Proposal for a Council Decision establishing the position to be adopted on behalf of the European Union within the Food Aid Committee as regards the extension of the Food Aid Convention, 1999
Date: 2010-04-12
Institutions: European Commission
Subjects: food aid, international convention, renewal of an agreement, the EU's international role

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EUROPEAN COMMISSION 

Brussels, 12.4.2010 
COM(2010)139 final 

2010/0077 (NLE) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted on behalf of the European Union 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  Food  Aid  Convention,  1999  (FAC)  was  concluded  by  the  Community  by  Council 
Decision 2000/421/EC. It remains in force until 30 June 2010, following a further extension 
by decision of the Food Aid Committee at its 100th session on 5 June 2009. 

The Food Aid Convention, 1999 and the Grains Trade Convention (GTC), 1995 are two parts 
of  the  International  Grains  Agreement,  1995.  The  Grains  Trade  Convention  of  1995  was 
extended  until  30  June  2011,  thus  allowing  formally  the  Food  Aid  Convention  to  be  also 
extended until 30 June 2011.  

The FAC, originally introduced in the 1960s, was created as an instrument for a coordinated 
and  acceptable  disposal  of  agricultural  surpluses  from  developed  countries  to  developing 
countries  in  need.  Today,  there  appears  to  be  broad  agreement  amongst  the  FAC  members 
that  the  Convention  in  its  current  form  no  longer  corresponds  to  the  requirements  and 
practices  of  today's  food  assistance.  However  formal  renegotiations  of  the  FAC  have  been 
deferred,  initially  with  a  view  to  taking  into  account  the  outcome  of  the  negotiations  of  the 
ongoing  World  Trade  Organisation  (WTO)  Doha  Development  Agenda  (DDA).  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, FAC members at the 100th 
session of the Food Aid Committee on 5 June 2009 agreed that there was no need to await the 
completion of the WTO discussions before beginning intensive work on the possible elements 
of  a  new  FAC.  The  understanding  is  that  a  future  Convention  would  need  to  be  WTO 
compatible. 

As the current FAC expires in June 2010, the question of a renewal will be formally addressed 
in the forthcoming meeting of the Food Aid Committee on 4 June 2010. At the 101st session 
of  the  Food  Aid  Committee  on  9  December  2009  in  London,  some  FAC  members  (AUS, 
CAN, CH, Japan, USA) expressed their 'position in principle' as favouring an extension of the 
FAC for another year, i.e. until 30 June 2011. The EU however communicated the line agreed 
by  the  'Council  Working  Group  on  Humanitarian  Aid  and  Food  Aid'  (COHAFA)  in  its 
meeting on 25 November 2009: "The EU will work towards taking a decision in June as to 
the  future  of  the  FAC  and  preparations  may  start  now  without  any  prejudice  to  the  formal 
position that will be communicated in June 2010." thus linking the possible extension of the 
current FAC to the progress accomplished in view of the (re)negotiation of a new convention.  

There was an informal meeting of the Food Aid Committee in London on 15 and 16 February 
2010 to further discuss the future of the FAC. In the informal meeting it was agreed to set up 
a  Working  Group  on  the  future  of  the  FAC  and  a  consensus  was  reached  on  draft  terms  of 
reference to continue discussions on the major components of the FAC. The working group 
will commence work on 15 March 2010 and finalise its report by 14 May 2010. This report 
will be discussed at the informal meeting of FAC members on 2-3 June 2010 and considered 
at the 102nd session of the Food Aid Committee on 4 June 2010. The Food Aid Committee has 
been requested to formally agree to this under written procedure by 8 March 2010. There are 
two possible scenarios in respect of which the EU has to prepare a common position in view 
of the 102nd session of the Food Aid Committee in London on 4 June 2010 either: 

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(1) 

(2) 

the informal discussions of FAC members on the future of the Food Aid Convention 
have  achieved  a  significant  progress  (i.e.  there  is  a  reasonable  expectation  that 
negotiation/renegotiation talks on a future Convention will start in the course of 2010), 
prior to the 102nd session of the Food Aid Committee in London on 4 June 2010: in 
that  case  an  extension  of  the  FAC  for  one  more  year  will  be  most  appropriate.  The 
Commission  will 
initiate  a  recommendation  for  a  Council  negotiating 
authorization  and  directives,  in  accordance  with  the  procedure  laid  down  in  Article 
218 TFEU; or 

then 

the  informal  discussions  on  the  future  of  the  Food  Aid  Convention  have  not 
progressed  significantly,  prior  to  the  formal  meeting  of  the  Food  Aid  Committee  in 
London in June 2010. In that case an extension of the FAC for one more year will not 
be appropriate, and the Commission on behalf of the EU and its Member States should 
formally oppose the emergence of a consensus in the Food Aid Committee, pursuant 
to Rule 13 of the FAC rules of procedures, favoring an extension of the FAC.  

Progress,  or  the  lack  of  it,  will  be  assessed  by  the  EU  Member  States  and  the  European 
Commission. Should the FAC not  be extended it would no longer exist and in consequence 
there would be no minimum commitments to be fulfilled. This would not affect DG ECHO in 
its allocation of funding resources for humanitarian food assistance. However, it is likely there 
will be material negative consequences in terms of negative perceptions by recipient countries 
who  may  consider  that  predictability  of  food  aid  deliveries  will  deteriorate  and  by  other 
Members of the FAC who favour the historic approach, i.e. a mechanism that facilitates the 
disposal of food products. 

Under  the  FAC  the  yearly  commitments  for  the  European  Union  and  its  Member  States  to 
deliver a minimum annual amount of food aid are expressed both in wheat equivalents and in 
value  terms,  and  the  current  EU  and  Member  States  commitments  are  1,320,000  tonnes  of 
wheat  equivalent  plus  €130 million  (this  includes  transport  and  other  operational  costs). 
Regarding the wheat equivalent commitment of 1,320,000 tonnes, 990,000 tonnes is the share 
handled by the European Commission as part of an internal EU agreement. 

•  Existing provisions in the area of the proposal 

Council Decision 2000/421/EC 

Council Decision 2006/906/EC 

Council Decision 2007/317/EC 

Council Decision 2009/393/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 2011. On 8 June 2009, members of the International Grains Council agreed that the 
Grains  Trade  Convention,  1995  should,  in  principle,  be  extended  by  two  years  from  1  July 
2009.  

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2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

At  the  Council  Working  Group  on  Humanitarian  Aid  and  Food  Aid  (COHAFA)  of  25 
November 2009, Member States took the following position regarding the prolongation of the 
Food  Aid  Convention,  1999  for  a  period  of  one  year,  i.e.  until  30  June  2011:  "The  EU  will 
work towards taking a decision in June as to the future of the FAC and preparations may start 
now without any prejudice to the formal position that will be communicated in June 2010."  

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 218.9 of the Treaty on the Functioning of the European Union. 

•  Subsidiarity 

The proposal falls under mixed competence. 

•  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: pursuant to article 218.9 TFEU, 
it is the only way to adopt the European Union's position to be expressed within the food aid 
committee. 

4. 

BUDGETARY IMPLICATION 

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,  i.e.  there  is  no  additional 
budgetary implication for an extension of the FAC. The contribution is budgeted under item 
05 06 01 of the EU budget (International agricultural agreements). The estimated cost of this 
contribution  was  set  out  in  a  financial  statement  attached  to  the  Council  Decision 
2009/393/EC to extend the Grains Trade Convention of 1995. The cost will be updated and 
taken into consideration at the moment of the extension of the Grains Trade Convention 1995.  

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The  extension  of  Food  Aid  Convention,  1999  would  mean  that  yearly  commitments  to 
provide  food  aid  by  the  European  Union  under  Article  III(e)  of  the  Convention  will  be 
extended for one more year. The European Commission has taken responsibility for a share of 
the  commitments  undertaken  by  the  EU  and  its  Member  States  within  the  Food  Aid 
Convention. A single FAC notification is consolidated together with Member States and does 
not  indicate  separate  operations.  The  FAC  (article  V1)  provides  for  carryover  and  carry-
forward from one year to another, where the commitments have been exceeded, but this has 
never been invoked. 

It is important however to note that for two consecutive reporting years: i.e. 2007/2008 and 
2008/2009,  the  European  Commission  has  not  been  in  a  position  to  meet  its  tonnage 
commitments. 

CONCLUSIONS 

In  view  of  the  above,  the  Commission  proposes  that  the  Council  establishes  the  following 
position  on  behalf  of  the  European  Union  and  its  Member  States,  and  authorises  the 
Commission accordingly to either: 

(1) 

vote  on  behalf  of  the  European  Union  and  its  Member  States,  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 2011,  if the following 
condition  is  met:  the  informal  discussions  of  the  FAC  members  on  the  future  of  the 
Food  Aid Convention  have achieved a  significant progress (i.e. there is a reasonable 
expectation that negotiation/renegotiation talks on a future Convention will start in the 
course of 2010), prior to the 102nd session of the Food Aid Committee in London on 4 
June 2010. 

(2) 

formally  oppose  on  behalf  of  the  European  Union  and  its  Member  States  the 
emergence of a consensus in the Food Aid Committee, pursuant to Rule 13 of the FAC 
rules of procedures, favouring an extension of the Food Aid Convention, if the above 
condition in point (a) is not met.  

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2010/0077 (NLE) 

Proposal for a 

COUNCIL DECISION 

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

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to article 218 (9) of the Treaty on the Functioning of the European Union, 

Having regard to the proposal from the Commission,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

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,  June  2008,  June  2009  so  as  to 
remain in force until 30 June 2010.  

The Grains Trade Convention 1995 remains in force until 30 June 2011. 

The current FAC expires in June 2010 and the question of a renewal will be formally 
addressed in the 102nd session of the Food Aid Committee on 4 June 2010.  

In its 101st session on 9 December 2009 in London some FAC members (AUS, CAN, 
CH, Japan, USA) expressed their willingness to extend the FAC for another year till 
30 June 2011. The European Union took the position that: "The EU will work towards 
taking a decision in June as to the future of the FAC and preparations may start now 
without any prejudice to the formal position that will be communicated in June 2010." 

There are two possible scenarios for which the EU has to prepare a common position 
in  view  of  the  102nd  session  of  the  Food  Aid  Committee  in  London  on  4  June  2010 
either: 

(a) 

the  informal  discussions  of  FAC  members  on  the  future  of  the  Food  Aid 
Convention  have  achieved  a  significant  progress  (i.e.  there  is  a  reasonable 
expectation  that  negotiation/renegotiation  talks  on  a  future  Convention  will 
start  in  the  course  of  2010),  prior  to  the  102nd  session  of  the  Food  Aid 
Committee in London on 4 June 2010, prior to the 102nd session of the Food 
Aid  Committee  in  London  on  4  June  2010;  in  that  case  an  extension  of  the 
FAC  for  one  more  year  would  be  most  appropriate.  The  Commission  would 
then  initiate  the  procedure  laid  down  in  Article  218  TFEU  recommending  to 

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OJ L 163, 4.7.2000, p. 37. 

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the  Council  to  authorize  the  negotiation  and  to  adopt  the  appropriate 
negotiating directives; or 

(b) 

the  informal  discussions  of  the  FAC  members  on  the  future  of  the  Food  Aid 
Convention have not progressed, prior to the formal meeting of the Food Aid 
Committee in London in June 2010. In that case an extension of the FAC for 
one more year would not be appropriate, and the Commission on behalf of the 
EU  and  its  Member  States  should  formally  oppose  the  emergence  of  a 
consensus in the Food Aid Committee favoring an extension of the FAC.  

(6) 

The Commission, which represents the European Union in the Food Aid Committee, 
should therefore be authorised by a Council Decision to either favour an extension of 
the  FAC  for  one  year,  i.e.  until  30  June  2011  if  the  condition  is  met,  or  oppose  a 
consensus in the Food Aid Committee favouring such extension. 

HAS DECIDED AS FOLLOWS:  

Article 1 

The  position  of  the  European  Union  within  the  Food  Aid  Committee  shall  be  to  favour  the 
extension of the Food Aid Convention 1999 for a period of one year, i.e. until 30 June 2011 
subject  to  the  informal  discussions  of  the  FAC  members  on  the  future  of  the  Food  Aid 
Convention  have  achieved  a  significant  progress  (i.e.  there  is  a  reasonable  expectation  that 
negotiation/renegotiation talks on a future Convention will start in the course of 2010), prior 
to the 102nd session of the Food Aid Committee in London on 4 June 2010. 

If this condition is not met, the position of the European Union shall be to formally oppose the 
emergence of a consensus in the Food Aid Committee, pursuant to Rule 13 of the FAC rules 
of procedures, favouring an extension of the Food Aid Convention. 

Article 2 

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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