Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Sugar Council with respect to the extension of the International Sugar Agreement, 1992
Date: 2021-08-13
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: commodity agreement, international organisation, multilateral agreement, renewal of an agreement, sugar

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   EUROPEAN COMMISSION  Brussels, 13.8.2021  COM(2021) 480 final 2021/0273 (NLE)  Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Sugar Council with respect to the extension of the International Sugar Agreement, 1992  
 
EXPLANATORY MEMORANDUM 

1. 

SUBJECT MATTER OF THE PROPOSAL 

This proposal concerns a decision establishing the position to be taken on the Union's behalf 
in  the  International  Sugar  Council  in  connection  with  the  envisaged  adoption  of  a  decision 
extending the International Sugar Agreement, 1992 until 31 December 2023 

2. 

CONTEXT OF THE PROPOSAL 

2.1. 

The International Sugar Agreement, 1992 

The International Sugar Agreement, 1992 (hereinafter referred to as ‘the Agreement’) aims to 
ensure enhanced international cooperation in connection with world sugar matters and related 
issues, provide a forum for intergovernmental consultations on sugar and on ways to improve 
the  world  sugar  economy,  to  facilitate  trade  by  collecting  and  providing  information  on  the 
world  sugar  market  and  other  sweeteners  and  to  encourage  increased  demand  for  sugar, 
particularly for non-traditional uses. 

The Agreement entered into force on 1 January 1993. 
The Union is a party to the Agreement1. 

2.2. 

The International Sugar Council 

The International Sugar Council is the responsible body for the performance of all functions 
necessary  to  carry  out  the  provisions  of  the  Agreement.  It  adopts  rules  and  regulations 
including  rules  of  procedure  for  the  Council  and  its  committees  and  the  financial  and  staff 
regulations of the International Sugar Organisation (‘ISO’). The Council keeps the necessary 
records and publishes an annual report and other information if deemed appropriate. 

Members to the Agreement hold 2000 votes in total. Each Member to the Agreement holds a 
specified  number  of  votes,  which  is  annually  adjusted  following  predefined  criteria  in  the 
Agreement.  All  decisions  of  the  Council  shall  be  taken  in  principle  by  consensus  unless 
stipulated otherwise in the Agreement. In the absence of consensus, decisions shall be made 
by simple majority vote unless the Agreement provides for a special vote. 

2.3. 

The envisaged act of the International Sugar Council 

The Agreement was concluded by Council Decision 92/580/EEC and entered into force on 1 
January 1993. It was concluded for a period of three years until 31 December 1995 and since 
then, has been regularly extended for further periods of two years, as foreseen by its Article 
45. The Agreement was last extended in July 20192 and remains in force until 31 December 
2021.   

On 26 November 2021, during its 59th Session, the International Sugar Council is to adopt a 
decision  regarding  the  extension  of  the  International  Sugar  Agreement  1992  by  another  2 
years (‘the envisaged act’). 

The purpose of the envisaged act is to enable the ISO to continue with its work. 

The extension of the Agreement will cover the period of 1 January 2022 - 31 December 2023. 

1 

2 

Council Decision 92/580/EEC of 13 November 1992 on the signing and conclusion of the International 
Sugar Agreement 1992 (OJ L 379, 23.12.1992, p. 15). 
Council Decision (EU) 2019/1251 of 15 July 2019 on the position to be taken on behalf of the European 
Union in the International Sugar Council as regards the extension of the International Sugar Agreement 
1992 (OJ L 195, 23.7.2019, p. 18). 

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3. 

POSITION TO BE TAKEN ON THE UNION'S BEHALF 

The  International  Sugar  Agreement,  1992  was  concluded  by  the  Union  by  Decision 
92/580/EEC  and  entered  into  force  on  1  January  1993  for  a  period  of  three  years  until  31 
December  1995.  Since  then  it  has  been  regularly  extended  for  further  periods  of  two  years. 
The Agreement was  extended last time by decision of the  International  Sugar Council at its 
55th Session on 19 July 2019 and remains in force until 31 December 2021.  

The  Union  has  always  been  an  active  member  of  the  ISO  and  a  further  extension  of  the 
Agreement  by  up  to  two  years  is  in  the  interest  of  the  Union.  The  Union  is  a  major  sugar 
producer as well as a leading sugar-trading partner for many ISO Members. 

The  87  Members  of  the  ISO  have  a  total  number  of  2,000  votes.  The  EU  counts  as  one 
Member. Each vote has a weight of £661 for the 2021 administrative budget. For budgetary 
procedures (see Article 25 of the ISA 1992), i.e. for fixing the annual financial contributions 
of Members, the number of votes allocated to the Union is 538 and therefore the contribution 
due for 2021 amounts to £355 618. These numbers are adjusted on a yearly basis. 

A formal decision about the extension of the Agreement up to 31 December 2023 is scheduled 
for the 59th Session of the International Sugar Council to be held on 26 November 2021 in 
London. 

The  purpose  of  this  proposal  is  to  seek  the  Council’s  authorisation  for  the  Commission  to 
vote, on the Union’s behalf, in favour of the extension of the Agreement up to 31 December 
2023 in the International Sugar Council. 

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’3. 

4.1.2.  Application to the present case 

The International Sugar Council has been set up by Articles 3 and 8 of the Agreement, and 
can be called upon to adopt certain decisions.  

The  envisaged  act,  for  which  the  International  Sugar  Council  is  empowered  under  Article 
45(2) of the Agreement, has the effect of extending the validity of the Agreement, 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. 

3 

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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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  common  commercial  policy 
(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 Sugar Council will amend the Agreement, it is appropriate to 
publish it in the Official Journal of the European Union after its adoption. 

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2021/0273 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken on behalf of the European Union in the International Sugar 
Council with respect to the extension of the International Sugar Agreement, 1992 

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  International  Sugar  Agreement,  1992  (‘the  Agreement’)  was  concluded  by  the 
Union  by  Council  Decision  92/580/EEC1  and  entered  into  force  on  1  January  1993. 
The Agreement was concluded for a period of three years until 31 December 1995.  

Pursuant  to  Articles  3  and  8  of  the  Agreement,  the  International  Sugar  Council  has 
been set up to adopt certain decisions. Pursuant to Article 45(2) of the Agreement, the 
International  Sugar  Council  may  extend  the  Agreement  for  successive  periods,  not 
exceeding  two  years  on  each  occasion.  Since  its  conclusion,  the  Agreement  has 
regularly  been  extended  for  further  periods  of  two  years.  The  Agreement  was  last 
extended by decision of the International Sugar Council in July 20192 and remains in 
force until 31 December 2021. 

The  International  Sugar  Council, during its 59th  session to  be held  on 26 November 
2021, is set to adopt a decision on the extension of the Agreement for a further period 
of up to two years, from 1 January 2022 to 31 December 2023. 

It is appropriate to establish the position to be taken on the Union's behalf in the 59th 
session of the International Sugar Council, as a further extension of the Agreement is 
in the interest of the Union, 

HAS ADOPTED THIS DECISION: 

The position to be taken on the Union’s behalf in the 59th session of the International Sugar 
Council  shall  be  to  vote  in  favour  of  the  extension  of  the  International  Sugar  Agreement, 
1992, for a further period of up to two years, from 1 January 2022 to 31 December 2023. 

Article 1 

1 

2 

Council Decision 92/580/EEC of 13 November 1992 on the signing and conclusion of the International 
Sugar Agreement 1992 (OJ L 379, 23.12.1992, p. 15). 

Council  Decision  (EU)  2019/1251  of  15  July  2019  on  the  position  to  be  taken,  on  behalf  of  the 
European Union, in the International Sugar Council as regards the extension of the International Sugar 
Agreement 1992 (OJ L 195, 23.7.2019, p. 18). 

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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: 
14 20 03 06 International organisations and agreements 

FinancSt/10/ 
LK/hn/4760052 
6.22.2021.1 

DATE: 28.06.2021 

APPROPRIATIONS: 
B2021 6 300 000 EUR 

TITLE: 
Proposal for a Council Decision on the position to be taken on behalf of the European Union in the 
International Sugar Council with respect to the extension of the International Sugar Agreement, 1992. 

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 International Sugar Agreement by two more years (1 January 2022 - 31 
December 2023). 

1. 

2. 

3. 

4. 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 
2021 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 
2022 
(EUR million) 
0.41 

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  

2023              

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: Based on assumptions on an estimated number of votes (538) of the 

(EUR million) 
0.46 

EU (varies each year), on an estimated amount to be paid per vote in GBP (661). 

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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