Proposal for a Council Decision establishing the position to be adopted on behalf of the Community within the Food Aid Committee as regards the extension of the Food Aid Convention, 1999
Date: 2009-02-10
Institutions: European Commission
Subjects: European convention, food aid, interim agreement (EU), renewal of an agreement

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.2.2009 
COM(2009) 46 final 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted on behalf of the Community within the Food Aid 
Committee as regards the extension of the Food Aid Convention, 1999 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The International Grains Agreement, 1995 is made up of two parts: the Food Aid Convention, 
1999 and the Grains Trade Convention, 1995. 

The  Food  Aid  Convention  of  1999  (FAC)  was  concluded  by  the  Community  by  Council 
Decision 2000/421/EC.  That  Convention  remains  in  force  until  30  June  2009,  following  its 
extension by decision of the Food Aid Committee at its 98th session on 6 June 2008.  

The Grains Trade Convention of 1995 (GTC) was extended until 30 June 2009 by decision of 
the International Grains Council (IGC) at its 25th session on 11 June 2007.A further extension 
of  the  Grains  Trade  Convention  1995  for  two  years  will  be  decided  at  the  IGC  meeting  in 
June 2009. 

The  Commission  acts  on  behalf  of  the  European  Community,  under  the  authorisation  to 
negotiate the revision of the Food Aid Convention 1999, conferred on it by Council Decision 
on 27 November 2003.  

In the interest of both the Community and the Member States, some essential changes to the 
current  FAC  are  required.  There  is  a  general  agreement  that  these  changes  should  be 
discussed  amongst  the  other  FAC  members,  a  process  which  has  started  informally  in 
November 2008 within the FAC framework. Formal renegotiations of FAC have, so far, been 
deferred  with  a  view  to  taking  into  account  the  outcome  of  the  negotiations  of  the  ongoing 
WTO Doha Development Agenda. Whilst the aim is to include the results from the ongoing 
WTO DDA negotiations, due to the significant time which has elapsed since the last time the 
FAC  was  renegotiated  as  well  as  the  unpredictable  timeframe  for  the  conclusion  of  these 
negotiations,  the  Commission,  on  behalf  of  the  European  Communities  and  its  Member 
States, has insisted together with the other FAC members at the FAC meeting on 9 December 
2008  in  London  on  the  urgency  to  commence  the  FAC  renegotiation  process  as  soon  as 
possible.  

Given  that  the  starting  date  of  the  re-negotiation  will  ultimately  be  decided  by  a  common 
agreement  of  all  FAC  Members,  an  extension  of  the  FAC  for  one  year  maximum  seems, 
therefore, unavoidable. Otherwise the current FAC would elapse at the end of June 2009 with 
the negative consequences that this will signal.  

Therefore a one year extension would send out a right message regarding the renegotiation of 
the FAC, and allow enough time for the actual renegotiation process of the FAC to take place. 

•  Existing provisions in the area of the proposal 

Council Decision 2000/421/EC 
Council Decision 2006/906/EC 
Council Decision 2007/317/EC 

•  Consistency with the other policies and objectives of the Union 

This decision is consistent with the Grains Trade Convention 1995 that remains in force until 
30 June 2009. A further extension for two years of the Grains Trade Convention 1995 will be 
decided at the IGC meeting in June 2009. 

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2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

At  the  Council  Working  Group  on  Food  Aid  on  12  November  2008,  Member  States  were 
favourable to a Community position regarding the prolongation of the Food Aid Convention, 
1999  for  a  period  of  one  year,  i.e.  until  30  June  2010  to  be  decided  at  the  next  Food  Aid 
Convention 1999 meeting in London on 5 June 2009.  

Collection and use of expertise 

There was no need for external expertise. 

•  Impact Assessment 

Not applicable. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Legal basis 

Article 181, in conjunction with Article 300(2) of the Treaty establishing the EC. 

•  Subsidiarity 

The proposal falls under the mixed competence of the Community. 

•  Proportionality 

The proposal complies with the proportionality principle. 

•  Choice of instrument 

Proposed instruments: Council Decision 

Other means would not be adequate for the following reason: it is the only way to adopt the 
European Community's position to be expressed within the Food Aid Committee. 

4. 

BUDGETARY IMPLICATIONS 

The  Food  Aid  Convention  may  only  be  extended  when  the  Grains  Trade  Convention  1995 
exists for the same period. The contribution to the administrative budget of the International 
Grains Agreement also covers the Food Aid Convention 1999. That contribution is budgeted 
under  item  05  06  01  of  the  Community  budget  (International  agricultural  agreements).  The 
estimated  cost  of  this  proposal  is  EUR  0.450  million  and  will  be  updated  and  taken  into 
consideration  at  the  moment  of  the  extension  of  the  Grains  Trade  Convention  1995.  A 
Financial Statement is attached to the Decision to extend the Grains Trade Convention 1995. 

The extension of the Food Aid Convention 1999 means that yearly commitments to provide 
food  aid  by  the  European  Community  and  its  Member  States  under  Article  III(e)  of  the 
Convention  will  be  extended  for  one  year  only.  In  line  with  the  agreement  between  the 
European  Commission  and  the  Member  States  the  Commission  has  taken  responsibility  for 
part of the minimum commitments taken by the EC and its Member States within the Food 
Aid Convention. A single FAC notification is consolidated together with EU Member States 
and  does  not  indicate  separate  operations.  The  FAC  (article  V1)  provides  for  carryover  and 
carry forward but this has never been invoked. 

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CONCLUSIONS 

The  Commission  proposes  that  the  Council  authorises  the  Commission  to  vote  on  behalf  of 
the  European  Community,  in  accordance  with  Article XXV(b)  of  the  Food  Aid  Convention 
1999, in favour of the further extension of this Convention, for a period of one year, i.e. until 
30 June 2010,  subject  to  that  the  Grains  Trade  Convention  1995  remains  in  force  until  and 
including that date as stipulated in Article XXV(a) of the Food Aid Convention 1999. 

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Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted on behalf of the Community within the Food Aid 
Committee as regards the extension of the Food Aid Convention, 1999 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 181 in conjunction with Article 300(2), second paragraph, thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

The Food Aid Convention 1999 (hereinafter: the "Convention") was concluded by the 
Community by Council Decision 2000/421/EC1 and extended by decisions of the Food 
Aid Committee in June 2003, June 2005, June 2007 and June 2008 so as to remain in 
force until 30 June 2009.  

A  further  extension  of  one  year  of  the  Convention  is  in  the  interest  of  both  the 
Community  and  its  Member  States.  Pursuant  to  Article  XXV(b)  of  the  Convention, 
that extension is conditional upon the remaining in force, for the same period, of the 
Grains Trade Convention 1995. The Grains Trade Convention 1995 remains in force 
until  30  June  2009,  and  a  further  extension  is  envisaged.  The  Commission,  which 
represents the Community in the Food Aid Committee, should therefore be authorised 
by a Council Decision to vote in favour of such extension. 

HAS DECIDED AS FOLLOWS: 

Sole Article 

The  European  Community's  position  within  the  Food  Aid  Committee  shall  be  to  vote  in 
favour of the extension of the Food Aid Convention 1999 for a period of one year, subject to 
that  the  Grains  Trade  Convention  1995  remains  in  force  during  the  same  period,  i.e.  until 
30 June 2010. A further extension of the Grains Trade Convention 1995 will be decided at the 
International Grains Council (IGC) meeting in June 2009. 

1 

OJ L 163, 4.7.2000, p. 37. 

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The  Commission  is  hereby  authorised  to  express  this  position  within  the  Food  Aid 
Committee. 

Done at Brussels,  

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

Policy area: Agriculture and Rural Development 

Activity: International aspects of Agriculture and Rural Development policy area 

TITLE OF ACTION: EXTENSION OF THE FOOD AID CONVENTION 1999 

(COMMUNITY CONTRIBUTION TO THE INTERNATIONAL GRAINS COUNCIL) 

1. 

BUDGET LINE + HEADING 

Heading 4 – The EU as a global partner 
05 06 01: International agricultural agreements 

2. 

2.1. 

OVERALL FIGURES 

Total  allocation  for  action:  The  amount  estimated  for  one  year  extension  is 
EUR 450 000. 

2.2. 

Period of application: 1.7.2009 to 30.6.2010 (budget 2010) 

2.3. 

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 181 of the Treaty in conjunction with Article 300(2) 
Council Decisions 96/88/EC of 27.1.1996 (OJ L 21 of 27.1.1996), 2001/C 195/01 (OJ C 195 
of 11.7.2001) and 2000/421/EC (OJ L 163 of 4.7.2000). 

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 

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following  global  developments  and  defending  Community  interests  for  the  products 
concerned. 

The  payment  of  EC  membership  contributions  enables  the  objectives  of  the  International 
Grains  Council  (IGC)  to  be  attained.  The  IGC,  which  is  responsible  for  administering  the 
Agreements  relating  to  the  Grains  Trade  Convention,  1995  and  the  Food  Aid  Convention, 
1999,  promotes  the  objectives  of  the  Agreements,  including  international  cooperation, 
exchange of statistical information and 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  interest  of  the  EC  to  be  a  part  of  the  said 
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 to the Agreements. 

The European Community and the Member States participate fully in the activities of the IGC 
and take full advantage of the benefits of membership. 

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact 

Commitments  (to  the  3rd  decimal  place):  The  cost  estimated  of  this  proposal  is  €  0.450 
million. 

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. The contribution of each member 
for each financial year is fixed in proportion to the number of votes attributed to that member 
in relation to the total number of votes held by members. The number of votes attributed to 
each member is adjusted on the basis of the composition of the IGC when the budget for the 
financial  year  in  question  is  adopted.  There  is  a  total  of  2 000  votes  in  the  Convention,  of 
which the European Union holds 399 for 2007/8. The same figure is projected for 2009/2010. 
The estimated cost per vote for the period of extension is €1 128 ( 399 votes x €1 128/vote = 
€450 000). This amount being indicative could be  updated in the upcoming proposal for the 
extension of the Grains Trade Convention, 1995. 

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7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE 

7.1. 

Impact on human resources 

Types of post 

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

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 

Description of tasks deriving  
from the action 

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 

36 600 

0.3 x 122 000 

*  Human resources and administrative requirements will be covered from the allocation given to the managing 

DG under the annual allocations procedure. The amounts are total expenditure for twelve months. 

Total 

36 600 

8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

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

A  report  of  these  meetings  and  of  the  decisions  taken  in  the  course  of  these  meetings  is 
published and is freely available to members. 

8.2. 

Details and frequency of planned evaluations 

In  view  of  the  specific  nature  of  the  proposed  intervention  (extension  of  Community 
contribution  to  the  administrative  budget  of  the  International  Grains  Agreement)  and  of  the 
relatively small sum involved, an external evaluation does not seem justified. The relevance 
and  usefulness  of  continuing  with  a  contribution  to  the  administrative  budget  of  this 
Agreement will be evaluated internally, at regular intervals, by means of active Commission 
involvement in the management committees and in the International Grains Council. 

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9. 

ANTI-FRAUD MEASURES 

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

Specific  modalities  of  audit  and  control  are  laid  down  within  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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