Proposal for a Council Decision regarding the position to be taken by the Community within the International Cocoa Council on the extension of the International Cocoa Agreement, 2001
Date: 2007-09-05
Institutions: European Commission
Subjects: European Community, cocoa, international agreement, international organisation, renewal of an agreement, trade policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.9.2007 
COM(2007) 499 final 

2007/0179 (ACC) 

Proposal for a 

COUNCIL DECISION 

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

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The International Cocoa Agreement of 2001 was concluded for the European Community by 
Council  Decision  2002/970/EC  of  18  November  2002.  The  Agreement  entered  into  force 
provisionally on 1 October 2003 and definitively on 2 November 2005. It is due to expire on 
30 September 2008 unless it is extended.  

At  the  meeting  of  the  International  Cocoa  Council  scheduled  to  take  place  in  London  in 
September  2007  members  may  be  requested,  under  the  provisions  of  Article  63(3)  of  the 
Agreement,  to  adopt  a  resolution  providing  for  the  extension  of  the  current  Agreement  of 
2001 for one or two periods not exceeding two cocoa years each, in order to allow sufficient 
time for the negotiation of amendments or a successor Agreement.  

The  European  Community's,  participation  in  the  Agreement  is  in  accordance  with  its 
exclusive  competence.  Under  the  legal  basis,  the  proposed  decision  does  not  change  the 
European Community’s contribution to the administrative budget of the International Cocoa 
Organisation, which remains due for every cocoa 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 adopt the attached decision. 

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2007/0179 (ACC) 

Proposal for a 

COUNCIL DECISION 

regarding the position to be taken by the Community within 
the International Cocoa Council on the extension of the International 
Cocoa 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), second subparagraph, thereof, 

Having regard to the proposal from the Commission1, 

Whereas: 

(1) 

(2) 

The International Cocoa Agreement a of 2001 was signed and concluded on behalf of 
the European Community on 18 November 2002 by Council Decision 2002/970/EC2. 

Under the provisions of Article 63 (1) and (3), the International Cocoa Agreement of 
2001 is due to expire on 30 September 2008 unless it is extended beyond that date by 
decision of the International Cocoa Council for one or two periods not exceeding four 
years in total. 

(3) 

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

(4) 

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

1 
2 

OJ C … 
OJ L 342, 17.12.2002,p. 1  

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HAS DECIDED AS FOLLOWS:  

Sole Article 

The European Community’s position within the International Cocoa Council shall be to vote 
in favour of extending the International Cocoa Agreement, 2001, for one or two periods not 
exceeding  four  years  in  total  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  Cocoa  Council  on  the  extension  of  the 
International Cocoa 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 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 agreements 

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) 

EUR million (to 3 decimal places) 

Section 
no. 

Expenditure type 

n + 1 

n + 2 

n + 3 

n + 4 

Year 
n 

n + 5 
and 
later 

Total 

Operational expenditure4 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

1,258  1,321 

1,387 

1,456 

1,528 

1,604 

8,554* 

1,258 

1,321 

1,387 

1,456 

1,528 

1,604 

* 
8,554* 

*  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 

a+c 

b+c 

1,258 

1,321 

1,387 

1,456 

1,528 

1,604 

8,554* 

1,258 

1,321 

1,387 

1,456 

1,528 

1,604 

* 
8,554* 

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 

1,258  1,321  1,387  1,56 

1,528  1,604  8,554*  

1,258  1,321  1,387  1,456  1,528  1,604  8,554 

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

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  party  to  the  Cocoa  Agreement  by  virtue  of  a  Council 
Decision.  

7 

See points 19 and 24 of the Interinstitutional agreement. 

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5.2. 

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

The  present  membership  of  the  Cocoa  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 of 
the Commission on the basis of Art.133. The main objectives of the agreement are: 
in  cocoa  matters;  provide  a  forum  for 
promote 
intergovernmental consultations; seek ways to achieve a reasonable balance between 
supply  and  demand  of  cocoa  at  fair  prices  to  consumers  and  remunerative  to 
producers; facilitate expansion and transparency of the international trade in cocoa; 
encourage  members  to  develop  a  sustainable  cocoa  economy.  The  nature  of  the 
present agreement is political, administrative and economic. We consider that a clear 
positive  indicator  to  measure  the  achievement  of  these  targets  is  the  unanimous 
desire of the members to continue the international cooperation through the present 
agreement and consequently agree on its extension and possible renegotiation. 

international  cooperation 

The  proposal  is  consistent  with  other  financial  instruments  ensuring  the  EC 
participation  in  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  as  the  EU  positions  for  major 
international  initiatives,  Conventions,  fora  and  platforms  agreed  with  MS.  The 
impact  indicator  may  be  considered  as  the  reflection  of  the  EU  positions  in 
international partnerships and funds as well as international fora. 

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 cocoa agreement thereby , 
ensuring  the  continuation  of  the  agreement  for  a  period  not  exceeding  four  years, 
after  its  expiry  on  30  September  2008..  The  purpose  of  extending  the  period  of 
validity,  will  give  time  for  undertaking  negotiations  for  amending  the  current 
agreement or renegotiating a new legal instrument before the end of its duration. The 
Commission therefore has an interest, within its own competencies, in proposing the 
present decision in conformity with the mandate received by the Member States.  

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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: 

6. 

MONITORING AND EVALUATION 

6.1 

Monitoring system 

The  Commission  Services  attend  regularly  the  Council  sessions  as  well  as  the 
Executive Committee of the International Cocoa 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 
expenditure and accounts of the International Cocoa 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  

8 

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

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6.2.2  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 time of a renegotiation. It must be 
pointed out that a recent study commissioned by the Commission assessing the major 
Commodity Organisations concludes by stressing the interest of the EC in 
participating in all these fora with an increased level of involvement, in exclusive 
competence whenever possible.  

6.2.3 

Terms and frequency of future evaluation 

7. 

ANTI-FRAUD MEASURES  

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

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

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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 

1,258 

 1 

1,321 

 1 

1,387 

 1 

1,456 

 1 

1,528 

 1 

1,604 

6 

8,554 

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

OPERATIONAL 
OBJECTIVE 
9……… 

No.1 

Contributions to the 
International 
Commodities 
Organisations 

TOTAL COST 

1 

1 

1,258 

 1 

1,321 

 1 

1,387 

 1 

1,456 

 1 

1,528 

 1 

1,604 

6 

8,554 

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  in  terms  of  human  and  administrative  resources  shall  be  covered  by  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 at meetings, study of documents, discussion with Member States in Council 
and finally negotiations within the International Cocoa 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 in terms of human and administrative resources shall be covered by 
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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