), and after consultation 
with  the  World  Intellectual  Property  Organisation,  with  a  competent  professional 
organisation  and,  if  necessary,  with  the  International  Chamber  of  Commerce  and 
specialised  international  institutions  for  analytical  chemistry;  if  this  is  unsuccessful, 
and  after  the  Council  of  Members  has  determined  that  every  means  has  been 
employed  to  reach  agreement,  the  Members  concerned  shall  have  the  right  of 
recourse in the final instance to the International Court of Justice. 

CHAPTER VI – STANDARDISATION OF THE MARKETS  
FOR OLIVE PRODUCTS 

Article 24 
Examination of the situation of and developments in the market for olive oil,  
olive-pomace oil and table olives 

Within the framework of the general objectives set forth in Article 1, and with a view to 
contributing towards the standardisation of the market for olive oil, olive-pomace oil and 
table olives and correcting any imbalance between international supply and demand due 
to irregularity of harvests or to other factors, Members shall make available and furnish 
to the International Olive Council all the necessary data, statistics and documentation on 
olive oil, olive-pomace oil and table olives. 

The Council of Members shall, at its annual session, make a detailed examination of the 
balances  for  olive  products and  an  overall  estimate  of the  supplies  of  and  demand  for 
olive oil, olive-pomace oil and table olives, on the basis of the information furnished by 
each  Member  under  Article  36, of  any  information  communicated  to  the  International 
Olive Council by Governments of States not Parties to this Agreement, and of any other 
relevant statistical material available to the International Olive Council on the subject. 
The Council of the Members shall, taking into account all the information available to it, 
examine the market situation and make an overall estimate of supplies of and demand 
for all olive products, and may propose to the Members such measures as it considers 
desirable. 

Article 25 
Standardisation of the market for olive products 

The  International  Olive  Council  shall  undertake  studies  with  a  view  to  making 
recommendations  to  the  Members  for  achieving  a  balance  between  production  and 
consumption, and, more generally, for standardising the market for olive products over 
the long term through the application of appropriate measures. 

With a view to such standardisation, the International Olive Council shall also undertake 
studies to recommend to Members suitable solutions to the problems which may arise as 

1. 

2. 

1. 

2. 

1. 

2. 

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regards the evolution of the international market for olive oil, olive-pomace oil and table 
olives,  through  appropriate  arrangements,  account  being  taken  of  market  imbalances 
resulting from fluctuations in production or from other causes. 

3. 

The  International  Olive  Council  shall  examine  ways  and  means  of  ensuring  the 
expansion  of  international  trade  and  the  increase  of  the  consumption  of  olive  oil  and 
table  olives.  In  particular,  it  shall  make  appropriate  recommendations  to  the  Members 
concerning: 

(a) 

(b) 

the  adoption  and  use  of  a  standard  international  contract  for  transactions  in 
olive oils, olive-pomace oils and table olives; 

the  constitution  and  functioning  of  an  international  conciliation  and  arbitration 
office to deal with any disputes relating to transactions in olive oils, olive-pomace 
oils and table olives; 

(c) 

the  application  of  standards  for  the  physical,  chemical  and  organoleptic 
characteristics of olive oils, olive-pomace oils and table olives; 

(d) 

the establishment of uniform methods of analysis. 

4. 

The  International  Olive  Council  shall  take  any  measures  it  considers  useful  for  the 
suppression of unfair competition at the international level, including such competition 
by  States  which  are  not  Parties  to  this  Agreement  or  by  persons  who  are  nationals  of 
such States. 

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PART FOUR – TECHNICAL PROVISIONS 

CHAPTER VII – TECHNICAL COOPERATION IN THE OLIVE SECTOR 

Article 26 
Programs and activities 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

1. 

2. 

In  order  to  achieve  the  general  objectives  set  forth  in  Article  1  concerning  technical 
cooperation  with  regard  to  olives  and  olive  products,  the  International  Olive  Council, 
acting through its Council of Members, shall conceive, promote and elaborate programs 
of activities relating thereto. 

Such  technical  cooperation  shall  encompass  olive  cultivation,  olive  oil  extraction  and 
table olive industry. 

The  International  Olive  Council  may  take  direct  action  to  promote  such  technical 
cooperation. 

The International Olive Council may decide to call upon the collaboration of public 
or private bodies and/or entities, whether national or international, to implement part 
or all of the provisions of this chapter. It may also give a financial contribution to the 
aforementioned bodies and/or concerns within the budgetary limits. 

Article 27 
Research and development 

The International Olive Council, acting through its Council of Members, shall examine 
any proposals for research-and-development projects of general interest to Members and 
shall take such measures as are appropriate in this field. 

The International Olive Council may call upon the collaboration of specialised research 
institutes,  laboratories  and  centres  for  the  implementation,  monitoring,  use  and 
dissemination,  for  the  benefit  of  Members,  of  the  findings  of  the  research-and-
development programs. 

The International Olive Council shall undertake the necessary studies on the economic 
returns  which  can  be  expected  from  the  application  of  the  results  of  the  research-and-
development programs. 

Article 28 
Training and specific operations 

The International Olive Council, acting through its Council of Members, shall take the 
necessary steps for the organisation of refresher and training courses at various levels for 
technical  experts  in  the  olive  sector,  particularly  those  from  Members  that  are 
developing countries. 

The International Olive Council shall encourage the transfer of technologies to Members 
that are developing countries from Members highly advanced in olive cultivation, olive 
oil extraction and table olive processing techniques. 

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3. 

4. 

5. 

The  International  Olive  Council  shall  facilitate  any  technical  cooperation  enabling 
consultants  and  experts  to  be  placed  at  the  disposal  of  the  Members  requiring  such 
services. 

The International Olive Council shall facilitate the participation of the delegations and 
experts of the Members in its general or scientific–technical meetings. 

In particular, the Council of Members shall: 

(a) 

carry out specific studies and operations; 

(b) 

convene or foster the holding of international seminars and meetings; 

(c) 

collect technical information and circulate it to all the Members; 

(d)  promote  the  coordination  of  activities  relating  to  technical  cooperation  among 
Members  in  olive  cultivation,  olive  oil  extraction  and  table  olive  industry, 
including action within the framework of interregional or regional planning; 

(e) 

promote such bilateral or multilateral cooperation as may assist the International 
Olive Council in achieving the objectives of this Agreement. 

CHAPTER VIII – OTHER MEASURES 

Article 29 
Other measures 

The International Olive Council shall: 

(a) 

(b) 

(c) 

foster and coordinate appropriate studies and research on the biological value of olive 
oil  and  table  olives,  with  particular  reference  to  their  nutritional  qualities  and  other 
intrinsic properties; 

draw  up,  in  association  with  specialist  bodies,  olive-related  terminology,  standards 
covering olive products and related methods of analysis, as well as any other standards 
connected with the olive sector; 

take  whatever  measures  are  appropriate  to  draw  up  a  compendium  of  established  fair 
trade practices for international trade in olive oil, olive-pomace oil and table olives. 

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PART FIVE – PROMOTIONAL PROVISIONS 

CHAPTER IX – WORLD PROMOTION OF THE CONSUMPTION  
OF OLIVE OIL AND TABLE OLIVES 

Article 30 
Programs to promote the consumption of olive oil and table olives 

1. 

2. 

3. 

4. 

The  Members  undertake  jointly  to  conduct  generic  promotional  activities  to  expand 
world  consumption  of  olive  oil  and  table  olives,  on  the  basis  of  the  use  of  the 
designations  of  edible  olive  oils  and  table  olives  defined  in  Annexes  B  and  C 
respectively. 

Those activities shall take the form of educational and information campaigns and shall 
deal with the organoleptic and chemical characteristics of olive oils and table olives, as 
well as with their nutritional, therapeutic and other properties. 

The  promotional  campaigns  shall  aim  to  inform  consumers  about  the  designations, 
origins  and  sources  of  olive  oils  and  table  olives,  care  being  taken  to  ensure  that  no 
quality,  origin  or  source  is  either  promoted  or  given  prominence  in  preference  to 
another. 

The promotional programs to be undertaken under this Article shall be decided by the 
Council of Members in the light of the resources made available to it. Priority shall be 
given to action in the mainly consuming countries and in those countries in which the 
consumption of olive oil and table olives is likely to increase. 

5. 

The resources of the promotion budget shall be used in the light of the following criteria: 

(a) 

the volume of consumption and the possibilities of developing existing markets; 

(b) 

the creation of new outlets for olive oil and table olives; 

(c) 

the return obtainable on the promotion expenditure. 

6. 

7. 

8. 

The Council of Members shall administer all the resources allocated for joint promotion 
purposes. It shall prepare an annual estimate of receipts and expenditure relating to this 
promotion as an annex to its budget. 

In the event of a Member, organisation or person providing a voluntary contribution for 
the conduct of promotional action, the Council of Members shall adopt the procedures 
governing  the  use  of  such  resources  within  the  framework  of  a  specific  agreement 
between the International Olive Council and the contributor. 

The International Olive Council shall be responsible for the technical execution of the 
promotional  programs,  which  it  may  also  entrust  to  specialised  bodies  chosen  in 
accordance with the Rules of Procedure. 

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Article 31 
International guarantee label of the International Olive Council 

The Council of Members may make provision for the application of the international quality 
guarantee label ensuring compliance with the international standards of the International Olive 
Council. 

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PART SIX – OTHER PROVISIONS 

CHAPTER X – MISCELLANEOUS OBLIGATIONS 

Article 32 
General obligations 

The Members undertake not to adopt any measures that conflict with their obligations under 
this Agreement or with the general objectives set forth in Article 1. 

Article 33 
Financial liability of Members 

In  accordance  with  the  general  principles  of  law,  the  financial  liability  of  each  Member  to  the 
International Olive Council and to other Members is limited to the extent of its obligations under 
Article 15 concerning the contributions to the budgets referred to in the same Article, and, as the 
case may be, under Article 16 referring to the administrative funds. 

Article 34 
Environmental and ecological aspects 

Members shall give due consideration to environmental and ecological aspects at all stages of 
olive  and  olive  oil  production  and  undertake  to  implement  such  action  as  may  be  deemed 
necessary by the Council of Members to improve or solve any problems encountered in this 
sphere. 

Article 35 
Encouragement of international trade and consumption 

The  Members  undertake  to  adopt  all  the  appropriate  measures  to  facilitate  trade,  encourage 
consumption of olive oils and table olives and ensure the proper development of the international 
trade  in  these  products.  To  that  end,  they  undertake  to  conform  to  the  principles,  rules  and 
guidelines they have approved in the competent international fora. 

Article 36 
Information 

The Members undertake to make available and furnish to the International Olive Council all the 
statistics, data and documentation which it needs to discharge its functions under this Agreement, 
and in particular any information it requires in order to establish the balances for olive oils, olive-
pomace oils and table olives and to acquire a knowledge of Members' national policies for olive 
products. 

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CHAPTER XI – DISPUTES AND COMPLAINTS 

Article 37 
Disputes and complaints 

1. 

2. 

3. 

4. 

Any dispute which concerns the interpretation or application of this Agreement other 
than a dispute under Article 23, and which is not settled by negotiation shall, at the 
request of any Member which is a party to the dispute, be referred to the Council of 
Members, which shall take a decision in the absence of the Member concerned after 
seeking an opinion, where appropriate, from an advisory panel, the composition and 
operational details of which shall be laid down in the Rules of Procedure. 

A  substantiated  opinion  by  the  advisory  panel  shall  be  submitted  to  the  Council  of 
Members,  which  shall  in  all  circumstances  settle  the  dispute  after  considering  all  the 
relevant facts. 

Any complaint that a 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 
of  Members,  which  shall  take  a  decision  in  the  absence  of  the  Member  in  question 
after  consulting  the  Members  concerned  and  after  seeking  an  opinion,  where 
appropriate, from the advisory panel referred to in paragraph 1 of this Article. 

If  the  Council  of  Members  finds  that  a  Member  has  committed  a  breach  of  this 
Agreement,  it  may  either  impose  on  that  Member  sanctions,  ranging  from  a  simple 
warning  to  the  suspension  of  the  Member's  right  to  participate  in  decisions  of  the 
Council of Members until it has met its obligations, or, in accordance with the procedure 
laid down in Article 45, exclude the Member from participation in the Agreement. The 
Member  in  question  shall  have  the  right  of  recourse  in  the  final  instance  to  the 
International Court of Justice. 

CHAPTER XII – FINAL PROVISIONS 

Article 38 
Depositary 

The Government of Spain is hereby designated as the depositary of this Agreement. 

Article 39 
Signature, ratification, acceptance and approval 

1. 

This Agreement shall be open for signature at Madrid with the Government of Spain 
from 15 June to 31 December 2005 inclusive by Governments invited to the United 
Nations Conference for the Negotiation of a Successor Agreement to the International 
Agreement on Olive Oil and Table Olives, 1986, as amended and extended, 1993. 

2. 

Any Government referred to in paragraph 1 of this Article may: 

(a) 

(b) 

at  the  time  of  signing  this  Agreement,  declare  that  by  such  signature  it 
expresses its consent to be bound by this Agreement (definitive signature); or 

after  signing  this  Agreement,  ratify,  accept  or  approve  it  by  the  deposit  of  an 
instrument to that effect with the depositary. 

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3. 

1. 

2. 

1. 

2. 

1. 

2. 

This  Agreement  shall  be  open  for  signature,  ratification,  acceptance  or  approval  by 
the European Community. 

Instruments  of  ratification,  acceptance  or  approval  shall  be  deposited  with  the 
depositary. 

Article 40 
Accession 

Any  State  may  accede  to  this  Agreement  upon  conditions  established  by  the 
International Olive Council, acting through its Council of Members, which shall include 
a number of participation shares and a time limit for the deposit of the instruments of 
accession.  The  Council  of  Members  may,  however,  grant  extensions  of  time  to 
Governments  which  are  unable  to  accede  by  the  time  limit  set  in  the  conditions  of 
accession.  Upon  accession,  a  State  shall  be  deemed  to  be  listed  in  Annex  A  to  this 
Agreement,  together  with  its  participation  shares  as  laid  down  in  the  conditions  of 
accession. 

This Agreement shall be open for accession by the European Community. 

Accession  shall  be  effected  by  the  deposit  of  an  instrument  of  accession  with  the 
depositary.  Instruments  of  accession  shall  state  that  the  Government  accepts  all  the 
conditions established by the International Olive Council. 

Article 41 
Notification of provisional application 

A signatory Government which intends to ratify, accept or approve this Agreement, or a 
Government for which the Council of Members has established conditions for accession 
but which has not yet been able to deposit its instrument, may, at any time, notify the 
depositary  that  it  will  apply  this  Agreement  provisionally  when  it  enters  into  force  in 
accordance with Article 42, or, if it is already in force, at a specified date. 

A Government which has notified under paragraph 1 of this Article that it will apply this 
Agreement when it enters into force, or, if it is already in force, at a specified date shall, 
from that time, be a provisional Member until it deposits its instrument of ratification, 
acceptance, approval or accession and thus becomes a Member. 

Article 42 
Entry into force 

This  Agreement  shall  enter  into  force  definitively  on  the  day  when  at  least  five 
Governments among those mentioned in Annex A to this Agreement and accounting 
for  at  least  90  per  cent  of  the  participation  shares  have  signed  this  Agreement 
definitively or have ratified, accepted or approved it, or acceded thereto. 

If,  on  1  January  2006,  this  Agreement  has  not  entered  into  force  in  accordance  with 
paragraph  1  of  this  Article,  it  shall  enter  into  force  provisionally  if  by  that  date  five 
Governments satisfying the percentage requirements of paragraph 1 of this Article have 
signed  this  Agreement  definitively  or  have  ratified,  accepted  or  approved  it,  or  have 
notified the depositary that they will apply this Agreement provisionally. 

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3. 

4. 

1. 

2. 

1. 

2. 

If,  on  1  January  2006,  the  requirements  for  entry  into  force  under  paragraph  1  or 
paragraph  2  of  this  Article  have  not  been  met,  the  depositary  shall  invite  those 
Governments which have signed this Agreement definitively or have ratified, accepted 
or  approved  it,  or  have  notified  that  they  will  apply  this  Agreement  provisionally,  to 
decide whether to bring this Agreement into force definitively or provisionally among 
themselves, in whole or in part, on such date as they may determine. 

For any Government which has not notified the depository under Article 41 that it will 
apply  this  Agreement  provisionally  and  which  deposits  an  instrument  of  ratification, 
acceptance,  approval  or  accession  after  the  entry  into  force  of  this  Agreement,  this 
Agreement shall enter into force on the date of such deposit. 

Article 43 
Amendment 

The  International  Olive  Council,  acting  through  its  Council  of  Members,  may 
recommend amendments of this Agreement to the Members. 

The proposed amendment shall be adopted by the Council of Members, in accordance 
with Article 9 of the Agreement, and shall enter into force for all Members 90 days after 
the depositary has received notification of the decision of the Council of Members. 

Article 44 
Withdrawal 

Any Member may withdraw from this Agreement at any time after the entry into force 
of this Agreement by giving written notice of withdrawal to the depositary. The Member 
shall  simultaneously  inform  the  International  Olive  Council  in  writing  of  the  action  it 
has taken. 

Withdrawal under this Article shall become effective 90 days after the notice is received 
by the depositary. 

Article 45 
Exclusion 

Without  prejudice  to  Article  37,  if  the  Council  of  Members  decides  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 reasoned decision of the other 
Members  taken  in  the  absence  of  the  Member  concerned,  exclude  that  Member  from  this 
Agreement.  The  International  Olive  Council  shall  immediately  notify  the  depositary  of  its 
decision. The Member in question shall cease to be a Party to this Agreement 30 days after the 
date of the decision of the Council of Members. 

Article 46 
Settlement of accounts 

1. 

The  Council  of  Members  shall  determine  any  settlement  of  accounts  which  it  finds 
equitable,  taking  into  account  all  the  commitments  entailing  legal  consequences  for 
the  International  Olive  Council  and  which  would  have  repercussions  on  the 

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contributions of a Member which has withdrawn from this Agreement or which has 
been excluded from the International Olive Council or has otherwise ceased to be a 
Party to this Agreement, as well as the time needed to ensure an adequate transition, 
in particular when such commitments have to be terminated. 

Notwithstanding  the  provisions  of  the  sub-paragraph  above,  such  Member  shall  be 
bound to pay any amounts due from it to the International Olive Council in respect of 
the period during which it was a Member. 

Upon  termination  of  this  Agreement,  no  Member  referred  to  in  paragraph  1  of  this 
Article  shall  be  entitled  to  any  share  of  the  proceeds  of  the  liquidation  or  the  other 
assets of the International Olive Council; nor shall it be burdened with any part of the 
deficit, if any, of the International Olive Council. 

Article 47 
Duration, prolongation, extension and termination 

This Agreement shall remain in force until 31 December 2014 unless the International 
Olive Council, acting through its Council of Members, decides to prolong it, extend it, 
renew it or terminate it in advance in accordance with the provisions of this Article. 

The International Olive Council, acting through its Council of Members, may decide to 
prolong this Agreement for not more than two periods of two years each. Any Member 
which  does  not  accept  any  such  prolongation  of  this  Agreement  shall  so  inform  the 
International  Olive  Council  and  shall  cease  to  be  a  Party  to  this  Agreement  from  the 
beginning of the period of prolongation. 

If, before 31 December 2014, or before the expiry of a period of prolongation referred to 
in paragraph 2 of this Article, as the case may be, a new agreement or a protocol for the 
extension of this Agreement has been negotiated but has not yet entered into force either 
definitively or provisionally, this Agreement shall remain in force beyond its expiry date 
until the new agreement or protocol enters into force, provided that the period of such 
prolongation does not exceed 12 months. 

The  International  Olive  Council,  acting  through  its  Council  of  Members,  may  at  any 
time decide to terminate this Agreement with effect from such date as it may determine. 

Notwithstanding  the  expiry  or  termination  of  this  Agreement,  the  International  Olive 
Council  shall  continue  in  being  for  as  long  as  may  be  necessary  for  the  purpose  of 
carrying out the liquidation of the International Olive Council, including the settlement 
of  accounts,  and  shall  have  during  that  period  such  powers  and  functions  as  may  be 
necessary for these purposes. 

The International Olive Council shall notify the depositary of any decision taken under 
this Article. 

2. 

1. 

2. 

3. 

4. 

5. 

6. 

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Article 48 
Reservations 

No reservations may be made with respect to any of the provisions of this Agreement. 

IN  WITNESS  WHEREOF  the  undersigned,  being  duly  authorised  thereto,  have  affixed  their 
signature under this Agreement on the dates indicated. 

DONE at Geneva on 29 April 2005, the texts of this Agreement in the Arabic, English, French, 
Italian and Spanish languages being equally authentic. 

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ANNEX A 

Participation shares in the budgets of the Organisation 

established in accordance with Article 82 

Algeria 

European Community 

Croatia 

Egypt 

Iran (Islamic Republic of) 

Israel 

Libyan Arab Jamahiriya 

Jordan 

Lebanon 

Morocco 

Syrian Arab Republic 

Serbia and Montenegro 

Tunisia 

11 

801 

5 

8 

5 

5 

5 

7 

5 

25 

45 

5 

73 

Total 

1 000 

2 

Calculations  are  based  on  the  average  production  for  the  period  1997/1998–2002/2003  and  on  the 
average exports for the period 1998–2003. 

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ANNEX B 

Designations and definitions of olive oils and olive-pomace oils 

The  designations  of  the  different  categories  of  olive  oils  and  olive-pomace  oils  are  given 
below with the definition corresponding to each designation: 

I. 

Olive oil is the oil obtained solely from the fruit of the olive tree, to the exclusion of 
oils obtained using solvents or re-esterification processes and of any mixture with oils 
of other kinds. It is designated as follows: 

A. 

virgin olive oils: oils which are obtained from the fruit of the olive tree solely 
by  mechanical  or  other  physical  means  under  conditions,  particularly  thermal 
conditions,  that  do  not  lead  to  deterioration  of  the  oil,  and  which  have  not 
undergone  any  treatment  other  than  washing,  decantation,  centrifugation  and 
filtration. Virgin olive oils shall be classified and designated as follows: 

(a) 

virgin olive oils fit for consumption as they are: 

(i) 

extra  virgin  olive  oil:  virgin  olive  oil  which  has  a  free  acidity, 
expressed as oleic acid, of not more than 0.8 grams per 100 grams 
and the other characteristics of which correspond to those laid down 
for this category; 

(ii)  virgin olive oil: virgin olive oil which has a free acidity, expressed as 
oleic  acid,  of  not  more  than  2.0  grams  per  100  grams  and  the  other 
characteristics  of  which  correspond  to  those  laid  down  for  this 
category; 

(iii)  ordinary  virgin  olive  oil:  virgin  olive  oil  which  has  a  free  acidity, 
expressed as oleic acid, of not more than 3.3 grams per 100 grams and 
the  other  characteristics  of  which  correspond  to  those  laid  down  for 
this category3; 

(b)  virgin olive oil not fit for consumption as it is: 

lampante  virgin  olive  oil:  virgin  olive  oil  which  has  a  free  acidity, 
expressed as oleic acid, of more than 3.3 grams per 100 grams and/or the 
organoleptic characteristics and other characteristics of which correspond 
to those laid down for this category. It is intended for refining for use for 
human consumption, or it is intended for technical use; 

B. 

refined  olive  oil:  olive  oil  obtained  by  refining  virgin  olive  oils.  It  has  a  free 
acidity, expressed as oleic acid, of not more than 0.3 grams per 100 grams, and 
its other characteristics correspond to those laid down for this category4; 

3 

4 

This  product  may  only  be  sold  direct  to  the  consumer  if  permitted  in  the  country  of  retail  sale.  If  not 
permitted,  the  designation  of  this  product  shall  comply  with  the  legal  provisions  of  the  country 
concerned. 
This product may only be sold direct to the consumer if permitted in the country of retail sale. 

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C. 

olive oil: oil consisting of a blend of refined olive oil and virgin olive oils fit for 
consumption  as  they  are.  It  has  a  free  acidity,  expressed  as  oleic  acid,  of  not 
more  than  1  gram  per  100  grams,  and  its  other  characteristics  correspond  to 
those laid down for this category5. 

II. 

Olive-pomace  oil  is  the  oil  obtained  by  treating  olive  pomace  with  solvents  or  other 
physical treatments, to the exclusion of oils obtained by re-esterification processes and 
of any mixture with oils of other kinds. It is classified as follows: 

A. 

B. 

C. 

crude  olive-pomace  oil:  olive-pomace  oil  whose  characteristics  are  those  laid 
down  for  this  category.  It  is  intended  for  refining  for  use  for  human 
consumption, or it is intended for technical use; 

refined olive-pomace oil: oil obtained by refining crude olive-pomace oil. It has a 
free acidity, expressed as oleic acid, of not more than 0.3 grams per 100 grams and 
its other characteristics correspond to those laid down for this category6; 

olive-pomace oil: oil consisting of a blend of refined olive-pomace oil and virgin 
olive oils fit for consumption as they are. It has a free acidity, expressed as oleic 
acid,  of  not  more  than  1  gram  per  100  grams  and  its  other  characteristics 
correspond  to  those  laid  down  for  this  category.  In  no  case  shall  this  blend  be 
called "olive oil"7. 

5 
6 
7 

The country of retail sale may require a more specific designation. 
This product may only be sold direct to the consumer if permitted in the country of retail sale. 
The country of retail sale may require a more specific designation. 

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ANNEX C 

Types and definitions of table olives 

Table olives shall be classified in one of the following types: 

(i) 

(ii) 

(iii) 

green olives: fruits harvested during the ripening period, prior to colouring and when 
they have reached normal size. They may vary in colour from green to straw yellow. 

olives  turning  colour:  fruits  harvested  before  the  stage  of  complete  ripeness  is 
attained, at colour change. They may vary in colour from rose to wine rose or brown. 

black  olives:  fruits  harvested  when  fully  ripe  or  slightly  before  full  ripeness  is 
reached.  They  may  vary  in  colour  from  reddish  black  to  violet  black,  deep  violet, 
greenish black or deep chestnut. 

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LEGISLATIVE FINANCIAL STATEMENT 

Policy areas: Agriculture and Rural Development 

Activities: External Relations (05 06) 

TITLE OF ACTION: INTERNATIONAL AGREEMENT ON OLIVE OIL AND TABLE OLIVES, 2005  

1. 

BUDGET LINES + HEADINGS 

05 06 01: International Agricultural Agreements  

2. 

OVERALL FIGURES 

2.1. 

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

€43,49 M for the period 2006–2013 

2.2. 

Period of application 

Calendar years 2006 to 2014. 

2.3. 

Overall multi-annual estimate of expenditure 

(a) 

Schedule  of 
intervention) 

commitment 

appropriations/payment 

appropriations 

(financial 

EUR million (to three decimal places) 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Commitments 

Payments 

5,07 

5,07 

5,17 

5,17 

5,27 

5,27 

5,38 

5,38 

5,49 

5,49 

5,59 

5,59 

5,70 

5,70 

5,82 

5,82 

Total 

43,49 

43,49 

(b) 

Technical and administrative assistance and support expenditure 

Commitments 

Payments 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

2.4. 

Compatibility with financial programming and financial perspective 

X 

Proposal is compatible with existing financial programming. 

3. 

BUDGET CHARACTERISTICS  

Type of 
expenditure 

New 

EFTA 
contribution 

Contributions from 
applicant countries 

Heading in  
financial perspective

Comp 

Diff 

NO 

NO 

NO 

No 4 
External Relations 

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4. 

LEGAL BASIS 

Article  133  in  conjunction  with  the  second  paragraph  of  Article  300(2)  of  the  Treaty 
establishing the European Community 

5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention 

5.1.1.  Objectives pursued 

Due  to  its  economic  importance  in  the  agricultural  sector  the  Community  should  be 
represented  in  international  agricultural  organisations.  Being  a  member  of  the  International 
Olive  Oil  Council,  in  particular,  enables  the  Community  to  pursue  the  developments  of  the 
markets  for  olive  oil  and  table  olives  and,  thus,  to  defend  its  interest  with  regard  to  these 
products.  The  International  Agreement  on  Olive  Oil  and  Table  Olives  2005  supports 
international co-operation and contributes to the development and the stability of the markets 
for these products. 

5.1.2.  Measures taken in connection with ex ante evaluation  

N/A 

5.1.3.  Measures taken following ex post evaluation 

N/A 

5.2. 

Action envisaged and budget intervention arrangements 

The  Community  pays  its  annual  membership  contribution  to  the  Administrative  Budget, 
Technical Cooperation Budget and Promotion Budget of the IOOC as fixed in accordance with 
the  International  Agreement.  These  obligations  continue  as  long  as  the  Community  is  a 
signatory of the International Agreement. 

The  Commission,  representing  the  Community,  as  well  as  the  other  members  of  the  IOOC 
participates  actively  in  the  IOOC-activities  and  profits  fully  of  the  advantages  of  being  a 
member of the IOOC. 

6. 

FINANCIAL IMPACT 

6.1. 

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

6.1.1.  Financial intervention 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

Commitments 

5,07 

5,17 

5,27 

5,38 

5,49 

5,59 

5,70 

5,82 

43,49 

Commitments (in EUR to three decimal places) 

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7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE 

7.1. 

Impact on human resources 

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

Number of 
permanent posts 

Number of 
temporary posts 

Description of tasks deriving 
from the action 

Total 

. 

Types of post 

Officials or 
temporary staff 

A 
B 
C 

Other human resources 

Total 

7.2. 

Overall financial impact of human resources 

Type of human resources 

Amount (€) 

Method of calculation *  

Officials 

Temporary staff 

Other human resources 

The amounts are total expenditure for twelve months. 

Total 

7.3. 

Other administrative expenditure deriving from the action 

Budget line (number and heading) 

Amount € 

Method of calculation 

Overall allocation (Title A7) 

A0701 – Missions 

The amounts are total expenditure for twelve months. 

Total 

I. 

II. 

III. 

Annual total (7.2 + 7.3) 

Duration of action 

Total cost of action (I x II) 

Remark: This action will be managed by the existing staff. No additional human resources are 
needed. 

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8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

The IOOC-activities are closely followed by its members and there are regular meetings which 
are attended by Commission staff. 

8.2. 

Arrangements and schedule for the planned evaluation 

Activity  reports  are  regularly  drafted  and  distributed  by  the  IOOC  to  its  Members  which 
allows an evaluation of the activities. Commission staff reports back to the PROBA-group of 
the Council and the IOOC activities are followed up in that context, too. 

9. 

ANTI-FRAUD MEASURES 

Article 18 of the International Agreement on Olive Oil and Table Olives 2005, and Article 44 
of  the  Internal  Rules  of  the  IOOC  provide  for  control  and  audit  mechanisms.  The  accounts 
have to be certified by an independent account commissioner. 

The Commission shall ensure that, when actions financed under the IOOC are implemented, 
the financial interests of the Community are protected by application of preventive measures 
against  fraud,  corruption  and  any  other  illegal  activities,  by  effective  checks  and  by  the 
recovery  of  the  amounts  unduly  paid  and,  if  irregularities  are  detected,  by  effective, 
proportional and dissuasive penalties, in accordance with Council Regulations (EC, Euratom) 
No 2988/95  and  (Euratom,  EC)  No 2185/96  and  with  Regulation  (EC)  No 1073/1999  of  the 
European Parliament and of the Council. 

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