Proposal for a COUNCIL DECISION on the conclusion by the European Union of the International Cocoa Agreement 2010
Date: 2010-12-01
Institutions: European Commission
Subjects: European Union, cocoa, international agreement, international organisation, signature of an agreement, trade policy

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EUROPEAN COMMISSION 

Brussels, 1.12.2010 
COM(2010) 705 final 

2010/0343 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion by the European Union of the International Cocoa Agreement 2010 

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EXPLANATORY MEMORANDUM 

On 25 June 2010 the United Nations Cocoa Conference 2010 formally closed following the 
consensus  reached  by  the  delegations  on  the  negotiated  text  of  the  new  2010  International 
Cocoa Agreement, which will replace the International Cocoa Agreement 2001, as extended. 

In view of the outcome of the talks and the substance of the new instrument, which reflects 
the  position  it  put  forward,  the  Commission  considers  the  instrument  of  conclusion  should 
now  be  deposited  with  the  Treaty  Section  of  the  United  Nations  Office  of  Legal  Affairs  in 
New  York,  having  already  presented  the  Agreement  to  the  Council  for  signature  and 
provisional application1. 

As with the procedure for signing and depositing the instrument of provisional application of 
the  Agreement,  the  main  objective  remains  the  promotion  of  international  cooperation  on 
trade  in  cocoa,  which  falls  within  the  exclusive  competence  of  the  European  Union. 
Accordingly,  the  new  2010  International  Cocoa  Agreement  should  be  concluded  by  the 
European Union under Article 207 of the Treaty on the Functioning of the European Union. 

Given  that  the  Agreement  is  open  for  signing  and  deposit  of  the  instruments  of  acceptance, 
conclusion and ratification with the depositary from 1 October 2010 until 30 September 2012, 
the Council is therefore asked to adopt this decision before that date. 

1 

OJ C […], […], p. […]. 

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2010/0343 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion by the European Union of the International Cocoa Agreement 2010 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(3) and (4) in conjunction with Article 218(6) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the consent of the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

On 25 June 2010 the negotiating conference established under the aegis of the United 
Nations  Conference  on  Trade  and  Development  (Unctad)  approved  the  text  of  the 
International Cocoa Agreement 2010 (hereinafter referred to as 'the Agreement'). The 
Agreement is in the Arabic, Chinese, English, French, Russian and Spanish languages, 
which are equally authentic. 

This  new  Agreement  has  been  negotiated  to  replace  the  International  Cocoa 
Agreement 2001, which was extended until 30 September 2012. 

The  International  Cocoa  Agreement  2010  is  open  for  signing  and  deposit  of  the 
instruments  of  ratification,  acceptance  and  approval  from  1 October 2010  until 
30 September 2012. 

The aims of the 2010 Agreement come under the common commercial policy. 

The European Union is a party to the 2001 International Agreement, as extended, and 
the  signature  and  deposit  of  the  instrument  of  provisional  application  of  the  2010 
Agreement  have  already  been  the  subject  of  Decision  No ….  of  ………..3,  and  it  is 
therefore in its interest also to conclude the Agreement which replaces it,  

2 
3 

OJ C […],[…], p. […] 
OJ C […], […], p. […]. 

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HAS ADOPTED THIS DECISION:  

Article 1 

The  International  Cocoa  Agreement  2010  is  hereby  approved  on  behalf  of  the  European 
Union. 

The text of the Agreement is attached to this Decision. 

Article 2 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person  empowered  to 
deposit  the  instrument  of  approval  on  behalf  of  the  European  Union  with  the  Secretary-
General of the United Nations, in accordance with the 2010 Agreement. 

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels, 

For the Council 
The President 

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ANNEX 

INTERNATIONAL COCOA AGREEMENT 2010 

PREAMBLE 

The Parties to the Agreement, 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

Recognizing  the  contribution  of  the  cocoa  sector  to  poverty  alleviation  and  the 
achievement  of  the  internationally  agreed  development  goals,  including  the 
Millennium Development Goals (MDGs); 

Recognizing  the  importance  of  cocoa  and  the  cocoa  trade  for  the  economies  of 
developing  countries,  as  a  source  of  income  for  their  populations,  and  recognizing 
the key contribution of the cocoa trade to their export earnings and to the formulation 
of social and economic development programmes; 

Recognizing  the  importance  of  the  cocoa  sector  to  the  livelihoods  of  millions  of 
people, particularly in developing countries where small-scale farmers rely on cocoa 
production as a direct source of income; 

Recognizing  that  close  international  cooperation  on  cocoa  matters  and  continuing 
dialogue  between  all  stakeholders  in  the  cocoa  value  chain  may  contribute  to  the 
sustainable development of the world cocoa economy; 

Recognizing  the  importance  of  strategic  partnerships  between  exporting  and 
importing Members to ensure the achievement of a sustainable cocoa economy; 

Recognizing  the  need  to  ensure  the  transparency  of  the  international  cocoa  market, 
for the benefit of both producers and consumers; 

Recognizing  the  contribution  of  the  previous  International  Cocoa  Agreements  of 
1972,  1975,  1980,  1986,  1993,  and  2001  to  the  development  of  the  world  cocoa 
economy; 

Hereby agree the following; 

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Chapter I - Objectives 

Article 1 
Objectives 

With a view to strengthening the global cocoa sector, supporting its sustainable development 
and  increasing  the  benefits  to  all  stakeholders,  the  objectives  of  the  Seventh  International 
Cocoa Agreement are: 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

j) 

k) 

To promote international cooperation in the world cocoa economy; 

To  provide  an  appropriate  framework  for  discussion  on  all  cocoa  matters  among 
governments, and with the private sector; 

To  contribute  to  the  strengthening  of  the  national  cocoa  economies  of  Member 
countries,  through  the  preparation,  development  and  evaluation  of  appropriate 
projects to be submitted to the relevant institutions for financing and implementation 
and seeking finance for projects that benefit Members and the world cocoa economy; 

To strive towards obtaining fair prices leading to equitable economic returns to both 
producers  and  consumers  in  the  cocoa  value  chain,  and  to  contribute  to  a  balanced 
development of the world cocoa economy in the interest of all Members; 

To  promote  a  sustainable  cocoa  economy  in  economic,  social  and  environmental 
terms; 

To encourage research and the implementation of its findings through the promotion 
of  training  and  information  programmes  leading  to  the  transfer  to  Members  of 
technologies suitable for cocoa; 

To promote transparency in the world cocoa economy, and in particular in the cocoa 
trade, through the collection, analysis and dissemination of relevant statistics and the 
undertaking  of  appropriate  studies,  as  well  as  to  promote  the  elimination  of  trade 
barriers; 

To promote and to encourage consumption of chocolate and cocoa-based products in 
order to increase demand for cocoa, inter alia through the promotion of the positive 
attributes  of  cocoa,  including  health  benefits,  in  close  cooperation  with  the  private 
sector;  

To  encourage  Members  to  promote  cocoa  quality  and  to  develop  appropriate  food 
safety procedures in the cocoa sector; 

To encourage Members to develop and implement strategies to enhance the capacity 
of local communities and small-scale farmers to benefit from cocoa production and 
thereby contribute to poverty alleviation; 

To  facilitate  the  availability  of  information  on  financial  tools  and  services  that  can 
assist cocoa producers, including access to credit and approaches to managing risk. 

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Chapter II - Definitions 

Article 2 
Definitions 

For the purposes of this Agreement: 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

Cocoa means cocoa beans and cocoa products; 

Fine  or  flavour  cocoa  is  cocoa  recognized  for  its  unique  flavour  and  colour,  and 
produced in countries designated in Annex C to this Agreement; 

Cocoa products means products made exclusively from cocoa beans, such as cocoa 
paste/liquor, cocoa butter, unsweetened cocoa powder, cocoa cake and cocoa nibs; 

Chocolate  and  chocolate  products  are  products  made  from  cocoa  beans  which 
comply with the Codex Alimentarius standard for chocolate and chocolate products; 

Stocks of cocoa beans mean all dry cocoa beans that can be identified as at the last 
day of the cocoa year (30 September), irrespective of location, ownership or intended 
use; 

Cocoa  year  means  the  period  of  12 months  from  1 October  to  30 September 
inclusive; 

Organization means the International Cocoa Organization referred to in Article 3; 

Council means the International Cocoa Council referred to in Article 6; 

the  European  Union  or  an 
Contracting  Party  means  a  Government, 
intergovernmental organization as provided for in Article 4, which has consented to 
be bound by this Agreement provisionally or definitively; 

Member means a Contracting Party as defined above; 

Importing country or importing Member means a country or a Member respectively 
whose imports of cocoa, expressed in terms of beans, exceed its exports; 

Exporting country or exporting Member means a country or a Member respectively 
whose exports of cocoa, expressed in terms of beans, exceed its imports. However, a 
cocoa-producing  country  whose  imports  of  cocoa,  expressed  in  bean  equivalent 
terms, exceed its exports but whose production of cocoa beans exceeds its imports or 
whose  production  exceeds  its  apparent  domestic  cocoa  consumption4  may,  if  it  so 
chooses, be an exporting Member;  

13. 

Export of cocoa means any cocoa which leaves the customs territory of any country 
and  import  of  cocoa  means  any  cocoa  which  enters  the  customs  territory  of  any 

4 

Calculated  as  grindings  of  cocoa  beans  plus  net  imports  of  cocoa  products  and  of  chocolate  and 
chocolate products in beans equivalent. 

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country, provided that, for the purposes of these definitions, customs territory shall, 
in  the  case  of  a  Member  which  comprises  more  than  one  customs  territory,  be 
deemed to refer to the combined customs territories of that Member; 

A  sustainable  cocoa  economy  implies  an  integrated  value  chain  in  which  all 
stakeholders  develop  and  promote  appropriate  policies  to  achieve  levels  of 
production,  processing 
economically  viable, 
environmentally sound and socially responsible for the benefit of present and future 
generations,  with  the  aim  of  improving  productivity  and  profitability  in  the  cocoa 
value  chain  for  all  stakeholders  concerned,  in  particular  for  the  smallholder 
producers; 

consumption 

that 

and 

are 

Private sector comprises all private entities which have main activities in the cocoa 
sector, including farmers, traders, processors, manufacturers and research institutes. 
In  the  framework  of  this  Agreement,  the  private  sector  also  comprises  public 
enterprises, agencies and institutions which, in certain countries, fulfil roles that are 
performed by private entities in other countries; 

Indicator price is the representative indicator of the international price of cocoa used 
for the purposes of this Agreement and computed in accordance with the provisions 
of Article 33; 

Special Drawing Right (SDR) means the Special Drawing Right of the International 
Monetary Fund; 

Tonne  means  a  mass  of  1 000  kilograms  or  2 204.6  pounds  and  pound  means 
453.597 grams; 

Simple  distributed  majority  vote  means  a  majority  of  votes  cast  by  exporting 
Members and a majority of votes cast by importing Members, counted separately; 

Special vote means two thirds of the votes cast by exporting Members and two thirds 
of the votes cast by importing Members, counted separately, on condition that at least 
five exporting Members and a majority of importing Members are present; 

Entry  into  force  means,  except  when  qualified,  the  date  on  which  this  Agreement 
first enters into force, whether provisionally or definitively. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 

21. 

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Chapter III - The International Cocoa Organization 

Article 3 
Headquarters and structure of the International Cocoa Organization 

The  International  Cocoa  Organization  established  by  the  International  Cocoa 
Agreement,  1972,  shall  continue  in  being  and  shall  administer  the  provisions  and 
supervise the operation of this Agreement. 

The  headquarters  of  the  Organization  shall  always  be  located  in  the  territory  of  a 
Member. 

The headquarters of the Organization shall be in London unless the Council decides 
otherwise. 

The Organization shall function through: 

a) 

b) 

The  International  Cocoa  Council,  which  is  the  highest  authority  of  the 
Organization; 

The  subsidiary  bodies  of  the  Council,  comprising  the  Administration  and 
Finance Committee, the Economics Committee, the Consultative Board on the 
World Cocoa Economy, and any other committees established by the Council; 
and 

c) 

The Secretariat. 

Article 4 
Membership in the Organization 

Each Contracting Party shall be a Member of the Organization. 

There shall be two categories of Members of the Organization, namely: 

a) 

Exporting Members; and  

b) 

Importing Members. 

A Member may change its category on such conditions as the Council may establish. 

Two or more Contracting Parties may, by appropriate notification to the Council and 
to the Depositary, which will take effect on a date to be specified by the Contracting 
Parties  concerned  and  on  conditions  agreed  by  the  Council,  declare  that  they  are 
participating in the Organization as a Member group. 

Any  reference  in  this  Agreement  to  “a  Government”  or  “Governments”  shall  be 
construed as including the European Union and any intergovernmental organization 
having  comparable  responsibilities  in  respect  of  the  negotiation,  conclusion  and 
implementation  of  international  agreements,  in  particular  commodity  agreements. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

5. 

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Accordingly, any reference in this Agreement to signature, ratification, acceptance or 
approval,  or  to  notification  of  provisional  application  or  to  accession  shall,  in  the 
case of such intergovernmental organizations, be construed as including a reference 
to  signature,  ratification,  acceptance  or  approval,  or  to  notification  of  provisional 
application, or to accession, by such intergovernmental organizations. 

In  the  case  of  voting  on  matters  within  their  competence,  such  intergovernmental 
organizations  shall  vote  with  a  number  of  votes  equal  to  the  total  number  of  votes 
attributable to their member States in accordance with Article 10. In such cases, the 
member  States  of  such  intergovernmental  organizations  shall  not  exercise  their 
individual voting rights. 

Article 5 
Privileges and immunities 

The Organization shall have legal personality. It shall in particular have the capacity 
to contract, acquire and dispose of movable and immovable property and to institute 
legal proceedings. 

The status, privileges and immunities of the Organization, its Executive Director, its 
staff,  experts  and  representatives  of  Members,  while  in  the  territory  of  the  host 
country  for  the  purpose  of  exercising  their  functions,  shall  be  governed  by  the 
Headquarters’ Agreement concluded between the host country and the International 
Cocoa Organization. 

The  Headquarters’  Agreement  referred  to  in  paragraph 2  of  this  Article  shall  be 
independent of this Agreement. It shall, however, terminate: 

a) 

b) 

Pursuant to the provisions of the aforementioned Headquarters’ Agreement; 

In  the  event  of  the  headquarters  of  the  Organization  being  moved  from  the 
territory of the host Government; or 

c) 

In the event of the Organization ceasing to exist. 

The Organization may conclude with one or more other Members agreements to be 
approved  by  the  Council  relating  to  such  privileges  and  immunities  as  may  be 
necessary for the proper functioning of this Agreement. 

6. 

1. 

2. 

3. 

4. 

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Chapter IV - The International Cocoa Council 

Article 6 
Composition of the International Cocoa Council 

The  International  Cocoa  Council  shall  consist  of  all  the  Members  of  the 
Organization. 

In  the  meetings  of  the  Council,  Members  shall  be  represented  by  duly  accredited 
delegates. 

Article 7 
Powers and functions of the Council 

The  Council  shall  exercise  all  such  powers  and  perform  or  arrange  for  the 
performance of all such functions as are necessary to carry out the express provisions 
of this Agreement. 

The Council shall not have the power, and shall not be taken to have been authorized 
by  the  Members,  to  incur  any  obligation  outside  the  scope  of  this  Agreement;  in 
particular, it shall not have the capacity to borrow money. In exercising its capacity 
to contract, the Council shall incorporate in its contracts the terms of this provision 
and  of  Article 23  in  such  a  way  as  to  bring  them  to  the  notice  of  the  other  parties 
entering  into  contracts  with  the  Council,  but  any  failure  to  incorporate  such  terms 
shall not invalidate such a contract or render it ultra vires the Council. 

The Council shall adopt such rules and regulations as are necessary to carry out the 
provisions  of  this  Agreement  and  are  consistent  therewith,  including  its  rules  of 
procedure and those of its committees, and the financial and staff regulations of the 
Organization.  The  Council  may,  in  its  rules  of  procedure,  provide  for  a  procedure 
whereby it may, without meeting, decide specific questions. 

The  Council  shall  keep  such  records  as  are  required  for  the  performance  of  its 
functions under this Agreement, and such other records as it considers appropriate. 

The Council may set up any working group(s) as appropriate to assist it in carrying 
out its task. 

Article 8 
Chairman and Vice-Chairman of the Council 

The Council shall elect a Chairman and a Vice-Chairman for each cocoa year, who 
shall not be paid by the Organization. 

Both  the  Chairman  and  the  Vice-Chairman  shall  be  elected  from  among  the 
representatives of  the  exporting Members  or from among the representatives of the 
importing  Members.  These  offices  shall  alternate  each  cocoa  year  between  the  two 
categories. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

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3. 

4. 

1. 

2. 

3. 

4. 

1. 

2. 

In  the  temporary  absence  of  both  the  Chairman  and  the  Vice-Chairman  or  the 
permanent absence of one or both of them, the Council may elect new officers from 
among  the  representatives  of  the  exporting  Members  or  from  among  the 
representatives  of  the  importing  Members,  as  appropriate,  on  a  temporary  or 
permanent basis as may be required.  

Neither the Chairman nor any other officer presiding at meetings of the Council shall 
vote. A member of his/her delegation may exercise the voting rights of the Member 
which he or she represents. 

Article 9 
Sessions of the Council 

As a general rule, the Council shall hold one regular session in each half of the cocoa 
year. 

The Council shall meet in special session whenever it so decides or at the request of: 

a)  Any five Members; 

b)  At least two Members having at least 200 votes; 

c) 

The Executive Director, for the purposes of Articles 22 and 59. 

Notice of sessions shall be given at least 30 calendar days in advance, except in case 
of emergency, where notice shall be at least 15 days. 

Sessions  shall  normally  be  held  at  the  headquarters  of  the  Organization  unless  the 
Council decides otherwise. If, on the invitation of any Member, the Council decides 
to  meet  elsewhere  than  at  the  headquarters  of  the  Organization,  that  Member  shall 
pay  the  additional  costs  involved,  as  defined  in  the  administrative  rules  of  the 
Organization. 

Article 10 
Votes 

The exporting Members shall together hold 1 000 votes and the importing Members 
shall together hold 1 000 votes, distributed within each category of Members – that 
is,  exporting  and  importing  Members,  respectively  –  in  accordance  with  the 
following paragraphs of this Article. 

For each cocoa year, the votes of exporting Members shall be distributed as follows: 
each  exporting  Member  shall  have  five  basic  votes.  The  remaining  votes  shall  be 
divided  among  all  the  exporting  Members  in  proportion  to  the  average  volume  of 
their  respective  exports  of  cocoa  in  the  preceding  three  cocoa  years  for  which  data 
have been published by the Organization in its latest issue of the Quarterly Bulletin 
of  Cocoa  Statistics.  For  this  purpose,  exports  shall  be  calculated  as  net  exports  of 
cocoa beans plus net exports of cocoa products, converted to beans equivalent using 
the conversion factors as specified in Article 34. 

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3. 

4. 

5. 

6. 

For each cocoa year, the votes of importing Members shall be distributed among all 
importing Members in proportion to the average volume of their respective imports 
of cocoa in the preceding three cocoa years for which data have been published by 
the Organization in its latest issue of the Quarterly Bulletin of Cocoa Statistics. For 
this  purpose,  imports  shall  be  calculated  as  net  imports  of  cocoa  beans  plus  gross 
imports  of  cocoa  products,  converted  to  beans  equivalent  using  the  conversion 
factors as specified in Article 34. No Member country shall have less than five votes. 
Hence voting rights of Member countries with above the minimum number of votes 
shall be redistributed among Members with below the minimum number of votes. 

If, for any reason, difficulties should arise in the determination or the updating of the 
statistical  basis  for  the  calculation  of  votes  in  accordance  with  the  provisions  of 
paragraphs 2 and 3 of this Article, the Council may decide on a different statistical 
basis for the calculation of votes. 

No  Member  except  those  mentioned  in  paragraphs 4  and  5  of  Article 4  shall  have 
more  than  400  votes.  Any  votes  above  this  figure  arising  from  the  calculations  in 
paragraphs 2, 3 and 4 of this Article shall be redistributed among the other Members 
on the basis of those paragraphs. 

When  the  membership  in  the  Organization  changes  or  when  the  voting  rights  of  a 
Member  are  suspended  or  restored  under  any  provision  of  this  Agreement,  the 
Council shall provide for the redistribution of votes in accordance with this Article. 
The European Union or any intergovernmental Organization as defined in Article 4 
shall  hold  votes  as  a  single  Member  according  to  the  procedure  set  out  in 
paragraphs 2 or 3 of this Article. 

7. 

There shall be no fractional votes. 

Article 11 
Voting procedure of the Council 

1. 

2. 

3. 

Each Member shall be entitled to cast the number of votes it holds and no Member 
shall be entitled to divide its votes. A Member may, however, cast differently from 
such votes any votes which it is authorized to cast under paragraph 2 of this Article. 

By written notification to the Chairman of the Council, any exporting Member may 
authorize  any  other  exporting  Member,  and  any  importing  Member  may  authorize 
any  other  importing  Member,  to  represent  its  interests  and  to  cast  its  votes  at  any 
meeting  of  the  Council.  In  this  case  the  limitation  provided  for  in  paragraph 5  of 
Article 10 shall not apply. 

A Member authorized by another Member to cast the votes held by the authorizing 
Member under Article 10 shall cast such votes in accordance with the instructions of 
the authorizing Member. 

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Article 12 
Decisions of the Council 

1. 

The Council shall endeavour to take all decisions and to make all recommendations 
by consensus. If consensus cannot be reached, the Council shall take decisions and 
make recommendations by a special vote, according to the following procedures: 

a) 

b) 

c) 

If  the  majority  required  by  the  special  vote  is  not  obtained  because  of  the 
negative  vote  of  more  than  three  exporting  or  more  than  three  importing 
Members, the proposal shall be considered as rejected; 

If  the  majority  required  by  the  special  vote  is  not  obtained  because  of  the 
negative vote of three or less exporting or three or less importing Members, the 
proposal shall be put to a vote again within 48 hours; and  

If the majority required by the special vote is again not obtained, the proposal 
shall be considered as rejected. 

In  arriving  at  the  number  of  votes  necessary  for  any  of  the  decisions  or 
recommendations of the Council, votes of Members abstaining shall not be taken into 
consideration. 

Members are committed to accept as binding all decisions of the Council under the 
provisions of this Agreement. 

Article 13 
Cooperation with other organizations 

The  Council  shall  make  whatever  arrangements  are  appropriate  for  consultation  or 
cooperation with the United Nations and its organs, in particular the United Nations 
Conference  on  Trade  and  Development,  and  with  the  Food  and  Agriculture 
Organization of the United Nations and such other specialized agencies of the United 
Nations and intergovernmental organizations as may be appropriate. 

The Council, bearing in mind the particular role of the United Nations Conference on 
Trade and Development in international commodity trade, shall, as appropriate, keep 
that organization informed of its activities and programmes of work. 

The Council may also make whatever arrangements are appropriate for maintaining 
effective  contact  with  international  organizations  of  cocoa  producers,  traders  and 
manufacturers. 

The  Council  shall  seek  to  involve  the  international  financial  agencies  and  other 
parties with an interest in the world cocoa economy in its work on cocoa production 
and consumption policy. 

2. 

3. 

1. 

2. 

3. 

4. 

5. 

The Council may seek to cooperate with other relevant experts in cocoa matters. 

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Article 14 
Invitation and admission of observers 

The  Council  may  invite  any  non-Member  State  to  attend  any  of  its  meetings  as  an 
observer. 

The  Council  may  also  invite  any  of  the  organizations  referred  to  in  Article 13  to 
attend any of its meetings as an observer. 

The  Council  may  also  invite  non-governmental  organizations  having  relevant 
expertise in aspects of the cocoa sector, as observers. 

For  each  of  its  sessions,  the  Council  shall  decide  on  the  attendance  of  observers, 
including,  on  an  ad  hoc  basis,  non-governmental  organizations  having  relevant 
expertise in aspects of the cocoa sector, in conformity with the conditions set out in 
the administrative rules of the Organization. 

Article 15 
Quorum 

The  quorum  for  the  opening  meeting  of  any  session  of  the  Council  shall  be 
constituted  by  the  presence  of  at  least  five  exporting  Members  and  a  majority  of 
importing Members, provided that such Members together hold in each category at 
least two thirds of the total votes of the Members in that category. 

If  there  is  no  quorum  in  accordance  with  paragraph  1  of  this  Article  on  the  day 
appointed for the opening meeting of any session, on the second day, and throughout 
the remainder of the session, the quorum for the opening session shall be constituted 
by  the  presence  of  exporting  and  importing  Members  holding  a  simple  majority  of 
the votes in each category. 

The quorum for meetings subsequent to the opening meeting of any session pursuant 
to paragraph 1 of this Article shall be that prescribed in paragraph 2 of this Article. 

Representation  in  accordance  with  paragraph 2  of  Article 11  shall  be  considered  as 
presence. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

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Chapter V - The Secretariat of the Organization  

Article 16 
The Executive Director and the staff of the Organization 

The Secretariat shall consist of the Executive Director and the staff. 

The Council shall appoint the Executive Director for a period of not more than the 
duration  of  the  Agreement  and  its  extensions,  if  any.  The  rules  for  selection  of 
candidates and the terms of appointment of the Executive Director shall be fixed by 
the Council. 

The Executive Director shall be the chief administrative officer of the Organization 
and  shall  be  responsible  to  the  Council  for  the  administration  and  operation  of  this 
Agreement in accordance with the decisions of the Council. 

The staff of the Organization shall be responsible to the Executive Director. 

The  Executive  Director  shall  appoint  the  staff  in  accordance  with  regulations  to  be 
established  by  the  Council.  In  drawing  up  such  regulations,  the  Council  shall  have 
regard to those applying to officials of similar intergovernmental organizations. Staff 
appointments  shall  be  made  insofar  as  is  practicable  from  exporting  and  importing 
Members. 

Neither  the  Executive  Director  nor  the  staff  shall  have  any  financial  interest  in  the 
cocoa industry, the cocoa trade, cocoa transportation or cocoa publicity. 

In the performance of their duties, the Executive Director and the staff shall neither 
seek nor receive instructions from any Member or from any other authority external 
to the Organization. They shall refrain from any action which might reflect on their 
position as international officials responsible only to the Organization. Each Member 
undertakes to respect the exclusively international character of the responsibilities of 
the  Executive  Director  and  the  staff  and  not  to  seek  to  influence  them  in  the 
discharge of their responsibilities. 

No  information  concerning  the  operation  or  administration  of  this  Agreement  shall 
be revealed by the Executive Director or the staff of the Organization, except as may 
be  authorized  by  the  Council  or  as  is  necessary  for  the  proper  discharge  of  their 
duties under this Agreement. 

Article 17 
Work programme 

At  the  first  session  of  the  Council,  after  the  entry  into  force  of  this  agreement,  the 
Executive Director shall submit a five-year strategic plan for review and approval by 
the Council. One year before the expiry of the five-year strategic plan, the Executive 
Director shall present a new draft of the five-year strategic plan to the Council. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

1. 

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2. 

3. 

At its last session of each cocoa year, and on the recommendation of the Economics 
Committee, the Council shall adopt a work programme for the Organization for the 
coming year prepared by the Executive Director. The work programme shall include 
projects,  initiatives  and  activities  to  be  undertaken  by  the  Organization.  The 
Executive Director shall implement the work programme. 

During its last meeting of each cocoa year, the Economics Committee shall evaluate 
the  implementation  of  the  work  programme  for  the  current  year  on  the  basis  of  a 
report by the Executive Director. The Economics Committee shall report its findings 
to the Council. 

Article 18 
Annual report 

The Council shall publish an annual report. 

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Chapter VI - The Administration and Finance Committee 

Article 19 
Establishment of the Administration and Finance Committee 

1. 

An  Administration  and  Finance  Committee  is  hereby  established.  The  Committee 
shall: 

a) 

Supervise,  on  the  basis  of  a  budget  proposal  presented  by  the  Executive 
Director, the preparation of the draft administrative budget to be submitted to 
the Council; 

b)  Carry  out  any  other  administrative  and  financial  tasks  which  the  Council 
assigns to it, including the monitoring of income and expenditure and matters 
related to the administration of the Organization. 

The  Administration  and  Finance  Committee  shall  submit  recommendations  on  the 
above matters to the Council. 

The Council shall establish rules and regulations of the Administration and Finance 
Committee. 

Article 20 
Composition of the Administration and Finance Committee 

The Administration and Finance Committee shall consist of six exporting Members 
on a rotational basis and six importing Members. 

Each  Member  of  the  Administration  and  Finance  Committee  shall  appoint  one 
representative and if it so desires, one or more alternates. Members in each category 
shall  be  elected  by  the  Council,  on  the  basis  of  the  votes  held  in  accordance  with 
Article 10. Membership shall be for a two-year period, and shall be renewable. 

The Chairman and Vice-Chairman shall be elected from among the representatives of 
the Administration and Finance Committee, for a period of two years. The posts of 
Chairman  and  Vice-Chairman  shall  alternate  between  exporting  and  importing 
Members. 

Article 21 
Meetings of the Administration and Finance Committee 

The meetings of the Administration and Finance Committee shall be open to all other 
Members of the Organization as observers. 

The Administration and Finance Committee shall normally meet at the headquarters 
of the Organization, unless it decides otherwise. If, on the invitation of any Member, 
the Administration and Finance Committee meets elsewhere than at the headquarters 

2. 

3. 

1. 

2. 

3. 

1. 

2. 

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of the Organization, that Member shall pay the additional costs involved, as defined 
in the administrative rules of the Organization. 

3. 

The  Administration  and  Finance  Committee  shall  normally  meet  twice  a  year  and 
report on its proceedings to the Council.  

Chapter VII - Finance 

Article 22 
Finance 

1. 

2. 

3. 

4. 

5. 

There  shall  be  kept  an  administrative  account  for  the  administration  of  this 
Agreement. The expenses necessary for the administration of this Agreement shall be 
brought  into  the  administrative  account  and  shall  be  met  by  annual  contributions 
from  Members  assessed  in  accordance  with  Article 24.  If,  however,  a  Member 
requests special services, the Council may decide to accede to the request and shall 
require that Member to pay for them. 

The  Council  may  establish  separate  accounts  for  specific  purposes  that  it  may 
establish in accordance with the objectives of the present Agreement. These accounts 
shall be financed through voluntary contributions from Members or other bodies. 

The financial year of the Organization shall be the same as the cocoa year. 

The  expenses  of  delegations  to  the  Council,  to  the  Administration  and  Finance 
Committee,  to  the  Economics  Committee  and  to  any  of  the  Committees  of  the 
Council or of the Administration and Finance Committee and Economics Committee, 
shall be met by the Members concerned. 

If the financial position of the Organization is or appears likely to be insufficient to 
finance  the  remainder  of  the  cocoa  year, the  Executive  Director shall  call  a  special 
session of the Council within 15 days unless the Council is otherwise scheduled to 
meet within 30 calendar days. 

Article 23 
Liabilities of Members 

A  Member’s  liability  to  the  Council  and  to  other  Members  is  limited  to  the  extent  of  its 
obligations regarding contributions specifically provided for in this Agreement. Third parties 
dealing with the Council shall be deemed to have notice of the provisions of this Agreement 
regarding  the  powers  of  the  Council  and  the  obligations  of  the  Members,  in  particular, 
paragraph 2 of Article 7 and the first sentence of this Article. 

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Article 24 
Approval of the administrative budget and assessment of contributions 

1. 

2. 

During  the  second  half  of  each  financial  year,  the  Council  shall  approve  the 
administrative budget of the Organization for the following financial year, and shall 
assess the contribution of each Member to that budget. 

The contribution of each Member to the administrative budget for each financial year 
shall be in the proportion which the number of its votes at the time the administrative 
budget for that financial year is approved bears to the total votes of all the Members. 
For  the  purpose  of  assessing  contributions,  the  votes  of  each  Member  shall  be 
calculated without regard to the suspension of any Member’s voting rights and any 
redistribution of votes resulting there from. 

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3. 

4. 

1. 

2. 

3. 

4. 

5. 

The initial contribution of any Member joining the Organization after the entry into 
force of this Agreement shall be assessed by the Council on the basis of the number 
of votes to be held by that Member and the period remaining in the current financial 
year,  but  the  assessment  made  upon  other  Members  for  the  current  financial  year 
shall not be altered. 

If  this  Agreement  enters  into  force  before  the  beginning  of  the  first  full  financial 
year, the Council shall, at its first session, approve an administrative budget covering 
the period up to the commencement of the first full financial year. 

Article 25 
Payment of contributions to the administrative budget 

Contributions to the administrative budget for each financial year shall be payable in 
freely convertible currencies, shall be exempt from foreign exchange restrictions and 
shall become due on the first day of that financial year. Contributions of Members in 
respect of the financial year in which they join the Organization shall be due on the 
date on which they become Members. 

Contributions to the administrative budget approved under paragraph 4 of Article 24 
shall be payable within three months of the date of assessment. 

If, at the end of four months after the beginning of the financial year or, in the case of 
a  new  Member,  three  months  after  the  Council  has  assessed  its  contribution,  a 
Member has not paid its full contribution to the administrative budget, the Executive 
Director shall request that Member to make payment as quickly as possible. If, at the 
expiration  of  two  months  after  the  request  of  the  Executive  Director,  that  Member 
has still not paid its contribution, the voting rights of that Member in the Council, the 
Administration  and  Finance  Committee  and  the  Economics  Committee  shall  be 
suspended until such time as it has made full payment of the contribution. 

A  Member  whose  voting  rights  have  been  suspended  under  paragraph 3  of  this 
Article  shall  not  be  deprived  of  any  of  its  other  rights  or  relieved  of  any  of  its 
obligations  under  this  Agreement  unless  the  Council  decides  otherwise.  It  shall 
remain liable to pay its contribution and to meet any other financial obligations under 
this Agreement. 

The  Council  shall  consider  the  question  of  membership  of  any  Member  with  two 
years’  contributions  unpaid,  and  may  decide  that  this  Member  shall  cease  to  enjoy 
the rights of membership and/or cease to be assessed for budgetary purposes. It shall 
remain liable to meet any other of its financial obligations under this Agreement. By 
payment  of  the  arrears  the  Member  will  regain  the  rights  of  membership.  Any 
payments made by Members in arrears will be credited first to those arrears, rather 
than to current contributions. 

Article 26 
Audit and publication of accounts 

1. 

As  soon  as  possible,  but  not  later  than  six  months  after  the  close  of  each  financial 
year,  the  statement  of  the  Organization’s  accounts  for  that  financial  year  and  the 

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balance  sheet  at  the  close  of  that  financial  year  under  the  accounts  referred  to  in 
Article 22 shall be audited. The audit shall be carried out by an independent auditor 
of recognized standing, to be elected by the Council for each financial year. 

2. 

The terms of appointment of the independent auditor of recognized standing, as well 
as  the  intentions  and  objectives  of  the  audit,  shall  be  laid  down  in  the  financial 
regulations  of  the  Organization.  The  audited  statement  of  the  Organization’s 
accounts and the audited balance sheet shall be presented to the Council at its next 
regular session for approval. 

3. 

A summary of the audited accounts and balance sheet shall be published. 

Chapter VIII - The Economics Committee 

Article 27 
Establishment of the Economics Committee  

1. 

An Economics Committee is hereby established. The Economics Committee shall: 

a) 

b) 

Review  cocoa  statistics  and  statistical  analyses  of  cocoa  production  and 
consumption, stocks and grindings, international trade and cocoa prices; 

Examine analyses of market trends and of other factors influencing such trends, 
with particular regard to cocoa supply and demand, including the effect of the 
use of cocoa butter substitutes on consumption and on the international cocoa 
trade; 

c)  Analyse  information  on  market  access  for  cocoa  and  cocoa  products  in 
producing  and  consuming  countries  including  information  on  tariff  and  non-
tariff barriers as well as the activities undertaken by Members with the view to 
promoting the elimination of trade barriers; 

d) 

Examine and recommend to the Council projects for funding by the Common 
Fund for Commodities (CFC) or other donor agencies; 

e)  Address issues regarding the economic dimension of sustainable development 

in the cocoa economy; 

f) 

g) 

Review  the  draft  annual  work  programme  of  the  Organization  in  cooperation 
with the Administration and Finance Committee as appropriate; 

Prepare  international  cocoa  conferences  and  seminars,  at  the  request  of  the 
Council; and 

h)  Deal with any other matters as approved by the Council. 

The  Economics  Committee  shall  submit  recommendations  on  the  above  matters  to 
the Council. 

The Council shall establish the rules and regulations of the Economics Committee.  

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2. 

3. 

EN 

1. 

2. 

1. 

2. 

Article 28 
Composition of the Economics Committee  

The Economics Committee shall be open to all Members of the Organization. 

The Chairman and the Vice-Chairman of the Economics Committee shall be elected 
from  among  the  Members  for  a  period  of  two  years.  The  posts  of  Chairman  and 
Vice-Chairman shall alternate between exporting and importing Members.  

Article 29 
Meetings of the Economics Committee 

The  Economics  Committee  shall  normally  meet  at  the  headquarters  of  the 
Organization,  unless  it  decides  otherwise.  If,  on  the  invitation  of  any  Member,  the 
Economics Committee meets elsewhere than at the headquarters of the Organization, 
that Member shall pay the additional costs involved, as defined in the administrative 
rules of the Organization.  

The  Economics  Committee  shall  normally  meet  twice  a  year  coinciding  with  the 
sessions of the Council. The Economics Committee shall report on its proceedings to 
the Council. 

Chapter IX - Market Transparency 

Article 30 
Information and market transparency 

1. 

The Organization shall act as a global information centre for the efficient collection, 
collation,  exchange  and  dissemination  of  statistical  information  and  studies  on  all 
matters relating to cocoa and cocoa products. To this effect, the Organization shall: 

a)  Maintain  up-to-date  statistical  information  on  world  production,  grindings, 
consumption,  exports,  re-exports,  imports,  prices  and  stocks  of  cocoa  and 
cocoa products;  

b)  Request,  as  appropriate,  technical  information  on  the  cultivation,  marketing, 

transportation, processing, utilization and consumption of cocoa. 

The Council may request Members to provide the information related to cocoa which 
it deems necessary for its functioning, including information on government policies, 
taxation, national standards, regulations and legislation relating to cocoa. 

In order to promote market transparency, Members shall, insofar as possible, provide 
the Executive Director with the relevant statistics within a reasonable time and in as 
detailed and accurate a manner as is practicable. 

If a Member fails to supply, or finds difficulty in supplying, within a reasonable time, 
statistical  information  required  by  the  Council  for  the  proper  functioning  of  the 

2. 

3. 

4. 

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Organization, the Council may request the Member concerned to explain the reasons 
for non-compliance. If it is found that assistance is needed in the matter, the Council 
may offer the necessary measures of support to overcome existing difficulties. 

The Council shall publish at an appropriate date, but at least twice every cocoa year, 
projections on cocoa production and cocoa grindings. The Council may use relevant 
information from other sources in order to follow the evolution of the market as well 
as  assess  or  evaluate  the  current  and  possible  future  cocoa  production  and 
consumption levels. However, the Council may not publish any information likely to 
disclose the operation of individuals or commercial entities that produce, process or 
distribute cocoa. 

Article 31 
Stocks 

In  order  to  facilitate  the  assessment  of  world  cocoa  stocks  with  a  view  to  ensuring 
greater market transparency, each Member shall provide, on a yearly basis, and not 
later  than  the  end  of  May,  the  Executive  Director  with  information  on  stocks  of 
cocoa  beans  and  cocoa  products  held  in  its  country,  in  accordance  with  Article 30, 
paragraph 3. 

The Executive Director shall take the necessary steps to obtain the full cooperation of 
the  private  sector  in  this  exercise,  whilst  fully  respecting  the  issues  of  commercial 
confidentiality associated with this information. 

The Executive Director shall make an annual report to the Economics Committee on 
the information received on the levels of stocks of cocoa beans and cocoa products 
worldwide. 

Article 32 
Cocoa substitutes 

Members  recognize  that  the  use  of  substitutes  may  have  negative  effects  on  the 
expansion  of  cocoa  consumption  and  the  development  of  a  sustainable  cocoa 
economy.  In  this  regard,  Members  shall  take  full  account  of  the  recommendations 
and  decisions  of  competent  international  bodies,  in  particular  the  provisions  of  the 
Codex Alimentarius. 

The Executive Director shall make regular reports  to the Economics Committee  on 
the  development  of  the  situation.  On  the  basis  of  these  reports,  the  Economics 
Committee shall assess the situation and, if necessary, make recommendations to the 
Council for appropriate decisions. 

Article 33 
Indicator price 

For the purposes of this Agreement and, in particular, for monitoring the evolution of 
the  cocoa  market,  the  Executive  Director  shall  compute  and  publish  the  ICCO 
indicator price for cocoa beans. This price shall be expressed in United States dollars 

5. 

1. 

2. 

3. 

1. 

2. 

1. 

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per tonne as well as in Euros, Pounds Sterling and Special Drawing Rights (SDRs) 
per tonne. 

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2. 

3. 

1. 

The ICCO indicator price shall be the average of the daily quotations for cocoa beans 
of  the  nearest  three  active  futures  trading  months  on  the  London  market 
(NYSE Liffe)  and  on  the  New  York  market  (ICE  Futures  US)  at  the  time  of  the 
London  close.  The  London  prices  shall  be  converted  into  United  States  dollars  per 
tonne by using the current six months forward rate of exchange in London at closing 
time.  The  United  States  dollar-denominated  average  of  the  London  and  New  York 
prices shall be converted into its Euro and Pound Sterling equivalents by using the 
spot  rates  of  exchange  in  London  at  closing  time  and  its  SDR  equivalent  at  the 
appropriate  daily  official  United  States  dollar/SDR  exchange  rate  published  by  the 
International Monetary Fund. The Council shall decide the method of calculation to 
be used when the quotations on only one of these two cocoa markets are available or 
when the London Foreign Exchange market is closed. The time for shift to the next 
three-month  period  shall  be  the  fifteenth  of  the  month  immediately  preceding  the 
nearest active maturing month. 

The Council may decide on any other method of computing the ICCO indicator price 
if it considers such other method to be more satisfactory than that prescribed in this 
Article. 

Article 34 
Conversion factors 

For the purpose of determining the beans equivalent of cocoa products, the following 
shall  be  the  conversion  factors:  cocoa  butter  1.33;  cocoa  cake  and  powder  1.18; 
cocoa paste/liquor and nibs 1.25. The Council may determine, if necessary, that other 
products  containing  cocoa  are  cocoa  products.  The  conversion  factors  for  cocoa 
products other than those for which conversion factors are set out in this paragraph 
shall be fixed by the Council. 

2. 

The Council may revise the conversion factors in paragraph 1 of this Article. 

Article 35 
Scientific research and development 

The Council shall encourage and promote scientific research and development in the areas of 
cocoa  production,  transportation,  processing,  marketing  and  consumption  as  well  as  the 
dissemination  and  practical  application  of  the  results  obtained  in  this  field.  To  this  end,  the 
Organization  may  cooperate  with  international  organizations,  research  institutions  and  the 
private sector. 

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Chapter X - Market Development 

Article 36 
Market analyses 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

The  Economics  Committee  shall  analyse  trends  and  prospects  for  development  in 
cocoa-producing  and  -consuming  sectors,  as  well  as  the  movement  of  stocks  and 
prices, and shall identify any market imbalances at an early stage. 

At its first session after the start of a new cocoa year, the Economics Committee shall 
examine  annual  forecasts  of  world  production  and  consumption  for  the  next  five 
cocoa  years.  The  forecasts  provided  shall  be  reviewed  and  revised,  if  necessary, 
every year.  

The  Economics  Committee  shall  submit  detailed  reports  to  each  regular  session  of 
the  Council.  On  the  basis  of  these  reports,  the  Council  will  examine  the  general 
situation,  and  in  particular  will  review  trends  in  world  supply  and  demand.  The 
Council may make recommendations to its members on the basis of this review.  

On  the  basis  of  these  forecasts,  and  in  order  to  deal  with  the  problems  of  market 
imbalances in the medium and long term, the exporting Members may undertake to 
coordinate their national production policies. 

Article 37 
Consumption promotion  

Members undertake to encourage the consumption of chocolate and the use of cocoa 
products, improve the quality of products and develop markets for cocoa, including 
in exporting Member countries. Each Member shall be responsible for the means and 
methods it employs for that purpose.  

All Members shall endeavour to remove or reduce substantially domestic obstacles to 
the expansion of cocoa consumption. In this regard, Members shall regularly provide 
the  Executive  Director  with  information  on  pertinent  domestic  regulations  and 
measures  and  with  other  information  concerning  cocoa  consumption,  including 
domestic taxes and customs tariffs.  

The Economics Committee shall establish a programme for the promotion activities 
of the Organization which may comprise information campaigns, research, capacity-
building  and  studies  related  to  the  production  and  consumption  of  cocoa.  The 
Organization shall seek the collaboration of the private sector for the implementation 
of those activities.  

The  promotion  activities  shall  be  included  in  the  annual  work  programme  of  the 
Organization and may be financed by resources pledged by Members, non-Members, 
other organizations and the private sector.  

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1. 

2. 

3. 

1. 

2. 

3. 

Article 38 
Studies, surveys and reports 

In  order  to  assist  Members,  the  Council  shall  encourage  the  preparation  of  studies, 
surveys,  technical  reports  and  other  documents  on  the  economics  of  cocoa 
production  and  distribution,  including  trends  and  projections,  the  impact  of 
governmental measures in exporting and importing countries on the production and 
consumption of cocoa, the analysis of the cocoa value chain, approaches to managing 
financial and other risks, sustainability aspects of the cocoa sector, opportunities for 
expansion of cocoa consumption for traditional and possible new uses, links between 
cocoa and health and the effects of the operation of this Agreement on exporters and 
importers of cocoa, including their terms of trade.  

It  may  also  promote  studies  likely  to  contribute to greater market transparency and 
facilitate the development of a balanced and sustainable world cocoa economy. 

In order to carry out the provisions of paragraphs 1 and 2 of this Article, the Council, 
upon recommendations of the Economics Committee, may adopt the list of studies, 
surveys and reports to be included in the annual work programme in conformity with 
the  provisions  of  Article 17  of  this  Agreement.  These  activities  may  be  financed 
either from provisions within the administrative budget or from other sources.  

Chapter XI - Fine or Flavour Cocoa 

Article 39 
Fine or flavour cocoa  

The  Council  shall,  at  its  first  session  following  the  entry  into  force  of  this 
Agreement,  review  Annex C  to  this  Agreement  and,  if  necessary,  revise  it 
determining the proportions in which the countries listed therein produce and export 
exclusively  or  partially  fine  or  flavour  cocoa.  Thereafter,  the  Council  may  at  any 
time during the lifetime of this Agreement review Annex C and, if necessary, revise 
it. The Council shall seek expert advice on this matter, as appropriate. In such cases, 
the composition of the Panel of Experts should, as far as possible, ensure a balance 
between experts from importing countries and experts from exporting countries. The 
Council shall decide on the composition of and on the procedures to be followed by 
the Panel of Experts.  

The Economics Committee may make proposals for the Organization to devise and 
implement a system of statistics on production of and trade in fine or flavour cocoa. 

Giving due consideration to the importance of fine or flavour cocoa, Members shall 
examine,  and  adopt  as  appropriate,  projects  relating  to  fine  or  flavour  cocoa  in 
accordance with the provisions of Articles 37 and 43. 

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Chapter XII - Projects 

Article 40 
Projects 

1. 

2. 

Members may submit project proposals  which contribute to the achievement of the 
objectives  of  this  Agreement  and  the  priority  areas  for  work  identified  in  the  five-
year strategic plan referred to in paragraph 1 of Article 17.  

The  Economics  Committee 
shall  examine  project  proposals  and  make 
recommendations  to  the  Council,  according  to  the  mechanisms  and  procedures  for 
submission, appraisal, approval, prioritization and funding of projects, as established 
by  the  Council.  The  Council  may,  as  appropriate,  establish  mechanisms  and 
procedures  for  the  implementation  and  monitoring  of  projects,  as  well  as  the  wide 
dissemination of their results.  

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3. 

4. 

At each meeting of the Economics Committee, the Executive Director shall report on 
the status of all projects approved by the Council, including those awaiting financing, 
under  implementation  or  completed.  A  summary  shall  be  presented  to  the  Council 
pursuant to paragraph 2 of Article 27.  

As  a  general  rule,  the  Organization  shall  act  as  supervisory  body  during  project 
execution.  The  overhead  costs  incurred  by  the  Organization  for  the  preparation, 
management,  supervision  and  evaluation  of  projects  shall  be  included  in  the  total 
costs of projects. These overhead costs shall not exceed 10 per cent of the total costs 
of any project.  

Article 41 
Relationship with the Common Fund for Commodities and other multilateral and bilateral 
donors  

1. 

2. 

3. 

The Organization shall take full advantage of the facilities of the Common Fund for 
Commodities in order to assist in the preparation and financing of projects of interest 
to the cocoa economy. 

The  Organization  shall  endeavour 
international 
organizations,  as  well  as  with  multilateral  and  bilateral  donor  agencies,  in  order  to 
obtain  financing  for  programmes  and  projects  of  interest  to  the  cocoa  economy  as 
appropriate. 

to  cooperate  with  other 

Under  no  circumstances  shall  the  Organization  undertake  any  financial  obligations 
related to projects, either on its own behalf or in the name of Members. No Member 
of  the  Organization  shall  be  responsible  by  reason  of  its  membership  of  the 
Organization  for  any  liability  arising  from  borrowing  or  lending  by  any  other 
Member or entity in connection with such projects. 

Chapter XIII - Sustainable Development 

Article 42 
Standard of living and working conditions 

Members shall give consideration to improving the standard of living and working conditions 
of  populations  engaged  in  the  cocoa  sector,  consistent  with  their  stage  of  development, 
bearing  in  mind  internationally  recognized  principles  and  applicable  ILO  standards. 
Furthermore,  Members  agree  that  labour  standards  shall  not  be  used  for  protectionist  trade 
purposes. 

Article 43 
Sustainable cocoa economy 

1. 

Members  shall  make  all  necessary  efforts  to  accomplish  a  sustainable  cocoa 
economy, taking into account the sustainable development principles and objectives 
contained, inter alia, in the Rio Declaration on Environment and Development and in 
Agenda 21  adopted  in  Rio  de  Janeiro  in  1992,  the  United  Nations  Millennium 

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2. 

3. 

4. 

5. 

6. 

1. 

2. 

Declaration  adopted  in  New  York  in  2000,  the  Report  of  the  World  Summit  on 
Sustainable  Development  held  in  Johannesburg  in  2002,  the  2002 Monterrey 
Consensus  on  Financing  for  Development,  and  the  2001 Ministerial  Declaration  on 
the Doha Development Agenda. 

The  Organization  shall,  upon  request,  assist  Members  to  fulfil  their  goals  in  the 
development  of  a  sustainable  cocoa  economy  in  accordance  with  Article 1, 
paragraph (e) and Article 2, paragraph 14. 

The  Organization  shall  serve  as  a  focal  point  for  a  permanent  dialogue  amongst 
stakeholders  as  appropriate  to  foster  the  development  of  a  sustainable  cocoa 
economy. 

The  Organization  shall  encourage  cooperation  between  Members  through  activities 
which help to ensure a sustainable cocoa economy. 

The Council shall adopt and periodically review programmes and projects related to 
a sustainable cocoa economy and in accordance with paragraph 1 of this Article. 

The  Organization  shall  actively  seek  the  assistance  and  support  of  multilateral  and 
bilateral  donors  for  the  execution  of  programmes,  projects  and  activities  aimed  at 
achieving a sustainable cocoa economy. 

Chapter XIV - The Consultative Board on the World Cocoa 
Economy 

Article 44 
Establishment of the Consultative Board on the World Cocoa Economy 

A Consultative Board on the World Cocoa Economy (herein after called the Board) 
is hereby established to encourage the active participation of experts from the private 
sector in the work of the Organization and to promote a continuous dialogue among 
experts from the public and private sectors.  

The Board shall be an advisory body which advises the Council on issues of general 
and strategic interest to the cocoa sector, which include: 

a) 

b) 

The long-term structural developments in supply and demand; 

The  ways  and  means  of  strengthening  the  position  of  cocoa  farmers,  with  a 
view to improving their livelihoods; 

c) 

Proposals to encourage the sustainable production, trade and use of cocoa; 

d) 

The development of a sustainable cocoa economy; 

e) 

The  elaboration  of  the  modalities  and  frameworks  for  promotion  of 
consumption; and 

f) 

Any other cocoa-related matters within the scope of the Agreement. 

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3. 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

1. 

The  Board  shall  assist  the  Council  in  gathering  information  on  production, 
consumption and stocks. 

The Board shall submit its recommendations on the above matters to the Council for 
consideration. 

The  Board  may  set  up  ad  hoc  working  groups  to  assist  in  fulfilling  its  mandate 
provided  that  their  operating  costs  have  no  budgetary  implications  for  the 
Organization. 

Upon its establishment, the Board shall draw up its own rules and recommend them 
for adoption by the Council. 

Article 45 
Composition of the Consultative Board on the World Cocoa Economy 

The Consultative Board on the World Cocoa Economy shall be composed of experts 
from all sectors of the cocoa economy, such as:  

a)  Associations from the trade and industry; 

b)  National and regional cocoa producer organizations, from both the public and 

private sectors; 

c)  National cocoa exporters’ organizations and farmers’ associations; 

d)  Cocoa research institutes; and  

e)  Other private sector associations or institutions having an interest in the cocoa 

economy. 

These  experts  shall  act  in  their  personal  capacity  or  on  behalf  of  their  respective 
associations. 

The  Board  shall  be  composed  of  eight  experts  from  exporting  countries  and  eight 
experts  from  importing  countries  as  defined  in  paragraph 1  of  this  Article.  These 
experts shall be appointed by the Council every two cocoa years. The members of the 
Board  may  designate  one  or  more  alternates  and  advisers  to  be  approved  by  the 
Council.  In  the  light  of  the  experience  of  the  Board,  the  Council  may  increase  the 
number of members of the Board.  

The  Chairman  of  the  Board  shall  be  chosen  from  among  its  members.  The 
chairmanship  shall  alternate  between  exporting  and  importing  countries  every  two 
cocoa years. 

Article 46 
Meetings of the Consultative Board on the World Cocoa Economy 

The  Consultative  Board  on  the  World  Cocoa  Economy  shall  normally  meet  at  the 
headquarters  of  the  Organization,  unless  the  Council  decides  otherwise.  If,  on 
invitation  of  any  Member,  the  Consultative  Board  meets  elsewhere  than  at  the 

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2. 

3. 

4. 

1. 

2. 

3. 

4. 

headquarters  of  the  Organization,  that  Member  shall  pay  the  additional  costs 
involved, as defined in the administrative rules of the Organization. 

The  Board  shall  normally  meet  twice  a  year  alongside  the  regular  sessions  of  the 
Council. The Board shall report regularly to the Council on its proceedings.  

The meetings of the Consultative Board on the World Cocoa Economy shall be open 
to all Members of the Organization as observers.  

The  Board  may  also  invite  eminent  experts  or  personalities  of  high  standing  in  a 
specific  field,  from  the  public  and  private  sectors,  including  appropriate  non-
governmental organizations, having relevant expertise in aspects of the cocoa sector, 
to participate in its work and meetings.  

Chapter XV - Relief From Obligations And Differential And 
Remedial Measures 

Article 47 
Relief from obligations in exceptional circumstances 

The  Council  may  relieve  a  Member  of  an  obligation  on  account  of  exceptional  or 
emergency  circumstances,  force  majeure  or  international  obligations  under  the 
Charter  of  the  United  Nations  for  territories  administered  under  the  trusteeship 
system. 

The Council, in granting relief to a Member under paragraph 1 of this Article, shall 
state  explicitly  the  terms  and  conditions  on  which,  and  the  period  for  which,  the 
Member is relieved of the obligation and the reasons for which the relief is granted. 

Notwithstanding the foregoing provisions of this Article, the Council shall not grant 
relief to a Member in respect of the obligation under Article 25 to pay contributions, 
or the consequences of a failure to pay them. 

The basis for the calculation of the distribution of votes of an exporting Member for 
which  the  Council  has  recognized  a  case  of  force  majeure,  shall  be  the  effective 
volume  of  its  exports  for  the  year  in  which  the  force  majeure  occurred  and 
subsequently for the ensuing three years following the force majeure. 

Article 48 
Differential and remedial measures 

Developing  importing  Members,  and  least  developed  countries  which  are  Members,  whose 
interests  are  adversely  affected  by  measures  taken  under  this  Agreement  may  apply  to  the 
Council for appropriate differential and remedial measures. The Council shall consider taking 
such appropriate measures in the light of the provisions of resolution 93(IV) adopted by the 
United Nations Conference on Trade and Development. 

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Chapter XVI - Consultations, Disputes and Complaints 

Article 49 
Consultations 

Each  member  shall  accord  full  and  due  consideration  to  any  representations  made  to  it  by 
another  member  concerning  the  interpretation  or  application  of  this  Agreement  and  shall 
afford  adequate  opportunity  for  consultations.  In  the  course  of  such  consultations,  on  the 
request of either party and with the consent of the other, the Executive Director shall establish 
an appropriate conciliation procedure. The costs of such a procedure shall not be chargeable 
to  the  Organization.  If  such  a  procedure  leads  to  a  solution,  this  shall  be  reported  to  the 
Executive Director. If no solution is reached, the matter may, at the request of either party, be 
referred to the Council in accordance with Article 50. 

Article 50 
Disputes 

1. 

2. 

3. 

Any dispute concerning the interpretation or application of this Agreement which is 
not  settled  by  the  parties  to  the  dispute  shall,  at  the  request  of  either  party  to  the 
dispute, be referred to the Council for decision.  

When  a  dispute  has  been  referred  to  the  Council  under  paragraph  1  of  this  Article 
and has been discussed, Members holding not less than one third of the total votes, or 
any  five  Members,  may  require  the  Council,  before  giving  its  decision,  to  seek  the 
opinion  on  the  issues  in  dispute  of  an  ad  hoc  advisory  panel  to  be  constituted  as 
described in paragraph 3 of this Article. 

a)  Unless the Council decides otherwise, the ad hoc advisory panel shall consist 
of:  

i) 

Two  persons,  one  having  wide  experience  in  matters  of  the  kind  in 
dispute and the other having legal standing and experience, nominated by 
the exporting Members; 

(ii)  Two  persons,  one  having  wide  experience  in  matters  of  the  kind  in 
dispute and the other having legal standing and experience, nominated by 
the importing Members; and 

(iii)  A  chairman  selected  unanimously  by  the  four  persons  nominated  under 
(i) and (ii) above or, if they fail to agree, by the Chairman of the Council. 

b)  Nationals  of  Members  shall  not  be  ineligible  to  serve  on  the  ad  hoc  advisory 

panel. 

c) 

Persons  appointed  to  the  ad  hoc  advisory  panel  shall  act  in  their  personal 
capacities and without instructions from any Government. 

d) 

The costs of the ad hoc advisory panel shall be paid by the Organization. 

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4. 

1. 

2. 

The opinion of the ad hoc advisory panel and the reasons therefore shall be submitted 
to the Council, which, after considering all the relevant information, shall decide the 
dispute. 

Article 51 
Complaints and action by the Council 

Any  complaint  that  any  Member  has  failed  to  fulfil  its  obligations  under  this 
Agreement shall, at the request of the Member making the complaint, be referred to 
the Council, which shall consider it and take a decision on the matter. 

Any finding by the Council that a Member is in breach of its obligations under this 
Agreement shall be made by a simple distributed majority vote and shall specify the 
nature of the breach. 

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3. 

Whenever the Council, whether as a result of a complaint or otherwise, finds that a 
Member  is  in  breach  of  its  obligations  under  this  Agreement,  it  may,  without 
prejudice to such other measures as are specifically provided for in other Articles of 
this Agreement, including Article 60: 

a) 

b) 

Suspend that Member’s voting rights in the Council; and 

If  it  considers  it  necessary,  suspend  additional  rights  of  such  Member, 
including  that  of  being  eligible  for,  or  of  holding,  office  in  the  Council  or  in 
any of its committees, until it has fulfilled its obligations. 

4. 

A Member whose voting rights are suspended under paragraph 3 of this Article shall 
remain liable for its financial and other obligations under this Agreement. 

Chapter XVII - Final Provisions 

Article 52 
Depositary 

The  Secretary-General  of  the  United  Nations  is  hereby  designated  as  the  Depositary  of  this 
Agreement. 

Article 53 
Signature 

This  Agreement  shall  be  open  for  signature  at  United  Nations  Headquarters  from 
1 October 2010 until and including 30 September 2012 by parties to the International Cocoa 
Agreement, 2001, and Governments invited to the United Nations Cocoa Conference, 2010. 
The  Council  under  the  International  Cocoa  Agreement,  2001,  or  the  Council  under  this 
Agreement  may,  however,  extend  once  the  period  of  signature  of  this  Agreement.  The 
Council shall immediately notify the Depositary of such extension. 

Article 54 
Ratification, acceptance, approval 

1. 

2. 

This  Agreement  shall  be  subject  to  ratification,  acceptance  or  approval  by  the 
signatory Governments in accordance with their respective constitutional procedures. 
Instruments  of  ratification,  acceptance  or  approval  shall  be  deposited  with  the 
Depositary. 

Each Contracting Party shall notify the Secretary-General whether it is an exporting 
Member  or  an  importing  Member  at  the  time  of  deposit  of  its  instrument  of 
ratification, acceptance or approval or as soon as possible thereafter. 

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1. 

2. 

3. 

1. 

2. 

1. 

2. 

Article 55 
Accession 

This Agreement shall be open to accession by the Government of any State entitled 
to sign it. 

The  Council  shall  determine  under  which  of  the  annexes  to  this  Agreement  the 
acceding State is to be deemed to be listed, if such State is not listed in any of these 
annexes. 

Accession  shall  be  effected  by  deposit  of  an  instrument  of  accession  with  the 
Depositary. 

Article 56 
Notification of provisional application 

A signatory Government which intends to ratify, accept or approve this Agreement 
or a Government which intends to accede to the Agreement, but which has not yet 
been  able  to  deposit  its  instrument,  may  at  any  time  notify  the  Depositary  that,  in 
accordance  with  its  constitutional  procedures  and/or  its  domestic  laws  and 
regulations, it will apply this Agreement provisionally either when it enters into force 
in  accordance  with  Article 57  or,  if  it  is  already  in  force,  at  a  specified  date.  Each 
Government giving such notification shall inform the Secretary-General whether it is 
an exporting Member or an importing Member at the time of giving such notification 
or as soon as possible thereafter. 

A Government which has notified under paragraph 1 of this Article that it will apply 
this Agreement either when it enters into force or at a specified date shall, from that 
time, is a provisional Member. It shall remain a provisional Member until the date of 
deposit of its instrument of ratification, acceptance, approval or accession. 

Article 57 
Entry into force 

This  Agreement  shall  enter  into  force  definitively  on  1 October 2012,  or  any  time 
thereafter, if by such date Governments representing at least five exporting countries 
accounting for at least 80 per cent of the total exports of countries listed in annex A 
and Governments representing importing countries having at least 60 per cent of total 
imports  as  set  out  in  Annex B  have  deposited  their  instruments  of  ratification, 
acceptance, approval or accession with the Depositary. It shall also enter into force 
definitively  once  it  has  entered  into  force  provisionally  and  these  percentage 
requirements  are  satisfied  by  the  deposit  of  instruments  of  ratification,  acceptance, 
approval or accession. 

This Agreement shall enter into force provisionally on 1 January 2011 if by such date 
Governments  representing  at  least  five  exporting  countries  accounting  for  at  least 
80 per  cent  of  the  total  exports  of  countries  listed  in  annex  A  and  Governments 
representing importing countries having at least 60 per cent of total imports as set out 
in Annex B have deposited their instruments of ratification, acceptance, approval or 

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3. 

4. 

accession,  or  have  notified  the  Depositary  that  they  will  apply  this  Agreement 
provisionally  when  it  enters  into  force.  Such  Governments  shall  be  provisional 
Members. 

If  the  requirements  for  entry  into  force  under  paragraph 1  or  paragraph 2  of  this 
Article  have  not  been  met  by  1 September 2011,  the  Secretary-General  of  the 
United Nations  Conference  on  Trade  and  Development  shall,  at  the  earliest  time 
practicable,  convene  a  meeting  of  those  Governments  which  have  deposited 
instruments  of  ratification,  acceptance,  approval  or  accession,  or  have  notified  the 
Depositary  that  they  will  apply  this  Agreement  provisionally.  These  Governments 
may  decide  whether  to  put  this  Agreement  into  force  definitively  or  provisionally 
among  themselves,  in  whole  or  in  part,  on  such  date  as  they  may  determine  or  to 
adopt any other arrangement as they may deem necessary. 

For  a  Government  on  whose  behalf  an  instrument  of  ratification,  acceptance, 
approval  or  accession  or  a  notification  of  provisional  application  is  deposited  after 
the entry into force of this Agreement in accordance with paragraph 1, paragraph 2 or 
paragraph 3 of this Article, the instrument or notification shall take effect on the date 
of  such  deposit  and,  with  regard  to  notification  of  provisional  application,  in 
accordance with the provisions of paragraph 1 of Article 56. 

Article 58 
Reservations 

Reservations may not be made with respect to any of the provisions of this Agreement. 

Article 59 
Withdrawal 

1. 

2. 

At any time after the entry into force of this Agreement, any Member may withdraw 
from this Agreement by giving written notice of withdrawal to the Depositary. The 
Member shall immediately inform the Council of the action it has taken. 

Withdrawal  shall  become  effective  90  days  after  the  notice  is  received  by  the 
Depositary. If, as a consequence of withdrawal, membership in this Agreement falls 
below  the  requirements  provided  for  in  paragraph 1  of  Article 57  for  its  entry  into 
force,  the  Council  shall  meet  in  special  session  to  review  the  situation  and  to  take 
appropriate decisions. 

Article 60 
Exclusion 

If  the  Council  finds,  under  paragraph 3  of  Article 51,  that  any  Member  is  in  breach  of  its 
obligations  under  this  Agreement  and  decides  further  that  such  breach  significantly  impairs 
the  operation  of  this  Agreement,  it  may  exclude  such  Member  from  the  Organization.  The 
Council shall immediately notify the depositary of any such exclusion. Ninety days after the 
date of the Council's decision, that Member shall cease to be a Member of the Organisation. 

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Article 61 
Settlement of accounts with withdrawing or excluded Members 

The  Council  shall  determine  any  settlement  of  accounts  with  a  withdrawing  or  excluded 
Member.  The  Organization  shall  retain  any  amounts  already  paid  by  a  withdrawing  or 
excluded Member and such Member shall remain bound to pay any amounts due from it to 
the Organization at the time the withdrawal or the exclusion becomes effective, except that, in 
the  case  of  a  Contracting  Party  which  is  unable  to  accept  an  amendment  and  consequently 
ceases to participate in this Agreement under the provisions of paragraph 2 of Article 63, the 
Council may determine any settlement of accounts which it finds equitable. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Article 62 
Duration, extension and termination 

This Agreement shall remain in force until the end of the tenth full cocoa year after 
its entry into force, unless extended under paragraph 4 of this Article, or terminated 
earlier under paragraph 5 of this Article. 

The Council shall review the present Agreement five years after its entry into force 
and shall take decisions as appropriate. 

While  this  Agreement  is  in  force,  the  Council  may  decide  to  renegotiate  it  with  a 
view  to  having  the  renegotiated  agreement  enter  into  force  at  the  end  of  the  fifth 
cocoa year referred to in paragraph 1 of this Article, or at the end of any period of 
extension decided upon by the Council under paragraph 4 of this Article. 

The  Council  may  extend  this  Agreement  in  whole  or  in  part  for  two  periods  not 
exceeding two cocoa years each. The Council shall notify the Depositary of any such 
extension. 

Such termination shall take effect on such date as the Council shall decide, provided 
that  the  obligations  of  Members  under  Article 25  shall  continue  until  the  financial 
liabilities  relating  to  the  operation  of  this  Agreement  have  been  discharged.  The 
Council shall notify the Depositary of any such decision. 

Notwithstanding  the  termination  of  this  Agreement  by  any  means  whatsoever,  the 
Council shall remain in being for as long as necessary to carry out the liquidation of 
the  Organisation,  settlement  of  its  accounts  and  disposal  of  its  assets.  The  Council 
shall  have  during  that  period  the  necessary  powers  for  the  conclusion  of  all 
administrative and financial matters. 

Notwithstanding the provisions of paragraph 2 of Article 59, a Member which does 
not  wish  to  participate  in  this  Agreement  as  extended  under  this  article  shall  so 
inform the Depositary and the Council. Such Member shall cease to be a party to this 
Agreement from the beginning of the period of extension. 

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1. 

2. 

3. 

1. 

2. 

3. 

Article 63 
Amendments 

The  Council  may  recommend  an  amendment  of  this  Agreement  to  the  Contracting 
Parties.  The  amendment  shall  become  effective  100  days  after  the  Depositary  has 
received  notifications  of  acceptance  from  Contracting  Parties  representing  at  least 
75 per cent of the exporting Members holding at least 85 per cent of the votes of the 
exporting Members, and from Contracting Parties representing at least 75 per cent of 
the  importing  Members  holding  at  least  85 per  cent  of  the  votes  of  the  importing 
Members,  or  on  such  later  date  as  the  Council  may  have  determined.  The  Council 
may fix a time within which Contracting Parties shall notify the Depositary of their 
acceptance  of  the  amendment,  and,  if  the  amendment  has  not  become  effective  by 
such time, it shall be considered withdrawn. 

Any Member on behalf of which notification of acceptance of an amendment has not 
been made by the date on which such amendment becomes effective shall, as of that 
date, cease to participate in this Agreement, unless the Council decides to extend the 
period  fixed  for  acceptance  for  such  Member  to  enable  it  to  complete  its  internal 
procedures.  Such  Member  shall  not  be  bound  by  the  amendment  before  it  has 
notified its acceptance thereof. 

Immediately  upon  adoption  of  a  recommendation  for  an  amendment  the  Council 
shall  communicate  to  the  Depositary  copies  of  the  text  of  the  amendment.  The 
Council  shall  provide  the  Depositary  with  the  information  necessary  to  determine 
whether  the  notifications  of  acceptance  received  are  sufficient  to  make  the 
amendment effective. 

Chapter XVIII - Supplementary and Transitional Provisions 

Article 64 
Special Reserve Fund 

A  Special  Reserve  Fund  shall  be  maintained  for  the  sole  purpose  of  meeting  the 
eventual liquidation expenses of the Organization. The Council shall decide how the 
interest earned on this Fund will be used. 

The Special Reserve Fund established by the Council under the International Cocoa 
Agreement, 1993, shall be transferred to this Agreement for the purpose set out under 
paragraph 1. 

A  non-Member  of  the  International  Cocoa  Agreements,  1993  and  2001,  which 
becomes a Member of this Agreement shall be required to contribute to the Special 
Reserve Fund. The contribution of such Member shall be assessed by the Council on 
the basis of the number of votes to be held by the Member. 

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Article 65 
Other supplementary and transitional provisions 

1. 

2. 

This  Agreement  shall  be  considered  as  a  replacement  of  the  International  Cocoa 
Agreement, 2001. 

All  acts  by  or  on  behalf  of  the  Organization  or  any  of  its  organs  under  the 
International  Cocoa  Agreement,  2001,  which  are  in  effect  on  the  date  of  entry  into 
force of this Agreement and the terms of which do not provide for expiry on that date 
shall remain in effect unless changed under the provisions of this Agreement. 

DONE  at  Geneva  on  25 June 2010,  the  texts  of  this  Agreement  in  the  Arabic,  Chinese, 
English, French, Russian and Spanish languages being equally authentic. 

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ANNEXES 

Annex A 

Exports of cocoaa calculated for the purposes of Article 57 (Entry into force) 

2005/06

2006/07

2007/08 

Three-year average 
2005/06-2007/08 

Country 
Côte d'Ivoire 
Ghana 
Indonesia 
Nigeria 
Cameroon 
Ecuador 
Togo 
Papua New Guinea 
Dominican Republic 
Guinea 
Peru 
Brazil 
Bolivarian Republic of Venezuela 
Sierra Leone 
Uganda 
United Republic of Tanzania 
Solomon Islands 
Haiti 
Madagascar 
São Tomé & Príncipe 
Liberia 
Equatorial Guinea 
Vanuatu 
Nicaragua 
Democratic Republic of Congo 
Honduras 
Congo 
Panama 
Vietnam 
Grenada 
Gabon 
Trinidad and Tobago 
Belize 
Dominica 
Fiji 

Total 

b

m
m

m
m
m
m
m
m

m
m

m
m

c

(Tonnes) 

1 200 154
702 784
520 479
207 075
162 770
110 308
77 764
47 285
42 999
17 620
11 931
10 558
12 540
8 910
8 880
4 370
4 075
3 900
3 593
2 650
1 640
2 260
1 450
750
870
806
300
280
70
218
99
195
30
20
10

1 191 377 
673 403 
465 863 
232 715 
178 844 
115 264 
110 952 
51 588 
34 106 
17 070 
11 178 
-32 512 
4 688 
14 838 
8 450 
3 210 
4 426 
4 660 
3 609 
1 500 
3 930 
1 990 
1 260 
1 128 
930 
-100 
1 400 
193 
460 
343 
160 
-15 
20 
0 
10 

1 247 057
674 958
526 434
215 668
170 276
111 417
87 260
49 904
36 245
17 857
12 841
11 855
9 572
9 495
8 533
4 837
4 293
4 007
3 387
2 133
2 073
2 040
1 500
923
900
645
597
288
257
214
140
124
37
27
13

1 349 639
648 687
592 960
207 215
169 214
108 678
73 064
50 840
31 629
18 880
15 414
57 518
11 488
4 736
8 270
6 930
4 378
3 460
2 960
2 250
650
1 870
1 790
892
900
1 230
90
391
240
80
160
193
60
60
20

(Share)

38.75 %
20.98 %
16.36 %
6.70 %
5.29 %
3.46 %
2.71 %
1.55 %
1.13 %
0.55 %
0.40 %
0.37 %
0.30 %
0.30 %
0.27 %
0.15 %
0.13 %
0.12 %
0.11 %
0.07 %
0.06 %
0.06 %
0.05 %
0.03 %
0.03 %
0.02 %
0.02 %
0.01 %
0.01 %
0.01 %
−
−
−
−
−

3 376 836

3 169 643

3 106 938 

3 217 806

100.00 %

Source: International Cocoa Organisation, Quarterly Bulletin of Cocoa Statistics, vol. XXXV, No 3, Cocoa year 2008/09. 

Notes: 

a Three-year average, 2005/06 – 2007/08 of net exports of cocoa beans plus net exports of cocoa products converted to beans 
equivalent using the following conversion factors: cocoa butter 1.33; cocoa powder and cake 1.18; cocoa paste/liquor 1.25. 

EN 

42 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
b  List  restricted  to  countries  which  individually  exported  cocoa  in  the  three-year  period  2005/06  to  2007/08,  based  on 
information available to the ICCO Secretariat. 

c Totals may differ from the sum of constituents due to rounding. 

m Member of the International Cocoa Agreement, 2001 as at 9 November 2009. 

- nil, negligible or less than the unit employed. 

EN 

43 

   EN 

Imports of cocoaa calculated for the purpose of Article 57 (Entry into force) 

Annex B 

2005/06

2006/07

2007/08 

Three-year average 
2005/06-2007/08 

Country 

European Union 
Germany 
Austria 
Belgium/Luxembourg 
Bulgaria 
Cyprus 
Denmark 
Spain 
Estonia 
Finland 
France 
Greece 
Hungary 
Ireland 
Italy 
Latvia 
Lithuania 
Malta 
Netherlands 
Poland 
Portugal 
Slovak Republic 
Czech Republic 
Romania 
United Kingdom 
Slovenia 
Sweden 
United States 
Malaysia 
Russian Federation 
Canada 
Japan 
Singapore 
China 
Switzerland 
Turkey 
Ukraine 
Australia 
Argentina 
Thailand 

EN 

b

m

c  m
m

m

(Tonnes) 

2 484 235

2 698 016

2 686 041 

2 622 764

487 696

20 119

199 058

12 770

282

15 232

150 239

37 141

10 954

558 357

26 576

224 761

14 968

257

15 493

153 367

14 986

10 609

548 279 

24 609 

218 852 

12 474 

277 

17 033 

172 619 

-1 880 

11 311 

531 444

23 768

214 224

13 404

272

15 919

158 742

16 749

10 958

388 153

421 822

379 239 

396 405

16 451

10 564

22 172

17 012

10 814

19 383

17 014 

10 496 

17 218 

16 826

10 625

19 591

126 949

142 128

156 277 

141 785

2 286

5 396

34

581 459

103 382

3 643

15 282

12 762

11 791

2 540

4 326

46

653 451

108 275

4 179

16 200

14 880

13 337

2 434 

4 522 

81 

681 693 

113 175 

3 926 

13 592 

16 907 

12 494 

2 420

4 748

54

638 868

108 277

3 916

15 025

14 850

12 541

232 857

234 379

236 635 

234 624

2 353

13 517

686 939

327 825

176 700

135 164

145 512

110 130

72 532

81 135

84 262

74 344

55 133

38 793

31 246

2 185 

14 579 

648 711 

341 462 

197 720 

136 967 

88 403 

113 145 

101 671 

90 411 

87 921 

86 741 

52 202 

39 531 

29 432 

2 113

14 619

719 321

319 970

179 352

143 971

115 579

103 937

84 048

81 939

81 765

74 831

53 428

37 372

29 138

1 802

15 761

822 314

290 623

163 637

159 783

112 823

88 536

77 942

74 272

73 112

63 408

52 950

33 793

26 737

44 

(Share)

53.24 %

10.79 %

0.48 %

4.35 %

0.27 %

0.01 %

0.32 %

3.22 %

0.34 %

0.22 %

8.05 %

0.34 %

0.22 %

0.40 %

2.88 %

0.05 %

0.10 %

−

12.97 %

2.20 %

0.08 %

0.30 %

0.30 %

0.25 %

4.76 %

0.04 %

0.30 %

14.60 %

6.49 %

3.64 %

2.92 %

2.35 %

2.11 %

1.71 %

1.66 %

1.66 %

1.52 %

1.08 %

0.76 %

0.59 %

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2005/06

2006/07

2007/08 

Three-year average 
2005/06-2007/08 

Country 

b

(Tonnes) 

Philippines 
Mexico 
Korea, Republic of 
South Africa 
Iran (Islamic Republic of) 
Colombia 
Chile 
India 
Israel 
New Zealand 
Serbia 
Norway 
Egypt 
Algeria 
Croatia 
Syrian Arab Republic 
Tunisia 
Kazakhstan 
Saudi Arabia 
Belarus 
Morocco 
Pakistan 
Costa Rica 
Uruguay 
Lebanon 
Guatemala 
Bolivia 
Sri Lanka 
El Salvador 
Azerbaijan 
Jordan 
Kenya 
Uzbekistan 
Hong Kong (China) 
Republic of Moldova 
Iceland 
Former Yugoslav Republic of Macedonia 
Bosnia and Herzegovina 
Cuba 
Kuwait 
Senegal 
Libyan Arab Jamahiriya 
Paraguay 

c 

c 

c 

c 

18 549

19 229

17 079

15 056

10 666

16 828

13 518

9 410

11 437

11 372

10 864

10 694

6 026

9 062

8 846

7 334

6 019

6 653

6 680

8 343

4 407

2 123

1 965

2 367

2 059

1 251

1 282

1 472

1 248

569

1 263

1 073

684

2 018

700

863

628

841

2 162

427

248

224

128

21 260

15 434

24 454

17 605

14 920

19 306

15 287

10 632

11 908

12 388

11 640

11 512

10 085

7 475

8 904

7 229

7 596

7 848

6 259

3 867

4 699

2 974

3 948

2 206

2 905

2 207

1 624

1 648

1 357

2 068

1 203

1 254

1 228

870

1 043

1 045

961

832

170

684

685

814

214

21 906 

25 049 

15 972 

16 651 

22 056 

9 806 

15 338 

17 475 

13 721 

11 821 

12 505 

12 238 

14 036 

12 631 

8 974 

8 056 

8 167 

7 154 

6 772 

5 961 

5 071 

2 501 

1 644 

2 737 

2 028 

1 995 

1 927 

1 706 

1 422 

1 376 

1 339 

1 385 

1 605 

613 

1 298 

1 061 

1 065 

947 

107 

631 

767 

248 

248 

20 572

19 904

19 168

16 437

15 881

15 313

14 714

12 506

12 355

11 860

11 670

11 481

10 049

9 723

8 908

7 540

7 261

7 218

6 570

6 057

4 726

2 533

2 519

2 437

2 331

1 818

1 611

1 609

1 342

1 338

1 268

1 237

1 172

1 167

1 014

990

885

873

700

581

567

429

197

(Share)

0.42 %

0.40 %

0.39 %

0.33 %

0.32 %

0.31 %

0.30 %

0.25 %

0.25 %

0.24 %

0.24 %

0.23 %

0.20 %

0.20 %

0.18 %

0.15 %

0.15 %

0.15 %

0.13 %

0.12 %

0.10 %

0.05 %

0.05 %

0.05 %

0.05 %

0.04 %

0.03 %

0.03 %

0.03 %

0.03 %

0.03 %

0.03 %

0.02 %

0.02 %

0.02 %

0.02 %

0.02 %

0.02 %

0.01 %

0.01 %

0.01 %

0.01 %

−

EN 

45 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Country 

Albania 
Jamaica 
Oman 
Zambia 
Zimbabwe 
Saint Lucia 
Samoa 
Saint Vincent and the Grenadines 

Total 

2005/06

2006/07

2007/08 

Three-year average 
2005/06-2007/08 

(Tonnes) 

(Share)

170

479

176

95

111

26

48

6

217

-67

118

60

86

20

15

0

196 

89 

118 

118 

62 

25 

0 

0 

194

167

137

91

86

24

21

2

−

−

−

−

−

−

−

−

4 778 943

5 000 088

5 000 976 

4 926 669

100.00 %

c 

c 

b

d 

Source: International Cocoa Organisation, Quarterly Bulletin of Cocoa Statistics, vol. XXXV, No 3, Cocoa year 2008/09. 

Notes: 

a Three-year average, 2005/06 – 2007/08 of net imports of cocoa beans plus gross imports of cocoa products converted to 
beans equivalent using the following conversion factors: cocoa butter 1.33; cocoa powder and cake 1.18; cocoa paste/liquor 
1.25. 

b  List  restricted  to  countries  which  individually  imported  cocoa  in  the  three-year  period  2005/06  to  2007/08,  based  on 
information available to the ICCO Secretariat. 

c Country may also qualify as an exporting country. 

d Totals may differ from the sum of constituents due to rounding. 

m Member of the International Cocoa Agreement, 2001 as at 9 November 2009. 

- nil, negligible or less than the unit employed. 

EN 

46 

   EN 

 
 
 
 
 
 
 
 
Producing countries exporting exclusively or partially fine or flavour cocoa 

Annex C 

Colombia 

Costa Rica 

Dominica 

Madagascar 

Papua New Guinea 

Peru 

Dominican Republic 

Saint Lucia 

Ecuador 

Grenada 

Indonesia 

Jamaica 

São Tomé & Príncipe 

Trinidad and Tobago 

Bolivarian Republic of Venezuela 

EN 

47 

   EN 

 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Proposal  for  a  Council  Decision  on  the  signing  and  provisional  application  on  behalf  of  the 
European Union of the International Cocoa Agreement 2010. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure5 

External Relations, Development and relations with ACP States. Obligations to international 
commodity organisations. Obligations to international agreements. 

1.3. 

Nature of the proposal/initiative 

Legislative act to enable the EU to become a member of the recently negotiated International 
Cocoa Agreement. 

(cid:133) The proposal/initiative relates to a new action 

(cid:133)  The  proposal/initiative  relates  to  a  new  action  following  a  pilot  project/preparatory 
action6 

X The proposal/initiative relates to the extension of an existing action 

(cid:133) The proposal/initiative relates to an action redirected towards a new action 

1.4. 

Objectives 

Accession  to  the  International  Cocoa  Agreement  2010  should  be  seen  in  the  context  of  the 
EU's  general  approach  of  signing  and  concluding  international  commodity  agreements 
following their negotiation as a tool for facilitating trade and trade relations between importers 
and  exporters.  The  decision  to  continue  participating  in  agreements  of  this  type,  which  are 
seen as a way of facilitating development, is based on a detailed analysis of their objectives, 
which  have  been  identified  as  follows:  trade,  facilitation  of  transparency  in  the  cocoa  trade, 
encouraging  members  to  embark  on  and  develop a sustainable cocoa economy, and a forum 
for  consultations  between  Governments.  These  objectives  are  political,  administrative, 
economic  and  socio-environmental.  The  proposal  and  its  objectives  are  consistent  with  the 
other financial instruments for the EU's participation in international organisations. 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative 

In  the  context  of  ABM  this  proposal  is  designed  to  achieve  the  goal  of  developing  the 
Commission's  role  as  an  intellectual  focal  point  for  development  through  its  direct  and 
effective participation in the international debate. 

5 
6 

ABM: Activity Based Management – ABB: Activity Based Budgeting. 
As referred to in Article 49(6) of the Financial Regulation. 

EN 

48 

   EN 

                                                 
1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned 

Specific objective 4: promote sustainability in the trade of the selected commodities 

ABM/ABB activity(ies) concerned: 21 07 

Development cooperation actions and ad-hoc programmes  

1.4.3.  Expected result(s) and impact 

The  proposal  will  give  the  Commission  exclusive  competence  to  act  on  behalf  of  the  EU  in 
order to express its policy and its position on the application of the Agreement in accordance 
with  the  Union's  overall  policy  guidelines.  Therefore  it  is  in  the  Commission's  interest  to 
propose this Decision in conformity with its institutional role and the wishes of the Member 
States. 

The impact will mainly be felt in the Organisation's strategic action and in its management. 

Payment  of  the  EU's  contribution  to  the  administrative  and  operational  budget  of  the 
international organisation. 

1.4.4.  Result and impact indicators 

As this is an international agreement, there are no real indicators that can be used to measure 
the  achievement  of  what  is  proposed.  However,  the  willingness  of  all  members  to  continue 
international  cooperation  may  be  considered  a  positive  and  satisfactory  indicator.  Progress 
towards a policy of sustainability may also be interpreted as a positive indicator. 

1.5. 

Grounds for the proposal/initiative 

Enable the EU to participate and act as a full member in the international organisation's work 
on cocoa, which is also in accordance with the wishes expressed by the Member States at the 
close of the negotiations. 

1.5.1.  Requirement(s) to be met in the short or long term 

Annual payment of contributions.  

Value added of Community involvement. 

Involvement of the EU and consistency of action with its policy. The EU's absence from such 
agreements  would  complicate  and  even  hinder  cooperation,  which  might  in  turn  undermine 
cooperation on commodities. 

1.5.2.  Lessons  learned  from  similar  experiences  in  the  past  Coherence  and  possible  synergy  with 

other relevant instruments 

The EU's participation in the current Agreement has not caused any major difficulties and it is 
thus advisable to continue it. No synergies possible. 

EN 

49 

   EN 

 
 
1.6. 

Duration and financial impact 

The International Cocoa Agreement 2010 is scheduled to be in force from 2012 for ten years, 
unless extended for not more than four years in total. 

(cid:133) Proposal/initiative of limited duration 

–  X  Proposal/initiative in effect from 2012 until 2022 

–  X  Financial impact from 2012 until 2022 

(cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from [YYYY] to [YYYY], 

–  followed by full-scale operation. 

EN 

50 

   EN 

1.7.  Management mode(s) planned7 

Commission's direct participation in the work of the Agreement's administrative bodies with 
exclusive competence in line with the legal basis of this proposal (Article 207 TEU). 

X Centralised direct management by the Commission 

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133) executive agencies 

–  (cid:133) bodies set up by the Communities8 

–  (cid:133) national public-sector bodies/bodies with public-service mission 

–  (cid:133) persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation 

(cid:133) Shared management with the Member States 

(cid:133) Decentralised management with third countries 

(cid:133) Joint management with international organisations (please specify) 

2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

Monitoring  and  reporting  rules:  in  representing  and  speaking  for  the  EU  the  Commission 
regularly reports on its work and activities both internally and to the Council in the framework 
of the PROBA Working Party on Commodities.  

Commission's participation in meetings of the relevant forums 3 to 4 times a year. 

2.2.  Management and control system 

The  Commission  constantly  monitors  the  Organisation's  administration  and  financial 
management.  Its  delegation  is  a  member  of  all  the  decision-making  bodies  and  it  enjoys 
powers of control and of direct management. 

2.2.1.  Risk(s) identified 

Winding-up  of  the  Organisation.  The  Commission's  involvement  is  designed  to  prevent  this 
happening, although the risk remains. 

7 

8 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html. 
As referred to in Article 185 of the Financial Regulation. 

EN 

51 

   EN 

                                                 
2.2.2.  Control method(s) planned 

Direct participation in the Organisation's Council and Finance Committee. Both bodies discuss 
and approve the administrative budget. All the accounts are available to members and audits 
may be requested at any time.  

2.3.  Measures to prevent fraud and irregularities 

The  Organisation  offers  the  assurance  that  OLAF  or  any  other  financial  service  may  have 
access to its accounts and carry out audits or checks if so desired. 

The Commission will constantly monitor the financial administration and available resources. 
The  Organisation  undertakes  to  accommodate  any  inspection,  investigation  or  visit  at  its 
premises. 

EN 

52 

   EN 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected 

•  Existing expenditure budget lines 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework  Number [Description…... 

21 07 04  
Commodity Agreements 

•  New budget lines requested 

Type of 
expenditure

DA/NDA 
9 

Contribution 

from 
EFTA 
countries
10 

from 
candidate 
countries11 

from third 
countries 

within the 
meaning of 
Article 18(1)(aa) 
of the Financial 
Regulation 

NO 

NO 

NO 

YES/NO 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure

Contribution 

Heading of 
multiannual 
financial 
framework 

Number  
[Description…...….] 

[XX.YY.YY.YY] 

DA/NDA 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 18(1)(aa) 
of the Financial 
Regulation 

YES/NO 

YES/NO 

YES/NO 

YES/NO 

9 
10 
11 

DA= Differentiated appropriations /NDA= Non-Differentiated Appropriations. 
EFTA: European Free Trade Association. 
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

53 

   EN 

 
 
 
 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure 

3.2.1. 

Summary of estimated impact on expenditure 
Some €15 million over ten years starting in 2012. 

Heading of multiannual financial 
framework  

Number 

[Heading.] 

EUR million (to three decimal places) 

DG: <DEV> 

(cid:121) Operating appropriations 

Number of budget line 21 07 04 

Number of budget line 

Commitments 
Payments 
Commitments 
Payments 

(cid:121)  Appropriations 
 from the envelope of specific programs13 
Number of budget line 

an 

of 

administrative 

nature 

TOTAL appropriations 
for DG <DEV> 

Commitments 

Payments 

Year 
N12 

Year 
N+1 

Year 
N+2 

Year 
N+3 

insert as many columns as 
necessary in order to reflect 
the duration of the impact 
(see point 1.6) 

TOTAL 

N+10 

1.200 
1.200 

1.260 
1.260 

1.323 
1.323 

1.389 
1.389 

1.458 
1.458 

1.530 
1.530 

1.606 
1.606 

15.056* 
15.056* 

1.200 

1.260 

1.323 

1.389 

1.458 

1.530 

1.606 

15.056* 

1.200 

1.260 

1.323 

1.389 

1.458 

1.530 

1.606 

15.056* 

(1) 

(2) 
(1a) 
(2a) 
financed

(3) 

=1+1a 
+3 

=2+2a 

+3 

12 
13 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct 
research. 

54 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121) TOTAL operational appropriations 

Commitments 
Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope of specific programs 

(4) 

(5) 

(6) 

TOTAL appropriations 
under HEADING <….> 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations 

(cid:121)  TOTAL  administrative  appropriations 
financed by the programme 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework  
(Reference amount) 

Commitments 
Payments 

(4) 

(5) 

(6) 

1.200 

1.200 

1.260 

1.260 

1.323 

1.323 

1.389 

1.389 

1.458 

1.458 

1.530 

1.530 

1.606 

1.606 

15.056* 

15.056* 

Commitments 

=4+ 6 

1.200 

1.260 

1.323 

1.389 

1.458 

1.530 

1.606 

15.056* 

Payments 

=5+ 6 

1.200 

1.260 

1.323 

1.389 

1.458 

1.530 

1.606 

15.056* 

* The new International Cocoa Agreement 2010 is scheduled to enter into force from 2012 for ten years, unless extended for not more than four years 
in total. Calculation of the EU's contribution is based on forecasts and the cost of the current Agreement, which does not differ financially from the 
Agreement replacing it. The 2010/2011 budget will be adopted at the end of September and the EU contribution should be set at around UK£ 920 000. 
The above figures take into account an annual increase of up to 5%. The pound-euro exchange rate is that of September 2010. 

EN 

55 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial framework 

5 

'Administrative expenditure' 

DG: <…….> 

(cid:121) Human resources 
(cid:121) Other administrative expenditure 

TOTAL DG <….> 

Appropriations 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework 

(Total  commitments  = 
total payments) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

insert as many columns as 
necessary in order to reflect 
the duration of the impact 
(see point 1.6) 

TOTAL 

EUR million (to 3 decimal places) 

2 

2 

2 

2 

2 

2 

2 

2 

Year 
N14 

Year 
N+1 

Year 
N+2 

Year 
N+3 

insert as many columns as 
necessary in order to reflect 
the duration of the impact 
(see point 1.6) 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework 

Commitments 

Payments 

14 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

56 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on operational appropriations   

Some €15 million over ten years. 

–  (cid:133) The proposal/initiative does not require the use of operational appropriations 

–  (cid:133) The proposal/initiative requires the use of operational appropriations, as explained below: 

Indicate 

objectives and 
outputs 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

insert as many columns as necessary in 
order to reflect the duration of the impact 
(see point 1.6) 

TOTAL 

Averag
e cost 

No 

Total 
cost 

No 

Total 
cost 

No 

Total 
cost 

No 

Total 
cost 

No 

Total 
cost 

No

Total 
cost 

No 

Total 
cost 

Total 
No 

Total cost 

Type15 

(cid:216) 

OBJECTIVE No 116 

- Output 

- Output 

- Output 

Subtotal Objective 1 

OBJECTIVE No 2 

- Output 

Subtotal Objective 2 

TOTAL COST 

15 
16 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.4.2. "Specific objective(s)…". 

EN 

57 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on administrative appropriations 

3.2.3.1.  Summary 

–  X  The proposal/initiative does not require the use of administrative appropriations 

–  (cid:133) The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as  explained 

below: 

Year 
N17 

Year 
N+1 

Year 
N+2 

Year 
N+3 

EUR million (to three decimal places) 

enter as many years as necessary to 
show the duration of the impact (see 
point 1.6) 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources 

Other  administrative 
expenditure 

Subtotal HEADING 
5 
of the multiannual 
financial framework 

Outside 
HEADING 518 of the 
multiannual financial 
framework 

Human resources 

Other  administrative 
expenditure 

Subtotal  
outside HEADING 
5 
of the multiannual 
financial framework 

17 
18 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of the  implementation  of  EU  programmes 
and/or actions (former "BA" lines), indirect research, direct research. 

EN 

58 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
TOTAL 

EN 

59 

   EN 

 
 
 
 
 
 
 
 
3.2.3.2.  Estimated requirements of human resources 

–  (cid:133) The proposal/initiative does not require the use of human resources 

–  (cid:133) The proposal/initiative requires the use of human resources, as explained below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

(cid:121) Establishment plan posts (officials and temporary agents) 

21 01 01 01 (Headquarters and Commission’s 
Representation Offices) 
XX 01 01 02 (Delegations) 
XX 01 05 01 (Indirect research) 
10 01 05 01 (Direct research) 
(cid:121) External personnel (in Full Time Equivalent unit: FTE) 19
21 01 02 01 (CS, SNE, TS from the global envelope) 
XX 01 02 02 (CS, LS, SNE, TS and JED in the 
delegations) 
XX 01 04 yy20 

- headquarters21 
- delegations 

XX 01 05 02 (CS, SNE, TS - Indirect research) 
10 01 05 02 (CS, SNE, TS - Direct research) 
Other budget lines (specify) 
TOTAL 

XX is the policy area or title concerned. 

The  human  resources  required  will  be  met  by  staff  from  the  DG  who  are  already  assigned  to 
management of the action and/or have been redeployed within the DG, together if necessary with any 
additional allocation which may be granted to the managing DG under the annual allocation procedure 
and in the light of existing budgetary constraints. 

19 

20 
21 

CA=  Contract  Staff;  LS=  Local  Staff;  SNE  =  Seconded  National  Expert;  TS  =  Temporary  Staff;  JED=  Junior 
Expert in Delegations. 
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and  European  Fisheries  Fund 
(EFF). 

EN 

60 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework 

–  X  Proposal is compatible with existing financial programming. 

–  (cid:133) Proposal/initiative will entail reprogramming of the relevant heading in the multiannual 

financial framework 

Explain  what  reprogramming  is  required,  specifying  the  budget  lines  concerned  and  the 
corresponding amounts. 

–  (cid:133) Proposal/initiative  requires  application  of  the  flexibility  instrument  or  revision  of  the 

multiannual financial framework22 

Explain  what  is  required,  specifying  the  headings  and  budget  lines  concerned  and  the 
corresponding amounts. 

3.2.5.  Third-party contributions 

–  Proposal/initiative does not provide for cofinancing by third parties 

–  Proposal/initiative provides for the co-financing estimated below: 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

EUR million (to 3 decimal places) 

Specify the cofinancing 
source/body 

TOTAL 
cofinanced 

appropriations 

3.3. 

There will be no cofinancing from the Member States or other public or private bodies.  

No impact on revenue. 

22 

See points 19 and 24 of the Interinstitutional agreement. 

EN 

61 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.4. 

Estimated impact on revenue 

–  (cid:133) Proposal/initiative has no financial impact on revenue 

–  X  Proposal/initiative has the following financial impact: 

– 

– 

X 

(cid:133) 

on own resources 

on miscellaneous revenue 

Impact of the proposal23 

EUR million (to 3 decimal places) 

Budget revenue line 

Amounts 
entered for 
current year 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

insert as many columns as 
necessary in order to reflect the 
duration of the impact (see point 
1.6) N+10 

Article  
21 07 04 

1.200 

1.260 

1.323 

1.389 

1.458 

1.530 

15.056 

15.056 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

23 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 25% for collection costs. 

EN 

62 

   EN