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 amending the definition of ‘grain’ or ‘grains’ under the Grains Trade Convention, 1995
Date: 2021-08-05
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: cereals, commodity agreement, international convention, international organisation, leguminous vegetable, revision of an agreement, trade agreement

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   EUROPEAN COMMISSION  Brussels, 5.8.2021  COM(2021) 450 final 2021/0254 (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 amending the definition of ‘grain’ or ‘grains’ under 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 addition of pulses to the 
definition of “grain” or “grains” under 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 European 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  30  members,  including  many  of  the  world’s  largest 
cereals  producers  as  well  as  importers.  Besides  the  European  Union  and  among  others,  its 
members are Argentina, Australia, Canada, Egypt, India, Japan, Russia, Ukraine, the United 
Kingdom and the USA. However, China and Brazil are not members.  

The 30 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 371 votes in 2020/212.  

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 244 votes) and 1,000 
votes  for  the  19  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. 

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

2.3. 

The envisaged act of the International Grains Council 

On  14  May  2021  the  International  Grains  Council  has  proposed  to  include  pulses  in  the 
definition  of  “grain”  or  “grains”  under  Article  2(1),  point  (e),  of  the  Convention  (‘the 
envisaged  act’).  It  is  proposed,  that  the  decision  of  the  IGC  be  made  by  postal  ballot  (i.e. 
written procedure) with a deadline of 31 October 2021. In case no written objection is sent by 
any member of the IGC, pulses would be added to the definition of “grain” or “grains” under 
Article 2(1), point (e), of the Convention with effect from 1 November 2021.   

According  to  the  proposal,  “lentils,  dry  peas,  chickpeas,  dry  beans,  other  pulses  and  their 
products  shall  be included in  the definition  of  “grain” or “grains” under Article 2(1)(e) of 
the Grains Trade Convention, 1995”. 

The purpose of the envisaged act  is  to  enable the  International  Grains  Council to  extend its 
regular work as referred to in Article 3 of the Convention to pulses. In particular, the regular 
reports, exchange of information and special studies referred to in Article 3 of the Convention 
should  include  pulses  and  their  products  as  from  1  November  2021.  Member  Governments 
should cooperate with the IGC Secretariat by providing relevant information on these pulses 
and their products.  

Although the Convention does not lay down specific rules 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  European  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 on 7 June 2021 and remains in force until 30 June 2023.  

When the Convention was concluded, the definition of “grain” or “grains” under Article 2(1), 
point (e), included the following products: “barley, maize, millet, oats, rye, sorghum, triticale 
and wheat, and their products”. 

Then,  in  2008,  members  of  the  International  Grains  Council  decided  to  include  rice  and  its 
products  as  well  in  the  definition  of  “grain”  or  “grains”  with  effect  from  1  July  2009. 
Furthermore,  the  definition  of  “grain”  or  “grains”  was  further  extended  with  effect  from  1 
July  2013  to  include  various  oilseeds  as  well,  namely  copra,  cottonseed,  palm  kernel, 
groundnuts, rapeseed/canola, soya beans and sunflower seed and their products. 

The  European  Union  has  always  been  an  active  member  of  the  IGC  and  supported  the 
extension  of  the  work  of  the  IGC  to  analysing  the  market  and  trade  developments  of  the 
pulses as well. So far, this was done on an ad hoc basis, subject to the approval of the annual 
work programme of the IGC.  

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OJ L 21, 27.1.1996, p. 47. 

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The purpose of this proposal is to seek the Council’s authorisation to the Commission to vote, 
on  the  European  Union’s  behalf,  in  favour  of  adding  pulses  to  the  definition  of  “grain”  or 
“grains” under Article 2(1), point (e), of the Convention with effect from 1 November 2021. 
The formal decision in the International Grains  Council about the proposal will be made by 
written procedure (postal ballot), with a deadline fixed for 31 October 2021. 

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  amending  the 
Convention by extending the definition of “grain” or “grains” under Article 2(1), point (e), 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. 

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 
European 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(3),  first 
subparagraph TFEU. 

4.3. 

Conclusion 

The legal basis of the proposed decision should be Article 207(3), first subparagraph TFEU, 
in conjunction with Article 218(9) TFEU. 

4 

Judgment  of 
ECLI:EU:C:2014:2258, paragraphs 63 and 64. 

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

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5. 

PUBLICATION OF THE ENVISAGED ACT 

As the act of the International Grains Council will amend the Convention by adding pulses to 
the  definition  of  “grain”  or  “grains”  under  Article  2(1),  point  (e),  of  the  Convention,  it  is 
appropriate  to  publish  the  Council  Decision  in  the  Official  Journal  of  the  European  Union 
after its adoption. 

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2021/0254 (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 amending the definition of ‘grain’ or ‘grains’ under 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(3), first subparagraph 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 means of Council Decision 96/88/EC1 and entered into force on 1 July 1995. The 
Convention was concluded for a period of three years. 

Article 2(1), point (e), of the Convention defines the meaning of “grain”  or “grains” 
for the purposes of the Convention. Members of the International Grains Council may 
decide to amend that definition in accordance with Article 32 of the Convention. 

On 14 May 2021 the Secretariat of the International Grains Council proposed to add 
pulses  to  the  definition  of  “grain”  or  “grains”  under  Article  2(1),  point  (e),  of  the 
Convention  with  effect  from  1  November  2021.  According  to  the  proposal,  “lentils, 
dry  peas,  chickpeas,  dry  beans,  other  pulses  and  their  products  shall  be  included  in 
the  definition  of  “grain”  or  “grains”  under  Article  2(1)(e)  of  the  Grains  Trade 
Convention, 1995”2. 

It  is  appropriate  to  establish  the  position  to  be  taken  on  the  Union's  behalf  in  the 
International  Grains  Council  with  respect  to  the  amendment  of  the  definition  of 
“grain” or “grains” under Article 2(1), point (e), of the Convention, as extending the 
product coverage of the International Grains Council through the addition of pulses to 
the definition of “grain” or “grains” is in the interest of the Union, 

HAS ADOPTED THIS DECISION: 

Article 1 

The position to be taken on the Union’s behalf in the International Grains Council shall be to 
vote in favour of amending Article 2(1), point (e), of the Grains Trade Convention by adding 
pulses to the definition of “grain” or “grains”, in accordance with the  proposal submitted by 
the Secretariat of the International Grains Council on 14 May 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). 
International Grains Council, GC53/3 of 14 May 2021, Annex 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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