Proposition de DÉCISION DU CONSEIL définissant la position à adopter, au nom de l’Union européenne, au sein du Comité de l’aide alimentaire en ce qui concerne la prorogation de la convention relative à l’aide alimentaire de 1999
Date: 2011-03-31
Institutions: European Commission
Subjects: European convention, food aid, interim agreement (EU), renewal of an agreement, the EU's international role

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EUROPEAN COMMISSION 

Brussels, 31.3.2011 
COM(2011) 161 final 

2011/0068 (NLE) 

Proposal for a 

COUNCIL DECISION 

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

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  Food  Aid  Convention,  1999  (FAC)  was  concluded  by  the  Community  by  Council 
Decision 2000/421/EC.  It  remains  in  force  until  30  June  2011,  following  an  extension  by 
decision of the Food Aid Committee at its 102nd session on 4 June 2010. 

The, FAC 1999 and the Grains Trade Convention (GTC), 1995 are linked in so far as the FAC 
may  only  be  extended  when  the  Grains  Trade  Convention  1995  exists  for  the  same  period. 
The  FAC  1999,  originally  introduced  in  the  1960s,  was  created  as  an  instrument  for  a 
coordinated  and  acceptable  disposal  of  agricultural  surpluses  from  developed  countries  to 
developing countries in need.  

As  the  current  FAC  expires  in  June  2011,  the  question  of  an  extension  will  be  formally 
addressed in the meeting of the Food Aid Committee in June 2011. At its 103rd session on 14 
December  2010  members  of  the  Food  Aid  Committee  agreed  to  revisit  the  issue  of  the 
extension of the FAC 1999 closer to the date of its expiry (i.e. 30 June 2011). At the informal 
meeting  on  the  same  day,  some  FAC  members  (Australia,  Canada,  Switzerland,  Japan  and 
United  States)  signalled  that  they  would,  in  principle,  be  favourable  to  an  extension  of  the 
FAC, 1999 for another year, i.e. until 30 June 2012. The EU, however, communicated the line 
agreed by the 'Council Working Group on Humanitarian Aid and Food Aid' (COHAFA): "The 
EU will work towards taking a decision in June 2011 as to the future of the FAC and formal 
renegotiation  should  start  now  without  any  prejudice  to  the  formal  position  that  will  be 
communicated in June 2011".  

At  its  103rd  session  on  14  December  2010,  the  members  of  the  Food  Aid  Committee 
collectively  agreed  to  start  the  formal  renegotiation  of  the  FAC.  The  process  started  with 
immediate  effect,  with  a  "draft  zero"  of  the  new  Convention  to  be  the  subject  of  the  first 
renegotiation round, scheduled to take place in London from 28 February to 2 March 2011. A 
series of intensive negotiation sessions are organised over the coming months, guided by the 
objective  of  agreeing  on  a  new  convention  focussed  on  the  provision  of  appropriate  and 
effective  food  assistance  to  vulnerable  populations,  based  on  identified  needs.  The  Council 
adopted negotiation directives, authorizing the Commission to renegotiate the FAC on behalf 
of the EU and its Member States, on 17 November 2010 (doc. 14907/10). 

In the informal meeting of the Food Aid Committee on 14 December 2010, the EU reiterated 
its  ambitious  timeline.  Negotiations  should  ideally  be  finalized  by  June  2011,  with  FAC 
members having reached agreement on a new Convention text prior to the formal session of 
the Food Aid Committee. 

Furthermore,  informal  talks  of  Food  Aid  Committee  members  on  the  future  of  the  FAC, 
which  were  conducted  between  December  2009  and  December  2010,  have  resulted  in 
consensus on the main issues that are subject of a formal renegotiation. It would therefore be 
appropriate for the EU to ensure that negotiation talks are conducted effectively resulting into 
an agreed text of a new Convention by June 2011.  

There are two possible scenarios in respect of which the EU has to prepare a common position 
in view of the session of the Food Aid Committee in June 2011: 

(1) 

either  the  renegotiation  of  the  FAC  is  in  a  final  stage  (i.e.  negotiation  talks  are 
completed  or  reasonably  close  to  completion)  prior  to  the  session  of  the  Food  Aid 
Committee in June 2011. In that case an extension of the FAC for one more year will 

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be most appropriate to avoid a vacuum between the existing FAC and the entry into 
force of a new Convention; or, 

(2) 

the renegotiation of the FAC is not in a final stage prior to the session of the Food Aid 
Committee in June 2011. In that case an extension of the current FAC for one more 
year will not be appropriate, and the Commission on behalf of the EU and its Member 
States  should  formally  oppose  the  emergence  of  a  consensus  in  favour  of  its 
prolongation in the Food Aid Committee. 

Whether the renegotiation of the FAC has reached a final stage or not, will be assessed by the 
European  Commission  and  EU  Member  States  in  the  Council  Working  Group  on 
Humanitarian Aid and Food Aid (COHAFA) prior to the session of the Food Aid Committee 
in  June  2011.  Should  the  FAC  not  be  extended  it  would  cease  to  exist  and  in  consequence 
there would be no minimum commitments to be fulfilled. However it is likely that recipient 
countries,  who  may  consider  that  predictability  of  food  aid  deliveries  will  deteriorate,  and 
other Members of the FAC, who favour the historic approach, i.e. a mechanism that facilitates 
the disposal of food products, will entertain negative perceptions in this scenario. 

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

•  Existing provisions in the area of the proposal 

Council Decision 2000/421/EC 

Council Decision 2006/906/EC 

Council Decision 2007/317/EC 

Council Decision 2009/393/EC 

Council Decision 2010/316/EU  

•  Consistency with the other policies and objectives of the Union 

Pursuant to Article XXV(b) of the FAC a further extension is conditional upon the remaining 
in  force,  for  the  same  period,  of  the  Grains  Trade  Convention  1995.  The  Grains  Trade 
Convention  1995  remains  in  force  until  30  June  2011,  and  the  Commission  proposes 
(COM/2011/4)  that  the  EU  establishes  a  position  in  favour  of  a  further  extension  of  this 
Convention.  

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

At the Council Working Group on Humanitarian Aid and Food Aid (COHAFA) meeting of 9 
December  2010,  Member  States  took  the  following  position  regarding  the  extension  of  the 
FAC, 1999: "The EU will work towards taking a decision in June 2011 as to the future of the 

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FAC and formal renegotiation should start now without any prejudice to the formal position 
that will be communicated in June 2011"  

Collection and use of expertise 

There was no need for external expertise. 

•  Impact Assessment 

Not applicable. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Legal basis 

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

•  Subsidiarity 

The proposal falls under mixed competence. 

•  Proportionality 

The proposal complies with the proportionality principle. 

•  Choice of instrument 

Proposed instrument: Council Decision.  

Other means would not be adequate for the following reason: pursuant to article 218.9 TFEU, 
it is the only way to adopt the European Union's position to be expressed within the Food Aid 
Committee. 

4. 

BUDGETARY IMPLICATION 

The FAC 1999 may only be extended when the Grains Trade Convention 1995 exists for the 
same  period.  The  contribution  to  the  administrative  budget  of  the  International  Grains 
Agreement also covers the FAC 1999, i.e. there is no additional budgetary implication for an 
extension  of  the  FAC.  The  contribution  is  budgeted  under  item  05  06  01  of  the  EU  budget 
(International agricultural agreements). The estimated cost of this contribution was set out in a 
financial statement attached to the Commission 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, that was adopted by the 
Commission on 18 January 2011 (COM/2011/4). 

The extension of the FAC 1999 would mean that yearly commitments to provide food aid by 
the European Union under Article III(e) of the FAC will be extended for one more year. The 
European Commission has taken responsibility for a share of the commitments undertaken by 
the  EU  and  its  Member  States  within  the  FAC.  A  single  FAC  notification  is  consolidated 
together with Member States and does not indicate separate operations. The FAC (article VI) 

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provides for carryover and carry-forward from one year to another, where the commitments 
have been exceeded, but this has never been invoked. 

It  is  important  however  to  note  that  for  three  consecutive  reporting  years:  i.e.  2007/08, 
2008/09  and  2009/10,  the  European  Union  has  not  been  in  a  position  to  meet  its  tonnage 
commitments. 

CONCLUSIONS 

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

(a) 

(b) 

vote  on  behalf  of  the  European  Union  and  its  Member  States,  in  accordance 
with Article XXV(b) of the Food Aid Convention 1999, in favour of the further 
extension of this Convention, for a period of one year, i.e. until 30 June 2012, 
provided that the renegotiation of the Food Aid Convention is in a final stage 
(i.e. negotiation talks are completed or reasonably close to completion) prior to 
the session of the Food Aid Committee in June 2011 and provided the Grains 
Trade Convention 1995 remain in force during the same period; or  

oppose the emergence of a consensus in the Food Aid Committee, pursuant to 
Rule 13 of the Rules of Procedures of the Food Aid Committee, favouring an 
extension of the Food Aid Convention if the renegotiation is not in a final stage 
prior to the session of the Food Aid Committee in June 2011. 

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2011/0068 (NLE) 

Proposal for a 

COUNCIL DECISION 

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

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  Food  Aid  Convention  1999  was  concluded  by  the  European  Community  by 
Council  Decision  2000/421/EC1,  and  extended  by  various  decisions  of  the  Food  Aid 
Committee.  

The  current  Food  Aid  Convention  expires  on  30  June  2011  and  the  question  of  a 
renewal will be addressed in the session of the Food Aid Committee in June 2011. 

Pursuant to Article XXV(b) of the Food Aid Convention, its extension is conditioned 
by  the  Grains  Trade  Convention  1995  remaining  in  force  for  the  same  period.  The 
Grains  Trade  Convention  remains  in  force  until  30  June  2011  and  the  Commission 
proposes a Council decision for establishing the position to be adopted, on behalf of 
the  Union,  within  the  International  Grains  Council  concerning  its  extension.2.Its 
extension should be decided on by the International Grains Council on 6 June 2011.  

At  its  103rd  session  on  14  December  2010  members  of  the  Food  Aid  Committee 
agreed  that  the  issue  of  the  extension  of  the  Food  Aid  Convention  will  be  revisited 
closer  to  the  date  of  its  expiry  (i.e.  30  June  2011)  and  the  European  Union  took  the 
position that: "The European Union will work towards taking a decision in June 2011 
as to the future of the Food Aid Convention and formal renegotiation should start now 
without any prejudice to the formal position that will be communicated in June 2011". 

(5) 

At its 103rd session on 14 December 2010, the members of the Food Aid Committee 
agreed  to  begin  the  formal  process  of  renegotiating  the  Food  Aid  Convention,  1999, 
with a series of negotiation sessions.  

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OJ L 163, 4.7.2000, p. 37. 
COM(2011)4 final. 

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(6) 

(7) 

The aim of the European Union is for members of the Food Aid Committee to finalise 
the  renegotiation  of  the  Food  Aid  Convention  and  reach  agreement  on  a  new 
Convention text prior to the session of the Food Aid Committee in June 2011. 

There  are  two  possible  scenarios  for  which  the  European  Union  has  to  prepare  a 
common position in view of the session of the Food Aid Committee in London in June 
2011: 

(a) 

(b) 

either  the  renegotiation  of  the  Food  Aid  Convention  by  the  members  of  the 
Food  Aid  Committee  is  in  a  final  stage  prior  to  the  session  of  the  Food  Aid 
Committee in June 2011: in that case an extension of the Food Aid Convention 
for  one  more  year  will  be  most  appropriate  to  avoid  a  vacuum  between  the 
existing  Food  Aid  Convention  and  the  entry  into  force  of  a  new  Convention; 
or, 

the renegotiation of the Food Aid Convention is not in a final stage prior to the 
session of the Food Aid Committee in June 2011. In that case an extension of 
the  Food  Aid  Convention  for  one  more  year  will  not  be  appropriate,  and  the 
European Commission on behalf of the European Union and its Member States 
should formally oppose the emergence of a consensus in favour of an extension 
of the Food Aid Convention in the Food Aid Committee, pursuant to Rule 13 
of the FAC rules of procedures.  

(8)  Whether  the  renegotiation  of  the  FAC  has  reached  a  final  stage  or  not,  should  be 
assessed by the European Union in the Council Working Group on Humanitarian Aid 
and  Food  Aid  (COHAFA)  prior  to  the  session  of  the  Food  Aid  Committee  in  June 
2011. 

(9) 

The  European  Commission,  which  represents  the  European  Union  in  the  Food  Aid 
Committee, should therefore be authorised by a Council Decision to either favour an 
extension of the Food Aid Convention for one year, i.e. until 30 June 2012 or oppose a 
consensus in the Food Aid Committee favouring such extension. 

HAS DECIDED AS FOLLOWS:  

The position of the European Union within the Food Aid Committee shall be either  

Article 1 

(a) 

(b) 

to vote in favour of the further extension of this Convention, for a period of one 
year,  i.e.  until  30 June 2012,  provided  that  the  renegotiation  of  the  Food  Aid 
Convention is in a final stage prior to the session of the Food Aid Committee in 
June  2011,  and  provided  the  Grains  Trade  Convention  1995  remains  in  force 
during the same period; or  

to oppose the emergence of a consensus in the Food Aid Committee, pursuant 
to Rule 13 of the Rules of Procedures of the Food Aid Committee, favouring 
an extension of the Food Aid Convention, if the renegotiation of the Food Aid 
Convention  is  not  in  a  final  stage  prior  to  the  session  of  the  Food  Aid 
Committee in June 2011. 

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Article 2 

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

Done at Brussels, 

For the Council 
The President 

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