Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Grains Council with respect to the extension of the Grains Trade Convention, 1995
Date: 2019-04-04
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, 4.4.2019  COM(2019) 167 final 2019/0089 (NLE)  Proposal for a COUNCIL DECISION on the position to be taken 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. 

SUBJECT MATTER OF THE PROPOSAL 

This proposal concerns the decision establishing the position to be taken on the Union's behalf 
in  the  International  Grains  Council  in  connection  with  the  envisaged  adoption  of  extending 
the Grains Trade Convention, 1995 until 30 June 2021. 

2. 

CONTEXT OF THE PROPOSAL 

2.1. 

The Grains Trade Convention, 1995 

The  Grains  Trade  Convention,  1995  (‘the  Convention’)  aims  to  further  international  co-
operation in all aspects of trade in grains, to promote the expansion of international trade in 
grains and to secure the freest possible flow of this trade. In addition, the Convention intends 
to contribute to the fullest extent possible to the stability of international grain markets in the 
interests of all members, to enhance world food security and to provide a forum for exchange 
of information and discussion of members’ concerns regarding trade in grains. 

The Convention entered into force on 1 July 1995. 
The Union is a party to the Convention1. 

2.2. 

The International Grains Council 

The  International  Grains  Council  (‘IGC’)  is  an  intergovernmental  organisation  that  seeks  to 
meet the objectives laid down by Article 1 of the Convention. In particular, the IGC aims at: 

furthering international cooperation in all aspects of  trade in grains;  

promoting expansion, openness and fairness of the international trade in the grains sector;  

contributing  to  stability  of  international  grain  market,  enhancing  world  food  security  and 
contributing to the development of countries whose economies depend on commercial sales of 
grain. 

These objectives are sought by improving market transparency through information-sharing, 
analysis and consultation on market and policy developments. 

The  International  Grains  Council  has  28  members,  including  many  of  the  world’s  largest 
cereals producers as well as importers. Besides the Union and among others, its members are 
Argentina,  Australia,  Canada,  Egypt,  India,  Japan,  Russia,  Ukraine  and  the  USA.  However, 
China and Brazil are not members.  

The 28 members of the IGC have a total number of 2,000 votes.  

For  budgetary  procedures  (see  Article  12  of  the  Convention),  i.e.  for  fixing  the  annual 
financial contributions of members, the Union has 367 votes in 2018/192.  

For decision-making, i.e. where votes are held (see Article 11 of the Convention), 1,000 votes 
are distributed for the 10 exporting members (including the Union with 243 votes) and 1,000 
votes  for  the  18  importing  members.  It  needs  to  be  emphasized  that  in  principle,  the  IGC 
operates on the basis of consensus and it is very rare that voting is actually held. 

At  the  meetings  of  the  International  Grains  Council  the  Union  is  represented  by  the 
Commission. Member States can attend the IGC meetings, in particular the Council Sessions.  

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OJ L 21, 27.1.1996, p. 47. 
The International Grains Council operates on a fiscal year basis, which runs from 1 July to 30 June. 

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2.3. 

The envisaged act of the International Grains Council 

On 10 June 2019, during its forty-ninth session the International Grains Council is to adopt a 
decision regarding the extension by two years of the Convention (‘the envisaged act’). 

The purpose of the envisaged act, which is based on Article 33 of the Convention, is to enable 
the International Grains Council to continue with its work. 

The extension of the Convention will cover the period of 1 July 2019 – 30 June 2021. 

3. 

POSITION TO BE TAKEN ON THE UNION'S BEHALF 

The  Grains  Trade  Convention,  1995  was  concluded  by  the  Union  by  Council  Decision 
96/88/EC3  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 in accordance with 
Article  33  of  the  Convention.  It  was  last  extended  by  decision  of  the  International  Grains 
Council in June 2017 and remains in force until 30 June 2019.  

The  Union  has  always  been  an  active  member  of  the  IGC  and  a  further  extension  of  the 
Convention by up to two years is in the interest of the Union. The Union is a major cereals 
producer and a leading exporter of wheat and barley, while the largest importer of maize.   

The purpose of this proposal is to seek the Council’s authorisation to the Commission to vote, 
on the Union’s behalf, in favour of the extension of the Convention up to 30 June 2021 in the 
International  Grains  Council.  The  formal  decision  about  the  extension  of  the  Convention  is 
scheduled for the 49th session of the International Grains Council to be held on 10 June 2019 
in London, UK.  

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 concept 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’4.  

4.1.2.  Application to the present case 

The envisaged act of the International Grains Council has the effect of extending the validity 
of the Convention which is an international agreement binding the Union. The envisaged act 
has therefore legal effects. 

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

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OJ L 21, 27.1.1996, p. 47. 
Judgment  of 
ECLI:EU:C:2014:2258, paragraphs 61 to 64.  

the  Court  of  Justice  of  7  October  2014,  Germany  v  Council,  C-399/12, 

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Therefore, the procedural legal basis for the proposed decision 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 taken on the 
Union's behalf.  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 trade in agricultural products. 

Therefore, the substantive legal basis of the proposed decision 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. 

5. 

PUBLICATION OF THE ENVISAGED ACT 

As the act of the International Grains Council will extend the duration of the Convention, it is 
appropriate to publish it in the Official Journal of the European Union after its adoption. 

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2019/0089 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken 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) 

(2) 

(3) 

(4) 

The Grains Trade Convention, 1995 (‘the Convention’), was concluded by the Union 
by Council Decision 96/88/EC5 and entered into force on 1 July 1995. The Convention 
was  concluded  for  a  period  of  three  years  and,  since  then,  regularly  extended  for 
further  periods  of  two  years.  The  Convention  was  last  extended  by  Decision  of  the 
International Grains Council in June 20176 and remains in force until 30 June 2019.   

Pursuant to Article 33 of the Convention, the International Grains Council may extend 
the Convention for successive periods not exceeding two years on each occasion. 
The International Grains Council, during its 49th session to be held on 10 June 2019 is 
to decide on the extension of the Convention up to 30 June 2021.     
It is appropriate to establish the position to be taken on the Union's behalf in the 49th 
session of the International Grains Council, as an extension of the Convention is in the 
interest of the Union, 

HAS ADOPTED THIS DECISION: 

Article 1 
The position to be taken by the Commission on behalf of the Union in the 49th session of 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, up to 30 June 2021. 

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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). 
Information concerning the extension of the  Grains Trade Convention (1995) (OJ L 12, 17.1.2018, p. 
1). 

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This Decision is addressed to the Commission. 

Done at Brussels, 

Article 2 

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/10/ 
PS/pl/1100670 
6.221.2019.1 

DATE: 14.02.2019 

APPROPRIATIONS: 
B2019  6 300 000 
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 (1.7.2019 to 30.06.2021). 

1. 

2. 

3. 

4. 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 
2019 
(EUR million) 
0.41 

FOLLOWING 
FINANCIAL 
YEAR 
2020 
(EUR million) 
0.35 

5. 

FINANCIAL IMPLICATIONS 

5.0 

5.1 

CHARGED TO THE EU BUDGET 

NATIONAL AUTHORITIES 
OTHER 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 
REVENUE 
- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

OWN RESOURCES OF THE EU  

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 

2021 
- 

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

6.0 

6.1 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET? 

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  

- 

- 

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 EUR/ GBP.  

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