Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Grains Council concerning the accession of the United Kingdom to the Grains Trade Convention, 1995
Date: 2020-08-04
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: United Kingdom, accession to an agreement, cereals, commodity agreement, international convention, international organisation, trade agreement

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   EUROPEAN COMMISSION  Brussels, 4.8.2020  COM(2020) 353 final 2020/0162 (NLE)  Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Grains Council concerning the accession of the United Kingdom 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 United Kingdom 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  trade  in  these  goods.  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’)  which  administers  the  Convention  is  a  London 
based 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 the stability of the 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 29 members, including many of the world’s largest cereals producers 
as well as importers. Besides the Union, its members are, among others, Argentina, Australia, 
Canada,  Egypt,  India,  Japan,  Russia,  Ukraine  and  the  USA.  The  last  country  joining  the 
organisation  was  the  Republic  of  Serbia,  who  became  member  on  1  April  2020.  However, 
China and Brazil are not members.  

The 29 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 11 exporting members (including the Union with 245 votes) and 1,000 

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

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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  by  virtue  of  Article  17  TEU.  Member  States  can  attend  the  IGC  meetings,  in 
particular the Council Sessions. 

The envisaged act of the International Grains Council 

2.3. 
On 9 April 2020, the United Kingdom3 has formally applied for accession to the Convention. 
On 14 April 2020 the IGC Secretariat has informed its members about the application of the 
United Kingdom. The United Kingdom applies for membership in the IGC as from 1 January 
2021, i.e. after the expiration of the transition period following the withdrawal of the United 
Kingdom from the European Union. 

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  the  grain trading patterns  and the views of those members. 
The Council will also determine their voting rights, in accordance with paragraphs 2 and 3 of 
the same provision. 

Discussion  about  the  application  of  the  United  Kingdom  started  in  the  IGC  Administrative 
Committee on 11 May 2020 and continued at the 51st Council Session of the IGC on 8 June 
2020 (via videoconference). At this Session, the Council agreed that the  formal decision on 
the  application  of  the  United  Kingdom  should  be  taken  by  written  procedure  (postal  ballot) 
and  IGC  members  should  send  their  comments  for  the  Secretariat  by  30  October  2020. 
Provided that no written objection is sent to the IGC Secretariat from an IGC member by 30 
October  2020,  it  will  be  deemed  that  the  United  Kingdom’s  membership  to  the  IGC  is 
approved with effect from 1 January 2021. 

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. 

The Withdrawal Agreement 

In accordance with Article 129(2) of the withdrawal of the United Kingdom of Great Britain 
and  Northern  Ireland  from  the  European  Union  and  the  European  Atomic  Energy 
Community4  (‘the  Withdrawal  Agreement’),  during  the  transition  period  the  Union  will 
continue representing the United Kingdom in the work of any bodies set up by international 
agreements concluded by the Union. The United Kingdom should refrain during the transition 
period  from  any  action  or  initiative  that  is  likely  to  be  prejudicial  to  the  Union's  interests. 

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By the letter of the Minister of State for DEFRA, DFID and FCO. 
Agreement on the  withdrawal of the United Kingdom of Great Britain and Northern Ireland from the 
European Union and the European Atomic Energy Community.  

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However, as laid down by Article 129(4) of the Withdrawal Agreement, the United Kingdom 
may negotiate, sign and ratify international agreements entered into in its own capacity in the 
areas  of  exclusive  competence  of  the  Union,  provided  those  agreements  do  not  enter  into 
force or apply during the transition period. 

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/EC5 until 30 June 1998. 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 
20216.  

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

The  United  Kingdom  is  an  important  producer  of  agricultural  products,  including  cereals 
which  are  the  main  crops  covered  by  the  IGC.  While  being  the  member  of  the  Union  the 
United Kingdom had significant trade of various cereals with other EU Member States. 

During the transition period following the withdrawal of the United Kingdom from the Union, 
the United Kingdom continues to be bound by the Union’s international agreements and the 
Union will continue to represent the United Kingdom at the IGC.  

In  accordance  with  Article  21(5)  of  the  Convention,  the  annual  financial  contributions  of 
members shall be payable immediately upon assessment. The Union therefore pays its annual 
contributions  to  the  IGC  during  July-August  for  the  entire  financial  year  concerned,  which 
starts  in  June  and  ends  in  July  the  year  after.  The  Union’s  contribution  for  2020/21  will  be 
paid from the 2020 Union budget, to which the United Kingdom also contributes.  

Consequently, in respect of the entire 2020/21 financial year, the Union’s contribution to the 
IGC will also cover the United Kingdom.  

The purpose of this proposal is to establish the Union position in the IGC on the accession of 
the United Kingdom to the Convention as of 1 January 2021.  

Given  that  the  accession  procedure  pursuant  to  the  Convention  provisions  is  subject  to  a 
decision by the International Grains Council, the Union’s position will be established on the 
basis of Article 218(9) TFEU.  

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.’ 

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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). 

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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.  

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  of  the  IGC  has  legal  effects  because  it  will  establish  the  conditions  of  such 
accession,  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 respective financial contributions 
of the Parties will also be affected. The Union position will therefore need to be established. 

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 first subparagraph of Article 
207(4) TFEU. 

4.3. 

Conclusion 

The legal basis of the proposed decision should be Article 207(4), first subparagraph TFEU, 
in conjunction with Article 218(9) TFEU. 

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2020/0162 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken on behalf of the European Union in the International Grains 
Council concerning the accession of the United Kingdom 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(4), in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The Grains Trade Convention, 1995 (‘the Convention’) which entered into force on 1 
July 1995 was concluded by the Union by means of Council Decision 96/88/EC7. The 
Convention was initially concluded for a period of three years. 

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. 
Since its conclusion, the Convention has regularly been extended for further periods of 
two years. The Convention was last extended by Decision of the International Grains 
Council on 10 June 20198 and remains in force until 30 June 2021. 

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

On  9  April  2020,  the  United  Kingdom  formally  applied  for  accession  to  the 
Convention as from 1 January 2021. 

The United Kingdom is a major producer of cereals, in particular of barley and wheat. 
Should approval of the United Kingdom’s application to accede to the Convention and 
consequently to participate in the Council be granted, the United Kingdom will be an 
importing member in accordance with Article 12 of the Convention. As the Union is 
an  exporting  member,  the  accession  of  the  United  Kingdom  will  not  impact  the 
number  of  votes  allocated  to  the  Union  for  voting  purposes  under  Article  12  of  the 
Convention.  The  accession  of  the  United  Kingdom  will  however  reduce,  as  from 
financial year 2021/22, the number of votes allocated to the Union under Article 11 of 
the Convention, which is used to determine the financial contribution of members..  

(6) 

It  is  appropriate  to  establish  the  position  to  be  taken  on  the  Union's  behalf  in  the 
International Grains Council and to approve the accession of the United Kingdom to 

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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). 
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). 

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the Convention  based on the expected conditions  detailed in  the Financial  Statement 
annexed  to  this  Decision  and  provided  the  accession  does  not  take  effect  and  the 
Convention is not provisionally applied in respect of the United Kingdom before the 
end  of  the  transition  period  referred  to  in  Article  126  of  the  Agreement  on  the 
withdrawal  of  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland  from  the 
European Union and the European Atomic Energy Community, 

HAS ADOPTED THIS DECISION: 

Article 1 

The position to be taken on the Union’s behalf in the International Grains Council shall be to 
approve the accession of the United Kingdom to the Grains Trade Convention, 1995, based on 
the  expected  conditions  detailed  in  the  Financial  Statement  annexed  to  this  Decision  and 
provided, the accession does not take effect and the Convention is not provisionally applied in 
respect of the United Kingdom  before the end of the  transition  period referred to  in Article 
126  of  the  Agreement  on  the  withdrawal  of  the  United  Kingdom  of  Great  Britain  and 
Northern Ireland from the European Union and the European Atomic Energy Community. 

This Decision is addressed to the Commission. 

Done at Brussels, 

Article 2 

For the Council 
The President 

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FINANCIAL STATEMENT 

Fin 
Stat/20/MK/pl/341379
3 

agri.ddg3.g.4(2020)33
25110 
6.22.2020 

DATE: 06/06/2020 

BUDGET HEADING: 
Chapter 05 06 INTERNATIONAL ASPECTS OF ‘AGRICULTURE AND 
RURAL DEVELOPMENT’ POLICY AREA 
05 06 01 International agricultural agreements  
TITLE: 
Proposal for a Council Decision on the position to be taken on behalf of the European 
Union in the International Grains Council concerning the accession of the United 
Kingdom to the Grains Trade Convention, 1995 

APPROPRIATIONS: 

B2020:EUR 6.300.000  

LEGAL BASIS: The legal basis for this proposal is Article 207(4), in conjunction with 
Article 218(9), of the Treaty on the Functioning of the European Union. 

AIMS: 
To approve the accession of the United Kingdom to the Grains Trade Convention, 
1995.  
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 2020 
(EUR) 

FOLLOWING 
FINANCIAL 
YEAR 2021  
(EUR) 

-3 024 

(EUR) 

CHARGED TO THE EU BUDGET 

NATIONAL AUTHORITIES 
OTHER 

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

OWN RESOURCES OF THE EU  

1. 

2. 

3. 

4. 

5. 

5.0 

5.1 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 4 votes less for EU, 756 GBP/ vote 
6.0 

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

6.1 

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 
THE CURRENT BUDGET? 

YES NO 

YES NO 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
The decision will have a minor positive impact for the EU budget from budget 2021. The EU 
contribution is expected to be EUR 3 024 less, as the UK will pay its own membership fee. 
The amount can vary depending on the amount to be paid per vote in GBP and on the €/GBP 
exchange rate. 

    YES NO 

YES NO 

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