Proposal for a Council Decision establishing the position to be adopted, on behalf of the Community, within the International Grains Council with respect to the extension  of the Grains Trade Convention, 1995
Date: 2007-02-06
Institutions: European Commission
Subjects: cereals, international convention, renewal of an agreement, the EU's international role, trade agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.2.2007 
COM(2007) 44 final 

2007/0016 (ACC) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted, on behalf of the Community,  
within the International Grains Council with respect to the extension  
of the Grains Trade Convention, 1995 

(presented by the Commission) 

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1. 

2. 

3. 

4. 

EXPLANATORY MEMORANDUM 

The Grains Trade Convention, 1995, (hereinafter: the “Convention”) was concluded 
by  the  Community  by  Council  Decision  96/88/EC1  until  30  June  1998  and,  since 
then, it has been regularly extended. The Convention was last extended by decision 
of the International Grains Council in June 2005 and remains into force until 30 June 
2007. 

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

The  extension  of  the  Convention  entails  the  prolongation  of  the  Community 
contribution  to  the  administrative  budget  of  the  International  Grains  Agreement, 
which  covers  both  the  Convention  and  the  Food  Aid  Convention,  1999.  That 
contribution 
the  Community  budget 
(International agricultural agreements). 

is  budgeted  under 

item  05 06 01  of 

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 
Grains Trade Convention up to 30 June 2009 within the International Grains Council. 

1 

OJ L 21, 27.1.1996, p. 47.  

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2007/0016 (ACC) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted, on behalf of the Community,  
within the International Grains Council with respect to the extension  
of the Grains Trade Convention, 1995 

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  Grains  Trade  Convention,  1995,  was  concluded  by  the  Community  by  Council 
Decision  96/88/EC2  and  was  regularly  extended  for  further  periods  of  two-year.  This 
Convention was extended last time by decision of the International Grains Council in 
June  2005  and  remains  into  force  until  30  June  2007.  A  further  extension  is  in  the 
interest of the Community. The Commission, which represents the Community in the 
Grains  Trade  Convention,  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 Grains Council shall be to vote in 
favour of the extension of the Grains Trade Convention 1995 for a further period, up to two 
years. 

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

Done at Brussels,  

For the Council 
The President 

2 

OJ L 21, 27.1.1996, p. 47. 

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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 GRAINS TRADE CONVENTION 1995 

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 0.937  

2.2. 

Period of application: 1.7.2007 to 30.6.2009 

2.3. 

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

Commitments 

Payments 

2008 

0.464 

0.464 

2009 

0.473 

0.473 

Total 

0.937 

0.937 

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

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

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

5.2. 

Actions envisaged and arrangements for budget intervention 

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

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

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

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact on Part B  

Commitments (to the 3rd decimal place): EUR 0.937 million for the period of two years. 0.464 
for 2008 and 0.473 for 2009.  

6.2. 

Calculation 

The  expenditure  involved  in  the  application  of  the  two  conventions  is  covered  by  annual 
contributions from all members of the Grains convention. 

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.  

There  are  a  total  of  2000  votes  in  the  Convention,  of  which  the  European  Union  holds  406 
(after enlargement). The same figure is projected for 2008 and 2009. The estimated cost per 
vote for 2008 is €1.143 resulting in a Community contribution of EUR 0.464 million.  

For 2009 and taking into consideration the adjustment of the price per vote, the cost estimated 
is EUR 0.473 million.  

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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 
0.1 
– 

– 

0.3 

– 
– 
– 

– 

– 

Total 

0.2 
0.1 
– 

– 

0.3 

7.2. 

Overall financial impact of human resources 

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

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

Reports  on  these  meetings  and  of  the  decisions  taken  in  the  course  of  these  meetings  are 
published and are freely available to members. 

9. 

ANTI-FRAUD MEASURES 

The  execution  and  the  control  of  EC  contributions  are  checked  in  conformity  of  the  rules 
foreseen by the IGC Agreement. 

Specific  modalities  of  audit  and  control  are  laid  down  with  in  the  legal  basis  of  this 
international organisation. 

The  accounts  of  this  organisation  are  certified  by  an  independent  external  auditor.  This 
certification  is  submitted  to  the  competent  body  of  the  IGC  in  view  of  its  approval  and 
subsequent publication. 

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