Proposal for a COUNCIL DECISION on the position to be adopted, on behalf of the European Union, in the International Sugar Council as regards the extension of the International Sugar Agreement 1992
Date: 2017-08-07
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: commodity agreement, international organisation, renewal of an agreement, sugar, trade agreement (EU)

EUROPEAN 
COMMISSION 

Brussels, 7.8.2017  
COM(2017) 416 final 

2017/0187 (NLE) 

Proposal for a 

COUNCIL DECISION 

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

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EXPLANATORY MEMORANDUM 

1. 

SUBJECT-MATTER OF THE PROPOSAL 

The present proposal concerns the decision establishing the position to be adopted on behalf 
of the Union in the International Sugar Council in connection with the envisaged decision on 
the extension of the International Sugar Agreement 1992 by another two years.  

2. 

CONTEXT OF THE PROPOSAL 

2.1. 

The International Sugar Agreement 1992 

The  International  Sugar  Agreement  1992  (‘the  Agreement’)  aims  to  ensure  enhanced 
international cooperation in connection with world sugar matters and related issues, provide a 
forum for intergovernmental consultations on sugar and on ways to improve the world sugar 
economy,  to  facilitate  trade  by  collecting  and  providing  information  on  the  world  sugar 
market  and  other  sweeteners  and  to  encourage  increased  demand  for  sugar,  particularly  for 
non-traditional uses. The agreement entered into force on 1 January 1993.  

The European Union is a party to the Agreement.1  

2.2. 

The International Sugar Council 

The International Sugar Council is the responsible body for the performance of all functions 
necessary  to  carry  out  the  provisions  of  the  Agreement.  It  adopts  rules  and  regulations 
including  rules  of  procedure  for  the  Council  and  its  committees  and  the  financial  and  staff 
regulations  of  the  Organization.  The  Council  keeps  the  necessary  records  and  publishes  an 
annual report and other information if deemed appropriate.  

Members  to  the  Agreement  hold  2000  votes  in  total.  Each  Member  to  the  Agreement  holds  a 
specified  number  of  votes  which  is  annually  adjusted  following  predefined  criteria  in  the 
Agreement. All decisions of the Council shall be taken in principle by consensus unless stipulated 
otherwise  in  the  Agreement.  In  the  absence  of  consensus,  decisions  shall  be  made  by  simple 
majority vote unless the Agreement provides for a special vote. 

2.3. 

The envisaged act of the International Sugar Council 

Following  its  51st  session  on  22  June  2017  the  International  Sugar  Council  is  to  take  a 
decision  regarding  the  extension  of  the  International  Sugar  Agreement  1992  by  another  2 
years (‘the envisaged act’). The decision will be taken by written procedure.  

The envisaged act shall become binding on the parties in accordance with Article 45 (2) of the 
Agreement, which provides: ‘The Council may, by special vote, extend this Agreement beyond 
31  December  1995  for  successive  periods,  not  exceeding  two  years  on  each  occasion.  Any 
Member which does not accept any such extension of this Agreement shall so inform the Council 
in  writing  and  shall  cease  to  be  a  Party  to  this  Agreement  from  the  beginning  of  the  period  of 
extension’.  

1 

Council Decision (92/580/EEC) of 13/11/1992; OJ L 379 of 23/12/1992, p.15. 

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3. 

POSITION TO BE ADOPTED ON BEHALF OF THE UNION 

The  International  Sugar  Agreement  1992,  (hereinafter:  the  “Agreement”)  was  concluded  by 
the  Community  by  Decision  92/580/EEC  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 June 2015 and remains into force until 31 December 2017. A 
further  extension  of  the  Agreement  by  up  to  two  years  is  in  the  interest  of  the  European 
Union.  

The  extension  of  the  Agreement  entails  the  prolongation  of  the  EU  contribution  to  the 
administrative  budget  of  the  Agreement  and  creates  legal  effects.  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 
inform the International Sugar Council in writing, on behalf of the Union, that the Union is in 
favour of the extension of the Agreement up to 31 December 2019.  

Since the extension of the Agreement creates legal effects for the Union a Union position is 
needed.  

4. 

LEGAL BASIS 

4.1. 

Procedural legal basis 

4.1.1.  Principles 

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for 
decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by 
an  agreement,  when  that  body  is  called  upon  to  adopt  acts  having  legal  effects,  with  the 
exception of acts supplementing or amending the institutional framework of the agreement.’ 

The notion of ‘acts having legal effects’ includes acts that have legal effects by virtue of the 
rules of international law governing the body in question. It also includes instruments that do 
not  have  a  binding  effect  under  international  law,  but  that  are  ‘capable  of  decisively 
influencing the content of the legislation adopted by the EU legislature’.2 

4.1.2.  Application to the present case 

The International Sugar Council is a body set up by an agreement, namely the International 
Sugar Agreement 1992. 

The  act  which  the  International  Sugar  Council  is  called  upon  to  adopt  constitutes  an  act 
having legal effects. The envisaged act will be binding under international law in accordance 
with Article 45 (2) of the Agreement.  

The  envisaged  act  does  not  supplement  or  amend  the  institutional  framework  of  the 
agreement. 

2 

Case C-399/12 Germany v Council (OIV), ECLI:EU:C:2014:2258, paragraphs 61-64.  

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The procedural legal basis for the proposed decision, therefore, is Article 218(9) TFEU. 

4.2. 

Substantive legal basis 

4.2.1.  Principles 

The  substantive  legal  basis  for  a  decision  under  Article  218(9)  TFEU  depends  primarily  on 
the  objective  and  content  of  the  envisaged  act  in  respect  of  which  a  position  is  adopted  on 
behalf of the Union. If the envisaged act pursues two aims or has two components and if one 
of  those  aims  or  components  is  identifiable  as  the  main  one,  whereas  the  other  is  merely 
incidental, the decision under Article 218(9) TFEU must be founded on a single substantive 
legal basis, namely that required by the main or predominant aim or component. 

4.2.2.  Application to the present case 

The main objective and content of the envisaged act relate to common commercial policy. 

The substantive legal basis of the proposed decision, therefore, is Article 207 TFEU. 

4.3. 

Conclusion 

The  legal  basis  of  the  proposed  decision  should  be  Article  207  TFEU  in  conjunction  with 
Article 218(9) TFEU. 

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2017/0187 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be adopted, on behalf of the European Union, in 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)  Whereas the International Sugar Agreement 1992 (‘the Agreement’) was concluded by 
Council Decision 92/580/EEC3  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.  It  was  last  extended  by  decision  of  the  International 
Sugar Council in June 20154 and remains in force until 31 December 2017.  

(2) 

(3) 

(4) 

(5) 

(6) 

Pursuant to Article 45 (2) of the Agreement, the International Sugar Council ‘may, by 
special vote, extend this Agreement beyond 31 December 1995 for successive periods, 
not  exceeding  two  years  on  each  occasion.  Any  Member  which  does  not  accept  any 
such  extension  of  this  Agreement  shall  so  inform  the  Council  in  writing  and  shall 
cease to be a Party to this Agreement from the beginning of the period of extension’ 

 Following its 51st session on 22 June 2017 the International Sugar Council is to take a 
decision  regarding  the  extension  of  the  International  Sugar  Agreement  1992  by 
another 2 years (‘the envisaged act’). The decision will be taken by written procedure.  

It is appropriate to establish the position to be adopted on behalf of the Union in the 
International  Sugar  Council  as  the  extension  of  the  Agreement  will  be  binding  upon 
the Union. 

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

In the International Sugar Council the Union is to be represented by the Commission 
in accordance with Article 17(1) of the Treaty on European Union (TEU). 

3 
4 

OJ L 379, 23.12.1992, p. 15. 
OJ L 234, 8.9.2015, p. 6. 

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HAS ADOPTED THIS DECISION: 

Article 1 

The written position to be adopted, on behalf of the Union, following its 51st session of the 
International Sugar Council shall be the following: 

To authorise the Commission to take a position in favour of the extension of the International 
Sugar Agreement 1992 for a further period of up to two years. 

After its adoption, the act of the International Sugar Council shall be published in the Official 
Journal of the European Union. 

 Article 2 

Article 3 

This Decision is addressed to the Commission. 

Done at Brussels, 

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 

Fin Stat/17/MK/ig/ 
rev1_3163147 
agri.ddg3.g.4(2017)3127013
6.221.2017.1 

DATE: 11/07/2017 

APPROPRIATIONS: 

B2017: 8 105 849 € 
DB2018: 7 228 000 € 

TITLE: 
Proposal for a Council Decision on the position to be adopted, on behalf of the European Union, in the 
International Sugar Council as regards the extension of the International Sugar Agreement 1992 

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 International Sugar Agreement by two more years (1.1.2018 to 31.12.2019). 
(No impact in 2017). 

1. 

2. 

3. 

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) 

FOLLOWING 
FINANCIAL 
YEAR 
2018 (EUR 
million) 
0.49 

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 
(EUR million)
0.57 

(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 NO 

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? 

YES NO 

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.   

EN 

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