Proposal for a COUNCIL DECISION establishing the position to be adopted, on behalf of the Union, within the International Sugar Council as regards the extension of the International Sugar Agreement 1992
Date: 2011-01-18
Institutions: European Commission
Subjects: European Union, commodity agreement, international agreement, sugar

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EUROPEAN COMMISSION 

Brussels, 18.1.2011 
COM(2011) 3 final 

2011/0004 (NLE) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted, on behalf of the Union, within the International 
Sugar Council as regards the extension of the International Sugar Agreement 1992 

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EXPLANATORY MEMORANDUM 

The  International  Sugar  Agreement  1992,  (hereinafter:  the  “Agreement”)  was  concluded  by 
the  Community  by  Decision  92/580/EEC1  and  entered  into  force  on  1  January  1993  for  a 
period of three years until 31 December 1995. Since then it has been regularly extended for 
further  periods  of  two  years.  The  Agreement  was  extended  last  time  by  decision  of  the 
International Sugar Council in May 2009 and remains into force until 31 December 2011. 

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

That  extension  of  the  Agreement  entails  the  prolongation  of  the  EU  contribution  to  the 
administrative budget of the Agreement. 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 Agreement up to 31 December 2013 
within the International Sugar Council. 

1 

OJ L 379, 23.12.1992, p. 15. 

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2011/0004 (NLE) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be adopted, on behalf of the Union, within the International 
Sugar Council as regards the extension of the International Sugar Agreement 1992 

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  International  Sugar  Agreement  1992  was  concluded  by  the  Community  by 
Council Decision 92/580/EEC2 and entered into force on 1 January 1993 for a period 
of three years until 31 December 1995. Since then, it has been regularly extended for 
further  periods  of  two  years.  That  Agreement  was  last  extended  by  decision  of  the 
International  Sugar  Council  in  May  2009  and  remains  into  force  until  31  December 
2011.  A  further  extension  is  in  the  interest  of  the  Union.  The  Commission,  which 
represents the Union in the International Sugar Council, 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  Sugar  Council  shall  be  to  vote  in 
favour of the extension of the International Sugar Agreement, 1992, for a further period, up to 
two years. 

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

Done at Brussels, 

For the Council 
The President 

2 

OJ L 379, 23.12.1992, p. 15. 

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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 INTERNATIONAL SUGAR AGREEMENT 1992 

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 0.850  

2.2. 

Period of application: 1.1.2012 to 31.12.2013 

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 

0.419 

0.419 

2013 

0.431 

0.431 

Total 

0.850 

0.850 

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  enables  the  objectives  of  the 
International Sugar Agreement to be attained. The International Sugar Organisation, 
which is responsible for administering the Agreement, promotes the objectives of the 
Agreement,  such  as  international  cooperation,  exchange  of  statistical  information, 
forecasting market trends, etc. It is therefore in the interests of the EU to be a part of 
the Agreement. 

The membership contributions are determined on an annual basis and are due for as 
long as the EU is a member of the Agreement. 

It is clear that if the EU had to carry out on its own the same actions as are carried 
out  by  the  ISO,  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  Sugar 
organisation. 

The dues are paid for as long as the EU remains a signatory of the Agreement. 

The  European  Commission  participates  fully  in  the  activities  of  the  ISO  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  0.850  million  for  the  period  of  two 
years, i.e. 0.419 for 2012 and 0.431 for 2013. 

6.2. 

Calculation 

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. 

The  number  of  votes  allocated  to  the  EU  is  estimated  at  565  out  of  2000  and  the 
number of votes should remain stable for the period of the extension. The estimated 
cost per vote for 2012 is €674 resulting in  a EU contribution of EUR .0.381 million. 

For 2013, taking into consideration the adjustment of the price per vote (€694), the 
estimated cost is EUR 0.392 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 ISO  

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 ISO activities are closely followed by its members and the Commission fully participates 
in ISO’s regular meetings. A report of ISO activities is regularly published. 

9. 

ANTI-FRAUD MEASURES 

Payments will only be made directly to the bank account of the ISO on receipt of a written 
request, after verification that the request coincides with the figure agreed by the Council of 
the International Sugar Agreement. 

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