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: 2025-04-09
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, 9.4.2025  COM(2025) 167 final 2025/0087 (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  (‘IGC’)  in  connection  with  the  envisaged  adoption  of 
extending the Grains Trade Convention, 1995, until 30 June 2027. 

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 Convention3. 

2.2. 

The International Grains Council 

The 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: 

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• 

• 

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,  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 375 votes in 2024/254.  

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 240 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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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  12  June  2025,  during  its  62nd  Session,  the  IGC  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 2025 – 30 June 2027. 

3. 

POSITION TO BE TAKEN ON THE UNION'S BEHALF 

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• 

• 

The  Convention  was  concluded  by  the  European  Union  by  Council  Decision 
96/88/EC5  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 on 14 June 2023 and remains in force until 30 June 2025.  

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  2027  in  the  IGC.  The  formal  decision  about  the 
extension of the Convention is scheduled for the 62nd Session of the IGC to be held 
on 12 June 2025. 

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’.6 

4.1.2. 

 Application to the present case 

The IGC is a body set up by the Grains Trade Convention, 1995. 

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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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 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. 

COMPLIANCE WITH THE DIGITAL-BY-DEFAULT PRINCIPLE 

According to the digital assessment carried out, the current proposal has no digital dimensions 
as there is no digital relevance.  

The  proposal  establishes  the  EU  position  with  respect  to  extending  an  international 
agreement, the Grains Trade Convention, 1995 by two years until 30 June 2027. 

Digital means or data exchange are not under the scope of the proposal. 

6. 

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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2025/0087 (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) 

1 

2 

The Grains Trade Convention, 1995 (‘the Convention’) was concluded by the Union 
by Council Decision 96/88/EC1 and entered into force on 1 July 1995. The Convention 
was concluded for a period of three years. 2 

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 14 June 20232 and remains in force until 30 June 2025. 
The International Grains Council, during its 62nd session on 12 June 2025, is to adopt a 
decision  on  the  extension  of  the  Convention  for  a  further  period  of  up  to  two  years, 
from 1 July 2025 to 30 June 2027. 
It is appropriate to establish the position to be taken on the Union's behalf in the 62nd 
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  one  of  the  largest  importers  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, 

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) 2023/991 of 15 May 2023 on the position to be taken on behalf of the European 
Union  within  the  International  Grains  Council  with  regard  to  the  extension  of  the  Grains  Trade 
Convention, 1995 (OJ L 135, 23.5.2023, p. 114, ELI: http://data.europa.eu/eli/dec/2023/991/oj). 

3              OJ L 21, 27.1.1996, p. 47. 
4               The International Grains Council operates on a fiscal year basis, which runs from 1 July to 30 June. 
5             OJ L 21, 27.1.1996, p. 47. 
6 
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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HAS ADOPTED THIS DECISION: 

Article 1 
The position to be taken on the Union’s behalf in the 62nd 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 2025 to 30 June 2027. 

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/nd/Ares(2025)1094
676 

6.221.2025.1 

DATE: 24.02.2025 

APPROPRIATIONS: 
B2025 5 277 000 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 (1.7.2025 to 30.06.2027). 

1. 

2. 

3. 

4. 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 
2025 
(EUR million) 
4.2 

FOLLOWING 
FINANCIAL 
YEAR 
DB2026 
(EUR million) 
4.45 

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 

2025 
- 

(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: 

The amounts relative to 2026 and 2027 are subject to Budget availability. 

YES  

- 

- 

YES  

The EU’s annual contribution is paid in GBP. 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 and on the exchange rate EUR/GBP.  
The amount for 2025/26 and 2026/27 can moderately increase if the high inflation environment persists. 

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