CELEX: 51979PC0552
Language: en
Date: 1979-10-22 00:00:00
Title: Recommendation for a COUNCIL DECISION on the signature and conclusion of the International Olive Oil Agreement, 1979 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 552
Vol. 1979/0190
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(79)552 final
                                                    Brussels - 22 October 1979
                         Recommendation for a
                           COUNCIL DECISION
                on the signature and conclusion of the
               International Olive Oil Agreement - 1979
            ( submitted to the Council by the Commission )
                                ■                  "    \
                                             ; -   r
                                      x    v, ' J?          j
                                          CVj    I        7
                                  Y>v ,          ^      y
                                            _        /ν/
C0M(79 ) 552 final
 ---pagebreak---                                  Explanatory Memor y idui                   "
  1 . The-tex.t of the 1979 International Olive Oil Agreement was established by
        the United Nations Conference on Olive Oil , which was held in Geneva from
        20 to 30 March 1979 and at which the Commission ^ assisted by the Article 113
        Committee , negotiated on the basis of the directives ( 1 ) approved by the
        Council on 19 March 1979 .
                             ( 2) ,     .
        The negotiated text conforms in every respect with tnese directives .
                                      t                    _
  2 . The Agreement is due to enter into force on 1 January 1980 for a period of
        five years .                                                              _
  3 . It is open for signature in Madrid , with the Government of Spain , the deposi­
        tary , from 1 July to 16 November 1979 inclusive .
        If such signature is subject to ratification , acceptance or approval , the
        appropriate instrument should be deposited with the depositary not later than
        31 December 1979 or , if this is not possible , a declaration of provisional ap­
        plication should be deposited before that date .                      *
^ 4 . The old Agreement , which is currently in force > was conceived in 1963 , before
        a common market organisation for olive oil had been established . It was formu­
         lated in terms which specifically envisaged the separate participation of indi­
        vidual Member States of the Community and provided only for the eventual possi­
        bility of membership by the Community as such . For the purposes of this possi­
        bility the Agreement provided for the Community 's voting rights and its obli­
        gations to contribute to the administrative budget of the Olive Oil Council to
        be derived from the aggregate of the voting rights and financial obligations
        of those' of its Member States who became Contracting Parties . In all circumstan­
        ces , the Community was excluded from participation in that part of the Agreement
        relating to the Publicity Fund .
  5 . In contrast , the new Agreement reflects the fact that its content is wholly
        within the scope of the common commercial policy and , since the product in
        question is subject to a common market organisation , also within that of the
        common agricultural policy . It is therefore Expressed in terms of membership
        of the whole Agreement by the Community as a whole ; the votes Which are attri­
        buted to each member of the Agreement for the purposes of decisions by the Inter
        national Olive Oil Council are attributed directly to t hie Community and not to
         its Member States ; and the financial obligations arising out of the Agreement
         !                                              .1
   ( 1 ) See Annex to Report No 5543/ 79 of the Permanent Representatives Committee
           dated 14 March 1979 .                             . . ..
    ( 2 ) A resume of the provisions of the Agreement is attached at Annex I.
 ---pagebreak---             are placed directly on the Community as such . In these circumstances it is
            clear that the Agreement should be signed and concluded by the Community >
            alone .
      . Financial implications
        6. The Community contribution to the administrative budget of the International
           Olive Oil Council will continue to be paid as in 1978 and 1979 from the Com­
           munity Budget ( Item 2981 ) and will be of the same order of magnitude ; the Com
           munity contribution to the Publicity Fund , which is a new element , will ­ be fi
           nanced in accordance with the rules laid down in Article 11(3 ) of Council
           Regulation No 136/ 66/ EEC of 22 September 1966 ( 1 ), as amended by Council Regu
           lation ( EEC ) No 1562/ 78 of 29 June 1978 ( 2).
           This contribution will be of the order of USD 100 000 .
       Recommendati on
       The Council is requested
       - to decide in favour of = the signature of the 1979 International Olive Oil
                                      Agreement by 16 November 1979 at the latest ;
                                    = the conclusion of the Agreement by 31 December 1979
                                      at the latest ;       \
         to designate the person empowered to sign and conclude the Agreement .
       The draft legal text is' attached at Annex II .        '
       The text of the International Olive Oil Agreement , 1979 is attached at Annex III .
( 1 ) 0J No 172 , 30.9.1966 .
( 2 ) 0J No L 171 , 28.6.1978 .
 ---pagebreak---                                                                         Annex I
                     International Olive Oi L Agreement 1979
                           Résumé of provisions
 1 . The Agreement provides an administrative framework for international
      cooperation in olive oil matters through :                                       '
      ( a ) a continuing review of)the world market for olive oil and table
            olives ;
      ( b ) the promotion of technical improvements in olive oil production ;
      ( c ) the definition and respect of olive oil quality standards ;
- ■   ( d ) the constitution and operation of a. Publicity Fund to promote market
         -  outlets for olive oil .
 2 . It contains no provisions relating to price levels or stocks . For this rea­
      son , it will not qualify for participation in the Common Fund first window .
      The possibility of benefit from the second window of the Common Fund remains
      open for examination and recommendation by the International Olive Oil
      Council ( see para 4 below ).  -
 3 . The Community figures in the Agreement as a single entity , with the dual
      status of mainly producing member and mainly importing member .
 4 . The governing body of the Agreement is the International Olive Oil Council .
      Council decisions will require a four-fifths majority of votes cast as well
      as a majority of members voting . The Community will have one-third of the
      votes in the Council ; therefore , while it cannot . impose a decision in its
      own favour , it can never have a decision forced upon it .
                                                x' .               (  '     .       •
 5 . All the expences of the Agreement , except the Publicity Fund , are financed
    - through members' contri butions to the Council administrative budget . ( Community
      contribution of the order of 300 000 dollars US ).
  6. The Publicity. Fund is financed by contribution's from producer members only
       ( Community contribution of the order of 100 000 dollars US , equal to one-third
      of total contributions ). Decisions regarding expenditure from the Fund are
       taken by majority vote of contributing members , each member having votes pro­
      portionate to its financial contribution . Majority vote is defined in the same
       way as for votes in the full Council . ( See para 4 above )
 ---pagebreak---   >
                                                                       Annex  II
             Recommendation for a Council Decision on the signature and
            conclusion of the International Olive Oil Agreement , 1979
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof .
Having regard to the Recommendation from the Commission ,
Whereas the International Olive Oil Agreement , 1979 is concerned in general
with the promotion of international cooperation and contributes to the attainment
of the objectives of the Community commercial and common agricultural policy ,
HAS DECIDED AS FOLLOWS :
                               Article 1
The International Olive Oil Agreement , 1979 , is hereby approved in the name of the
Community .
                                                             \
The text of the Agreement is annexed to this Decision *
                               Article 2
The President of the Council is hereby authorised to designate the person
empowered to sign the International Olive Oi L Agreement , 1979 , in order to    .
bind the Community .
                               Article 3
This Decision is published in the Official Journal of the European Communities , v
Done at Brussels ,                                      For the Council
 ---pagebreak---                                          AWNJbX ix
                         ν
INTERNATIONAL OLIVE OIL AGREEMENT , 1979
 ---pagebreak---                                                             page 1
                                   CONTENTS
PREAMBLE
CHAPTER I - GENERAL OBJECTIVES                 .   ~
     Article 1
CHAPTER II - MEMBERS
     Article 2
CHAPTER III - DEFINITIONS
     Article 3
CHAPTER IV - GENERAL OBLIGATIONS
     Article 4
     Article 5
     Article 6                                 1
     Article 7
CHAPTER V - TECHNICAL MEASURES                     -
     Article 8
   , Article 9
C BATTER VI - DESIGNATIONS AND DEFINITIONS OF OLIVE OILS AND OLIVE-RESIDUE OILS
               INDICATIONS OF SOURCE AND APPELLATIONS OF ORIGIN
     Artide 10
     Artide 1 1
     Artide 12
     Artide 13
     Artide 14
CHAPTER VII - WORLD PUBLICITY TO PROMOTE OLIVE OIL CONSUMPTION
Publicity campaigns
     Article 15
     Article 1 6
     Article 17
Publicity Fund
     Article 18
     Article 19'
     Article 20
 ---pagebreak---  page 11
 CHAPTER VIII - ECONOMIC MEASURES
                                                                 '
    Article 21
    Article 22                              .\
    Article 23                           -
 CHAPTER IX - OTHER PRODUCTS OF THE OLIVE TREE
    Article 24
    Article 25
    Article 26
 CHAPTER X - ADMINI STRATI ON
                                                               »
 International Olive Oli Council
    Artide 27
 Functions of the Council .
    Article 28
    Arficle 29
 Composition of the Council
    Article 30
 Meetings of the Council
    Article 31
    Article 32
    Article 33
    Article 34
 Decisions of the Council
    Article 35                                                      -1
 Secretariat
' ' Article 36
 CHAPTER XI - PRIVILEGES AND IMMUNITIES
    Article 37
 CHAPTER XII - FINANCIAL PROVISIONS            »
    Article 38                 -
                                                       \
 CHAPTER XIII - CO-OPERATION WITH OTHER ORGANIZATIONS AND ADMISSION OF OBSERVERS
    Article 39
 ---pagebreak--- CHARTER XIV - DISPUTES AND COMPLAINTS
    Article 40
CHAPTER XV - PINAL PROVISIONS
Participation in the Agreement
    Article 41
Signature
    Artide 42
Ratification . acceptance or approvai
    Article 43
Accession
    Article 44
Notification of provisional application
    Article 45
Entry into force
    Article 46
Amendment
    Article 47
Withdrawal
    Article 48                              •
Duration , prolongation , extension or renewal , and expiry
    Article 49
Authon t. io toy to
    Article 50
 ---pagebreak---                                                                pago 1
                   UTTERMATIOFAL OLIVE OIL AGREEMENT , - 1979
                                  PREAMBLE
     Bearing in mind that the olive trees
     – is a plant not only indispensable for the maintenance and conservation of
soils , "but one which makes it possible to develop land that will not yield other
crops and which , even under non-intensive farming conditions , which account
for the essential part of present production , responds favourably to any
improvement in cultivation ,                        -
      - is a perennial fruit tree that with appropriate- techniques , which should
be available to olive-growing countries and particularly to developing olive-
growing countries , permits a return on what is invested in its cultivation ,
     Emphasizing that its cultivation governs the existence and level of living
of millions of families which are wholly dependent on the measures taken to
maintain and expand the. .consumption of its products , both in' the producing
countries themselves and in non-producing consumer countries ,
     Mindful that olive oil forms an essential basic commodity in the regions
where olive-growing is established ,
     Bearing in mind that the essential . feature of the olive oil market lies in'
irregular harvests and in the irregularity with which supplies reach the market ,
and that this results in fluctuations in theralue of production , instability of
prices and export earnings , and considerable differences in producers' incomes .
     Bearing in mind that these circumstances give rise to special difficulties
which may seriously harm the interests of producers and consumers and jeopardize
general policies of economic expansion in countries in the regions where olive-
growing is established
 ---pagebreak--- page 2
       Emphasizing in this connexion the major importance of the products in
question for the economies of many countries , particularly developing olive-
growing countries ,
      Ilindful that the measures to bo taken in the light of the very particular
characteristics of olive-growing and the olive oil market transcend the national
sphere , and that international action is essential ,
       Considering the International Olive Oil Agreement , 1963 , as extended and
amended by the successive Protocols of 30 March 19^7 , 7 March 1969 , ^3 March
1973 and 7 April 1978 , including the amendments which entered into force on
1 November 1971 by virtue of the provisions of article 38 of the Agreement ( all
of which instruments are hereinafter referred to as " the International Olive
Oil Agreement , 1963"),
       Considering that in principle that Agreement will expire on 31 December
1979 ,
       Being of the view that is is essential to continue and develop the work
undertaken within the framework of that Agreement , and that i is desirable to
conclude a new agreement ,
       The Parties to this Agreement have agreed as follows ?
 ---pagebreak---                                                               page 3
                                - CHAPTER I
                             GENERAL OBJECTIVES
                                  Art icle 1
     The objectives of this Agreement , which take account of the provisions of
resolution 93 ( iv ) of the United Nations Conference on Trade and Development ,
are as follows !
     ( a) To foster international co-operation on problems relating to the world
olive oil economy in general ;
     ( b) To foster research and development and the elaboration of all possible
means of applying techniques relevant to the problems facing olive oil and the
olive oil sector generally in the fields of production and processing , and
conducive to the modernization of olivo husbandry and the olive oil industry     ,
through technical and scientific planning , with a view to encouraging the
transfer of technology , improving olive husbandry and the quality of the products
obtained therefrom and reducing their cost of production , thus improving the
position of olive oil in the total market for edible fluid vegetable oils ;
     ( c ) To facilitate the study and application of measures for expanding the
international olive oil trade , in order to increase xhe resources which producer
countries , and especially developing producer countries , derive from their
exports euid to enable their economic growth and social development to be
hastened , while taking consumer interests into account ;
     ( d) To facilitate the study and application of measures for balacing
production and consumption through the introduction of the appropriate arrangements
including arrangements to expand consumption;        '
 ---pagebreak---  page 4
       ( e ) To lessen the drawbacks associated with fluctuations in the supplies
available on the market , in order in particulars
              ( i ) to prevent excessive fluctuations in prices , which must be at levels
                      that are remunerative and just to producers and equitable to
                    . consumers 5
            ( ii) to create conditions which allow production , consumption and
                      international trade to expand harmoniously , having regard to the
                      ways in which they arc interrelated •
      ( f) To forestall and , where appropriate , combat any practices of unfair
competition in the international olive oil trade and ensure the delivery of
merchandise which complies fully with the terms of the contracts that are
concluded ;
      ( g) To foster the co-ordination of production policies and marketing
policies for olive oil and the organization of the olive oil market ;
      ( h ) To improve market access and reliability of supply, market structures ,
and marketing , distribution and transport systems ;
      ( i) To improve procedures for information and consultation in order ,
among other things , to enhance the transparency of the olive oil market ;
      ( j ) To study and facilitate the application of the necessary measures for
other products of the olive tree ;
      ( k) To study the situation of the olive oil industry as far as the
environment is concerned and , where appropriate , recommend suitable action in
conformity with the recommendations of the United Nations Conference on the Human
Environment , 1972 to abate any nuisances ;
      ( l ) To continue and extend the work done under the previous International
Olive Oil Agreements .
 ---pagebreak---                                                                page 5
                                   CHAPTER II  -
                                    HEUBERS
                               i   Article 2
     Each Contracting Party shall constitute a single Member of the Council .
                                   CHAPTER III
                                   DEFINITIONS
                                   Article 3
1,   For the purposes of this Agreement ;
     ( a) '•Council" means the International Olive Oil Council referred to in
article 27 ?
     ( b ) " olive crop year" means the period from 1 November of oach year to
31 October of the following year ;                                                 1
     ( c ) "mainly producing Member" moans a Member '.hose production of olive oil
in the olive crop years 1972/73-1977/78 inclusive exceeded - its imports for
the calendar years 1973 to 1978 inclusive ?
     ( d ) "mainly importing Member" means a Member whose production of olive oil
in the olive crop years 1972/7 3-1977/78 inclusive was less than its imports for
the calendar years 1973 to 1978 inclusive , or for which no production of olive
oil was recorded during those crop years ?
     ( e ) "Member" means a Contracting Party to this Agreement .
 ---pagebreak---  page 6
2.    Any reference in this Agreement to a " Government " or " Governments " shall be
construed as including a reference to the European Economic Community ( hereinafter
 referred to as " the EEC") or any intergovernmental organization having
responsibilities in respect of the negotiation , conclusion and application of
 international commodity agreements . Accordingly , any reference in this "Agreement •
to " signature" or to the " deposit of instruments of ratification , acceptance or
approval" or " an instrument of accession'' or to a " notification of provisional
application" by a Government shall , in the case of the EEC , be construed as
including signature or notification of provisional application on behalf of the
EEC by its competent authority , and the deposit of the instrument required by the
institutional procedures of the EEC to be deposited for the conclusion of an
international agreement . It shall also , in the case of an intergovernmental
organization having responsibilities in respect of the negotiation , conclusion
and application of international commodity agreements , be construed as including
signature or notification of provisional application on behalf' of the inter­
governmental organization concerned by its competent authority , and the deposit
of the instrument required by its institutional procedures for the conclusion
of an international agreement .
3.   Notwithstanding the provisions of paragraph 1 ( c ) and ( d ) of this article ,
the EEC shall be considered both as a "mainly producing Member" and as a
"mainly importing Ilember".
4.    If an intergovernmental organization other than the EEC having responsibili­
ties in respect of the negotiation , conclusion and application of international
commodity agreements contemplates becoming a Contracting Party , the modalities
of its participation in this Agreement shall be decided by agreement between the
Council and that intergovernmental organization before commencement of the
procedure which the organization has to follow to become a Contracting Party .
                                  CHAPTER IV
                             GENERAL OBLIGATIONS
                                    _Articl_e__4
     The Members undertake not to adopt any measure that conflicts with their
obligations under this Agreement and itfith the general objectives set forth in
article 1 .
 ---pagebreak---                                                                pago 7
                                : Art ici g 5
     Both the .producing and. Consuming Ilembors undertake to adopt all appropriate
measures to facilitate trade , encourage olive oil consumption and ensure the
proper development of the international olive oil trade . To that end , they
undertake to conform to the principles , rules and guidelines they have approved
in the competent international forums . They also undertake to adopt measures to
encourage the sale of olivo oil at prices which are competitive at the consumer
level , including measures for determining assistance and narrowing the price
differential between olive oil and other edible vegetable oils , in order to
encourage olive oil consumption .
                                  Article 6
     The Members declare that , m order to raise the level of living of their
populations , they will endeavour to maintain fair standards in working conditions
throughout the olive-growing and olivo oil industry and activities deriving from .
it .
                                  Article 7
     The Members undertake to make available and furnish to the Council all
the statistics , data' and documentation which it needs to discharge its functions
under this Agreement , and in particular any information it requires in order to
establish the olivo oil balance a^id acquire a knowledge of Members' national ,
olivo oil policies .                                            .
 ---pagebreak--- pago 8
                                    CHAPTER V
                             . TECHNICAL MEASURES
                                    ^rticlG_8
1.    In order to achieve the general objectives set forth in article 1 with
regard to technical improvements in olive cultivation . and oil extraction, the
Council shall foster and promote related activities and programmes ..
2.   It shall in particular :
      ( a') collect technical information and circulate it to all Members ;
      ( b) promote' action to co-ordinate technical improvement activities among
            Members , including action within the framework of interregional or
            regional planning;
     ( c ) assist national planning relating to technical improvements in olive
            cultivation and oil extraction . and to research , research application ,
            dissemination of know-hox*, experimentation and demonstration , in
            particular in the developing olive-growing countries ;
     ( d) undertake the necessary studies on the economic returns which can be
            expected from the application of research ;
     ( e) foster appropriate action to train high-level and specialized staff;
     ( f) convene or foster the holding of international meetings ;
      ( g) encourage the transfer of technology to developing olive-growing
            countries from countries highly advanced in olive cultivation and oil
            extraction techniques ;
     ( h) promote bilateral or multilateral co-operation which can assist the
            Council in achieving the objectives of this Agreement .
 ---pagebreak---                                                                   pago 9
                                   Article 9
1 . The Council shall , in support of measures to improve olive cultivation and
oil extraction techniques , include in its administrative budget a special sectior
of a .maximum annual amount of 100,000 United States dollars - any sums not used
under this section in any financial year may be carried over to subsequent
financial years but may in no circumstances be transferred to other sections ..f
the administrative budget .
2.      The Council will in addition , as part of the development of international
co-operation , endeavour to procure such essential financial and/or' technical .
assistance as may be obtainable froiji the competent international-, regional or
national organizations , whether financial or of some other kind ,
 3.     The provisions of paragraph 1 of this article will be applicable , as the
case may be , with the international financial assistance given to activities or
projects submitted to the Council for improvements in olive cultivation and oil'
 extraction techniques .                                                              :
                                    CHAPTER VI              ;                         j
       - DESIGNATIONS AND DEFINITIONS OF OLIVE OILS AND OLIVE-RESIDUE OILS .
.              .  INDICATIONS OF SOURCE AND APPELLATIONS " OF ORIGIN • • .
                                    Article 10
   1.   The designation " olive oil" shall be restricted to oil obtained solely fror
  •the olive , to the exclusion of oil obtained by solvent or re-esterification
   processes and any mixture with oils of other kinds .
   2.    The Members undertake to suppress in both internal and international trade ,
  with the least possible delay and at the latest before the expiry of -this
  Agreement , any use of the designation " olive oil" alone or in combination with
   other words which is not in conformity with this article .
   3.    In no case shall the designation " olive oil" be used' alone to refer to oliv.
   residue oils .
 ---pagebreak--- pago 10
                                       Article 1 1
 1.   The designations of olive oils and olive-residue oils of the different
qualities are given below with the definition corresponding to each designation ;
A.   Virgin olive oil ; oil which is obtained from the fruit of the olive . tree
solely by mechanical or other physical means under conditions , and particularly
thermal conditions , that do not lead to deterioration of the oil , and which has
not undergone any treatment other than washing, decantation, centrifugation and
filtration , to the exclusion of oil obtained by solvent or re-ester ification
processes and any mixture with oils of other kinds . Virgin olive oil shall be
classified and designated as follows ?
     (a) Virgin olive oil-^fit for consumption as it is;
            ( i ) Virgin olive oil extra ; virgin olive oil of absolutely perfect
                 • flavour having a maximum acidity , in terms of oleic acid , of
                   1 gram per 100 grams *
          ( ii) Virgin olive oil fines virgin olive oil complying with the
                   conditions for virgin olive oil extra , except as regards acidity ,
                   which in terms of oleic acid shall not exceed 1.5 grams per 100
                   grams •
        ( iii) Virgin olive oil semi-fine ( or virgin olive oil ordinary) ; virgin
                   olive oil of good flavour having a maximum acidity, in terms of
                   oleic acid , of 3 grams per 100 grams with a margin of tolerance of
                    10 per cent of the acidity indicated .
 y It shall be permissible to use the term "natural" for any virgin olive
     oil which is fit for consumption as it is .
 ---pagebreak---                                                                    page 1 1
            Virgin olive oil not fit for consumption as it iss
               Virgin olive oil lampanto ( lamp oil )? off-flavour olive oil or olivo
               oil having an acidity , in terms of oleic ~acid , of more than 3.3 grams
            ' per 100 grams .
B.    Refined olive oil s oil obtained by refining virgin olive oil .
C.    Olive oil or pure olive oil ; oil consisting of a blend of virgin olive oil
and refined olive oil .                                               '         „ .
D.    Olive-rasidue oil ; crude oil obtained by treating olive 'residues with
solvent and intended for subsequent refining for human consumption , or for
technical use . Olive-residue oil shall be classified and designated as follows !
      ( a) Refined olive-residue oil ; oil intended for food use and obtained by '
             refining crude olive-residue oil . (Notes Blends of refined olive-
            residue oil and virgin olive , oil - habitually destined for internal
            consumption in certain producing countries - shall be designated
            "refined olive-residue oil and olive oil". These blends shall not , under
            any circumstances , be termed simply " olive oil", and it shall be
             obligatory for the packagings to bear, the words " refined olive-residue
          ♦ oil and olive oil".)
    - ( b) Olive-residue oil for technical use ; all other crude olive-residue oils .
            The Council shall undertake and submit , before the end of the second .
            year following the entry into force of this Agreement , a comprehensive
             study of the market for olive-residue oil , including blends of olive-
            residue oil . and olive oil , with special reference to the repercussions
             of the marketing of these products on the olive oil economy as a whole .
2 . Each of the above designations for the various qualities of olive oil and
olive-residue oil shall comply with quality criteria laid down in conformity with
the recommendations made under article 28 , paragraph 2 in regard to standards
for the physical and chemical characteristics of olive oil and olive-residue oil .
 ---pagebreak--- page 1 2
 3.   The designations prescribed in paragraph 1 of this article shall be compulsor
in international trade and shall be used for each quality cf olive oil and
olive-residue oil ; they shall appear in clearly legible characters an all
packagings .
4.    In the matter of quality criteria , as indioated in article 28 , paragraph 2 ,
the Council will determine uniform standards applicable to the international
trade . Until these standards are determined , reference shall be made to the
standards customarily used in that trade , and in particular to such standards ■
as are recommended by the Council within the framework of its activities .
                                  Article 12
1 , " The Members undertake to adopt at the earliest possible date , and at the
latest before the expiry of this Agreement , all necessary measures in the form
prescribed by their respective legislations to ensure the application of the
principles and provisions set forth in articles 11 and 13 , and will endeavour
to apply them in their internal trade .
2.    They undertake in particular to prohibit and repress the use in their
territories , for purposes of international trade , of such indications of source ,
appellations of origin and designations of olive oil and olive-residue oil as
conflict with those principles . This undertaking shall apply to all inscriptions
placed on packagings , invoices , consignment notes and commercial documents or
used in advertising , and to trade marks y registered .names and illustrations
connected with the international marketing of olive oil and olive-residue oil ,
in so far as such inscriptions might constitute false statements or give rise to
confusion as to the origin , source or quality cf the olive oil or olive-residue
oil concerned .
                                  Article 13
 1 . Indications of source , when given , may only be applied to virgin olive oil
 produced and originating exclusively in the country , region or locality mentione
 Appellations of origin , when given , may 'only be applied to virgin olive oil extr
 produced and originating exclusively in the country , region or locality mentione
 Moreover , indications of source and appellations of origin may not be used excer
 in conformity with the conditions prescribed by the law of the country of
 origin .
 ---pagebreak---                                                                 PCvro 13
 2.    Blends cf virgin olive oil and refined olive oil may constitute types whoso
 characteristics may he determined by agreement between buyers and sellers .
 Whatever their origin , those may only boar the indication of source of the
'exporting country . Nevertheless , when the oil has been packed and exported by
 the country supplying the virgin olive oil extra used in the blend , it may be
 identified "by the appellation of origin of that virgin olive oil , Where use 13
 made of the generic designation "Riviera", well known in the international olive
 oil trade as a blend of virgin olive oil extra and refined olive oil , this
 designation shall in every case be followed by the word " type". The word " type"
 must appear on all packagings in printed characters of the same size and
 appearance as the word "Riviera".
                                   Article 14
 1 . . Any dispute concerning indications of source and appellations of origin
 which arises from the interpretation of the provisions .of- the present chapter
 or from difficulties of application shall , if the dispute has not been settled
 by direct negotiation , be examined by the Council .
 2 0 The Council shall endeavour to reconcile the dispute , after seeking . the
 opinion of an advisory panel as provided for in article 40 ,. paragraph 1 and
 after consultation with the World Intellectual Property Organization , the
 International Federation of Olive Growers and a competent professional
 organization of a mainly importing Member , and if necessary with the
International Chamber of Commerce and the specialized international institutions
 for analytical chamistry • if this is unsuccessful , and after every mean's has
 been employed to reach agreement , the Members concerned shall have the right
 of recourse in the final instance to the International Court of Justice .
 ---pagebreak--- page 14
                                   CHAPTER VII
               WORLD PUBLICITY TO PROMOTE OLIVH OIL CONSUMPTION
                               Publ icity c ampaigns
                                   Art icle^ 1J?
 1.  The Members contributing to the Publicity Fund referred to in paragraph 3
of this article undertake to conduct general olive oil publicity activities
jointly , with a view to maintaining and increasing world olive oil consumption ,
on the basis of the use of the designation " olive oil" as defined in article 10 .
2.   These activities shall take the form of educational and advertising campaigns
and deal with the organoleptic and chemical characteristics of olive oil , and
if necessary with its nutritive , therapeutic and ether properties , but they
shall not be concerned with any indication of quality , origin or source .
3.   The resources of the Publicity Fund shall be used in the light of the
following criteria :
     ( a) the volume of consumption, with a view to maintaining and if possible
           expanding existing outlets «
     ( b) the creation of new outlets for olive oil ;»
     ( c ) the return obtainable on the advertising expenditure .
                                   Article 16
     The general and specific publicity campaigns to be undertaken under article
15 shall be decided on by the Council in the light of the resources made available
to it for the purpose and of the following considerations ;
     ( a) priority shall be given to action in the mainly consuming countries
           and in countries in which the consumption of olive cil is likely to
           increase |                                      '
     ( b) consultations with appropriate organizations and institutions .
 ---pagebreak---                                                                     pane 15
                                   Article 17
       The Council shall administer the funds allocated for joint publicity purposes.
 It shall prepare an annual estimate of receipts and expenditure relating to
 this publicity as an annex to its budget .
                                Pabl icii^r Fond
                                  Article J8_
  1.   The mainly producing Members undertake, to place at the disposal of the
 Council for each Calendar year , for joint publicity purposes , a sum of money
 equivalent to 300,000 United States dollars and payable in that currency . The
 Council may nevertheless decide what proportion of its contribution each Member
 may be permitted to pay in other freely convertible currencies . The above sum
 of- $ 300,000' may be increased by the Council , but not in excess of $ 500,000 ,
 on condition , on the one hand , that no Member ' s ' contribution may be increased
-without that Member 's consent and , on the other , that, any alteration
 occurring in this connexion in the coefficients referred to in paragraph 3 of this
 article shall require a unanimous decision of the mainly producing Members . The
 above sum of $ 300,000 may be reduced if the aggregate production of the Members -
 represents less than 80 per cent of the vrorld production of olive oil in the
 reference period contemplated in article 3, paragraph 1 ( c ) and(d). In this
 case , the sum of Z 300,000 shall be reduced, to an amount proportionate to the
 share of world production represented by the aggregate production of the mainly
 producing Members .                                                 '            .
 2.    Mainly importing Members may pay contributions to the Publicity Fund by
 special agreement with the Council . These contributions shall bp added to the
 moneys constituting the Fund , as determined by the application of paragraph 1 of
 this article .
 3.    Subject to the provisions of paragraph 4 of this article , the mainly
 producing Members shall- contribute to the Publicity Fund in proportion to their
 importance in the world olive oil economy , in accordance with a coefficient
 determined for each of them on the basis of the average production and average
 net exports or imports of olive oil of each of the Members in the olive crop
 years and Calendar years specified in article 3, paragraph 1 ( c ) and ( d), in the
 proportion of 20 per    cent for production and 80 per cent for net exports or
 imports .
 ---pagebreak--- pago 16
4.     In the case of the EEC , not exports or imports of olive oil in the calendar
years specified in article 3 , paragraph 1 ( c ) and ( d) shall he determined after
deduction of intra-EEC trade .
 5.    Contributions to the Publicity Fund shall be payable for the whole of a
 calendar year. The annual contribution of each mainly producing Member shall
 become payable for the first time vihen it becomes a Member provisionally or
 definitively , and subsequently on 1 January each year .
 o.    The provisions of article 38 , paragraph 5 shall apply as regards the
collection of contributions to the Publicity Fund and in the event of delay in
their payment .
7 . On the expiry of this Agreement , and unless it is prolonged , extended or
renewed , any funds not used for publicity shall be repaid to the Members
proportionately to their total contributions for publicity during the periods
of validity of the International Agreement on Olive Oil , 1956 , the International
Olive Oil Agreement , 1963 and this Agreement .
8. ( a) In regard to all decisions relating to publicity , each mainly producing
IIember shall have a number of votes proportionate to its contribution to the
Publicity Fund under this article . Any fraction of a vote resulting from the
application of the coefficient determined under paragraph 3 of this article
shall be counted as a whole vote .
     ( b) When , under paragraph 2 of this article , a Member concludes a special
agreement with the Council to pay a contribution to the Publicity Fund , it
shall acquire a number of votes proportionate to its contribution , on condition
that the agreement in question covers the period which is to elapse before this
Agreement expires .
     ( c ) Decisions relating to publicity shall be taken by a majority of four
fifths of the votes cast by the Members contributing to the Publicity Fund ,
which shall include the votes of a majority of the Members so contribu ting that
are entitled to vote .
                                   Article
       The technical execution of publicity campaigns may be entrusted by the
Council to specialized bodies of its own choice which are representative of the
olive-growing and olive oil industries , including the International Federation
of Olive Growers .
 ---pagebreak---                                                               page 17
                                  Article 20
     The Council may receive donations from Governments or from other sources for
the joint publicity in question. Such occasional resources shall be added to the
moneys constituting the Publicity Fund , as determined by the application of
article 18 .
                                   CHAPTER VIII
                               ECQMOIIIC MEASURES      .
             ■  '                   Article 21
1.   Within the framework of the general objectives set forth xn article 1 , and
with a view to contributing towards the normalization of the- olive oil market
and correcting any imbalance between international supply and demand due to
irregularity of harvests or to other factors , the Council shall , at the
beginning of each olive crop year make a detailed examination of . olive pil
balances and an over-all estimate of olive oil supplies and requirements , on the
basis of the information furnished by each member tinder article 7 and any
information communicated to the Council by Governments . of States not parties to
this Agreement but interested in the international olive oil trade , and any
other relevant statistical material available to the Council .       ' .
2 . Not later than 31 , May each year the Council shall , taking into "account
all the information available to it on that date , c.ake a further examination of
the market situation and a further over-all estimate of olive oil supplies and
requirements , and may propose to the Members such measures as it considers
desirable .
3.   An Economic Committoo shall bo set up and moot at regular intervals to
exchange viewpoints on the world situation in tho olive oil market , with the-
aim of finding solutions to problems liable to disrupt the international olive
oil trade .         .                                    . ~
                                  Article 22
1.   The Council shall undertake studies with a view to making recommendations
to the liembers that are designed' to achieve a balance between production and
consumption , and , more generally , normalization of tho olive oil market over
the long term through the application of appropriate measures , including
measures to encourage tho sale of olive oil at prices which are competitive at
the consumer level , so as to natvrow the price differential between olive oil
and other edible vegetable oils particularly through the granting of assistance .
 ---pagebreak--- page 18
2,    With a view to such normalization , the Council shall also provide suitable
solutions to the problems which may arise as regards the evolution of the
international olive oil market , through appropriate modalities , account being
 taken of market imbalances resulting from fluctuations in production or from
other causes .
                                 Article 23
      When the Common Fund which is envisaged in resolution 93 ( IV) of the
United Nations Conference on Trade and Development , and whose fundamental elements
arc identified in resolution 1 ( ill ) adopted on 19 March 1979 ty"     United
Uations Negotiating Conference on a Common Fund , becomes operational under the
Integrated Programme for Commodities , the Council shall , in the light of those
resolutions , consider measures through which it might take full advantage of
any financial arrangements available under the said Fund , and may make
appropriate recommendations on the matter .
                                 0 HATTER IX
                      OTHER PRODUCTS OF THE OLIVE TREE
                                 Article 24
1.   Within the framework of the general objectives set forth in article 1 , the
Council shall request the close co-operation of all its Members in the
communication of the necessary statistical information on table olives and
other products of the olive tree .
2#    The Council shall at the beginning of each olive crop year itiake a detailed
examination of quantitative and qualitative table olive balances , 015 the basis
of the above information and any information transmitted to it by Governments
of States not p&rties to this Agreement but interested in the international trade
in table olives , and any other statistical material available to the Council on
the subject .
3. Not later than 31 Hay each year the' Council shall , taking account of all
the information available to it on that date , make a further examination of the
market situation and an over-all estimate of table olive supplies and requirements
and may propose to the Members such measures as it considers desirable .
 ---pagebreak---                                                                 pago 19
                                     Article 2J?_
                                               *■
     The Council will pursue the appropriate studies concerning !
      ( a) the adoption and use of an international standard contract for table
            olive transactionsj    -      •
      ( b) arrangements with regard to conciliation and international arbitration
            for any disputes relating to international table olive transactions ;
      ( c ) the 'adoption of uniform qualitative standards for table olives­
      ( d) the biological value of table olives , with particular reference to
            their specific qualities and properties .
                                     Article 26
1.   The Council shall promote such market surveys as arc thought conducive to
stimulating the growth of table olive consumption . It will submit them to the
Members for the purposes which they consider appropriate .
2.   In this connexion , the Council will endeavour to obtain for all Members , or
for those of its Members as may require it , such assi . banco of various kinds ,
including financial assistance , as international or other competent bodies may
grant .
                                     CHATTER X
                                 AHmiISTIUTIGl!
                         International Olive Oil Council
                                     Art icio 2J
     Tho International Olive Oil Council shall administer this Agreement .
 ---pagebreak--- page 20
                          Functipns of the Council
                                    Article 28
 1.  Within the framework of its functions of administration under this Agreement
the Council shall ;
     ( a) exercise all such powers and perform or cause to be performed all such
           functions as are necessary for executing the express provisions of this
           Agreement and generally administering it­
     ( b ) promote all activities conducive to the harmonious expansion of the
           world olive oil economy by every means and encouragement in its power in
           the fields of production , consumption and international trade , having
           regard to the ways in which they are interrelated.
                                   /
2.   The Council shall examine ways and means of ensuring the expansion of
international trade and an increase in olive- oil consumption. In particular , it
shall make appropriate recommendations to the Members concerning:
     ( a) the adoption and use of a standard international contract for
           transactions in olive oil and olive-residue oil 5
     ( b) the constitution and functioning of an international conciliation and
           arbitration office to deal with any disputes relating to transactions in
           olive oil and olive-residue oilj
     ( c ) the establishment of uniform standards for the physical and chemical
           characteristics of olive oil and olive-residue oil 5
     ( d) the establishment of uniform methods of analysis .
3.   The Council shall take all appropriate measures to bring about the
preparation of a code of standard fair trade practices for the international trad
in olive oil and olive-residue oil , irlth particular reference to margins of
tolerance .
4.   The Council shall take any measures it considers useful for the suppression
of unfair competition at the international level , including such competition by
States which are not parties to this Agreement or by persons who are nationals of
such States .
 ---pagebreak---                                                                  pago 21
5.   The Council may also undertake studies on the activities mentioned in
paragraph 1 ( b)- cf this article . It is furthermore authorized to undertake or
arrange for the undertaking of other work , including the collection of detailed
information on special assistance in different forms to the olive-growing and
olive oil industries , so as to enable it to formulate any recommendations and
suggestions it may consider appropriate for achieving the general objectives sot
forth in articlo 1 . Any such studies and wcrk shall , in particular , cover as
many countries or groups of countries as possible and take into account the
general social and economic conditions cf the countries concerned .
6 , The Council shall establish procedures under which the Members shall inform
it of the conclusions they reach after considering the recommendations and
suggestions mentioned in this articlo ' or 'arising . from the application of this
Agreement .          .  . '  > .
                                   Article 29
1.   The Council shall draw up rules of proceciure consistent with the provisions
of this Agreement . It shall keep up to date such records as it requires to
perform its functions under this Agreement and such other records as it
considers desirable . In the event of inconsistency between the rules of procedure
it adopts and the provisions of this Agreement , the Agreement shall prevail .
2.   The Council shall draw up , prepare and publish such reports , studies , charts
surveys or other documents as it considers useful and r : cessary.            •   s .
3.   The Council shall , at least once a year , publish      report on its activities
and on the operation of this Agreement .
4 . The Council may appoint such special committees as it deems useful for
anointing . it in tho exorcise of its functions undor thi3 Agreement .
5.   Tho Council shall exercise all other functions that arc necessary for the
execution of the provisions of this Agreement .
                          Composition of the Council
                                   Article 30
 1.  Naoh Mombor nhall hnvo tho right to vote . It shall have tho right to bo
roprouontod on tho Council by a dologate and mny appoint alternates . The dologato
and alternates may bo accompanied at tho meetings of tho Council by as many
advisers as each Member deems necessary .
 ---pagebreak---  page 22
 2.   The Council shall elect , from among the delegations of the Members , a
 chairman who shall not have the right to vote and who shall hold offico for one
 olive crop year . In the event of the Chairman being a voting delegate , his
right to vote shall be exercised by another member of his delegation . The Chairman
 shall receive no remuneration .
 3.   The Council shall also elect a deputy chairman from among the delegations
of the I-lembers . In the event of the Deputy Chairman being a voting delegate , ho
shall have the right to vote except when acting as Chairman , in which case he
shall transfer his right to vote to another member of his delegation. Ho shall .
hold office for one olive crop year and shall receive no remuneration.
                             Meetings of the Council
                                    Article 31
 1.   The seat of the Council shall be at Madrid unless the Council decides
otherwise . It shall hold its sessions there unless it decides exceptionally to
hold a particular session elsewhere . If a Member invites the Council to meet
elsewhor than at its scat and the Council agrees to do so , that Member shall bear
the extra expenditure which this entails for the budget of the Council .
2 . ' The Council shall meet at least twice a year,' having regard in particular
to the provisions of article 21 .
3.    The Council may be convened at any time at the discretion of its Chairman.
The Chairman shall also convene the Council if this is so requested;
      ( a) by five Members ;
      ( b) by one or more Members holding at least 10 per cent of the total votes .
4 . Notice of the sessions provided for in paragraph 2 of this article shall be
given at least 30 days before the date of the first meeting of each such session.
ITotice of the session provided for in paragraph 3 of this article shall be given
at least 15 days before the date of the first meeting of each such session .
 ---pagebreak---                                                               pago 23
                                    Article 32
1 . Tho quorum required for every meeting of the Council shall "bo the presence
of the representative of a majority of the Members holding at least two thirds
of the total votes .
2.     If this quorum docs not exist , the meeting shall bo postponed for 24 hours and
the quorum required shall bo the presence of the representatives of a majority
of the Members holding at least 50 per cent of . tho total votes .
                                    Article 33
       The Council may take decisions by an exchange of- correspondence between tho
Chairman and the Members without holding a meeting, provided that no member
objects . Any such decision shall be communicated as quickly as possible to all
the . Members and bo entered in the recqrd . of tho following meeting of the Council .
                                    Article 34
1.     The number of votes allotted to each Member shall be determined for the
duration of this Agreement by the formula n = p + i + 5 , but it may not exceed
450 .                                             '
In this formula :
       - n shall bo the number of votes allotted to "the Member •
       - p shall be tho average annual olive oil production in thousands of metric
           tons in tho olive' crop years 1972/73 - 1977/78 , any fraction of 1,000
           metric tons above a whole number being disregarded ;
       - i shall be the average annual net imports of olive oil in thousands of
           metric tons in the calendar years 1973 to 1978 , any fraction of
           1 , 000 metric tons above a whole number being disregarded ;
       - 5 shall be the basic number of votes allotted to each Member in each
         - group of Members .
 ---pagebreak---  pago 24
 2.     Notwithstanding the provisions of paragraph 1 of this article , since the
"ESC is considered under article 3 , paragraph 3 as both a mainly producing Member
 and a mainly importing Member , the number of votes allotted to it in each group
 of Membeis shall be determined as follows ;
      - firstly , as a mainly producing Member , by the formula n - p + 5 ; .
      - secondly , as a mainly importing Member , by the formula n = i + 5 , i being
         calculated after deducting intra-EEC trade ;
but the number of votes allotted to the EEC in either group of Members may not
 exceed 450 »
                          Decisions of the Council
                                Article 3,5
 1 . Unless otherwise provided in this Agreement , and subject to any arrangements
under article 47 , paragraph 5 , decisions of the Council shall be taken by a .
majority of four fifths of the votes cast , including the votes of a majority of
the Members having the right to vote . The votes of abstaining Members shall not
be counted .
2.    Any Member may authorize the voting delegate of another Member to represent
its interests and to exercise its right to vote at one or more meetings of the
Council . Evidence of such authorisation acceptable to the Council shall bo
submitted to the Council .
 3. The voting delegate of a Member may not , in addition to the powers and tho ■
right to vote held by that Member , represent tho interests and exercise the
right to vote of more than one other Member .
 ---pagebreak---                                                                 page 25
                                 S ccrotariat;
                                  Article 36                         "■
 1.  The Council shall have a secretariat composed of      '    tor and such staff
as are required for the %\rork of the Council and its conunittces . The Council
shall appoint the Director and determine his functions . The staff shall be
appointed in accordance with regulations which are established by ^tho Council
and take account of the regulations applicable to the staffs of similar
intergovernmental organizations 5 members of the staff shall not hold any office
outside the organization or accept any other employment#
2.   It shall be a condition of employment of the Director and the staff of the
secretariat that they do not possess or shall cease to possess any direct or
indirect commercial or financial interest in any of the various sectors of' tho -
olive-growing and olive oil industry.                                           ,
3.   The functions of the Director- and of the members of the secretariat shall
be exclusively international . In the discharge of their duties , they shall not
seek or receive instructions from any Government or from . any authority other
than the organization. They shall refrain from any action incompatible with
their position as international officials .
4«   The Members shall respect the international character of the responsibilities
of the members of the secretariat and shall not sc ok tc influence them in the
discharge of their duties .
                                  CHAPTER XI
                          PRIVILEGES AUD IMMUNITIES
                                  Article 37
1 . In the territory of each Member , and in so far as that Member 's legislation
allows , tho Council shall have the legal capacity necessary for the performance
of the functions conferred upon it by this Agreement .
 ---pagebreak---  page 26
 2.   The Government of the State in i-fhich the seat of the Council is pituated
 shall , in so far as that State 's legislation allows , exempt the funds of the
Council and the salaries paid by the Council to its staff from taxation.
 3.   The Council , the Director and the staff of the secretariat shall enjoy the
privileges , immunities and facilities set out in tho Headquarters Agreement .
between the Council and tho Government of the State in which tho seat of the
Council is situated .
4.    The Council may conclude ;with one or more Members agreements to be approved
by the Council concerning the privileges and immunities required to ensure tho
proper application of this - Agreement .
                                   CHAPTER XII '
                              FINANCIAL PROVISIONS
                                   Article 38
1«    Except for the expenses of the Chairman, which shall be borne by the Council ,
tho expenses of delegations to the Council shall be met by .the Members concerned .
The contribution of each Member to tho administrative budget for each calendar
year shall be proportionate to the number of votes which that Member possesses when
the budget for tho year in question is approved .
2 ,.  At its first session thtj Council               ap, advriiniBtrrvtiva      for
the first calendar year and assess the contribution to be paid by each Member.
Each year thereafter , at tho autumn session , the Council shall approve its
administrative budget for the following calendar year and assess the contribution
to be paid by each Member for the calendar year in question.
                                             I
3.    The initial contribution of any Member which becomes a Party to this
Agreement after its ' entry into force shall be assessed by the Council on the
basis of the number of votes allotted to that Member and of the unexpired portion
of the year in question , but the assessments mado upon the other Members for that
calendar year shall not be altered .
4 . Tho contributions provided for in this article shall become payable upon their
approval by the Council for the calendar year for which they are assossod . They
shall be determined in United States dollars and be payable in that currency
or in the equivalent amount of another freely convertible currency.
 ---pagebreak---                                                                   pago 27
  5 . . If a Member docs not pay its contribution to the administrative budget in
  full within the six months commencing at the beginning cf the financial year ,
  the Director shall request it to make payment as quickly as possible . If the
  Member in question does not settle its contribution within the throe months
  following the end of that six-month period , its rights to vote at Council sessions
  and meetings of committees and to hold elective office in the Council and its
- committees shall be suspended until its contribution has been paid in full . It
  shall not however , unless the Council so decides by vote , be deprived of any
  of its other rights or . be released from any of its obligations under this
 Agreement . It may not be relieved by vote from its financial obligations under
  the Agreement .
  6.    Any Member whoso participation in this Agreement ceases through its
 withdrawal or exclusion or for any other reason during the period of validity ■
  of the Agreement shall make the payments, -which it is due to make to the
  Council , and shall perform all the undertakings which it entered into before
  the date on which the cessation of its participation in this Agreement took
  effect . No such Member may claim any share in the proceeds of liquidation of
  the assets of the Council upon the expiry of the Agreement *                  -
 7 . After the spring session the Council shall publish a certified statement
  of its receipts and expenditure in the previous calendar year .
  8.    The Council shall , if dissolved , first take the necessary stops to settle
  its liabilities , to place its records in safe keeping and to dispose of any
  balance standing to its credit at the date of expiry of this Agreement .
                                   CHATTER XIII
         CO-OPERATION WITH OTHER ORGANIZATIONS AND ADMISSION OF OBSERVERS
                                    Article 39
  1.    The Council may make, any arrangements that arc appropriate for consultation '
  or co-operation with the United Nations and its organs , in particular the United
 Nations Conference on Trade and Development (UNCTAD) , with the Food and
 Agriculture Organization of the United Nations (FAO ) and with other specialized
 agencies' of the United Nations and intergovernmental organizations where
 necessary . It may also make whatever arrangements it considers suitable for
 co-operating with governmental and non-governmental organizations and agencies .
 It may in addition invite any organization referred to in this article to ,
 attend any of its meetings as an observer .
 ---pagebreak--- pago 28
2.    In view of the particular role of tJNCTAD in international commodity trade ,
the Council shall keep USTCTAD suitably informed of its activities and programmes
 of work. The same shall apply as regards FAO . "
 3.   The Council may also invite any member of the United Nations or of any of
 its specialized agencies or of the International Atomic Energy Agency that is
not a party to -this Agreement to attend any of its meetings as an observer.' .
                                  CHAPTER XIV
                            DISPUTES AND C( MPLAIMTS
                                  Article 40
 1.   Any dispute which concerns the interpretation or application of this
Agreement , other than a dispute under article 14 , and which is not settled by '
negotiation shall , at the request of any Member which is a party to the disputo ,
be referred to the Council for decision after it has sought an " opinion , where
appropriate , from an advisory panel , the composition of which shall be laid
down in the Council 's rules of procedure .
2.    A substantiated opinion by the advisory panel shall be submitted to thc _
Council , which shall in all circumstances settle the disputo after considering
all the relevant facts .
3.    Any complaint that a 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 take a decision on the matter after consulting the
Members concerned and , where appropriate , seeking an opinion from the advisory
panel referred to in paragraph 1 of this article .
4.    A Member may , by vote of the Council , be found in breach of this Agreement.
5 . If the Council finds that a Member has committed a breach of this Agreement ,
it may either impose sanctions on that Member , ranging from a simple warning
to the suspension of the Member 's right to vote until it has met its obligations ,
or exclude the Member from participation in the Agreement .
 ---pagebreak---                                                                 page 29
                                     ciiArrcn xv
                                  FINAL PROVISIONS
                        ■ Participation in the_ Agreement
                                      Artie 1 e_ 41
 1.    The Government of any State invited to the United Nations Conference on
Olive Oil , 1979 may become a Party to this Agreement in accordance^ with its
constitutional or institutional procedures s                                         :
     ' ( a) "by signing it - or '
     "( b) "by ratifying, accepting or approving it , after having signed it subject
             to ratification , acceptance or approval ; or
                                                                              *    «
       ( c ) by acceding to it .
2 . Every signatory Government shall on signing this Agreement state whether ,
according to its consitutional or institutional procedures , its signature is or
is not subject to ratification , acceptance or approval . .
                                      Signature '
                                      Article 42
      This Agreement shall be open for signature at Madrid with the Government
of Spain ( hereinafter referred to as " the depositary") from 1 July 1979 until
and including 1 6 November 1979 *
                • -   Ratification . acceptance or approvai
                                      Article 43
1.     If ratification , acceptance or approval is required , the corresponding
instrument shall be deposited with the depositary not later than 31 December
1979 » but the Council may grant an extension or extensions of this time-limit to
any signatory Government which has not deposited the instrument in question by
that date *
                                                    /
2.    Ratification , acceptance or approval shall take effect from the date on
which the instrument in question is deposited or        on which this Agreement enters
into force , whichever is the later .
 ---pagebreak--- page 30
                                  x\ccossion
                                 Article 44
 1.   The Government of any non-signatory State may accede to this Agreement .
2.    xlccession shall be effected "by the- deposit of an instrument of accossion
with the depositary and shall tako offoct from the dato on which ouch instrument
 is deposited or on. vhioh this Agreement enters into foroo , whichever is the
later.
3. Any non-signatory Government entitled to accedo to this Agreement under
isaragmph 1 ef this tuPtiele mfty notify the depositary that it tuitlortnkoo to
comply as rapidly as possible with . the constitutional or institutional
procedures required for its accession to this Agreement .
                   notification of provisional application
                                  Article 4 e)
1,    Any signatory Government whoso signature is subject to ratification ,
acceptance or approval or any non-signatory Government which has made a
notification under paragraph 3 of article 44 may at any time notify the
depositary that it will apply this Agreement provisionally either when it
enteres into force tinder article 46 or , if it is already in force , on a date
specified in the notification . If' no date is specified in the notification of
provisional application , such notification shall take effect from the date on
which it is made or on which this Agreement enters into force , whichever is
the later .
2.    During the entire period' for which this Agreement is in force either
provisionally or definitively , a signatory Government or a non-signatory Government
which has made a notification under paragraph 1 of this article shall be a
provisional Member , with all the rights and obligations of a Member , until the
date on which its instrument of ratification:, acceptance , approval or
accession is deposited .
 ---pagebreak---                                                                   page 31
                                 Entry înto force           v
                                    Article 46
 1 . " This Agreement shall enter into force definitively on 1 January 1980 , or on
any date within the 12 months thereafter , between the Governments which have signed
it and , •whore their constitutional or institutional procedures so require , have
ratified , accepted or approved it , or have acceded to it , if these Governments
include those - of six countries together . accounting for at least 60 per cent of
world olive oil production in the reference period stipulated in article 3 ,
paragraph 1 .( c ) and ( cl). If this Agreement has not entered into force 'definitively
in accordance with the above conditions , it shall enter into force definitively
at any time after its provisional entry into force at which the requirements of
the present paragraph as to number of Governments and percentage of world olive
oil production are met by the deposit of instrunents of ratification , acceptance ,
approval or accession .
2. This Agreement shall enter into force- provisionally on 1 January I98O , or
on any date within the 12 months thereafter , between the Governments which havo'
signed it and , where their constitutional or institutional procedures so require ,
have ratified , accepted or approved it , or have acceded to it or notified that
they will apply it provisionally , if those Governments include those of six
countries together accounting for at least 60 per cent of world olive oil
production in the reference period stipulated in article 3, paragraph 1 ( c ) and
( d).        .
3.     If on 1 January 1980 this Agreement has not entered into force either
provisionally or definitively in accordance with paragraphs 1 and 2 of this .
article , but ha.s received the number of signatures required for it to enter
into force after ratification , acceptance or approval , the International Olive
Oil Agreement , 1963 shall continue in force beyond 1 January 1980 until the
date of tho provisional or definitive entry into force of this Agreement , but
the period of such prolongation shall not exceed 12 months .
4.     If on 1 January I98O this Agreement has not received tho number of signatures
required for it to enter into force after ratification , acceptance or approval ,
or if on 31 December 1980 it has not entered into force either provisionally
or definitively in accordance with paragraphs 1 and 2 of this article , the
Governments which have signed it. and , where their constitutional or institutional
procedures so require , have ratified , accepted or approved it , or acceded to it
or notified that they will apply it provisionally , may decide by mutual
agreement that this Agreement shall enter into force in whole or in part with regard
to themselves , or may take whatever other decision they consider tho circumstances
require .                                                               1
 ---pagebreak--- page 32
                                  Anencjncnt
                                  Article 47
 1.   The Council may recommend to the Members an amendment to this Agreement .
2.    The Council shall prescribe the period within which each 11ember shall notify
the depositary whether or not it accepts the amendment .
3. If , on the date on xAich the period prescribed under paragraph 2 of this
article expires , the amendment has been accepted by Members xtfhich together hold
at least four fifths of the total number of votes of the - Members' having the
right to vote and include at least three quarters of the Members , it shall enter
into force on that date or on such later date as the Council shall determine . If
not , it shall be deemed withdrawn .
4.    Any Member on tirhose behalf no notification of acceptance of an amendment
has been made by the date on which the amendment takes effect shall cease from
that date to participate in this Agreement , unless such Member satisfies the
Council that it was unable to have the amendment accepted in time owing to
difficulties in completing its constitutional or institutional procedures , and the
Council decides to extend the period of acceptance for that Member . The Member
in question shall not be bound by the amendment until it has notified the
depositary cf its acceptance of the amendment .
5 . Any Member which , during the period of validity of this Agreement , bocomes
a State member of the EEC or of any other intergovernmental organization referred
to in article 3 , paragraph 2 shall so notify the Council as soon as the decision
on the matter has been taken , and in any event before the date on which its
membership of the EEC or intergovernmental organization in question takes
effect . The Council shall examine the question at its earliest succeeding session
in order to negotiate with that Member and the EEC or intergovernmental
organization in question such appropriate adjustments as may ensuo therefrom *as
regards the provisions of article 18 , paragraphs 3, 4 and 8 ( c ), article 34 and
article 35 , paragraph 1 . The Council may in such a case recommend an amendment
pursuant to the provisions of this article .
 ---pagebreak---                                                                  page 33
                                                 i
                                       (
                                  Withdrawal
                                  Article 48
 1 . If any Member considers that its interests are prejudiced , either py the
fact that a signatory Government whose signature is subject to ratification,
acceptance or approval and which has not made a notification of provisional
application of this Agreement fails to deposit its instrument of ratification,
acceptance or approval., or else by the operation of the Agreement , it shall so
inform the Council which shall consider the matter at its first session
following the notification of the matter by -"the Member in question. If , after
the Council has examined the matter , the Member concerned continues to considor
that its interests are prejudiced , it may withdraw from this Agreement by
giving written notice of withdrawal to tho depositary .
2. Notwithstanding the provisions of paragraph 1 of this article , any Member
may withdraw from this Agreement at any time after the Agreement has entered
into force by giving written notice of withdrawal to the depositary.
3.   Withdrawal under this article shall take effect at the end of the calendar
year in which the notification is made to the depositary.
         Duration , prolongation , extension or renewal , and expiry
                                   Article 49
1 . This Agreement shall remain in force until 31 December 1984 unless it is
prolonged or extended pursuant to paragraphs 2 or 4 of this article .
2. Before the end of 1984 the Council may , by unanimous decision of the
Members , prolong this Agreement for a period not exceeding two calendar years .
Such prolongation shall be notified by the Council to the depositary , and by
the depositary to tho Secretary-General of the United Nations .
3.   Before the expiry of this Agreement on the date provided for in paragraph
1 of this article or , if tho Agreement is prolonged , on the date ' resulting from
the provisions' of paragraph 2 of this article , the Council shall , at such time
as it sees fit , make its recommendations to the Members with regard to the
extension or renewal of the Agreement .
 ---pagebreak---  pa^c 34
 4.   If , before the expiry of this Agreement , a new agreement or a protocol for
 the extension of this Agreoir.ont has "boon negotiated, and that new agreement or
 protocol has received the number of signatures required for it to enter into force
 upon deposit of the instruments of ratification , acceptance or approval , or the
 requisite number of notifications of provisional application , and if that nevj -
 agreement or protocol has not entered into force provisionally or definitively ,
 this Agreement shall remain in force beyond its expiry date until the new
 agreement or protocol enters into force , but the period of such prolongation shall
 not exceed 12 months .
 5.   On' the expiry cf this Agreement and unless it is prolonged , extended or
 renewed , the operations for which the Council is responsible and the funds it
 administers shall be liquidated on terms to be established by the Council ,
 having regard to the provisions of thin Agreement . For the purposes of the
 application of these provisions and other conditions concerning liquidation ,
 the Council shall continue in being as long as required and exercise the powers
.and functions given it under this Agreement to the full extent necessary for
 completing its tasks ;
                                Authentic texts
                                   Article 3_Q
      The texts of this Agreement in the Arabic , English , French , Italian and
 Spanish languages shall all be equally authentic ; the originals shall be
deposited with the Government of Spain .
      DT WITNESS HHEREOF the undersigned , having been duly authorized to this
 effect by their respective Governments , have signed this Agreement on the dates
 appearing opposite their signatures ,
      DONE at Geneva , on the thirtieth day of March one thousand nine hundred
 and seventy-nine .