Proposal for a COUNCIL DECISION 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
Date: 2023-09-06
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, 6.9.2023  COM(2023) 511 final 2023/0310 (NLE)  Proposal for a COUNCIL DECISION 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  
 
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 extending the International Sugar Agreement, 1992 until 31 December 2024. 

2. 

CONTEXT OF THE PROPOSAL 

2.1. 

The International Sugar Agreement, 1992 

The  International  Sugar  Agreement,  1992  (‘the  Agreement’)  aims  to  enhance  international 
cooperation on world sugar matters and related issues, provide a forum for intergovernmental 
consultations  on  sugar  and  ways  to  improve  the  world  sugar  economy,  facilitate  trade  by 
collecting  and  sharing  information  on  the  world  sugar  market  and  other  sweeteners  and 
encourage increased demand for sugar, particularly  for non-traditional  uses. The Agreement 
entered into force on 1 January 1993. 
The European Union is a party to the Agreement1. 

2.2. 

The International Sugar Council 

The  International  Sugar  Council  (‘ISC’)  is  the  body  responsible  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 ISC and its committees and the financial and 
staff regulations of the International Sugar Organisation (‘ISO’). The ISC 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 ISC 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. 

The envisaged act of the International Sugar Council 

2.3. 
On 24 November 2023,  during its  63rd  session, the  ISC is  to  adopt  a  decision regarding the 
extension of the Agreement (‘the envisaged act’).  

The Agreement was originally 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 provided for 
by  Article  45  of  the  Agreement.  The  last  extension  was  adopted  in  November  20212  and 
remains in force until 31 December 2023.  

Following negotiations among the members of the ISO, the ISC proposed in its 59th session 
amendments  to  the  Agreement.  These  amendments  concern  Article  25  of  the  Agreement  , 
which governs the adoption of the administrative budget and member contributions as well as 
the  objectives  set  out  in  Article  1  of  the  Agreement,  the  work  priorities  of  the  ISO  under 

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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). 
Council  Decision  (EU)  2021/1843  of  15  October  2021  on  the  position  to  be  taken  on  behalf  of  the 
European  Union  within  the  International  Sugar  Council  as  regards  the  extension  of  the  International 
Sugar Agreement 1992 (OJ L 373, 21.10.2021, p. 90). 

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Articles 32, 33 and 34 of the Agreement, and the rules for the appointment of the Executive 
Director set out in Article 23 of the Agreement. In line with Council Decision 2021/18513, the 
EU voted in favour of amending the Agreement in November 2021.  

According to the original planning, Members would have until 30 June 2023 to deposit their 
instrument  of  acceptance.  The  amendments  to  the  Agreement  would  enter  into  force  on  1 
January 2024 on the condition that members holding at least two thirds of the votes deposited 
the instrument of acceptance. During the 62nd Council Session that took place in June 2023, 
the  ISC  agreed  to  prolong  the  period  in  which  Members  could  deposit  their  instrument  of 
acceptance  until  30  April  2024  while  the  entry  into  force  of  the  amended  Agreement  was 
postponed to 1st January 2025. In consequence, the current Agreement needs to be extended 
by one year until  31 December 2024. The EU contribution  to  the ISO budget  for 2024 will 
therefore be calculated using the current formula under Article 25 of the Agreement. 

The purpose of the envisaged act is to enable ISO to continue with its work for an additional 
year.  

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, in 
force until 31 December 2023. 

The  Union  has  always  been  an  active  member  of  the  ISO  and  a  further  extension  of  the 
Agreement 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 EU counts as one Member to the Agreement. For budgetary procedures (see Article 25 of 
the Agreement), i.e. for fixing the annual financial contributions of Members, the number of 
votes allocated to the Union is 508 out of the total of 2000 votes. Each vote has a weight of 
£745 for the 2023 administrative budget and therefore the contribution due for 2023 amounts 
to £378,460. These figures are adjusted on a yearly basis. 

A formal decision about the extension of the Agreement up to 31 December 2024 is scheduled 
for the 63rd Session of the International Sugar Council to be held on 24 November 2023 in 
London. 

The purpose of this proposal is to seek the Council’s authorisation for the Commission to vote 
in  the  International  Sugar  Council,  on  the  Union’s  behalf,  in  favour  of  the  extension  of  the 
Agreement up to 31 December 2024.  

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 

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Council  Decision  (EU)  2021/1851  of  15  October  2021  on  the  position  to  be  taken  on  behalf  of  the 
European  Union  within  the  International  Sugar  Council  as  regards  amendments  to  the  International 
Sugar Agreement 1992 and the timetable for their implementation (OJ L 374, 22.10.2021, p. 49). 

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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 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. 

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 
its  adoption.
publish 

the  European  Union  after 

the  Official  Journal  of 

in 

it 

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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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2023/0310 (NLE) 

Proposal for a 

COUNCIL DECISION 

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 

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) 

(5) 

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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 (‘ISC’) 
has been set up to adopt certain decisions. Pursuant to Article 45(2) of the Agreement, 
the ISC 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 ISC 
in November 20212 and remains in force until 31 December 2023. 

In 2021, the ISC agreed to amend the Agreement and in particular Articles 1, 23, 25, 
32, 33, and 34 thereof. The amendments to the Agreement were originally intended to 
enter into force on 1 January 2024. During its 62nd session the ISC agreed to prolong 
the  period  in  which  Members  could  deposit  their  instrument  of  acceptance  of  the 
amendments until 30 April 2024 while the entry into force of the amended Agreement 
was postponed to 1 January 2025. In view of this, the validity of the Agreement in its 
current wording needs to be extended. 

The  ISC,  during  its  63rd  session  to  be  held  on  24  November  2023,  is  to  adopt  a 
decision on the extension of the Agreement in its current wording until 31 December 
2024.  

It is appropriate to establish the position to be taken on the Union's behalf in the 63rd 
session  of  the  ISC,  as  a  further  extension  of  the  Agreement  is  in  the  interest  of  the 
Union,  

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)  2021/1843  of  15  October  2021  on  the  position  to  be  taken  on  behalf  of  the 
European  Union  within  the  International  Sugar  Council  as  regards  the  extension  of  the  International 
Sugar Agreement 1992 (OJ L 373, 21.10.2021, p. 90). 

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HAS ADOPTED THIS DECISION: 

Article 1 

The position to be taken on the Union’s behalf in the 63rd 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 one year, from 1 January 2024 to 31 December 2024.  

This Decision is addressed to the Commission. 

Done at Brussels, 

Article 2 

For the Council 
The President 

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FINANCIAL STATEMENT 

FinancSt/10/ 
PS/nd/xxxxxx 
6.22.2023.1 

DATE: 14.06.2023 

BUDGET HEADING: 
14 20 03 06 International organisations and agreements 

APPROPRIATIONS: 
DB2024 4 861 000 EUR 

TITLE: 
Proposal for a Council Decision on the position to be taken on behalf of the European Union in the 
International Sugar Council on 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 one year (1 January 2024 - 31 December 
2024). 

1. 

2. 

3. 

4. 

5. 

FINANCIAL IMPLICATIONS 

12 MONTH PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 
2023 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 
2024 
(EUR million) 

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 (508) of the EU, 
on an estimated amount to be paid per vote in GBP (745). The figures are adjusted on a yearly basis. 

0.55 

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 allocated to the EU,  on the 
amount to be paid per vote in GBP and on the exchange rate EUR/ GBP.  Moreover, the EU contribution amount 
may change for 2024 in case of changes in the membership of the ISC. 

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