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 accession of the Republic of Serbia to the Grains Trade Convention, 1995
Date: 2020-02-27
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: Serbia, accession to an agreement, cereals, commodity agreement, international convention, international organisation, trade agreement

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 27.2.2020  COM(2020) 73 final 2020/0032 (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 accession of the Republic of Serbia to 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 accession of the Republic of Serbia 
to the Grains Trade Convention, 1995. 

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: 

(a) 

(b) 

(c) 

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. 

Currently, the IGC 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  11  of  the  Convention),  i.e.  for  fixing  the  annual 
financial contributions of members, the Union has 372 votes in 2019/202.  

For decision-making, i.e. where votes are held (see Article 12 of the Convention), 1,000 votes 
are distributed for the 10 exporting members (including the Union with 245 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. 

1 
2 

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. 

EN 

1 

  EN 

                                                 
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. 

The envisaged act of the International Grains Council 

2.3. 
On  23  January  2020,  the  Republic  of  Serbia3  has  formally  applied  for  accession  to  the 
Convention.  On  27  January  2020  the  IGC  Secretariat  has  informed  its  members  about  the 
application of the Republic of Serbia. 

According  to  Article  27(2)  of  the  Convention,  accession  is  open  to  the  Governments  of  all 
States  upon  such  conditions,  as  the  Council  considers  appropriate.  In  accordance  with  Rule 
33(d) of the Rules of Procedure under the Grain Trade Convention (‘Rules of Procedure’) the 
Administrative  Committee  considers  and  recommends  to  the  Council  applications  for 
accession under Article 27(2).  

The  votes  of  the  acceding  country  for  the  purposes  of  Article  11  of  the  Convention  (i.e. 
annual financial contribution of members), are determined by the proportion of the acceding 
countries’  total  trade  in  grains  to  the  total  trade  in  grains  of  all  IGC  member  countries,  in 
accordance with Rule 33(b) of the Rules of Procedure.  

Under Article 12(1) of the Convention, the Council has to establish the members that will be 
exporting members and the members that will be importing members for the purposes of the 
Convention, taking into account  of the  grain  trading patterns of those members and of their 
own views. The Council will also determine their voting rights, in accordance with paragraphs 
2 and 3 of the same provision. 

As  the  following  meeting  of  the  IGC  would  only  take  place  on  8  June  2020,  the  IGC 
Secretariat  has  proposed  that  the  Council’s  approval  for  the  Republic  of  Serbia’s  accession 
should be made by postal ballot to allow for an earlier accession. If no objections are received 
from current IGC members by 31 March 2020, the accession of the Republic of Serbia would 
come into effect on 1 April 2020. 

Although  there  are  no  specific  rules  laid  down  in  the  Convention  on  the  postal  ballot 
procedure (or written procedure), Article 14 of the Convention concerning the ’decisions of 
the Council’, does not request that such decisions are taken at a Council Session.  

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/EC4  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 2019 and remains in force until 30 June 20215.  

The Union has always been an active member of the IGC and supported the expansion of the 
organisation.  

The  Republic  of  Serbia  is  a  major  producer  of  agricultural  products,  in  particular  of  maize 
which is one of the main crops covered by the IGC.  

The Republic of Serbia submitted its application for EU membership on 19 December 2009 
and on 1 March 2012, the European Council granted Serbia candidate country status. 

3 
4 
5 

By the letter of the Minister of Agriculture, Forestry and Water Management of the Republic of Serbia 
OJ L 21, 27.1.1996, p. 47. 
Council Decision (EU) 2019/813 of 17 May 2019 (OJ L 133, 21.5.2019, p. 19). 

EN 

2 

  EN 

                                                 
The  purpose  of  this  proposal  is  to  seek  the  Council’s  authorisation  to  the  Commission  to 
approve the accession of the Republic of Serbia to the Convention. 

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’6. 

4.1.2.  Application to the present case 

The  envisaged  act  of  the  IGC  has  the  effect  of  expanding  the  membership  of  the  IGC.  The 
envisaged act has legal effects notably because it will affect the decisional balance within the 
IGC,  whose  decisions  require  the  majority  of  exporting  and  importing  members,  and  are 
binding for its members, as expressed in Article 14 of the Convention. 

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

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,  first 
subparagraph TFEU. 

4.3. 

Conclusion 

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

6 

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, 

EN 

3 

  EN 

                                                 
2020/0032 (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 accession of the Republic of Serbia to 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 the 
first subparagraph of Article 207, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

The Grains Trade Convention, 1995 (‘the Convention’), was concluded by the Union 
by Council Decision 96/88/EC1 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  at  its  49th  Session  in  June  20192  and  remains  in  force 
until 30 June 2021. 

Pursuant  to  Article  27(2)  of  the  Convention,  it  shall  be  open  for  accession  by  the 
Governments  of  all  States  upon  such  conditions  as  the  International  Grains  Council 
considers appropriate. 

On 23 January 2020 the Republic of Serbia has formally applied for accession to the 
Convention. 

On 1 March 2012, the European Council granted Serbia candidate country status. 

The Republic of Serbia is a major producer of cereals, in particular for maize. 

It  is  appropriate  to  establish  the  position  to  be  taken  on  the  Union's  behalf  in  the 
International Grains Council as the accession of Serbia is in the interest of the Union, 

HAS ADOPTED THIS DECISION: 

The position to be taken by the Commission on behalf of the Union in the International Grains 
Council  shall  be  to  approve  the  accession  of  the  Republic  of  Serbia  to  the  Grains  Trade 
Convention, 1995. 

Article 1 

1 

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). 
Council Decision (EU) 2019/813 of 17 May 2019 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 (OJ L 133, 21.5.2019, p. 19). 

EN 

4 

  EN 

                                                 
This Decision is addressed to the Commission. 

Done at Brussels, 

Article 2 

For the Council 
The President 

EN 

5 

  EN