Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Coffee Organization Council
Date: 2020-09-25
Institutions: Directorate-General for International Cooperation and Development, European Commission
Subjects: coffee, commodity agreement, international cooperation, international organisation, multilateral agreement, renewal of an agreement

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   EUROPEAN COMMISSION  Brussels, 25.9.2020  COM(2020) 583 final 2020/0269 (NLE)  Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Coffee Organization Council  
 
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  Coffee  Organization  (ICO)  Council  in  connection  with  the  envisaged 
adoption of the extension of the International Coffee Agreement (ICA) 2007. 

2. 

CONTEXT OF THE PROPOSAL 

2.1. 

The International Coffee Agreement 2007 

The International Coffee Agreement 2007 (ICA or ‘the Agreement’) aims to ensure enhanced 
international cooperation in connection with world coffee matters and related issues, provide a 
forum for intergovernmental consultations on coffee and on ways to improve the world coffee 
economy,  to  facilitate  trade  by  collecting  and  providing  information  on  the  world  coffee 
market  and  to  encourage  increased  demand  for  coffee  globally.  Last  but  not  least,  a  core 
objective of the agreement is to encourage members to develop a sustainable coffee sector in 
economic,  social  and  environmental  terms.  The  Agreement  was  signed  in  2007  and  entered 
into force on 2 February 2011 for a period of ten years (until 1 February 2021).  According to 
Article 48, the Agreement can be extended for a maximum of eight years. 
The European Union is a party to the Agreement1. 

2.2. 

The International Coffee Organization Council 

As per Article 9 of the ICA, the International Coffee Organization Council is the responsible 
body for the performance of all functions necessary to carry out the provisions of the ICA as 
the highest authority of the ICA. The Council consists of all the Members of the Organization 
(Article  8  ICA).  Pursuant  to  Article  48(3)  ICA,  the  ICO  Council  may  decide  to  extend  the 
Agreement  beyond  its  expiry  date  for  one  or  more  successive  periods  not  to  exceed  eight 
years in total. Article 14 of the ICA stipulates that all decisions of the ICO shall be taken in 
principle by consensus.  In the  absence of consensus,  decisions shall be  made by distributed 
majority vote. 

According  to  Article  12  of  the  ICA,  Members  to  the  ICO  hold  2000  votes  in  total.  Each 
Member  to  the  ICO  holds  a  specified  number  of  votes,  which  is  annually  adjusted  by  the 
Council following predefined criteria in the ICA. The distribution of votes also determines a 
Member’s contribution (Article 20(2) ICA). Currently, the Union is the largest contributor to 
the ICO. 

2.3. 

The envisaged act of the International Coffee Organization Council 

In 2019, the ICO established a Working Group on the revision of the ICA.  

On 04-05 June 2020, during its 126th session, the ICO Council recommended to extend the 
ICA beyond its  current  expiration date. This  would  allow for a more substantial  revision in 
the future. 

On 07-11 September 2020, during its 127th  session,  the  ICO Council is to  adopt  a decision 
regarding the extension of the ICA 2007 (‘the envisaged act’). 

The purpose of the envisaged act is to approve the extension of the ICA 2007.  

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2008/579/EC:  Council  Decision  of  16 June  2008  on  the  signing  and  conclusion  on  behalf  of  the 
European Community of the International Coffee Agreement 2007 (OJ L186 of 15/07/2008, p.12). 

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The envisaged act will become binding on the parties in accordance with Article 14(3) of the 
Agreement, which provides: ‘Members are committed to accept as binding all decisions of the 
Council under the provisions of this Agreement.  

3. 

POSITION TO BE TAKEN ON THE UNION'S BEHALF 

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  International  Coffee  Agreement 
within the International Coffee Council. 

Extending  the  ICA  for  a  maximum  of  eight  years  will  give  the  appropriate  time  to  ICO 
Members to determine whether the ICA needs to undergo a substantial revision in the future 
that would focus on the modernisation and simplification of the Agreement.  

Currently, the EU's participation in the ICO is beneficial both to the Union and to other ICO 
Member states  and the ICA can be extended as it is. Extending the agreement beyond 2021 
and working on modernising the Agreement will lead to a reengagement of Members and a 
discussion on the relevance of the  ICO to  meet  current  challenges.  The  possible revision of 
the ICA after 2021 would potentially increase its value added and the relevance of its work 
and possibly attract more interest in the ICO. An extension of the Convention is therefore in 
the interest of the Union. 

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’2. 

4.1.2.  Application to the present case 

The  ICO  Council  is  a  body  set  up  by  an  agreement,  namely  the  International  Coffee 
Agreement 2007.  

The act which the ICO 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 14(3) of 
the ICA.  

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. 

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

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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 the common commercial policy. 

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. 

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2020/0269 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken on behalf of the European Union in the International Coffee 
Organization Council 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207 TFEU, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

The International Coffee Agreement (‘ICA’) was concluded by the Union by Council 
Decision of 16 June 2008 and entered into force on 2 February 2011. 

Pursuant to Article 48(1) of the ICA, the ICA shall remain in force for a period of ten 
years  after  it  enters  into  force  provisionally  or  definitively  unless  extended  or 
terminated pursuant to the provisions of the ICA. 

Pursuant to Article 9 of the ICA, the International Coffee Organization Council (‘ICO 
Council’)  is  the  responsible  body  for  the  performance  of  all  functions  necessary  to 
carry out  the provisions of the  ICA, as the highest  authority of the  ICA.  Pursuant to 
Article 48(3)  ICA, the  ICO Council may decide to  extend the Agreement  beyond its 
expiry  date  for  one  or  more  successive  periods  not  to  exceed  eight  years  in  total. 
Article 14 of the ICA stipulates that the ICO shall endeavour to take all decisions by 
consensus. 

During  its  127th  session,  to  be  held  on  07-11  September  2020,  and  during  any 
subsequent sessions, the ICO Council is to decide on the extension of the ICA 2007. 

It is appropriate to establish the position to be taken on the Union's behalf in the ICO 
Council,  as  the  ICO  Council’s  decisions  on  the  extension  of  the  Agreement  will  be 
binding on the Union. 

It is in the Union's interests to have the possibility to participate in the ICA until the 
provisional  or  definitive  entry  into  force  of  a  new  Agreement,  considering  the 
importance of the coffee sector for a number of Member States and for the economy of 
the European Union. 

HAS ADOPTED THIS DECISION: 

Article 1 

The position to be taken on the Union's behalf in the 127th and any subsequent sessions of the 
International Coffee Council shall be the following 

To  vote  in  favour  of  the  extension  of  the  International  Coffee  Agreement  2007  beyond  its 
expiry  date  for  periods  of  one  year  at  a  time  not  to  exceed  eight  years  in  total  or  until  the 
provisional or definitive entry into force of a new agreement, whichever comes first. 

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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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