Proposal for a Council Decision establishing the position to be adopted on behalf of the Community within the International Sugar Council as regards the extension  of the International Sugar Agreement, 1992
Date: 2007-02-06
Institutions: European Commission
Subjects: international agreement, renewal of an agreement, sugar

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.2.2007 
COM(2007) 43 final 

2007/0017 (ACC) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted on behalf of the Community 
within the International Sugar Council as regards the extension  
of the International Sugar Agreement, 1992 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The International Sugar Agreement, 1992, (hereinafter: the “Agreement”) was concluded by 
the  Community  by  Decision  92/580/EEC1  and  entered  into  force  on  1  January  1993  for  a 
period of three years until 31 December 1995. Since then it has been regularly extended for 
further  periods  of  two  years.  The  Agreement  was  extended  last  time  by  decision  of  the 
International Sugar Council in May 2005 and remains into force until 31 December 2007. 

A further extension of the Agreement by up to two years is in the interest of the Community. 

That extension  of the  Agreement  entails the prolongation  of the Community contribution to 
the  administrative  budget  of  the  Agreement.  That  contribution  is  budgeted  under  item 
05 06 01 of the Community budget (International agricultural agreements). 

The purpose of this proposal is to seek the Council’s authorisation to the Commission to vote, 
on  behalf  of  the  Community,  in  favour  of  the  extension  of  the  Agreement  up  to 
31 December 2009 within the International Sugar Council. 

1 

OJ L 379, 23.12.1992, p. 15. 

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2007/0017 (ACC) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted on behalf of the Community 
within the International Sugar Council as regards the extension  
of the International Sugar Agreement, 1992 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

The International Sugar Agreement 1992 was concluded by the Community by Council 
Decision 92/580/EEC2 and entered into force on 1 January 1993 for a period of three 
years  until  31  December  1995.  Since  then,  it  has  been  regularly  extended  for  further 
periods  of  two  years.  That  Agreement  was  last  extended  by  decision  of  the 
International  Sugar  Council  in  May  2005  and  remains  into  force  until  31  December 
2007. A further extension is in the interest of the Community. The Commission, which 
represents  the  Community  in  the  International  Sugar  Council,  should  therefore  be 
authorised to vote in favour of such extension, 

HAS DECIDED AS FOLLOWS:  

Sole Article 

The European Community's position within the International Sugar Council shall be to vote in 
favour of the extension of the International Sugar Agreement, 1992, for a further period, up to 
two years. 

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

Done at Brussels,  

For the Council 
The President 

2 

OJ L 379, 23.12.1992, p. 15. 

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LEGISLATIVE FINANCIAL STATEMENT 

Policy area: Agricultural and Rural Development 

Activity: International aspects of Agricultural and Rural Development policy area 

TITLE OF ACTION: EXTENSION OF THE INTERNATIONAL SUGAR AGREEMENT 1992 

1. 

BUDGET LINE + HEADING: 

Heading 4 – The EU as a global partner 

05 06 01: International agricultural agreements 

2. 

OVERALL FIGURES 

2.1. 

Total allocation for action (Part B): EUR million 1.023  

2.2. 

Period of application: 1.1.2008 to 31.12.2009 

2.3. 

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

Commitments 

Payments 

2008 

0.506 

0.506 

2009 

0.517 

0.517 

Total 

1.023 

1.023 

2.4. 

Compatibility with the financial programming and the financial perspective 

X 

Proposal compatible with the existing financial programming 

2.5. 

Financial impact on revenue 

X  No financial implications (involves technical aspects regarding implementation 

of a measure). 

3. 

BUDGET CHARACTERISTICS 

Type of 
expenditure 

New 

EFTA 
participation 

Participation 
applicant countries 

Heading Financial 
Perspective 

Comp 

Diff 

NO 

NO 

NO 

4 The EU as a 
global partner 

4. 

LEGAL BASIS 

Article 133 in conjunction with Article 300(2) of the Treaty.  

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5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention 

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

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

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

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

5.2. 

Actions envisaged and arrangements for budget intervention 

The EC pays membership dues on an annual basis for the International Sugar organisation. 

The dues are paid for as long as the EC remains a signatory of the Agreement. 

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

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact on Part B  

Commitments (to the 3rd decimal place): EUR 1.023 million for the period of two years. 0.506 
for 2008 and 0.517 for 2009.  

6.2. 

Calculation 

Each  contribution  is  fixed  in  proportion  to  the  number  of  votes  attributed  to  the  member 
concerned and proportionally to its importance in the international market.  

The  number  of  votes  allocated  to  the  Community  is  estimated  at  574  out  of  2000  and  the 
number of votes should remain stable for the period of the extension. The estimated cost per 
vote for 2008 is €882 resulting in a Community contribution of 0.506 million EUR. 

For 2009 and taking into consideration the adjustment of the price per vote, the cost estimated 
is 0.517 million EUR.  

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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 resources 

Description of tasks deriving  
from the action 

Types of post 

Number of 
permanent posts 

Number of 
temporary posts 

Permanent 
officials or 
temporary staff 

A 
B 
C 

Other human 
resources 

Total 

0.2 
- 
– 

– 

0.3 

– 
– 
– 

– 

– 

Total 

0.3 
- 
– 

– 

0.3 

7.2. 

Overall financial impact of human resources 

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

Type of human resources 

Amount EUR 

Method of calculation 

Officials 
Temporary staff 

Other human resources 

35.400 

0,3 x 118 000 

Total 

35.400 

8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

The  ISO  activities  are  closely  followed  by  its  members  and  EC  fully  participate  in  ISO’s 
regular meetings. A report of ISO activities is regularly published. 

9. 

ANTI-FRAUD MEASURES 

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

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