CELEX: 51994PC0255
Language: en
Date: 1994-06-22
Title: Proposal for a COUNCIL DECISION concerning the signing and conclusion of the International Coffee Agreement 1994 on behalf of the Community

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     C0M(94) 255 final
                                                     Brussels, 22.06.1994
                                                     94/0149 (ACC)
                                    Proposal f o r a
                                 COUNCIL DECISION
        o f fh f i , <-1Ug t h e S i ^ n i n g and c o n c l u s i o n
        of t h e I n t e r n a t i o n a l Coffee Agreement 1994
                      on b e h a l f of t h e Community
                    ( p r e s e n t e d by the Commission)
 ---pagebreak---                                                                                 A
                          EXPLANATORY MEMORANDUM
   Signing and conclusion of the International Coffee Agreement        1994
1.  By International Coffee Council Resolution 363 of 4 June 1993 the
    International Coffee Agreement 1983 was extended until. 30 September
     1994, to allow time for the negotiation of a new Agreement.            The
    Community    approved   that  extension   by    Council     Decision     of
     13 September 1993.
2.  Negotiations for a new Agreement    duly began   in   December   1993   and
    were concluded on 31 March 1994.
3.  The    International   Coffee  Agreement   1994,     unlike    its    four
    predecessors   (1983, 1976, 1968 and 1962) is an          Administrative
    Agreement, containing no provisions for market regulation.            (The
    economic clauses of the 1983 Agreement were suspended sine die in
    July 1989 ) .
4.  The   objectives   of the new Agreement     are   to ensure      enhanced
    international cooperation in the world coffee economy through the
    collection, analysis and dissemination of statistics; through the
    publication of indicator and other market prices, and through the
    promotion of studies and surveys in the field of coffee.
5.  The Community and the Member States participated in the negotiation
    of the Agreement in line with an agreed common position.                The
    Member States acknowledged at the close of the negotiations that
    the objectives and content of the new Agreement were in accordance
    with this common position.
6.  The Agreement    is open for signing and for        the depositing       of
    instruments of ratification, acceptance, approval oi accession with
    the Secretary-General of the United Nations from 18 April until
    26 September 1994.
7.  The Commission considers that the Community and its Member States
    should complete the necessary signing and ratification procedures
    as rapidly as possible, so as to ensure the entry into force of the
    new Agreement on 1 October 1994, as provided for.
The draft Decision attached at annex, which the Council      is requested to
adopt, was drawn up for this purpose.
 ---pagebreak---                                                                                        Ao-
                              Proposal for a Council Decision of ...
                              concerning the signing and conclusion
                            >t the International Coffee Agreement 1994
                                    on behalf of the Community
The Council of the European Union,
Having regard to the Treaty,establishing the European Cununuiuty,                  and
in particular                Article   113 thereof,   in liaison with   Article   228,
paragraph 2,
Having regard to the proposal from the Commission,
Whereas the International Coffee Agreement 1994 is open for signing                 as
well as for ratification, acceptance or approval from 18 April to                   26
September 1994;
Whereas the International Coffee Agreement 1983 as extended expires on
30 September 1994 and the new Agreement, in accordance with its Article
40, provides for its entry into force, provisionally or definitively as
of 1 October 1994,
Whereas the objectives pursued by the Agreement fit into the context of
the common commercial policy;
Whereas the Member States are called upon to participate, by financial
c o n t r i b u t i o n s , in the actions provided for by the said Agreement;
Whereas all Member States have expressed their intention to sign, and
to submit for ratification the Agreement, and whereas the Community
should therefore sign the Agreement lodged with the Secretary-General
of the United Nations and notify, by 26 September 1994, its approval
thereof;
HAS DECIDED AS              FOLLOWS
                                             Article 1
The International Coffee Agreement                  1994 is hereby approved by the
European Community. The text of the Agreement is attached to this
Decision.
                                             Article 2
The President of the Council is authorised to designate the person
empowered to sign the Agreement and to deposit the                     instrument- of
approval on behalf of the Community by 26 September 1994.
Done at Brussels,                                                For the Council
                                                                 The  President
 ---pagebreak---                                                                         yib
Declarations to be entered in the minutes
1.  The Council and the Commission declare that this Decision is being
    adopted in order to enable the Agreement to enter into force as
    provided   for on 1 October 1994. It is being taken with the
    pragmatic aim of adhering as closely as possible to existing
    practices and does not prejudice the basis and nature of future
    measures concerning commodities, including the renewal of this
    Agreement.
2.  The Member States' representatives meeting within the Council
    declare that their Governments are prepared to sign the new
    International Agreement on coffee and to secure its ratification as
    soon as possible, and to deposit, together with the Community, the
    instruments of ratification before 26.9.94.
    Should their ratification procedures not be concluded before that
    date, Member States will take all measures to ensure that the
    Agreement can be applied as regards the Community's competences by
    1 October 1994.
 ---pagebreak---                                                           AC
ORGANIZACION
             INTERNATIONAL
                              ©COFFEE
             INTERNACIONAL DEL CAFE
                                             ORGANIZATION
ORGANIZACÂO  INTERNACIONAL DO CAFÉ
ORGANISATION INTERNATIONALE DU CAFE
                               INTERNATIONAL
                               COFFEE
                               AGREEMENT
                               1994
                               15 April 1994
 ---pagebreak--- •Ad
                                             CONTENTS
    Article.                                                             JBage
             Preamble                                                         If
                                     CHAPTER I - OBJECTIVES
       1     Objectives                                                      2
                                  CHAPTER II - DEFINITIONS
       2     Definitions                                                     3
                    CHAPTER III - GENERAL UNDERTAKINGS BY MEMBERS
       3     General undertakings by Members                                 6
                                   CHAPTER IV - MEMBERSHIP
       4     Membership of the Organization . . . .                          7
       5     Separate membership in respect of designated territories        8
       6     Group membership                                                8
                 CHAPTER V - THE INTERNATIONAL COFFEE ORGANIZATION
       7     Seat and structure of the International Coffee Organization    12
       8     Privileges and immunities                                      12
                     CHAPTER VI - THE INTERNATIONAL COFFEE COUNCIL
       9     Composition of the International Coffee Council                14
      10     Powers and functions of the Council                            14
      11     Chairman and Vice-Chairmen of the Council                      15
      12     Sessions of the Council                                        16
      13     Votes . .                                                      17
      14     Voting procedure of the Council                                18
      15     Decisions of the Council                                       18
      16     Cooperation with other organizations                           20
                             CHAPTER VII - THE EXECUTIVE BOARD
      17     Composition and meetings of the Executive Board                21
      18     Election of the Executive Board                                22
      19     Competence of the Executive Board                             '24
      20     Voting procedure of the Executive Board                        25
 ---pagebreak---                                                                                          At
Artiste                                                                            Eag*
                                 CHAPTER VIII - FINANCE
 21     Finance                                                                    • 26
 22     Determination of the Administrative Budget and assessment of contributions   26
 23     Payment of contributions                                                     27
 24     Liabilities                                                                  28
 25     Audit and publication of accounts                                            28
             CHAPTER IX - THE EXECUTIVE DIRECTOR AND THE STAFF
 26     The Executive Director and the staff                                         29
                 CHAPTER X - INFORMATION, STUDIES AND SURVEYS
  27    Information                                                                   30
  28    Certificates of Origin                                                        31
  29    Studies and surveys                                                           31
                           CHAPTER XI - GENERAL PROVISIONS
  30    Preparations for a new Agreement                                              33
  31    Removal of obstacles to consumption                                           33
  32    Measures related to processed coffee                                          34
  33    Mixtures and substitutes                                                      35
  34    Consultation and cooperation with the private sector                          36
  35    Environmental aspects                                                         36
           CHAPTER XII - CONSULTATIONS, DISPUTES AND COMPLAINTS
  36     Consultations                                                                37
  37     Disputes and complaints                                                      37
                            CHAPTER XIII - FINAL PROVISIONS
  38     Signature                                                                    40
  39     Ratification, acceptance or approval                                         40
  40     Entry into force                                                             40
  41     Accession                                                                    42
  42     Reservations                                                                 42
  43     Extension to designated territories                                          42
  44     Voluntary withdrawal                                                         44
  45     Exclusion                                                                    44
  46     Settlement of accounts with withdrawing or excluded Members                  44
  47     Duration and termination                                                     45
  48     Amendment                                                                    46
  49     Supplementary and transitional provisions                                    47
   50    Authentic texts of the Agreement                                             47
 ---pagebreak---                                                                                                AÏ
                    INTERNATIONAL COFFEE AGREEMENT 1994
                                        PREAMBLE
        The Governments Party to this Agreement,
        Recognizing the exceptional importance of coffee to the economies of many
countries which are largely dependent upon this commodity for their export earnings and
thus for the continuation of their development programmes in the social and economic
fields;
        Recognizing the need to foster the development of productive resources and the
promotion and maintenance of employment and income in the coffee industry in Member
countries, thereby bringing about fair wages, higher living standards and better working
conditions;
        Considering that close international cooperation on trade in coffee will foster the
economic diversification and development of coffee-producing countries, will contribute to
the improvement of political and economic relations between coffee exporting and
importing countries, and will provide for increasing consumption of coffee;
        Recognizing the desirability of avoiding disequilibrium between production and
consumption which can give rise to pronounced fluctuations in prices harmful both to
producers and to consumers;
        Considering the relationship between the stability of the trade in coffee and the
stability of markets for manufactured goods;
        Noting the advantages derived from the international cooperation which resulted
from the operation of the International Coffee Agreements 1962, 1968, 1976 and 1983;
        Have agreed as follows:
                                                           International Coffee Agreement 1994
 ---pagebreak---                                   CHAPTER I - OBJECTIVES
                                            ARTICLE 1
                                           Objectives
         The objectives of this Agreement are:
(1)      to ensure enhanced international cooperation in connection with world coffee
matters;
(2)      to provide a forum for intergovernmental consultations, and negotiations when
appropriate, on coffee matters and on ways to achieve a reasonable balance between world
supply and demand on a basis which will assure adequate supplies of coffee at fair prices
to consumers and markets for coffee at remunerative prices to producers, and which will
be conducive to long-term equilibrium between production and consumption;
(3)       to facilitate the expansion of international trade in coffee through the collection,
analysis and dissemination of statistics and the publication of indicator and other market
prices and thereby to enhance transparency in the world coffee economy;
(4)       to act as a centre for the collection, exchange and publication of economic and
 technical information on coffee;
 (5)      to promote studies and surveys in the field of coffee; and
 (6)      to encourage and increase the consumption of coffee.
 International Coffee Agreement 1994
 ---pagebreak---                              CHAPTER H - DEFINITIONS
                                         ARTICLE 2
                                        Definitions
       For the purposes of this Agreement:
(1)    Coffee means the beans and cherries of the coffee tree, whether parchment, green
or roasted, and includes ground, decaffeinated, liquid and soluble coffee. These terms
shall have the following meaning:
       (a)    green coffee means all coffee in the naked bean form before roasting;
       (b)    dried coffee cherry means thé dried fruit of the coffee tree; to find the
              equivalent of dried coffee cherry to green coffee, multiply the net weight of
              the dried coffee cherry by 0.50;
       (c)    parchment coffee means the green coffee bean contained in the parchment
              skin; to find the equivalent of parchment coffee to green coffee, multiply
              the net weight of the parchment coffee by 0.80;
       (d)    roasted coffee means green coffee roasted to any degree and includes ground
              coffee; to find the equivalent of roasted coffee to green coffee, multiply the
              net weight of roasted coffee by 1.19;
       (e)    decaffeinated coffee means green, roasted or soluble coffee from which
              caffeine has been extracted; to find the equivalent of decaffeinated coffee
              to green coffee, multiply the net weight of the decaffeinated coffee in green,
              roasted or soluble form by 1.00, 1.19 or 2.6 respectively;
                                                            International Coffee Agreement 1994
 ---pagebreak---         (f)     liquid coffee means the water-soluble solids derived from roasted coffee and
                put into liquid form; to find the equivalent of liquid coffee to green coffee,
                multiply the net weight of the dried coffee solids contained in the liquid
                coffee by 2.6; and
        (g)     soluble coffee means the dried water-soluble solids derived from roasted
                coffee; to find the equivalent of soluble coffee to green coffee, multiply the
                 net weight of the soluble coffee by 2.6.
(2)      Bag means 60 kilogrammes or 132.276 pounds of green coffee; tonne means a mass
of 1,000 kilogrammes or 2,204.6 pounds; and pound means 453.597 grammes.
(3)      Coffee year means the period of one year, from 1 October to 30 September.
(4)      Organization      and Council mean, respectively, the          International   Coffee
Organization and the International Coffee Council.
(5)      Contracting Party means a Government or intergovernmental organization referred
to in paragraph (3) of Article 4 which has deposited an instrument of ratification,
 acceptance, approval or provisional application of this Agreement in accordance with the
 provisions of Articles 39 and 40 or has acceded thereto in accordance with the provisions
 of Article 41.
 (6)     Member means a Contracting Party; a designated territory or territories in respect
 of which separate membership has been declared under the provisions of Article 5; or two
 or more Contracting Parties or designated territories, or both, which participate in the
 Organization as a Member group under the provisions of Article 6.
 International Coffee Agreement 1994
 ---pagebreak--- (7)     Exporting Member or exporting country means a Member or country, respectively,
which is a net exporter of coffee; that is, a Member or country whose exports exceed its
imports.
(8)     Importing Member or importing country means a Member or country, respectively,
which is a net importer of coffee; that is, a Member or country whose imports exceed its
exports.
(9)     Distributed simple majority vote means a vote requiring more than half of the votes
cast by exporting Members present and voting and more than half of the votes cast by
importing Members present and voting, counted separately.
(10)    Distributed two-thirds majority vote means a vote requiring more than two-thirds
 of the votes cast by exporting Members present and voting and more than two-thirds of
 the votes cast by importing Members present and voting, counted separately.
 (11)   Entry into force means, except as otherwise provided, the date on which this
 Agreement enters into force, whether provisionally or definitively.
 (12)   Exportable production means the total production of coffee of an exporting country
 in a given coffee or crop year, less the amount destined for domestic consumption in the
 same year.
 (13)   Availability for export means the exportable production of an exporting country in
 a given coffee year, plus accumulated stocks from previous years.
                                                            International Coffee Agreement 1994
 ---pagebreak---                CHAPTER m - GENERAL UNDERTAKINGS BY MEMBERS
                                         ARTICLE 3
                              General undertakings by Members
(1)      Members undertake to adopt such measures as are necessary to enable them to
fulfil their obligations under this Agreement and fully cooperate with one another in
securing the attainment of the objectives of this Agreement; in particular, Members
undertake to provide all information necessary to facilitate the functioning of this
Agreement.
(2)      Members recognize that Certificates of Origin are important sources of information
on the trade in coffee. Exporting Members, therefore, assume responsibility for ensuring
the proper issuing and use of Certificates of Origin according to the rules established by
the Council.
(3)      Members recognize further that information on re-exports is also important for the
proper analysis of the world coffee economy. Importing Members, therefore, undertake
to supply regular and accurate information on re-exports, in the form and manner
determined by the Council.
 International Coffee Agreement 1994
 ---pagebreak---                              CHAPTER IV - MEMBERSHIP
                                          ARTICLE 4
                             Membership of the Organization
(1)      Each Contracting Party, together with those territories to which this Agreement
is extended under the provisions of paragraph (1) of Article 43, shall constitute a single
Member of the Organization, except as otherwise provided for under the provisions of
Articles 5 and 6.
(2)      A Member may change its category of membership on such conditions as the
Council may agree.
 (3)     Any reference in this Agreement to a Government shall be construed as including
 a reference to the European Community, or any intergovernmental organization having
 comparable responsibilities in respect of the negotiation, conclusion and application of
 international agreements, in particular commodity agreements.
 (4)     Such intergovernmental organization shall not itself have any votes but in the case
 of a vote on matters within its competence it shall be entitled to cast collectively the votes
 of its Member States. In such cases, the Member States of such intergovernmental
 organization shall not be entitled to exercise their individual voting rights.
 (5)      Such intergovernmental organization shall not be eligible for election to the
  Executive Board under the provisions of paragraph (1) of Article 17 but may participate
  in the discussions of the Executive Board on matters within its competence. In the case
  of a vote on matters within its competence, and notwithstanding the provisions of
  paragraph (1) of Article 20, the votes which its Member States are entitled to cast in the
  Executive Board may be cast collectively by any one of those Member States.
                                                              International Coffee Agreement 1994
 ---pagebreak---                                           ARTICU5 5
                             Separate membership in respect of
                                    designated territories
        Any Contracting Party which is a net importer of coffee may, at any time, by
appropriate notification in accordance with the provisions of paragraph (2) of Article 43,
declare that it is participating in the Organization separately with respect to any of the
territories for whose international relations it is responsible, which are net exporters of
coffee and which it designates.        In such case, the metropolitan territory and its
non-designated territories will have a single membership, and its designated territories,
either individually or collectively as the notification indicates, will have separate
membership.
                                          ARTICLE 6
                                     Group membership
(1)      Two or more Contracting Parties which are net exporters of coffee may, by
appropriate notification to the Council and to the Secretary-General of the United Nations
at the time of deposit of their respective instruments of ratification, acceptance, approval,
provisional application or accession, declare that they are participating in the
Organization as a Member group. A territory to which this Agreement has been extended
under the provisions of paragraph (1) of Article 43 may constitute part of such Member
group if the Government of the State responsible for its international relations has given
 appropriate notification thereof under the provisions of paragraph (2) of Article 43. Such
 Contracting Parties and designated territories must satisfy the following conditions:
         (a)    they shall declare their willingness to accept responsibility for group
                obligations in an individual as well as a group capacity; and
International Coffee Agreement 1994
 ---pagebreak---        (b)    they shall subsequently provide satisfactory evidence to the Council that:
              (i)     the group has the organization necessary to implement a common
                      coffee policy and that they have the means of complying, together
                      with the other parties to the group, with their obligations under this
                      Agreement; and
              (ii)    they have a common or coordinated commercial and economic policy
                      in relation to coffee and a coordinated monetary and financial policy,
                      as well as the organs necessary to implement such policies, so that
                      the Council is satisfied that the Member group is able to comply
                      with the group obligations involved.
(2)     Any Member group recognized under the International Coffee Agreement 1983
shall continue to be recognized as a group unless it notifies the Council that it no longer
wishes to be so recognized.
(3)     The Member group shall constitute a single Member of the Organization, except
that each party to the group shall be treated as if it were a single Member in relation to
matters arising under the following provisions:
        (a)   Articles 11 and 12; and
        (b)   Article 46.
(4)     The Contracting Parties and designated territories joining as a Member group shall
specify the Government or organization which will represent them in the Council on
matters arising under this Agreement other than those specified in paragraph (3) of this
Article.
                                                             International Coffee Agreement 1994
 ---pagebreak--- 10
(5)     The voting rights of the Member group shall be as follows:
        (a)     the Member group shall have the same number of basic votes as a single
                Member country joining the Organization in an individual capacity. These
                basic votes shall be attributed to and cast by the Government or
                organization representing the group; and
        (b)     in the event of a vote on any matters arising under the provisions of
                paragraph (3) of this Article, the parties to the Member group may cast
                separately the votes attributed to them under the provisions of
                paragraph (3) of Article 13 as if each were an individual Member of the
                Organization, except for the basic votes, which shall remain attributable
                only to the Government or organization representing the group.
(6)      Any Contracting Party or designated territory which is a party to a Member group
may, by notification to the Council, withdraw from that group and become a separate
Member. Such withdrawal shall take effect upon receipt of the notification by the
Council. If a party to a Member group withdraws from that group or ceases to participate
in the Organization, the remaining parties to the group may apply to the Council to
maintain the group; the group shall continue to exist unless the Council disapproves the
 application. If the Member group is dissolved, each former party to the group will become
 a separate Member. A Member which has ceased to be a party to a group may not, as
long as this Agreement remains in force, again become a party to a group.
(7)      Any Contracting Party which wishes to become party to a Member group after this
Agreement has entered into force may do so by notification to the Council provided that:
         (a)    other Members of the group declare their willingness to accept the Member
                concerned as party to the Member group; and
International Coffee Agreement 1994
 ---pagebreak---                                                                                          11
       (b)    it notifies the Secretary-General of the United Nations that it is
              participating in the group.
(8)    Two or more exporting Members may, at any time after this Agreement has
entered into force, apply to the Council to form a Member group. The Council shall
approve the application if it finds that the Members have made a declaration and have
provided satisfactory evidence in accordance with the requirements of paragraph (1) of
this Article. Upon such approval, the Member group shall be subject to the provisions of
paragraphs (3), (4), (5) and (6) of this Article.
                                                         International Coffee Agreement 1994
 ---pagebreak--- 12
            CHAPTER V - THE INTERNATIONAL COFFEE ORGANIZATION
                                             ARTICLE 7
                                     Seat and structure of the
                                International Coffee Organization
(1)      The International Coffee Organization established under the International Coffee
Agreement 1962 shall continue in being to administer the provisions and supervise the
operation of this Agreement.
(2)      The seat of the Organization shall be in London unless the Council by a distributed
two-thirds majority vote decides otherwise.
(3)       The Organization shall function through the International Coffee Council, the
Executive Board, the Executive Director and the staff.
                                              ARTICLE 8
                                     Privileges and immunities
 (1)      The Organization shall have legal personality. It shall in particular have the
 capacity to contract, acquire and dispose of movable and immovable property and to
 institute legal proceedings.
 (2)      The status, privileges and immunities of the Organization, of its Executive
 Director, its staff and experts, and of representatives of Members while in the territory
 of the United Kingdom of Great Britain and Northern Ireland for the purpose of
 exercising their functions, shall continue to be governed by the Headquarters Agreement
 International Coffee Agreement 1994
 ---pagebreak---                                                                                           13
concluded between the Government of the United Kingdom of Great Britain and Northern
Ireland (hereinafter referred to as the host Government) and the Organization on
28 May 1969.
(3)    The Headquarters Agreement referred to in paragraph (2) of this Article shall be
independent of this Agreement. It shall however terminate:
       (a)    by agreement between the host Government and the Organization;
       (b)    in the event of the headquarters of the Organization being moved from the
              territory of the host Government; or
       (c)    in the event of the Organization ceasing to exist.
(4)    The Organization may conclude with one or more other Members agreements to
be approved by the Council relating to such privileges and immunities as may be
necessary for the proper functioning of this Agreement.
(5)    The Governments of Member countries other than the host Government shall grant
the Organization the same facilities in respect of currency or exchange restrictions,
maintenance of bank accounts and transfer of monies, as are accorded to the specialized
agencies of the United Nations.
                                                          International Coffee Agreement 1994
 ---pagebreak--- 14
                 CHAPTER VI - THE INTERNATIONAL COFFEE COUNCIL
                                            ARTICLE 9
                         Composition of the International Coffee Council
(1)       The highest authority of the Organization shall be the International Coffee
Council, which shall consist of all the Members of the Organization.
(2)       Each Member shall appoint one representative on the Council and, if it so desires,
one or more alternates.          A Member may also designate one or more advisers to its
representative or alternates.
                                            ARTICLE 10
                               Powers and functions of the Council
 (1)       All powers specifically conferred by this Agreement shall be vested in the Council,
 which shall have the powers and perform the functions necessary to carry out the
 provisions of this Agreement.
 (2)       The Council shall set up a Credentials Committee which will be in charge of
 examining the written communications made to the Chairman with respect to the
 provisions of paragraph (2) of Article 9, paragraph (3) of Article 12 and paragraph (2) of
 Article 14. The Credentials Committee shall report its proceedings to the Council.
 (3)       The Council may set up any committees or working groups, other than the
 Credentials Committee, as it considers necessary.
  International Coffee Agreement 1994
 ---pagebreak---                                                                                             15
(4)    The Council shall, by a distributed two-thirds majority vote, establish such rules
and regulations, including its own rules of procedure and the financial and staff
regulations of the Organization, as are necessary to carry out the provisions of this
Agreement and are consistent therewith. The Council may, in its rules of procedure,
provide the means whereby it may, without meeting, decide specific questions.
(5)    The Council shall also keep such records as are required to perform its functions
under this Agreement and such other records as it considers desirable.
                                        ARTICLE 11
                      Chairman and Vice-Chairmen of the Council
(1)    The Council shall elect, for each coffee year, a Chairman and a first, a second and
a third Vice-Chairman, who shall not be paid by the Organization.
(2)    As a general rule, the Chairman and the first Vice-Chairman shall both be elected
either from among the representatives of exporting Members or from among the
representatives of importing Members and the second and the third Vice-Chairmen shall
be elected from among representatives of the other category of Member. These offices
shall alternate each coffee year between the two categories of Member.
(3)     Neither the Chairman nor any Vice-Chairman acting as Chairman shall have the
right to vote. His or her alternate will in such case exercise the voting rights of the
Member.
                                                            International Coffee Agreement 1994
 ---pagebreak--- 16
                                           ARTICLE 12
                                     Sessions of the Council
(1)       As a general rule, the Council shall hold regular sessions twice a year. It may hold
special sessions should it so decide. Special sessions shall also be held at the request of
the Executive Board, of any five Members, or of a Member or Members having at least
200 votes. Notice of sessions shall be given at least 30 days in advance except in cases
of emergency when such notice shall be given at least 10 days in advance.
(2)       Sessions shall be held at the seat of the Organization, unless the Council decides
otherwise by a distributed two-thirds majority vote. If a Member invites the Council to
meet in its territory, and the Council agrees, the additional costs involved above those
incurred when the session is held at the seat shall be borne by that Member.
(3)       The Council may invite any non-member country or any of the organizations
referred to in Article 16 to attend any of its sessions as an observer. In case such
invitation is accepted, the country or organization concerned shall send a communication
 to that effect in writing to the Chairman. If it so wishes it may in that communication
 request permission to make statements to the Council.
 (4)      The quorum required for a Council session shall be the presence of more than half
 of the number of exporting Members representing at least two-thirds of the votes of all
 exporting Members and of more than half of the number of importing Members
 representing at least two-thirds of the votes of all importing Members. If on the opening
 of a Council session or of any plenary meeting there is no quorum, the Chairman shall
 postpone the opening of the session or plenary meeting for at least three hours. If there
 is still no quorum at the new time set, the Chairman may again postpone the opening of
 the session or plenary meeting for at least a further three hours. If at the end of this new
 International Coffee Agreement 1994
 ---pagebreak---                                                                                              17
postponement there is still no quorum, the quorum required for opening or resuming the
session or plenary meeting shall be the presence of more than half of the number of
exporting Members representing at least half of the votes of all exporting Members and
of more than half of the number of importing Members representing at least half of the
votes of all importing Members. Representation in accordance with paragraph (2) of
Article 14 shall be considered as presence.
                                          ARTICLE 13
                                             Votes
(1)      The exporting Members shall together hold 1,000 votes and the importing Members
 shall together hold 1,000 votes, distributed within each category of Member — that is,
 exporting and importing Members, respectively — as provided for in the following
 paragraphs of this Article.
 (2)     Each Member shall have five basic votes.
 (3)     The remaining votes of exporting Members shall be divided among such Members
 in proportion to the average volume of their respective exports of coffee to all destinations
 in the preceding four calendar years.
 (4)     The remaining votes of importing Members shall be divided among such Members
 in proportion to the average volume of their respective imports of coffee in the preceding
 four calendar years.
 (5)     The distribution of votes shall be determined by the Council in accordance with the
 provisions of this Article at the beginning of each coffee year and shall remain in effect
 during that year, except as provided for in paragraph (6) of this Article.
                                                              International Coffee Agreement 1994
 ---pagebreak--- 18
(6)      The Council shall provide for the redistribution of votes in accordance with the
provisions of this Article whenever there is a change in the membership of the
Organization or if the voting rights of a Member are suspended or regained under the
provisions of Article 23 or 37.
(7)      No Member shall hold more than 400 votes.
(8)      There shall be no fractional votes.
                                            ARTICLE 14
                                Voting procedure of the Council
 (1)      Each Member shall be entitled to cast the number of votes it holds and shall not
 be entitled to divide its votes. However, a Member may cast differently any votes which
 it holds under the provisions of paragraph (2) of this Article.
 (2)      Any exporting Member may authorize any other exporting Member, and any
 importing Member may authorize any other importing Member, to represent its interests
 and to exercise its right to vote at any meeting or meetings of the Council. The limitation
 provided for in paragraph (7) of Article 13 shall not apply in this case.
                                            ARTICLE 15
                                     Decisions of the Council
 ( 1)     All decisions of the Council shall be taken, and all recommendations shall be made,
 by a distributed simple majority vote unless otherwise provided for in this Agreement.
                                                           *
                                                           9
 International Coffee Agreement 1994
 ---pagebreak---                                                                                                 19
(2)     The following procedure shall apply with respect to any decision by the Council
which under the provisions of this Agreement requires a distributed two-thirds majority
vote:
        (a)    if a distributed two-thirds majority vote is not obtained because of the
                negative vote of three or less exporting or three or less importing Members,
                the proposal shall, if the Council so decides by a majority of the Members
                present and by a distributed simple majority vote, be put to a vote again
                within 48 hours;
        (b)     if a distributed two-thirds majority vote is again not obtained because of
                the negative vote of two or less exporting or two or less importing Members,
                the proposal shall, if the Council so decides by a majority of the Members
                present and by a distributed simple majority vote, be put to a vote again
                within 24 hours;
        (c)     if a distributed two-thirds majority vote is not obtained in the third vote
                because of the negative vote of one exporting or one importing Member, the
                proposal shall be considered adopted; and
        (d)     if the Council fails to put a proposal to a further vote, it shall be considered
                rejected.
 (3)     Members undertake to accept as binding all decisions of the Council under the
 provisions of this Agreement.
                                                                International Coffee Agreement 1994
 ---pagebreak--- 20
                                         ARTICLE 16
                             Cooperation with other organizations
(1)      The Council may make arrangements for consultation and cooperation with the
United Nations and its specialized agencies and with other appropriate intergovernmental
organizations. It shall take full advantage of the facilities of the Common Fund for
Commodities. Such arrangements may include financial arrangements which the Council
considers appropriate for achieving the objectives of this Agreement. However, in respect
of the implementation of any project under such arrangements the Organization shall not
incur any financial obligations for guarantees given by individual Members or other
entities. No Member shall be responsible by reason of its membership of the Organization
for any liability arising from borrowing or lending by any other Member or entity in
 connection with such projects.
 (2)     Where possible, the Organization may also collect from Members, non-members,
 and from donor and other agencies, information on development projects and programmes
 focusing on the coffee sector. Where appropriate, and with the agreement of the parties
 concerned, the Organization may make this information available to such other
 organizations as well as to Members.
 International Coffee Agreement 1994
 ---pagebreak---                                                                                             21
                        CHAPTER VH - THE EXECUTIVE BOARD
                                         ARTICLE 17
                    Composition and meetings of the Executive Board
(1)     The Executive Board shall consist of eight exporting Members and eight importing
Members elected for each coffee year in accordance with the provisions of Article 18.
Members represented in the Executive Board may be re-elected.
(2)     Each Member represented in the Executive Board shall appoint one representative
and, if it so desires, one or more alternates. Each Member represented in the Executive
Board may also designate one or more advisers to its representative or alternates.
(3)     The Executive Board shall have a Chairman and a Vice-Chairman, who shall be
elected by the Council for each coffee year and may be re-elected. These officers shall not
be paid by the Organization. Neither the Chairman nor the Vice-Chairman acting as
Chairman shall have the right to vote in the meetings of the Executive Board. His or her
alternate will in such case exercise the voting rights of the Member. As a general rule,
the Chairman and the Vice-Chairman for each coffee year shall be elected from among the
representatives of the same category of membership.
(4)     The Executive Board shall normally meet at the seat of the Organization, but may
meet elsewhere if the Council so decides by a distributed two-thirds majority vote. In case
of acceptance by the Council of an invitation by a Member to host the meeting of the
Executive Board, the provisions of paragraph (2) of Article 12 concerning Council sessions
shall also apply.
                                                            International Coffee Agreement 1994
 ---pagebreak--- 22
(5)      The quorum required for an Executive Board meeting shall be the presence of more
than half of the number of exporting Members representing at least two-thirds of the
votes of all exporting Members elected to the Executive Board and of more than half of
the number of importing Members representing at least two-thirds of the votes of all
importing Members elected to the Executive Board. If on the opening of an Executive
Board meeting there is no quorum, the Chairman of the Executive Board shall postpone
the opening of the meeting for at least three hours. If there is still no quorum at the new
time set, the Chairman may again postpone the opening of the meeting for at least a
further three hours. If at the end of this new postponement there is still no quorum, the
quorum required for opening the meeting shall be the presence of more than half of the
number of exporting Members representing at least half of the votes of all exporting
Members elected to the Executive Board and of more than half of the number of importing
Members representing at least half of the votes of all importing Members elected to the
Executive Board.
                                            ARTICLE 18
                                 Election of the Executive Board
 (1)      The exporting and the importing Members of the Executive Board shall be elected
 in the Council by the exporting and the importing Members of the Organization
 respectively. The election within each category shall be held in accordance with the
 provisions of the following paragraphs of this Article.
 (2)      Each Member shall cast for a single candidate all the votes to which it is entitled
 under the provisions of Article 13. A Member may cast for another candidate any votes
 which it holds under the provisions of paragraph (2) of Article 14.
 International Coffee Agreement 1994
 ---pagebreak---                                                                                               23
(3)     The eight candidates receiving the largest number of votes shall be elected;
however, no candidate shall be elected on the first ballot unless it receives at least
75 votes.
(4)     If, under the provisions of paragraph (3) of this Article, less than eight candidates
are elected on the first ballot, further ballots shall be held in which only Members which
did not vote for any of the candidates elected shall have the right to vote. In each further
ballot the minimum number of votes required for election shall be successively diminished
by five until eight candidates are elected.
(5)     Any Member which did not vote for any of the Members elected shall assign its
votes to one of them, subject to the provisions of paragraphs (6) and (7) of this Article.
(6)     A Member shall be deemed to have received the number of votes cast for it when
it was elected and, in addition, the number of votes assigned to it, provided that the total
number of votes shall not exceed 499 for any Member elected.
(7)     If the votes deemed received by an elected Member exceed 499, Members which
voted for, or assigned their votes to, such elected Member shall arrange among themselves
for one or more of them to withdraw their votes from that Member and assign or re-assign
them to another elected Member so that the votes received by each elected Member shall
not exceed the limit of 499.
                                                              International Coffee Agreement 1994
 ---pagebreak--- 24
                                          ARTICLE 19
                               Competence of the Executive Board
(1)      The Executive Board shall be responsible to and work under the general direction
of the Council.
(2)       The Council may, by a distributed two-thirds majority vote, delegate to the
Executive Board the exercise of any or all of its powers other than the following:
          (a)    approval of the Administrative Budget and assessment of contributions
                 under the provisions of Article 22;
          (b)    suspension of the voting rights of a Member under the provisions of
                 Article 37;
          (c)    decisions on disputes under the provisions of Article 37;
          (d)    establishment of conditions for accession under the provisions of Article 41;
          (e)    a decision to exclude a Member under the provisions of Article 45;
          (f)    a decision concerning the renegotiation, extension or termination of this
                 Agreement under the provisions of Article 47; and
          (g)    recommendation of amendments to Members under the provisions of
                 Article 48.
 (3)      The Council may, by a distributed simple majority vote, at any time revoke any
 powers which have been delegated to the Executive Board.
 (4)      The Executive Board shall set up a Finance Committee which, in accordance with
 the provisions of Article 22, will be in charge of supervising the preparation of the
 Administrative Budget to be presented to the Council for approval, and carrying out any
 International Coffee Agreement 1994
 ---pagebreak---                                                                                           25
other tasks which the Executive Board assigns, to it, which shall include the monitoring
of income and expenditure. The Finance Committee shall report its proceedings to the
Executive Board.
(5)    The Executive Board may set up any committees or working groups, other than the
Finance Committee, as it considers necessary.
                                       ARTICLE 20
                       Voting procedure of the Executive Board
(1)     Each Member of the Executive Board shall be entitled to cast the number of votes
received by it under the provisions of paragraphs (6) and (7) of Article 18. Voting by
proxy shall not be allowed. A Member of the Executive Board shall not be entitled to
divide its votes.
(2)    Any decision taken by the Executive Board shall require the same majority as such
decision would require if taken by the Council.
                                                          International Coffee Agreement 1994
 ---pagebreak--- 26
                                  CHAPTER Vin - FINANCE
                                          ARTICLE 21
                                           Finance
(1)      The expenses of delegations to the Council, representatives on the Executive Board
and representatives on any of the committees of the Council or the Executive Board shall
be met by their respective Governments.
(2)      The other expenses necessary for the administration of this Agreement shall be
met by annual contributions from the Members assessed in accordance with the provisions
 of Article 22, together with revenues from sales of specific services to Members and the
 sale of information and studies generated under the provisions of Articles 27 and 29.
 (3)     The financial year of the Organization shall be the same as the coffee year.
                                           ARTICLE 22
                       Determination of the Administrative Budget and
                                   assessment of contributions
 (1)     During the second half of each financial year, the Council shall approve the
 Administrative Budget of the Organization for the following financial year and shall
 assess the contributions of each Member to that Budget. The Administrative Budget shall
 be prepared by the Executive Director and supervised by the Finance Committee in
 accordance with the provisions of paragraph (4) of Article 19.
 (2)     The contribution of each Member to the Administrative Budget for each financial
 year shall be in the proportion which the number of its votes at the time the
 Administrative Budget for that financial year is approved bears to the total votes of all
 International Coffee Agreement 1994
 ---pagebreak---                                                                                             27
the Members.      However, if there is any change in the distribution of votes among
Members in accordance with the provisions of paragraph (5) of Article 13 at the beginning
of the financial year for which contributions are assessed, such contributions shall be
correspondingly adjusted for that year. In determining contributions, the votes of each
Member shall be calculated without regard to the suspension of the voting rights of any
Member or any redistribution of votes resulting therefrom.
(3)     The initial contribution of any Member joining the Organization after the entry
into force of this Agreement shall be assessed by the Council on the basis of the number
of votes to be held by it and the period remaining in the current financial year, but the
assessments made upon other Members for the current financial year shall not be altered.
                                          ARTICLE 23
                                 Payment of contributions
(1)      Contributions to the Administrative Budget for each financial year shall be payable
in freely convertible currency and shall become due on the first day of that financial year.
(2)     If any Member fails to pay its full contribution to the Administrative Budget
within six months of the date on which the contribution is due, both its voting rights in
the Council and its right to have its votes cast in the Executive Board shall be suspended
until such contribution has been paid. However, unless the Council by a distributed
two-thirds majority vote so decides, such Member shall not be deprived of any of its other
rights nor relieved of any of its obligations under this Agreement.
(3)     Any Member whose voting rights have been suspended either under the provisions
of paragraph (2) of this Article or under the provisions of Article 37 shall nevertheless
remain responsible for the payment of its contribution.
                                                            International Coffee Agreement 1994
 ---pagebreak--- 28
                                          ARTICLE 24
                                          Liabilities
(1)      The Organization, functioning as specified in paragraph (3) of Article 7, shall not
have power to incur any obligation outside the scope of this Agreement, and shall not be
taken to have been authorized by the Members to do so; in particular, it shall not have
the capacity to borrow money. In exercising its capacity to contract, the Organization
shall incorporate in its contracts the terms of this Article in such a way as to bring them
to the notice of the other parties entering into contracts with the Organization, but any
 failure to incorporate such terms shall not invalidate such a contract or render it
 ultra vires.
 (2)      A Member's liability is limited to the extent of its obligations regarding
 contributions specifically provided for in this Agreement. Third parties dealing with the
 Organization shall be deemed to have notice of the provisions of this Agreement regarding
 the liabilities of Members.
                                           ARTICLE 25
                                Audit and publication of accounts
          As soon as possible and not later than six months after the close of each financial
  year, an independently audited statement of the Organization's receipts and expenditures
  during that financial year shall be presented to the Council for approval and publication.
  International Coffee Agreement 1994
 ---pagebreak---                                                                                              29
            CHAPTER IX - THE EXECUTIVE DIRECTOR AND THE STAFF
                                         ARTICLE 26
                           The Executive Director and the staff
(1)     The Council shall appoint the Executive Director on the recommendation of the
Executive Board. The terms of appointment of the Executive Director shall be established
by the Council and shall be comparable to those applying to corresponding officials of
similar intergovernmental organizations.
(2)     The Executive Director shall be the chief administrative officer of the Organization
and shall be responsible for the performance of any duties devolving upon him in the
administration of this Agreement.
(3)     The Executive Director shall appoint the staff in accordance with regulations
established by the Council.
(4)     Neither the Executive Director nor any member of the staff shall have any
financial interest in the coffee industry, the coffee trade or the transportation of coffee,
(5)     In the performance of their duties, the Executive Director and the staff shall not
seek or receive instructions from any Member or from any other authority external to the
Organization. They shall refrain from any action which might reflect on their position as
international officials responsible only to the Organization. Each Member undertakes to
respect the exclusively international character of the responsibilities of the Executive
Director and the staff and not to seek to influence them in the discharge of their
responsibilities.
                                                             International Coffee Agreement 1994
 ---pagebreak--- 30
                  CHAPTER X - INFORMATION, STUDIES AND SURVEYS
                                            ARTICLE 27
                                           Information
(1)       The Organization shall act as a centre for the collection, exchange and
publication of:
          (a)     statistical information on world production, prices, exports and imports,
                  distribution and consumption of coffee; and
          (b)     in so far as is considered appropriate, technical information on the
                  cultivation, processing and utilization of coffee.
(2)       The Council may require Members to furnish such information as it considers
necessary for its operations, including regular statistical reports on coffee production,
production trends, exports and imports, distribution, consumption, stocks, prices and
 taxation, but no information shall be published which might serve to identify the
 operations of persons or companies producing, processing or marketing coffee. Members
 shall furnish information requested in as detailed and accurate a manner as is
 practicable.
 (3)      The Council shall establish a system of indicator prices which shall provide for the
 publication of a daily composite indicator price.
 (4)       If a Member fails to supply or finds difficulty in supplying within a reasonable time
 statistical and other information required by the Council for the proper functioning of the
 Organization, the Council may require the Member concerned to explain the reasons for
 non-compliance. If it is found that technical assistance is needed in the matter, the
 Council may take any necessary measures.
 International Coffee Agreement 1994
 ---pagebreak---                                                                                                  31
                                           ARTICLE 28
                                     Certificates of Origin
(1)     In order to facilitate the collection of statistics on the international coffee trade and
to ascertain the quantities of coffee which have been exported by each exporting Member,
the Organization shall establish a system of Certificates of Origin, governed by rules
approved by the Council.
(2)     Every export of coffee by an exporting Member shall be covered by a valid
Certificate of Origin. Certificates of Origin shall be issued, in accordance with the rules
established by the Council, by a qualified agency chosen by the Member and approved by
the Organization.
(3)     Each exporting Member shall notify the Organization of the government or non-
governmental agency which is to perform the functions specified in paragraph (2) of this
Article. The Organization shall specifically approve a non-governmental agency in
accordance with the rules approved by the Council.
                                            ARTICLE 29
                                      Studies and surveys
(1)     The Organization shall promote the preparation of studies and surveys concerning
the economics of coffee production and distribution, the impact of governmental measures
in producing and consuming countries on the production and consumption of coffee, and
the opportunities for expansion of coffee consumption for traditional and possible new
uses.
                                                                 International Coffee Agreement 1994
 ---pagebreak--- 32
(2)      In order to carry out the provisions of paragraph (1) of this Article, the Council
shall adopt, at its second regular session of each coffee year, a draft annual work
programme of studies and surveys, with estimated resource requirements, prepared by
the Executive Director.
(3)       The Council may approve the undertaking by the Organization of studies and
 surveys to be conducted jointly or in cooperation with other organizations and institutions.
 In such cases, the Executive Director shall present to the Council a detailed account of
 the resource requirements from the Organization and from the partner or partners
 involved with the project.
 (4)      The studies and surveys to be promoted by the Organization pursuant to the
 provisions of this Article shall be financed by resources included in the Administrative
 Budget, prepared in accordance with the provisions of paragraph (1) of Article 22, and
 shall be undertaken by members of the staff of the Organization and consultants as
 required.
  International Coffee Agreement 1994
 ---pagebreak---                                                                                            33
                          CHAPTER XI - GENERAL PROVISIONS
                                          ARTICLE 30
                              Preparations for a new Agreement
       The Council may examine the possibility of negotiating a new International Coffee
Agreement, including an Agreement which could contain measures designed to balance
the supply and demand for coffee, and take such actions as it deems appropriate.
                                           ARTICLE 31
                            Removal of obstacles to consumption
(1)    Members recognize the utmost importance of achieving the greatest possible
increase of coffee consumption as rapidly as possible, in particular through the progressive
removal of any obstacles which may hinder such increase.
(2)    Members recognize that there are at present in effect measures which may to a
greater or lesser extent hinder the increase in consumption of coffee, in particular:
       (a)      import arrangements applicable to coffee, including preferential and other
                tariffs, quotas, operations of government monopolies and official purchasing
                agencies, and other administrative rules and commercial practices;
       (b)      export arrangements as regards direct or indirect subsidies and other
                administrative rules and commercial practices; and
       (c)      internal trade conditions and domestic legal and administrative provisions
                which may affect consumption.
                                                              International Coffee Agreement 1994
 ---pagebreak--- 34
(3)      Having regard to the objectives stated above and to the provisions of paragraph (4)
of this Article, Members shall endeavour to pursue tariff reductions on coffee or to take
other action to remove obstacles to increased consumption.
(4)      Taking into account their mutual interest, Members undertake to seek ways and
means by which the obstacles to increased trade and consumption referred to in
paragraph (2) of this Article may be progressively reduced and eventually, wherever
possible, eliminated, or by which the effects of such obstacles may be substantially
diminished.
(5)      Taking into account any commitments undertaken under the provisions of
 paragraph (4) of this Article, Members shall inform the Council annually of all measures
 adopted with a view to implementing the provisions of this Article.
 (6)      The Executive Director shall prepare periodically a survey of the obstacles to
 consumption to be reviewed by the Council.
 (7)      The Council may, in order to further the purposes of this Article, make
 recommendations to Members which shall report as soon as possible to the Council on the
 measures adopted with a view to implementing such recommendations.
                                           ARTICLE 32
                              Measures related to processed coffee
 (1)      Members recognize the need of developing countries to broaden the base of their
 economies through, inter alia, industrialization and the export of manufactured products,
 including the processing of coffee and the export of processed coffee.
 International Coffee Agreement 1994
 ---pagebreak---                                                                                            35
(2)     In this connection, Members shall avoid the adoption of governmental measures
which could cause disruption to the coffee sector of other Members.
(3)     Should a Member consider that the provisions of paragraph (2) of this Article are
not being complied with, it should consult with the other Members concerned, having due
regard to the provisions of Article 36. The Members concerned shall make every effort
to reach amicable settlement on a bilateral basis. If these consultations do not lead to a
mutually satisfactory solution, either party may bring the matter before the Council for
consideration under the provisions of Article 37.
(4)     Nothing in this Agreement shall prejudice the right of any Member to take
measures to prevent or remedy disruption to its coffee sector by imports of processed
coffee.
                                         ARTICLE 33
                                 Mixtures and substitutes
 (1)    Members shall not maintain any regulations requiring the mixing, processing or
 using of other products with coffee for commercial resale as coffee.        Members shall
 endeavour to prohibit the sale and advertisement of products under the name of coffee if
 such products contain less than the equivalent of 90 percent green coffee as the basic raw
 material.
 (2)    The Council may request any Member to take the steps necessary to ensure
 observance of the provisions of this Article.
 (3)    The Executive Director shall submit to the Council a periodic report on compliance
 with the provisions of this Article.
                                                           International Coffee Agreement 1994
 ---pagebreak---                                                                                            \
36
                                          ARTICLE 34
                    Consultation and cooperation with the private sector
(1)      The Organization shall maintain close Unks with appropriate non-governmental
organizations concerned with international commerce in coffee, and with experts in coffee
matters.
(2)       Members shall conduct their activities within the framework of this Agreement in
a manner consonant with established trade channels and shall refrain                 from
discriminatory sales practices. In carrying out these activities they shall endeavour to
take due account of the legitimate interests of the coffee trade and industry.
                                           ARTICLE 35
                                     Environmental aspects
          Members shall give due consideration to the sustainable management of coffee
 resources and processing, bearing in mind the principles and objectives on sustainable
 development agreed at the Eighth Session of the United Nations Conference on Trade and
 Development and the United Nations Conference on Environment and Development.
 International Coffee Agreement 1994                     \
 ---pagebreak---                                                                                               37
          CHAPTER XH - CONSULTATIONS, DISPUTES AND COMPLAINTS
                                           ARTICLE 36
                                         Consultations
        Each Member shall accord sympathetic consideration to, and shall afford adequate
opportunity for, consultation regarding such representations as may be made by another
Member with respect to any matter relating to this Agreement. In the course of such
consultation, on request by either party and with the consent of the other, the Executive
Director shall establish an independent panel which shall use its good offices with a view
to conciliating the parties.      The costs of the panel shall not be chargeable to the
Organization. If a party does not agree to the establishment of a panel by the Executive
Director, or if the consultation does not lead to a solution, the matter may be referred to
the Council in accordance with the provisions of Article 37. If the consultation does lead
to a solution, it shall be reported to the Executive Director who shall distribute the report
to all Members.
                                           ARTICLE 37
                                   Disputes and complaints
(1)     Any dispute concerning the interpretation or application of this Agreement which
is not settled by negotiation shall, at the request of any Member party to the dispute, be
referred to the Council for decision.
(2)     In any case where a dispute has been referred to the Council under the provisions
of paragraph (1) of this Article, a majority of Members, or Members holding not less than
                                                              International Coffee Agreement 1994
 ---pagebreak--- 38
one third of the total votes, may require the Council, after discussion, to seek the opinion
of the advisory panel referred to in paragraph (3) of this Article on the issues in dispute
before giving its decision.
(3)      (a)     Unless the Council unanimously agrees otherwise, the advisory panel shall
                 consist of:
                 (i)     two persons, one having wide experience in matters of the kind in
                         dispute and the other having legal standing and experience,
                         nominated by the exporting Members;
                 (ii)    two such persons nominated by the importing Members; and
                 (iii)   a chairman selected unanimously by the four persons nominated
                         under the provisions of sub-paragraphs (i) and (ii) or, if they fail to
                         agree, by the Chairman of the Council.
         (b)     Persons from countries whose Governments are Contracting Parties to this
                 Agreement shall be eligible to serve on the advisory panel.
         (c)     Persons appointed to the advisory panel shall act in their personal
                 capacities and without instructions from any Government.
         (d)     The expenses of the advisory panel shall be paid by the Organization.
(4)      The opinion of the advisory panel and the reasons therefor shall be submitted to
 the Council which, after considering all the relevant information, shall decide the dispute.
(5)       The Council shall rule on any dispute brought before it within six months of
 submission of such dispute for its consideration.
 (6)      Any complaint that any Member has failed to fulfil its obligations under this
 Agreement shall, at the request of the Member making the complaint, be referred to the
 Council which shall make a decision on the matter.
 International Coffee Agreement 1994
 ---pagebreak---                                                                                          39
(7)     No Member shall be found to have been in breach of its obligations under this
Agreement except by a distributed simple majority vote. Any finding that a Member is
in breach of its obligations under this Agreement shall specify the nature of the breach.
(8)     If the Council finds that a Member is in breach of its obligations under this
Agreement, it may, without prejudice to other enforcement measures provided for in other
Articles of this Agreement, by a distributed two-thirds majority vote, suspend such
Member's voting rights in the Council and its right to have its votes cast in the Executive
Board until it fulfils its obligations, or the Council may decide to exclude such Member
from the Organization under the provisions of Article 45.
(9)     A Member may seek the prior opinion of the Executive Board in a matter of
 dispute or complaint before the matter is discussed by the Council.
                                                            International Coffee Agreement 1994
 ---pagebreak--- 40
                            CHAPTER X m - FINAL PROVISIONS
                                            ARTICLE 38
                                            Signature
         This Agreement shall be open for signature at the United Nations headquarters
from 18 April 1994 until and including 26 September 1994 by Contracting Parties to the
International Coffee Agreement 1983 or the International Coffee Agreement 1983, as
extended, and Governments invited to the sessions of the International Coffee Council at
 which this Agreement was negotiated.
                                            ARTICLE 39
                              Ratification, acceptance or approval
 (1)      This Agreement shall be subject to ratification, acceptance or approval by the
 signatory Governments in accordance with their respective constitutional procedures.
 (2)      Except as provided for in Article 40, instruments of ratification, acceptance or
 approval shall be deposited with the Secretary-General of the United Nations not later
 than 26 September 1994. However, the Council may grant extensions of time to signatory
 Governments which are unable to deposit their instruments by that date.
                                             ARTICLE 40
                                         Entry into force
 (1)      This Agreement shall enter into force definitively on 1 October 1994 if by that date
 Governments representing at least 20 exporting Members holding at least 80 percent of
 the votes of the exporting Members and at least 10 importing Members holding at least
  80 percent of the votes of the importing Members, calculated as at 26 September 1994,
 International Coffee Agreement 1994
 ---pagebreak---                                                                                              41
have deposited instruments of ratification, acceptance or approval. Alternatively, it shall
enter into force definitively at any time after 1 October 1994 if it is provisionally in force
in accordance with the provisions of paragraph (2) of this Article and these percentage
requirements are satisfied by the deposit of instruments of ratification, acceptance or
approval.
(2)      This Agreement may enter into force provisionally on 1 October 1994. For this
purpose, a notification by a signatory Government or by any other Contracting Party to
the International Coffee Agreement 1983, as extended, containing an undertaking to apply
this Agreement provisionally, in accordance with its laws and regulations, and to seek
 ratification, acceptance or approval in accordance with its constitutional procedures as
 rapidly as possible, which is received by the Secretary-General of the United Nations not
 later than 26 September 1994, shall be regarded as equal in effect to an instrument of
 ratification, acceptance or approval.    A Government which undertakes to apply this
 Agreement provisionally, in accordance with its laws and regulations, pending the deposit
 of an instrument of ratification, acceptance or approval shall be regarded as a provisional
 Party thereto until it deposits its instrument of ratification, acceptance or approval, or
 until and including 31 December 1994 whichever is the earlier. The Council may grant
 an extension of the time within which any Government which is applying this Agreement
 provisionally may deposit its instrument of ratification, acceptance or approval.
 (3)     If this Agreement has not entered into force definitively or provisionally on
 1 October 1994 under the provisions of paragraph (1) or (2) of this Article, those
 Governments which have deposited instruments of ratification, acceptance, approval or
 accession or made notifications containing an undertaking to apply this Agreement
 provisionally, in accordance with their laws and regulations, and to seek ratification,
 acceptance or approval may, by mutual consent, decide that it shall enter into force
                                                             International Coffee Agreement 1994
 ---pagebreak--- 42
among themselves. Similarly, if this Agreement has entered into force provisionally but
has not entered into force definitively on 31 December 1994, those Governments which
have deposited instruments of ratification, acceptance, approval or accession or made the
notifications referred to in paragraph (2) of this Article, may, by mutual consent, decide
that it shall continue in force provisionally or enter into force definitively among
themselves.
                                            ARTICLE 41
                                            Accession
(1)       The Government of any State member of the United Nations or of any of its
 specialized agencies may accede to this Agreement upon conditions which shall be
established by the Council.
(2)       Instruments of accession shall be deposited with the Secretary-General of the
 United Nations. The accession shall take effect upon deposit of the instrument.
                                            ARTICLE 42
                                          Reservations
          Reservations may not be made with respect to any of the provisions of this
 Agreement.
                                            ARTICLE 43
                                Extension to designated territories
 (1)      Any Government may, at the time of signature or deposit of an instrument of
 ratification, acceptance, approval, provisional application or accession, or at any time
 International Coffee Agreement 1994
 ---pagebreak---                                                                                              43
thereafter, by notification to the Secretary-General of the United Nations, declare that
this Agreement shall extend to any of the territories for whose international relations it
is responsible; this Agreement shall extend to the territories named therein from the date
of such notification.
(2)      Any Contracting Party which desires to exercise its rights under the provisions of
Article 5 in respect of any of the territories for whose international relations it is
responsible or which desires to authorize any such territory to become part of a Member
 group formed under the provisions of Article 6, may do so by making a notification to that
effect to the Secretary-General of the United Nations, either at the time of the deposit of
its instrument of ratification, acceptance, approval, provisional application or accession,
 or at any later time.
 (3)     Any Contracting Party which has made a declaration under the provisions of
 paragraph (1) of this Article may at any time thereafter, by notification to the Secretary-
 General of the United Nations, declare that this Agreement shall cease to extend to the
 territory named in the notification.     This Agreement shall cease to extend to such
 territory from the date of such notification.
 (4)     When a territory to which this Agreement has been extended under the provisions
 of paragraph (1) of this Article subsequently attains its independence, the Government
 of the new State may, within 90 days after the attainment of independence, declare by
 notification to the Secretary-General of the United Nations that it has assumed the rights
 and obligations of a Contracting Party to this Agreement. It shall, as from the date of
 such notification, become a Contracting Party to this Agreement. The Council may grant
 an extension of the time within which such notification may be made.
                                                             International Coffee Agreement 1994
 ---pagebreak--- 44
                                          ARTICLE 44
                                     Voluntary withdrawal
         Any Contracting Party may withdraw from this Agreement at any time by giving
a written notice of withdrawal to the Secretary-General of the United Nations.
Withdrawal shall become effective 90 days after the notice is received.
                                          ARTICLE 45
                                           Exclusion
          If the Council decides that any Member is in breach of its obligations under this
 Agreement and decides further that such breach significantly impairs the operation of this
 Agreement, it may, by a distributed two-thirds majority vote, exclude such Member from
 the Organization. The Council shall immediately notify the Secretary-General of the
 United Nations of any such decision. Ninety days after the date of the Council's decision,
 such Member shall cease to be a Member of the Organization and, if such Member is a
 Contracting Party, a Party to this Agreement.
                                           ARTICLE 46
                Settlement of accounts with withdrawing or excluded Members
 (1)      The Council shall determine any settlement of accounts with a withdrawing or
 excluded Member.          The Organization shall retain any amounts already paid by a
 withdrawing or excluded Member and such Member shall remain bound to pay any
 amounts due from it to the Organization at the time the withdrawal or the exclusion
 becomes effective; provided, however, that in the case of a Contracting Party which is
 International Coffee Agreement 1994
 ---pagebreak---                                                                                               45
unable to accept an amendment and consequently ceases to participate in this Agreement
under the provisions of paragraph (2) of Article 48, the Council may determine any
settlement of accounts which it finds equitable.
(2)     A Member which has ceased to participate in this Agreement shall not be entitled
to any share of the proceeds of liquidation or the other assets of the Organization; nor
shall it be liable for payment of any part of the deficit, if any, of the Organization upon
termination of this Agreement.
                                        ARTICLE 47
                                Duration and termination
(1)     This Agreement shall remain in force for a period of five years until 30 September
1999 unless extended under the provisions of paragraph (2) of this Article or terminated
under the provisions of paragraph (3) of this Article.
(2)     The Council may, by a vote of 58 percent of the Members having not less than a
distributed majority of 70 percent of the total votes, decide either that this Agreement be
renegotiated or that it be extended, with or without modification, for such period as the
Council shall determine.     Any Contracting Party which by the date on which such
renegotiated or extended Agreement enters into force has not made a notification of
acceptance of such renegotiated or extended Agreement to the Secretary-General of the
United Nations, or any territory which is either a Member or a party to a Member group
on behalf of which such notification has not been made by that date, shall as of that date
cease to participate in such Agreement.
(3)     The Council may at any time, by a vote of a majority of the Members having not
less than a distributed two-thirds majority of the total votes, decide to terminate this
Agreement. Termination shall take effect on such date as the Council shall decide.
                                                              International Coffee Agreement 1994
 ---pagebreak---                                                                                             X
46
(4)      Notwithstanding the termination of this Agreement, the Council shall remain in
being for as long as necessary to carry out the liquidation of the Organization, settlement
of its accounts and disposal of its assets and shall have during that period such powers
and functions as may be necessary for those purposes.
                                         ARTICLE 48
                                        Amendment
(1)      The Council may, by a distributed two-thirds majority vote, recommend an
 amendment of this Agreement to the Contracting Parties. The amendment shall become
effective 100 days after the Secretary-General of the United Nations has received
 notifications of acceptance from Contracting Parties representing at least 75 percent of
 the exporting countries holding at least 85 percent of the votes of the exporting Members,
 and from Contracting Parties representing at least 75 percent of the importing countries
 holding at least 80 percent of the votes of the importing Members. The Council shall fix
 a time within which Contracting Parties shall notify the Secretary-General of the United
 Nations of their acceptance of the amendment. If, on expiry of such time limit, the
 percentage requirements for the entry into effect of the amendment have not been met,
 the amendment shall be considered withdrawn.
 (2)      Any Contracting Party which has not notified acceptance of an amendment within
 the period fixed by the Council, or any territory which is either a Member or a party to
 a Member group on behalf of which such notification has not been made by that date,
 shall cease to participate in this Agreement from the date on which such amendment
 becomes effective.
 International Coffee Agreement 1994
 ---pagebreak---                                                                                              47
                                          ARTICLE 49
                        Supplementary and transitional provisions
(1)    This Agreement shall be considered as a continuation of the International Coffee
Agreement 1983, as extended.
(2)    In order to facilitate the uninterrupted continuation of the International Coffee
Agreement 1983, as extended:
       (a)     all acts by or on behalf of the Organization or any of its organs under the
               International    Coffee Agreement      1983, as extended, in effect on
               30 September 1994, the terms of which do not provide for expiry on that
               date, shall remain in effect unless changed under the provisions of this
               Agreement; and
       (b)     all decisions required to be taken by the Council during coffee year 1993/94
               for application in coffee year 1994/95 shall be taken by the Council in coffee
               year 1993/94 and applied on a provisional basis as if this Agreement had
               already entered into force.
                                          ARTICLE 50
                             Authentic texts of the Agreement
       The texts of this Agreement in the English, French, Portuguese and Spanish
languages shall all be equally authentic.       The originals shall be deposited with the
Secretary-General of the United Nations. ,
       IN WITNESS WHEREOF the undersigned, having been duly authorized to this effect
by their respective Governments, have signed this Agreement on the dates appearing
opposite their signatures.
                                                             International Coffee Agreement 1994
 ---pagebreak---                                                                                     V*
                                                                     ISSN 0254-1475
                                                              COM(94) 255 final
                                                      DOCUMENTS
EN                                                                     11 03 02
                                 Catalogue number : CB-CO-94-272-EN-C
                                                             ISBN 92-77-70531-0
Office for Official PubUcatiozis of the European Communities
L-2985 Dixembourg