Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Sugar Council concerning the accession of the Kingdom of Saudi Arabia to the International Sugar Agreement, 1992
Date: 2022-09-28
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: Saudi Arabia, accession to an agreement, commodity agreement, international organisation, sugar

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   EUROPEAN COMMISSION  Brussels, 28.9.2022  COM(2022) 497 final 2022/0305 (NLE)  Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the International Sugar Council concerning the accession of the Kingdom of Saudi Arabia to the International Sugar Agreement, 1992  
 
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  Sugar  Council  in  connection  with  the  envisaged  adoption  of  a  decision 
concerning  the  accession  of  the  Kingdom  of  Saudi  Arabia  to  the  International  Sugar 
Agreement, 1992 

2. 

CONTEXT OF THE PROPOSAL 

The International Sugar Agreement, 1992  

2.1. 
The  International  Sugar  Agreement,  19921  (‘the  Agreement’)  aims  to  enhance  international 
cooperation in connection with world sugar matters and related issues, to provide a forum for 
intergovernmental consultations on sugar and on ways to improve the world sugar economy, 
to facilitate the 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 1st January 1993. 
The European Union is a party to the Agreement2. 

2.2. 

The International Sugar Organisation  

The International Sugar Organization (‘ISO’) which administers the Agreement is a London-
based intergovernmental organisation that seeks to meet the objectives laid down by Article 1 
of the Agreement. 

Currently, the ISO has 87 members, including many of the world’s largest sugar producers as 
well as importers. Besides the Union, its members are, among others, Brazil, India, Thailand, 
and  Australia.  The  last  country  joining  the  ISO  was  the  United  Kingdom,  who  became 
member on 1 January 2021. The 87 members of the ISO have a total number of 2,000 votes.  

Pursuant to Article 8 of the Agreement, the International Sugar Council performs or arranges 
for  the  performance  of  all  functions  as  are  necessary  to  carry  out  the  provisions  of  the 
Agreement. 

At  the  sessions  of  the  International  Sugar  Council  the  Union  is  represented  by  the 
Commission by virtue of Article 17 TEU. Member States can  also attend the sessions of the 
International Sugar Council.  

2.3. 

The envisaged act of the International Sugar Council  

Following the formal application of the Kingdom of Saudi Arabia to accede to the Agreement 
on 15 December 2021, it is expected that the International Sugar Council will adopt during a 
future session thereof, or within the  framework  of a procedure for adoption  of decisions by 
the  International  Sugar  Council  by  exchange  of  correspondence,  a  decision  concerning  the 
accession of the Kingdom of Saudi Arabia. 

The purpose of the envisaged act is to establish the Union’s position on the conditions for the 
accession  of  the  Kingdom  of  Saudi  Arabia  to  the  Agreement  pursuant  to  Article  41  of  the 
Agreement. 

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International Sugar Agreement 1992 (OJ L 379, 23.12.1992, p. 16). 
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). 

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According to Article 41 of the Agreement, accession is open to the Governments of all States 
upon such conditions, as the International Sugar Council considers appropriate. Under Article 
25(4) of the Agreement, in the event of the accession of a Member after the entry into force of 
this Agreement, when the acceding Member is not listed in the annex of the Agreement, the 
International Sugar Council shall decide the number of votes to be allocated to that Member. 
Following  the  acceptance  by  the  acceding  Member  of  the  number  of  votes  allocated  by  the 
International Sugar Council, the votes of existing Members shall be re‑calculated so that the 
total  of  votes  remains  at  2000.  The  votes  to  be  allocated  to  the  Kingdom  of  Saudi  Arabia, 
based on the current distribution of votes, would amount to 31. Once the Kingdom of Saudi 
Arabia will become a member of the Agreement, the votes allocated to the European Union in 
accordance  with  Article  25  of  the  ISA  will  be  reduced.  Consequently,  the  financial 
contribution  of  the  European  Union  would  be  reduced  accordingly  for  the  future  financial 
years in which Kingdom of Saudi Arabia is a member of the Agreement. 

3. 

POSITION TO BE TAKEN ON THE UNION'S BEHALF 

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

Even  though  the  Kingdom  of  Saudi  Arabia  is  not  a  sugar  producer,  it  is  a  quite  important 
actor at world level due to its important sugar imports over the years and an important trade 
partner of the EU in the area of agricultural and food products, including sugar. 

The  purpose  of  this  proposal  is  to  establish  the  Union’s  position  on  the  accession  of  the 
Kingdom of Saudi Arabia to the Agreement to be taken in a future session of the International 
Sugar  Council.  The  Union  will  support  the  accession  of  the  Kingdom  of  Saudi  Arabia  and 
ensure that the number of votes to be allocated to the Kingdom of Saudi Arabia are calculated 
according to Article 25(4) of the Agreement. 

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 is a body set up by an agreement, namely the  International 
Sugar Agreement, 1992. 

The  envisaged  act  of  the  International  Sugar  Council  has  the  effect  of  expanding  the 
membership  of  the  International  Sugar  Agreement,  1992.  The  envisaged  act  of  the 
International Sugar Council has legal effects because it will establish the conditions of such 

3 

Judgement  of 
ECLI:EU:C:2014:2258, paragraphs 61 to 64. 

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

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accession, notably because it will affect the decisional balance within the International Sugar 
Council,  whose  decisions  are  taken  and  recommendations  are  made,  in  principle,  by 
consensus. ln the absence of consensus, decisions and recommendations are made by simple 
majority  vote,  unless  this  Agreement  provides  for  a  special  vote,  and  are  binding  for  its 
Members, as expressed in Article 13 of the Agreement. The respective financial contributions 
of the Members will also be affected by the expanding of the membership of the International 
Sugar Agreement, 1992. 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 the common commercial policy. 

Therefore, the substantive legal basis of the proposed decision is Article 207 of the TFEU.  

4.3. 

Conclusion 

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

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2022/0305 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken on behalf of the European Union in the International Sugar 
Council concerning the accession of the Kingdom of Saudi Arabia to 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 of 
Article 207(4), first subparagraph, 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 means of Council Decision 92/580/EEC1 and entered into force on 1 January 
1993.  

Article  41  of  the  Agreement  states  that  the  Agreement  is  open  for  accession  by 
Governments  of  all  States  in  accordance  with  the  conditions  established  by  the 
International sugar Council. 

The  Government  of  the  Kingdom  of  Saudi  Arabia  has  formally  applied  to  accede  to 
the Agreement on 16 February 2021. The International Sugar Council should therefore 
be invited, during a future session thereof, or within the framework of a procedure for 
adoption  of  decisions  by 
the  International  Sugar  Council  by  exchange  of 
correspondence, to establish the conditions for the accession of the Kingdom of Saudi 
Arabia. 

Given that the Kingdom  of Saudi Arabia is  an important  actor in  the sugar sector  at 
world level, and an important trade partner of the Union in the area of agricultural and 
food  products,  including  sugar,  approving  the  accession  of  the  Kingdom  of  Saudi 
Arabia to the Agreement subject to conditions set out in Article 25 of the Agreement is 
in the interest of the Union. 

(5) 

It  is  appropriate  to  establish  the  position  to  be  taken  on  the  Union's  behalf  in  the 
International Sugar Council. 

HAS ADOPTED THIS DECISION: 

Article 1 

The  position  to  be  taken  on  the  Union's  behalf  in  the  International  Sugar  Council  during  a 
future session thereof, or within the  framework  of a procedure for adoption  of decisions by 
the  International  Sugar  Council  by  exchange  of  correspondence,  shall  be  to  approve  the 
accession of the Kingdom  of Saudi Arabia to the International Sugar Agreement, 1992, (the 

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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). 

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Agreement) and to ensure that the number of votes to be allocated to the Kingdom of Saudi 
Arabia are calculated according to Article 25(4) of the Agreement.  

This Decision is addressed to the Commission. 

Done at Brussels, 

Article 2 

For the Council 
The President 

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