Proposal for a COUNCIL DECISION establishing the position to be adopted, on behalf of the European Union, within the Food Aid Committee as regards the extension of the Food Aid Convention, 1999
Date: 2012-05-10
Institutions: European Commission
Subjects: food aid, international convention, renewal of an agreement

EUROPEAN COMMISSION 

Brussels, 10.5.2012  
COM(2012) 211 final 

2012/0106 (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 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The Food Aid Convention, 1999 (FAC, 1999) was concluded by the Community by Council 
Decision 2000/421/EC. Originally introduced in the 1960s, it was created as an instrument for 
a  coordinated  and  acceptable  disposal  of  agricultural  surpluses  from  developed  countries  to 
developing countries in need. It remains in force until 30 June 2012, following an extension 
by decision of the Food Aid Committee at its 104th session on 18 May 2011. 

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 Grains Trade Convention of 1995 has been extended until 30 June 2013, thus allowing 
formally the FAC,1999 to also be extended for one year. 

As  the  FAC,  1999  expires  on  30  June  2012,  the  question  of  an  extension  will  be  formally 
addressed in the meeting of the Food Aid Committee in June 2012. At its 103rd session on 14 
December 2010, members of the Food Aid Committee agreed to start the formal renegotiation 
of the FAC, 1999. While the EU would have wished the negotiations to be finalised by June 
2011, the final steps of the negotiations of a modernised Food Assistance Convention is only 
expected to be concluded in April 2012, as and when the French and English versions – both 
being equally authentic – of the new Convention will be agreed upon by the negotiators.  

The FAC, 1999 expires on 30 June 2012 while the Food Assistance Convention would enter 
into force on 1 January 2013 on condition that by 31 October 2012 six Parties have ratified 
the Convention. There is likely to be a gap of six months between the expiration of the FAC, 
1999 and the entry into force of the Food Assistance Convention. At the 105th session of the 
Food Aid Committee on 30 November 2011, Parties agreed that an overlap, where the FAC, 
1999, and the new Convention would be both in force during a certain period of time, should 
be avoided. The question of a possible further extension of the FAC, 1999 will be formally 
addressed by the Food Aid Committee in its meeting in June 2012. Therefore, the EU has to 
prepare  a  common  position.  Based  on  discussions  with  EU  Member  States  in  the  Council 
Working  Group  on  Humanitarian  Aid  and  Food  Aid  (COHAFA)  on  29  February  2012,  the 
Commission and EU Member States would favour a six-month gap rather than an extension 
of  the  current  FAC,  as  it  is  most  likely  that  the  latter  would  be  for  one  year  (until  30  June 
2013). 

Under  the  FAC,  1999  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  equivalent  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 Union 
as part of an internal EU agreement. 

The extension of the FAC, 1999 is not a legal necessity to facilitate the entry into force of a 
new modernised Convention, nor is it a political imperative. The extension of the FAC, 1999 
would lead to an extension of the EU's annual commitment to provide food aid under Article 
III(e)  of  the  Convention.  It  is  important  to  note  that  for  the  last  four  reporting  periods,  the 
European Union has not been in a position to meet its commitment in terms of tonnage. At the 
same time, however, the EU has largely exceeded its value commitments. This is to a large 

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extent due to the EU's shift to a modern food assistance approach, which is not acknowledged 
under the current Convention. 

If  the  FAC,  1999  is  not  extended,  it  will  cease  to  exist.  Subsequently,  there  would  be  no 
minimum  commitments  directly  determined  in  the  Food  Assistance  Convention,  each  Party 
thereto  determining  the  amount  of  the  minimum  commitment  it  undertakes  to  fulfil.  This 
would  not  affect  the  budgetary allocation  to  humanitarian  food  assistance  and  food  security 
under  the  EU  General  Budget.  However,  there  might  be  consequences  such  as  a  negative 
perception  by  recipient  populations/countries,  who  may  fear  that  the  predictability  of  food 
aid/assistance  will  deteriorate.  Therefore,  communication  and  dialogue  will  be  required  to 
reassure them that the EU's commitment to address food and nutrition insecurity of the most 
vulnerable remains. The expected conclusion of the Food Assistance Convention by the EU is 
proof thereof, with  a  strong  political  and financial commitment.  It  will  also be important to 
remind that the EU has been the driving force behind the renegotiation.  

2. 

EXISTING PROVISIONS IN THE AREA OF THE PROPOSAL 

The  EU  has  agreed  to  several  successive  extensions  of  the  FAC,  1999  by  means  of  the 
following decisions: 

– 

– 

– 

– 

– 

– 

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 

Council Decision 2011/339/EU 

•  Consistency with the other policies and objectives of the Union 

Pursuant to Article XXV(b) of the FAC, 1999, a further extension for a period of one year 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 2013 as decided at 
the International Grains Council meeting on 6 June 2011.  

3. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

At  the  Council  Working  Group  on  Humanitarian  Aid  and  Food  Aid  (COHAFA)  of  29 
February  2012,  Member  States  expressed  support  for  a  six-month  time  gap  and  the 
development of an EU position to oppose an extension of the FAC, 1999.  

Collection and use of expertise 

There was no need for external expertise. 

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•  Impact Assessment 

Not applicable. 

4. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Legal basis 

Article 214 (1) and (4) and Article 218(9) of the Treaty on the Functioning of the European 
Union. 

•  Subsidiarity 

The proposal falls under parallel 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. 

5. 

BUDGETARY IMPLICATION 

The extension of the FAC, 1999 would mean that the yearly commitments to provide food aid 
by  the  European  Union  and  its  Member  States  under  Article  III(e)  of  the  FAC  would  be 
extended for one more year. The European Union 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) 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  four  consecutive  reporting  years:  i.e.  2007/08, 
2008/09,  2009/10  and  2010/11  the  European  Union  has  not  been  in  a  position  to  meet  its 
tonnage commitments. 

CONCLUSIONS 

In  view  of  the  above,  the  Commission  proposes  that  the  Council  establishes  the  following 
position  on  behalf  of  the  European  Union,  and  authorises  the  Commission  accordingly  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. 

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2012/0106 (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  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 214(1) and (4), in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the Commission,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

The  Food  Aid  Convention  1999  (hereinafter  referred  to  as  'FAC')  was  concluded  by 
the  European  Community  by  Council  Decision  2000/421/EC1,  and  extended  by 
various decisions of the Food Aid Committee. 

The current FAC expires in June 2012 and the question of its possible extension will 
be addressed in the session of the Food Aid Committee in June 2012. 

Pursuant to Article XXV(b) of the Food Aid Convention, its extension is conditioned 
by the Grains Trade Convention 1995 which remains in force until 30 June 2013, after 
its extension was decided by the International Grains Council on 6 June 2011. 

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

The current FAC expires on 30 June 2012 while the new Food Assistance Convention 
would  enter  into  force  on  1  January  2013.  There  is  likely  to  be  a  gap  of  six  months 
between  the  expiration  of  the  FAC  and  the  entry  into  force  of  the  Food  Assistance 
Convention.  

At the 105th session of the Food Aid Committee on 30 November 2011, Parties to the 
FAC agreed that an overlap should be avoided. A six-month gap should therefore be 
preferred over an extension of the FAC. 

The  European  Commission,  which  represents  the  European  Union  in  the  Food  Aid 
Committee,  should  therefore  be  authorised  by  a  Council  Decision  to  oppose  a 
consensus in the Food Aid Committee favouring an extension, 

1 

OJ L 163, 4.7.2000, p. 37. 

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HAS DECIDED AS FOLLOWS:  

Article 1 

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

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

Article 2 

Article 3 

This Decision shall enter into force on the day of its adoption. 

Done at Brussels,  

For the Council 
The President 

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