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 the extension of the Grains Trade Convention, 1995
Date: 2023-03-27
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: cereals, commodity agreement, international convention, international organisation, renewal of an agreement, trade agreement

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   EUROPEAN COMMISSION  Brussels, 27.3.2023  COM(2023) 172 final 2023/0086 (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 the extension of 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  adoption  of  extending 
the Grains Trade Convention, 1995, until 30 June 2025. 

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 IGC 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 369 votes in 2022/232.  

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. 

The envisaged act of the International Grains Council 

2.3. 
On  14  June  2023,  during  its  58th  session  the  International  Grains  Council  is  to  adopt  a 
decision regarding the extension by two years of the Convention (‘the envisaged act’). 

The purpose of the envisaged act, which is based on Article 33 of the Convention, is to enable 
the IGC to continue with its work. 

The extension of the Convention will cover the period of 1 July 2023 – 30 June 2025. 

POSITION TO BE TAKEN ON THE UNION'S BEHALF 

3. 
The Convention 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 IGC in June 2021 and remains in force 
until 30 June 2023.  

The European Union has always been an active member of the IGC and a further extension of 
the Convention by up to two years is in the interest of the Union. The Union is a major cereals 
producer and a leading exporter of wheat and barley, while the largest importer of maize.   

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 the extension of the Convention up to 30 June 
2025 in the IGC. The formal decision about the extension of the Convention is scheduled for 
the 58th session of the IGC to be held on 14 June 2023. 

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 IGC has the effect of extending the validity of the Convention which 
is an international agreement binding the Union. The envisaged act has therefore legal effects.  

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OJ L 21, 27.1.1996, p. 47. 
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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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(4),  first 
subparagraph, 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. 

5. 

PUBLICATION OF THE ENVISAGED ACT 

As the act of the IGC will extend the duration of the Convention, it will be published on the 
official website of the IGC.  

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2023/0086 (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 the extension of 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(4), first subparagraph, 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’) 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. 

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 7 June 20212 and remains in force until 30 June 2023. 
During its 58th session to be held on 14 June 2023, the International Grains Council is 
to decide on the extension of the Convention for a further period of up to two years, 
from 1 July 2023 to 30 June 2025. 
It is appropriate to establish the position to be taken on the Union's behalf in the 58th   
session  of  the  International  Grains  Council  with  respect  the  extension  of  the 
Convention. 

The  Union  is  a  major  cereals  producer  and  a  leading  exporter  of  wheat  and  barley, 
while the largest importer of maize. The Union has always been an active member of 
the  International  Grains  Council,  which  plays  an  important  role  in  stabilising  world 
grain markets and enhancing food security. Therefore, the extension of the Convention 
is in the interest of the Union, 

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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) 2021/777 of 10 May 2021 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 167, 12.5.2021, p. 39). 

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HAS ADOPTED THIS DECISION: 

Article 1 
The position to be taken on the Union’s behalf in the 58th session of the International Grains 
Council shall be to vote in favour of the extension of the Grains Trade Convention, 1995, for 
a further period of up to two years from 1 July 2023 to 30 June 2025. 

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/ 
PS/hn/(2023)1052578 
6.221.2023.1 

DATE: 03.02.2023 

APPROPRIATIONS: 
B2023 4 540 000 EUR 

TITLE: 
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 the extension of the Grains Trade Convention, 1995 

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

AIMS: 
Extension of the existing Grains Trade Convention by two more years (1.7.2023 to 30.06.2025). 

1. 

2. 

3. 

4. 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 
2023 
(EUR million) 
0.40 

FOLLOWING 
FINANCIAL 
YEAR 
2024 
(EUR million) 
0.42 

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  

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

2023 
- 

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

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.  

The EU’s annual contribution is paid in GBP. The amount for 2023/24 and 2024/25 can moderately increase if 
the 2022 high inflation environment persists. 

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