Proposal for a COUNCIL DECISION on the position to be adopted, on behalf of the European Union, in the International Grains Council with respect to the extension of the Grains Trade Convention, 1995
Date: 2017-03-31
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: cereals, commodity agreement, international convention, international organisation, renewal of an agreement, trade agreement

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   EUROPEAN COMMISSION  Brussels, 31.3.2017  COM(2017) 154 final 2017/0070 (NLE)   Proposal for a COUNCIL DECISION on the position to be adopted, on behalf of the European Union, in the International Grains Council with respect to the extension of the Grains Trade Convention, 1995  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

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.  On each occasion the Convention is  extended for a maximum period  of 
two years. It was last extended by decision of the International Grains Council in June 2015 
and remains in force until 30 June 2017. A further extension of the Convention by up to two 
years is in the interest of the Union. 

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 Convention up to 30 June 2019 in the 
International  Grains  Council.  The  formal  decision  about  the  extension  of  the  Convention  is 
scheduled for the 45th Session of the International Grains Council to be held on 5 June 2017.  

• 

N/A 

• 

N/A 

2. 

• 

Consistency with existing policy provisions in the policy area 

Consistency with other Union policies 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 207 and Article 218(9) of the Treaty on the Functioning of the European Union. 

Subsidiarity (for non-exclusive competence)  

Proportionality 

Choice of the instrument 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

• 

N/A 

• 

N/A 

• 

N/A 

3. 

N/A 

4. 

BUDGETARY IMPLICATIONS 

The  extension  of  the  Convention  entails  the  prolongation  of  the  EU  contribution  to  the 
administrative budget of the International Grains Council, which covers both the Grains Trade 

1 

OJ L 21, 27.1.1996, p. 47. 

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Convention, 1995 and the Food Assistance Convention. That contribution is budgeted under 
item 05 06 01 of the EU budget (International agricultural agreements).  

OTHER ELEMENTS 

5. 

N/A 

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2017/0070 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be adopted, on behalf of the European Union, in 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  Council  Decision  96/88/EC2 
for a period of three years and has been regularly extended for further periods of two 
years.  The  Convention  was  last  extended  by  Decision  of  the  International  Grains 
Council in June 2015 and remains in force until 30 June 2017. A further extension is 
in the interest of the Union.  

(2) 

The Commission, which represents the Union within the International Grains Council, 
should therefore be authorised to vote in favour of such extension, 

HAS ADOPTED THIS DECISION:  

Article 1 

The position to be taken on behalf of the European Union in 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 from 1 July 2017. 

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

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

Article 2 

2 

Council Decision 96/88/EC of 19 December 1995 concerning the approval by the European Community 
of  the  Grains  Trade  Convention  and  the  Food  Aid  Convention,  constituting  the  International  Grains 
Agreement 1995 (OJ L 21, 27.1.1996, p. 47). 

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This Decision is addressed to the Commission. 

Done at Brussels, 

Article 3 

For the Council 
The President   

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FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 05 06 INTERNATIONAL ASPECTS OF ‘AGRICULTURE AND 
RURAL DEVELOPMENT’ POLICY AREA 
05 06 01 International agricultural agreements 

FinancSt/17/ 
MK/ig/350345 
6.221.2017.1 
agri.ddg3.g.4(2017)61
3693 
DATE: 19.01.2017 

APPROPRIATIONS: 
B2017 8 105 849 EUR 

TITLE: 
Proposal for a Council Decision establishing the position to be taken by the European Union within the 
International Grains Council with respect to the extension of the Grains Trade Convention 1995. 

LEGAL BASIS: Article 207 in conjunction with Article 218 (9) of the Treaty on the Functioning of the 
European Union 

AIMS: 
Extension of the existing Grains Trade Convention by two more years (1.7.2017 to 30.06.2019). 

1. 

2. 

. 

4. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EU BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 
2017 
(EUR million) 
0.49 

FOLLOWING 
FINANCIAL 
YEAR 
2018 
(EUR million) 
0.41 

5.1  REVENUE 

OWN RESOURCES OF THE EU  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: Based on assumptions on an estimated number of votes of the EU 

2019 
0.42 

(varies each year), on an estimated amount to be paid per vote in GBP. 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

YES  

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
OBSERVATIONS: 

YES  

The amount to be effectively paid can vary depending on the final number of votes the EU gets attributed to, the 
amount to be paid per vote in GBP and on the exchange rate €/ GBP.  

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