Proposal for a COUNCIL DECISION establishing the position to be adopted, on behalf of the Union, within the International Grains Council with respect to the extension of the Grains Trade Convention 1995
Date: 2011-01-18
Institutions: European Commission
Subjects: European Union, cereals, international agreement, trade agreement

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EUROPEAN COMMISSION  

Brussels, 18.1.2011 
COM(2011) 4 final 

2011/0003 (NLE) 

Proposal for a 

COUNCIL DECISION 

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

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EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

The  Grains  Trade  Convention  1995  (hereinafter:  the  “Convention”)  was  concluded 
by  the  Community  by  Council  Decision  96/88/EC1  until  30  June  1998  and,  since 
then, it has been regularly extended. The Convention was last extended by decision 
of the International Grains Council in June 2009 and remains into force until 30 June 
2011. 

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

The extension of the Convention entails the prolongation of the EU contribution to 
the administrative budget of the International Grains Agreement, which covers both 
the  Convention  and  the  Food  Aid  Convention  1999.  That  contribution  is  budgeted 
under item 05 06 01 of the EU budget (International agricultural agreements). 

The  purpose  of  this  proposal  is  to  seek  the  Council’s  authorisation  to  the 
Commission to vote, on behalf of the Union, in favour of the extension of the Grains 
Trade Convention up to 30 June 2013 within the International Grains Council. 

1 

OJ L 21, 27.1.1996, p. 47. 

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2011/0003 (NLE) 

Proposal for a 

COUNCIL DECISION 

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

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207 in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

The  Grains  Trade  Convention  1995  was  concluded  by  the  Community  by  Council 
Decision 96/88/EC2 and was regularly extended for further periods of two-year. This 
Convention was extended last time by decision of the International Grains Council in 
June  2009  and  remains  into  force  until  30  June  2011.  A  further  extension  is  in  the 
interest  of  the  Union.  The  Commission,  which  represents  the  Union  in  the  Grains 
Trade Convention, should therefore be authorised to vote in favour of such extension, 

HAS ADOPTED THIS DECISION:  

Sole Article 

The  European  Union's  position  within  the  International  Grains  Council  shall  be  to  vote  in 
favour of the extension of the Grains Trade Convention 1995 for a further period of up to two 
years. 

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

Done at Brussels, 

For the Council 
The President 

2 

OJ L 21, 27.1.1996, p. 6. 

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LEGISLATIVE FINANCIAL STATEMENT 

Policy area: Agricultural and Rural Development 

Activity: International aspects of Agricultural and Rural Development policy area 

TITLE OF ACTION: EXTENSION OF THE GRAINS TRADE CONVENTION 1995 

1. 

BUDGET LINE + HEADING: 

Heading 4 – The EU as a global partner 

05 06 01: International agricultural agreements 

2. 

OVERALL FIGURES 

2.1. 

Total allocation for action (Part B): EUR million 0.756 

2.2. 

Period of application: 1.7.2011 to 30.06.2013 

2.3. 

Overall  multi-annual  estimate  on  expenditure  (EUR  million),  subject  to  the 
approval of Budget 2012 and 2013 by the Budgetary Authority 

Commitments 

Payments 

2012 

0.360 

0.360 

2013 

0.396 

0.396 

Total 

0.756 

0.756 

2.4. 

Compatibility with the financial programming and the financial perspective 

X 

Proposal compatible with the existing financial programming 

2.5. 

Financial impact on revenue 

X  No financial implications (involves technical aspects regarding implementation 

of a measure). 

3. 

BUDGET CHARACTERISTICS 

Type of 
expenditure 

New 

EFTA 
participation 

Participation 
applicant countries 

Heading Financial 
Perspective 

Comp 

Diff 

NO 

NO 

NO 

4 The EU as a 
global partner 

4. 

LEGAL BASIS 

Article 207 in conjunction with Article 218(9) of the Treaty (TFEU). 

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5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention 

Because  of  its  economic  importance,  especially  in  the  agricultural  sector,  the  EU 
must  be  represented  in  international  agricultural  agreements,  which  represent  an 
important  means  for  following  global  developments  and  defending  Union  interests 
for the products concerned. 
The  payment  of  EU  membership  contributions  to  the  International  Grains  Council 
(ICG) enables the objectives of the international agreements to be attained. The IGC 
which  is  responsible  for  administering  the  Agreement  relating  to  the  Grains  Trade 
Convention  1995  and  Food  Aid  Convention  1999,  promotes  the  objectives  of  the 
Agreements, including international cooperation, exchange of statistical information, 
forecasting  market  trends,  etc.  and  for  the  Food  Aid  Convention  the  guarantee  that 
developing  countries  are  ensured  a  minimum  amount  of  food  aid  by  the  European 
Union. It is therefore in the interests of the EU to be a part of these Agreements. 
The membership contributions are determined on an annual basis and are due for as 
long as the EU is a member of the Agreements. 
It is clear that if the EU had to carry out on its own the same actions as are carried 
out  by  the  IGC,  the  total  cost  of  these  would  be  much  greater  than  the  cost  of  the 
membership contributions. 

5.2. 

Actions envisaged and arrangements for budget intervention 

The  EU  pays  membership  dues  on  an  annual  basis  for  the  International  Grains 
Council. 
The dues are paid for as long as the EU remains a signatory of the Agreements. 
The  European  Commission  participates  fully  in  the  activities  of  the  IGC  and  takes 
full advantage of the benefits of membership. 

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact on Part B 

Commitments  (to  the  3rd  decimal  place):  EUR  0.756  million  for  the  period  of  two 
years: 0.360 for 2011/2012 and 0.396 for 2012/2013. 

6.2. 

Calculation 

The  expenditure  involved  in  the  application  of  the  two  conventions  is  covered  by 
annual contributions from all members of the Grains convention. 
Each  contribution  is  fixed  in  proportion  to  the  number  of  votes  attributed  to  the 
member concerned and proportionally to its importance in the international market. 
There are a total of 2000 votes in the Convention, of which the European Union is 
estimated  to  hold  386  in  2011/12  and  2012/2013.  The  estimated  cost  per  vote  for 
2011/2012  is  €932  resulting  in  a  EU  contribution  of  EUR  0.360  million.  For 
2012/2013 and taking into consideration the adjustment of the price per vote, the cost 
is estimated at EUR 0.396 million. These amounts were increased by a 10% safety 
margin (exchange rates, unexpected changes in the organisation, etc.). We estimated 
an exchange rate of EUR 1.25 = GBP 1 for the calculations. 

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7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE 

7.1. 

Impact on human resources 

Staff to be assigned to management  
of the action using existing resources 

Description of tasks deriving  
from the action 

Types of post 

Number of 
permanent posts 

Number of 
temporary posts 

Permanent 
officials or 
temporary staff 

A 
B 
C 

Other human 
resources 

Total 

0.2 
0.1 
– 

– 

0.3 

– 
– 
– 

– 

– 

Total 

0.2 
0.1 
– 

– 

0.3 

7.2. 

Overall financial impact of human resources 

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

Type of human resources 

Amount EUR 

Method of calculation 

Officials 
Temporary staff 

Other human resources 

36 600 

0.3 x 122 000 

Total 

36 600 

8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

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

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

9. 

ANTI-FRAUD MEASURES 

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

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

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

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