Proposal for a Council Decision regarding the position to be taken by the Community within the International Coffee Council on the extension of the International Coffee Agreement, 2001
Date: 2006-08-23
Institutions: European Commission
Subjects: agreement (EU), coffee, commodity agreement, international agreement, international organisation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.8.2006 
COM(2006) 464 final 

2006/0157 (ACC) 

Proposal for a 

COUNCIL DECISION 

regarding the position to be taken by the Community within 
the International Coffee Council on the extension of the International 
Coffee Agreement, 2001 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The International Coffee Agreement of 2001 was concluded for the European Community by 
Council  Decision  2001/877/EC  of  24  September  2001.  The  Agreement  entered  into  force 
provisionally on 1 October 2001 and definitively on 17 May 2005. It is due to expire on 24 
September 2007 unless it is extended.  

At the meeting of the International Coffee Council scheduled in London in September 2006 
members may be requested, under the provisions of Article 52(2) of the Agreement, to adopt a 
resolution  providing  for  the  extension  of  the  current  Agreement  of  2001  for  one  or  more 
periods not exceeding six years in total, in order to allow sufficient time for the negotiation of 
amendments or a successor Agreement.  

The  contracting  parties  must  notify  the  UN  headquarters  in  New  York  that  they  accept  an 
extension  before  the  current  Agreement  expires.  In  the  case  of  the  European  Community, 
participation  in  the  Agreement  is  in  accordance  with  its  exclusive  competence.  However, 
Decision 2001/877/EC also authorises the Member States to conclude the Coffee Agreement 
of  2001  at  the  same  time  as  the  Community,  so  as  to  avoid  any  temporary  operational 
difficulties.  Therefore,  it  might  also  be  necessary  for  certain  Member  States  to  initiate  their 
domestic constitutional procedures in order to accept an extension of the Coffee Agreement of 
2001.  

Under  the  legal  basis,  the  proposed  decision  does  not  change  the  European  Community’s 
contribution  to  the  Administrative  budget  of  the  International  Coffee  Organisation,  which 
remains due for every coffee year.  

The  purpose  of  this  proposal  is  to  authorise  the  European  Community  to  vote  in  favour  of 
extending the Agreement. 

The Commission therefore suggests that the Council adopts the attached decision. 

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2006/0157 (ACC) 

Proposal for a 

COUNCIL DECISION 

regarding the position to be taken by the Community within 
the International Coffee Council on the extension of the International 
Coffee Agreement, 2001 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission1, 

Whereas: 

(1) 

(2) 

(3) 

The  International  Agreement  on  Coffee  of  2001  has  been  signed  and  concluded  on 
behalf  of  the  European  Community  on  24  September  2001  by  Council  Decision 
2001/877/EC2. 

Under the provisions of Article 52(1) and (2), the International Coffee Agreement of 
2001 is due to expire on 30 September 2007 unless it is extended beyond that date by 
decision of the International Coffee Council for one or more periods not exceeding six 
years in total. 

The contracting parties of the International Coffee Agreement of 2001 must notify the 
United  Nations  headquarters  in  New  York  if  they  accept  an  extension  of  the 
Agreement. 

(4) 

The extension of that Agreement is in the interest of the European Community. 

(5) 

The  European  Community’s  position  in  the  International  Coffee  Council  should  be 
determined, 

1 
2 

OJ C … 
OJ L 326, 11.12.2001, p.22 

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HAS DECIDED AS FOLLOWS:  

Sole Article 

The European Community’s position within the International Coffee Council shall be to vote 
in favour of extending the International Agreement on Coffee, 2001, for one or more periods 
not exceeding six years and to notify this extension to the United Nations Secretary-General.  

Done at Brussels,  

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

This document is intended to accompany and complement the Explanatory Memorandum. As 
such,  when  completing  this  Legislative  Financial  Statement,  and  without  prejudice  to  its 
legibility,  an  attempt  should  be  made  to  avoid  repeating  information  contained  in  the 
Explanatory  Memorandum.  Before  filling  in  this  template,  please  refer  to  the  specific 
Guidelines that have been drafted to provide guidance and clarification for the items below.  

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  Council  Decision  regarding  the  position  to  be  taken  by  the 
Community  within  the  International  Coffee  Council  on  the  extension  of  the 
International Coffee Agreement of 2001 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

External Relations, Development and relations with ACP countries. Obligations vis à 
vis of the International Commodities organisations 

3. 

3.1 

BUDGET LINES 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B..A lines)) including headings : 

21 07 04 

Commodities agreement 

3.2 

Duration of the action and of the financial impact: 

Maximum Six years unless the Agreement is renegotiated in the meantime 

3.3 

Budgetary characteristics (add rows if necessary) : 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

Comp 

Diff3/ 

 NO 

NO 

NO 

No [ 4 ] 

3 

Differentiated appropriations 

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4. 

SUMMARY OF RESOURCES 

4.1 

Financial Resources 

4.1.1 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

Section 
no. 

Expenditure type 

n + 1 

n + 2 

n + 3 

n + 4 

Year 
n 

n + 5 
and 
later 

Total 

EUR million (to 3 decimal places) 

Operational expenditure4 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

1,250  1,312 

1,378 

1,447 

1,519 

1,595 

8,501* 

1,250  1,312 

1,378 

1,447 

1,519 

1,595 

8,501 

*  The  calculation  takes  into  account  an  annual  average  of 
increase equal to 5%. 
Administrative expenditure within reference amount5 

Technical 
& 
administrative  assistance 
(NDA) * 

8.2.4 

c 

**  NNoo  nneeeedd  ffoorr  tteecchhnniiccaall  aanndd  aaddmmiinniissttrraattiivvee  
aassssiissttaannccee  

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

1,250  1,312 

1,378 

1,447 

1,519 

1,595 

8,501 

1,250  1,312 

1,378 

1,447 

1,519 

1,595 

8,501 

a+c 

b+c 

Administrative expenditure not included in reference amount6 

**  NNoo  nneeeedd  ffoorr  tteecchhnniiccaall  aanndd  aaddmmiinniissttrraattiivvee  aassssiissttaannccee 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

Administrative  costs,  other 
than  human  resources  and 
associated 
not 
included in reference amount 
(NDA) 

costs, 

8.2.5 

d 

8.2.6 

e 

4 
5 
6 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

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Total indicative financial cost of intervention 

1,250  1,312  1,378  1,447  1,519  1,595  8,501 

1,250  1,312  1,378  1,447  1,519  1,595  8,501 

TOTAL  CA 
including  cost 
of 
Human 
Resources 

TOTAL  PA 
including  cost 
of 
Human 
Resources 

a+c+d+e 

b+c+d+
e 

Co-financing details 

No co-financing 

4.1.2.  Compatibility with Financial Programming 

X 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 

(cid:133) 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 

(cid:133) 
Agreement7 (i.e. flexibility instrument or revision of the financial perspective) 

4.1.3.  Financial impact on Revenue 

X 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact – the effect on revenue is as follows: 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

The needs for human and administrative resources shall be covered within the allocation granted to 
the managing DG in the framework of the annual allocation procedure. 

7 

See points 19 and 24 of the Interinstitutional agreement. 

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5. 

CHARACTERISTICS AND OBJECTIVES 

Details  of  the  context  of  the  proposal  are  required  in  the  Explanatory  Memorandum. 
This section of the Legislative Financial Statement should include the following specific 
complementary information: 

5.1. 

Need to be met in the short or long term. 

Mandatory obligation to be member to the Coffee Agreement by virtue of a Council 
Decision.  

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy.  

The  present  membership  to  the  Coffee  Organisation  derives  from  the  broader 
approach always followed by the Community in signing and concluding international 
commodity agreements once negotiated, as a tool for facilitating exchanges and trade 
relations among importers and exporters. This facilitates development and responds 
to the mandate of DG DEV to contribute to policy formulation in several Community 
policies such as trade, environment, agriculture, and sustainable development as well 
as  other  policies  with  an  external  dimension.  In  the  particular  case  of  the  present 
international agreement, the Council has also recognised the exclusive competence to 
the Commission on the basis of Art.133. The main objectives of the agreement are: 
promote 
for 
intergovernmental  consultations;  search  ways  to  achieve  a  reasonable  balance 
between supply and demand of coffee at fair prices to consumers and remunerative to 
producers; facilitate expansion and transparency of the international trade of coffee; 
encourage  members  to  develop  a  sustainable  coffee  economy.  The  nature  of  the 
present agreement is political, administrative and economic. We consider that a clear 
positive  indicator  to  measure  the  achievements  of  these  targets  is  the  unanimous 
satisfaction  of  the  members  to  continue  the  international  cooperation  through  the 
present agreement. 

in  coffee  matters;  provide 

international  cooperation 

forum 

The  proposal  is  coherent  with  other  financial  instruments  ensuring  the  EC 
participation  to  international  organisations.  No  synergies  possible  at  the  present 
stage.  

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

Within  the  ABM  framework,  the  present  proposal  responds  to  the  objective  of 
developing the Commission’s role as an intellectual focal point for development and 
ensures effective participation in the international policy debate. 

The  main  output  indicator  could  be  considered  the  EU  positions  for  major 
international  initiatives,  Conventions,  fora  and  platforms  agreed  with  MS.  The 
impact indicator may be considered the reflection of the EU positions in international 
partnerships and funds as well as international fora. 

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Looking to the proposal, its objective is to allow the Commission, acting on behalf of 
the Community, to express the will for an extension of the coffee agreement and by 
that,  ensuring  the  continuation  of  the  agreement  to  be  in  force  for  a  period  not 
exceeding  six  years.  The  purpose  for  extending  the  validity,  will  give  time  for 
undertaking a negotiation for amending the current agreement or renegotiating a new 
legal instrument before the end  of its duration.  Therefore there is an interest of the 
Commission,  within  its  own  competencies,  to  propose  the  present  decision  in 
conformity with the mandate received by the Member States.  

5.4.  Method of Implementation (indicative) 

Show below the method(s)8 chosen for the implementation of the action. 

ٱ Centralised Management 

X 

Directly by the Commission 

ٱ 

Indirectly by delegation to: 

ٱ 

ٱ 

Executive Agencies 

Bodies set up by the Communities as referred to 
in art. 185 of the Financial Regulation 

National  public-sector  bodies/bodies  with 

ٱ 
public-service mission 

ٱ 

ٱ 

Shared or decentralised management 

ٱ 

ٱ 

With Member states 

With Third countries 

Joint  management  with  international  organisations  (please 
specify) 

Relevant comments: 

8 

If  more  than  one  method  is  indicated  please  provide  additional  details  in  the  "Relevant  comments" 
section of this point 

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6. 

MONITORING AND EVALUATION 

6.1 

Monitoring system 

The  Commission  Services  attend  regularly  the  Council  sessions  as  well  as  the 
financial Committee of the International Coffee Organisation. These two bodies are 
mandated  to  propose  and  approve  the  administrative  budget  and  the  inherent 
contributions.  The  administrative  budget,  its  utilisation,  the  financial  status  of  the 
expenditures  and  accounts  of  the  International  Coffee  Organisation  are  at  the 
disposal of the members. 

6.2. 

Evaluation 

6.2.1 

Ex-ante evaluation 

Evaluation of the compatibility of the annual proposal with our financial policy  

6.2.2  Measures taken following an intermediate/ex-post  evaluation  (lessons learned  from 

similar experiences in the past) 

This exercise is carried out, if necessary, at the moment of a renegotiation 

6.2.3 

Terms and frequency of future evaluation 

7. 

ANTI-FRAUD MEASURES  

The Commission will ensure the constant monitoring of the administrative management of the 
financial resources of the International Coffee Organisation. 

If  so  required,  the  International  Coffee  Organisation  is  willing  to  grant  the  access  to  its 
records and books to OLAF as well as to all other financial and audit services if so required 
by the Commission.  

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8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

Type of output 

Av. 
cost 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year n+5 and 
later 

TOTAL 

Commitment appropriations in EUR million (to 3 decimal places) 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

1 

1,250 

 1 

1,312 

 1 

1,378 

 1 

1,447 

 1 

1,519 

 1 

1,595 

6 

8,501 

of 
(Headings 
Objectives, 
actions 
and  outputs  should  be 
provided) 

OPERATIONAL 
OBJECTIVE 
9……… 

No.1 

Contributions to the 
International 
Commodities 
Organisations 

TOTAL COST 

1 

1 

1,250 

 1 

1,312 

 1 

1,378 

 1 

1,447 

 1 

1,519 

 1 

1,595 

6 

8,501 

9 

As described under Section 5.3 

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8.2 

Administrative Expenditure 

8.2.1  Number and type of human resources 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the 
allocation  granted  to  the  managing  DG  in  the  framework  of  the  annual  allocation 
procedure.  The  staff  and  the  administrative  expenditure  are  included  in  the  normal 
allocation of the DG. 

Types of 
post 

Staff to be assigned to management of the action using existing and/or additional 
resources (number of posts/FTEs) 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 

A*/AD 

B*, 
C*/AST 

Officials 
or 
temporary 
staff10 
(XX 01 
01) 

Staff  financed11  by 
art. XX 01 02 

staff12 
Other 
financed  by  art.  XX 
01 04/05 

TOTAL  

8.2.2  Description of tasks deriving from the action 

Attendance to meetings, study of documents, discussion with Member States in Council 
and finally negotiations within the International Coffee Organisation.  

8.2.3 

Sources of human resources (statutory) 

(When  more  than  one  source  is  stated,  please  indicate  the  number  of  posts  originating 
from each of the sources) 

Posts  currently  allocated  to  the  management  of  the  programme  to  be 

(cid:133) 
replaced or extended 

(cid:133) 

Posts pre-allocated within the APS/PDB exercise for year n 

10 
11 
12 

Cost of which is NOT covered by the reference amount 
Cost of which is NOT covered by the reference amount 
Cost of which is included within the reference amount 

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(cid:133) 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing 

(cid:133) 
service (internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise 

(cid:133) 
of the year in question 

8.2.4  Other  Administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

No need 

8.2.5 

Financial  cost  of  human  resources  and  associated  costs  not  included  in  the 
reference amount. 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the 
allocation granted to the managing DG in the framework of the annual allocation 
procedure.  The  staff  and  the  administrative  expenditure  are  included  in  the 
normal allocation of the DG. 

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