CELEX: 51995PC0183
Language: en
Date: 1995-05-18
Title: Proposal for a COUNCIL DECISION concerning the approval by the European Union of the Cereals Trade Convention and the Food Aid Convention, constituting the International Cereals Agreement of 1995

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51995PC0183

Proposal for a COUNCIL DECISION concerning the approval by the European Union of the Cereals Trade Convention and the Food Aid Convention, constituting the International Cereals Agreement of 1995  /* COM/95/183 FINAL - CNS 95/0115 */  

Official Journal C 191 , 25/07/1995 P. 0004

Proposal for a Council  Decision concerning the approval by the European Union of the Cereals Trade Convention and the Food  Aid Convention, constituting the International Cereals Agreement of 1995(95/C  191/03)COM(95) 183  final - 95/0115(CNS)(Submitted by the Commission on 18 May 1995)THE COUNCIL OF THE  EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 113 and  130y, in conjunction with the first sentence of Article 228 (2) and the first subparagraph of  paragraph 3 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Whereas the Cereals Trade and Food Aid Conventions, constituting the International Cereals  Agreement, 1995, were negotiated to replace the 1949 International Wheat Agreement; whereas the  Agreement is open until 30 June 1995 for the signature and the deposit of the ratification,  acceptance or approval instruments; Whereas, pursuant to Article 130u of the Treaty, Community policy in the sphere of development  cooperation should foster the sustainable economic and social development of the developing  countries, their smooth and gradual integration into the world economy and the campaign against  poverty in those countries; Whereas, with regard to food aid, application of the International Cereals Agreement, 1995, implies  action on the part of the Community and of the Member States; Whereas all Member States have expressed their intention to become contracting parties to the Food  Aid Convention, HAS DECIDED AS FOLLOWS: Article 1 The Cereals Trade Convention, 1995, and the Food Aid Convention,  1995, constituting the International Cereals Agreement, 1995, are hereby approved in the name of  the European Community. The texts of the Conventions are attached to this Decision. Article 2 The President of the Council is hereby authorized to designate the person empowered to  sign the two Conventions and to deposit the instruments of approval. Article 3 On signing the Cereals Trade Convention and depositing the instrument of approval, the  European Community will deposit the following declaration: 'The Republic of Austria, the Republic of Finland and the Kingdom of Sweden, having become Member  States of the European Community on 1 January 1995, will no longer be individual members of this  Convention but will be covered by the membership of the Community. The European Community  accordingly also undertakes to exercise the rights and perform the undertakings laid down in this  Convention for those three countries.` INTERNATIONAL GRAINS AGREEMENT, 1995 PREAMBLETHE SIGNATORIES TO THIS  AGREEMENT, CONSIDERING that the International Wheat Agreement, 1949, was revised, renewed, updated or extended  on successive occasions leading to the conclusion of the International Wheat Agreement, 1986, CONSIDERING that the provisions of the International Wheat Agreement, 1986, consisting of the Wheat  Trade Convention, 1986, on the one hand, and the Food Aid Convention, 1986, on the other, as  extended, will expire on 30 June 1995, and that it is desirable to conclude an agreement for a new  period, HAVE AGREED that the International Wheat Agreement, 1986, shall be updated and  renamed the International Grains Agreement, 1995, which shall consist of two separate legal  instruments; (a) the Grains Trade Convention, 1995; and(b) the Food Aid Convention, 1995; and that each of these two Conventions, or either of them as appropriate, shall be submitted for  signature and ratification, acceptance or approval, in conformity with their respective  constitutional or institutional procedures, by the Governments concerned.  GRAINS TRADE CONVENTION, 1995 PART I GENERAL Article 1 ObjectivesThe  objectives of this Convention are: (a) to further international cooperation in all aspects of trade in grains, especially in so far as  these affect the food grain situation; (b) to promote the expansion of international trade in grains, and to secure the freest possible  flow of this trade, including the elimination of trade barriers and unfair and discriminatory  practices, in the interest of all members, in particular developing members; (c) to contribute to the fullest extent possible to the stability of international grain markets in  the interests of all members, to enhance world food security, and to contribute to the development  of countries whose economies are heavily dependent on commercial sales of grain; and(d) to provide  a forum for exchange of information and discussion of members' concerns regarding trade in grains. Article 2 DefinitionsFor the purposes of this Convention: 1. (a) 'Council` means the International Grains Council established by the International Wheat  Agreement, 1949 and continued in being by Article 9; (b)  (i) 'member` means a party to this Convention; (ii) 'exporting member` means a member so designated pursuant to Article 12; (iii) 'importing member` means a member so designated pursuant to Article 12; (c) 'Executive Committee` means the Committee established pursuant to Article 15; (d) 'Market Conditions Committee` means the Committee established pursuant to Article 16; (e) 'grain` or 'grains` means barley, maize, millet, oats, rye, sorghum, triticale and wheat, and  their products, and such other grains and products as the Council may decide; (f)  (i) 'purchase` means a purchase of grain for import, or the quantity of grain so purchased, as  the context requires; (ii) 'sale` means a sale of grain for export, or the quantity of such grain so sold, as the context  requires; (iii) where reference is made in this Convention to a purchase or sale, it shall be understood to  refer not only to purchases or sales concluded between the Governments concerned, but also to  purchases or sales concluded between private traders, and to purchases or sales concluded between a  private trader and the Government concerned; (g) 'special vote` means a vote requiring at least two-thirds of the votes (as calculated pursuant  to Article 12) cast by the exporting members present and voting, and at least two-thirds of the  votes (as calculated pursuant to Article 12) cast by the importing members present and voting,  counted separately; (h) 'crop year` or 'fiscal year` means the period from 1 July to the following 30 June; (i) 'working day` means a working day at the headquarters of the Council. 2. Any reference in this Convention to a 'Government` or 'Governments` or 'member` shall be  construed as including a reference to the European Community (hereinafter referred to as the EC).  Accordingly, any reference in this convention to 'signature` or to the 'deposit of instruments of  ratification, acceptance, or approval` or 'an instrument of accession` or 'a declaration of  provisional application` by a Government shall, in the case of the EC, be construed as including  signature or declaration of provisional application on behalf of the EC by its competent authority  and the deposit of the instrument required by the institutional procedures of the EC to be  deposited for the conclusion of an international agreement. 3. Any reference in this Convention to 'Government`, 'Governments` or 'member` shall be construed,  where required, as covering all separate customs territory within the meaning of the General  Agreement on Tariffs and Trade or the Agreement establishing the World Trade Organization. Article 3 Information, reports and studies1.  To facilitate the achievement of the objectives in  Article 1, make possible a fuller exchange of views at Council sessions, and provide information on  a continuing basis to serve the general interest of members, arrangements shall be made for regular  reports and exchange of information, and also special studies, as appropriate, covering grains,  focusing primarily upon the following: (a) supply, demand and market conditions; (b) developments in national policies and their effects on the international market; (c) developments concerning the improvement and expansion of trade, utilization, storage and  transportation, especially in developing countries. 2.  To improve the collection and presentation of information for those reports and studies  referred to in paragraph 1 of this Article, to make it possible for more members to participate  directly in the work of the Council, and to supplement the guidance already given by the Council in  the course of its sessions, there shall be established a Market Conditions Committee, whose  meetings shall be open to all members of the Council. The Committee shall have the functions  specified in Article 16. Article 4 Consultations on market developments1.  If the Market Conditions Committee, in the  course of its continuous review of the market pursuant to Article 16, is of the opinion that  developments in the international grain market seriously threaten to affect the interests of  members, or if such developments are called to the Committee's attention by the executive director  on his own initiative or at the request of any member of the Council, it shall immediately report  the facts concerned to the Executive Committee. The Market Conditions Committee, in so informing  the Executive Committee, shall give particular regard to those circumstances which threaten to  affect the interests of members. 2.  The Executive Committee shall meet within 10 working days to review such developments and, if  it deems it appropriate, request the chairman of the Council to convene a session of the Council to  consider the situation. Article 5 Commercial purchases and special transactions1.  A commercial purchase for the  purposes of this Convention is a purchase as defined in Article 2 which conforms to the usual  commercial practices in international trade and which does not include those transactions referred  to in paragraph 2 of this Article. 2.  A special transaction for the purposes of this Convention is one which includes features  introduced by the Government of a member concerned which do not conform to usual commercial  practices. Special transactions include the following: (a) sales on credit in which, as a result of government intervention, the interest rate, period of  payment, or other related terms do not conform to the commercial rates, periods or terms prevailing  in the world market; (b) sales in which the funds of the purchase of grain are obtained under a loan from the Government  of the exporting member tied to the purchase of grain; (c) sales for currency of the importing member which is not transferable or convertible into  currency or goods for use in the exporting member; (d) sales under trade agreements with special payment arrangements which include clearing accounts  for settling credit balances bilaterally through the exchange of goods, except where the exporting  member and the importing member concerned agree that the sale shall be regarded as commercial; (e) barter transactions: (i) which result from the intervention of governments where grain is exchanged at other than  prevailing world prices; or(ii) which involve sponsorship under a government purchase programme,  except where the purchase of grain results from a barter transaction in which the country of final  destination was not named in the original barter contract; (f) a gift of grain or a purchase of grain out of a monetary grant by the exporting member made for  that specific purpose; (g) any other categories of transactions, as the Council may prescribe, that include features  introduced by the Government of a member concerned which do not conform to usual commercial  practices. 3.  Any question raised by the executive director or by any member as to whether a transaction is a  commercial purchase as defined in paragraph 1 of this Article or a special transaction as defined  in paragraph 2 of this Article shall be decided by the Council. Article 6 Guidelines relating to concessional transactions1.  Members undertake to conduct any  concessional transactions in grains in such a way as to avoid harmful interference with normal  patterns of production and international commercial trade. 2.  To this end both supplying and recipient members shall undertake appropriate measures to ensure  that concessional transactions are additional to commercial sales which could reasonably be  anticipated in the absence of such transactions, and would increase consumption or stocks in the  recipient country. Such measures, shall, for countries which are members of the Food and  Agriculture Organization (FAO), be consistent with the FAO Principles of surplus disposal and  guiding lines and the consultative obligations of FAO members, and may include the requirement that  a specified level of commercial imports of grains agreed with the recipient country be maintained  on a global basis by that country. In establishing or adjusting this level, full regard shall be  had to the commercial import levels in a representative period, to recent trends in utilization and  imports, and to the economic circumstances of the recipient country, including, in particular, its  balance-of-payments situation. 3.  Members, when engaging in concessional export transactions, shall consult with exporting  members whose commercial sales might be affected by such transactions to the maximum possible  extent before such arrangements are concluded with recipient countries. 4.  The secretariat shall periodically report to the Council on developments in concessional  transactions in grains. Article 7 Reporting and recording1.  Members shall provide regular reports, and the Council  shall maintain records for each crop year, showing separately commercial and special transactions,  of all shipments of grain by members and all imports of grain from non-members. The Council shall  also maintain, to the extent possible, records of all shipments between non-members. 2.  Members shall provide, as far as possible, such information as the Council may require  concerning their grain supply and demand, and report promptly all changes in their national grain  policies. 3.  For the purposes of this Article: (a) members shall send to the executive director such information concerning the quantities of  grain involved in commercial sales and purchases and special transactions as the Council within its  competence may require, including: (i) in relation to special transactions, such detail of the transactions as will enable them to be  classified in accordance with Article 5; (ii) such information as may be available as to the type, class, grade and quality of the grains  concerned; (b) any member when exporting grain shall send to the executive director such information relating  to their export prices as the Council may require; (c) the Council shall obtain regular information on currently prevailing grain transportation  costs, and members shall report such supplementary information as the Council may require. 4.  In the case of any grain which reaches the country of final destination after resale in,  passage through, or transhipment from the ports of, a country other than that in which it  originated, members shall to the maximum extent possible make available such information as will  enable the shipment to be entered in the records as a shipment between the country of origin and  the country of final destination. In the case of a resale, the provisions of this paragraph shall  apply if the grain originated in the country of origin during the same crop year. 5.  The Council shall make rules of procedure for the reports and records referred to in this  Article. Those rules shall prescribe the frequency and the manner in which those reports shall be  made and shall prescribe the duties of members with regard thereto. The Council shall also make  provision for the amendment of any records or statements kept by it, including provision for the  settlement of any dispute arising in connection therewith. If any member repeatedly and  unreasonably fails to make reports as required by this Article, the Executive Committee shall  arrange consultations with that member to remedy the situation. Article 8 Disputes and complaints1.  Any dispute concerning the interpretation or application of  this Convention which is not settled by negotiation shall, at the request of any member which is a  party to the dispute, be referred to the Council for decision. 2.  Any member which considers that its interests as a party to this Convention have been seriously  prejudiced by actions of any one or more members affecting the operation of this Convention may  bring the matter before the Council. In such a case, the Council shall immediately consult with the  members concerned in order to resolve the matter. If the matter is not resolved through such  consultations, the Council shall consider the matter further and may make recommendations to the  members concerned. PART II ADMINISTRATION Article 9 Constitution of the Council1.  The Council (formerly the  International Wheat Council, as established by the International Wheat Agreement, 1949, and now  renamed the International Grains Council) shall continue in being for the purposes of administering  this Convention with the membership, powers and functions provided in this Convention. 2.  Members may be represented at Council meetings by delegates, alternates and advisers. 3.  The Council shall elect a chairman and a vice-chairman who shall hold office for one crop year.  The chairman shall have no vote and the vice-chairman shall have no vote while acting as chairman. Article 10 Powers and functions of the Council1.  The Council shall establish its rules of  procedure. 2.  The Council shall keep such records as are required by the terms of this Convention and may  keep such other records as it considers desirable. 3.  In order to enable the Council to discharge its functions under this Convention, the Council  may request, and members undertake to supply, subject to the provisions of paragraph 2 of Article  7, such statistics and information as are necessary for this purpose. 4.  The Council may, by special vote, delegate to any of its Committees, or to the executive  director, the exercise of powers or functions other than the following: (a) decisions on matters pursuant to Article 8; (b) review, pursuant to Article 11, of the votes of members listed in the Annex; (c) determination of exporting and importing members and distribution of their votes pursuant to  Article 12; (d) location of the seat of the Council pursuant to paragraph 1 of Article 13; (e) appointment of the executive director pursuant to paragraph 2 of Article 17; (f) adoption of the budget and assessment of members' contributions pursuant to Article 21; (g) suspension of the voting rights of a member pursuant to paragraph 6 of Article 21; (h) any request to the Secretary-General of Unctad to convene a negotiating conference pursuant to  Article 22; (i) exclusion of a member from the Council pursuant to Article 30; (j) recommendation of an amendment pursuant to Article 32; (k) extension or termination of this Convention pursuant to Article 33. The Council may at any time revoke such delegation by a majority of the votes cast. 5.  Any decision made under any powers or functions delegated by the Council in accordance with  paragraph 4 of this Article shall be subject to review by the Council at the request of any member  made within a period which the Council shall prescribe. Any decision in respect of which no request  for review has been made within the prescribed period shall be binding on all members. 6.  In addition to the powers and functions specified in this Convention the Council shall have  such other powers and perform such other functions as are necessary to carry out the terms of this  Convention. Article 11 Votes for entry into force and budgetary procedures1.  For the purposes of the entry  into force of this Convention, the calculations pursuant to paragraph 1 of Article 28 shall be  based on the votes as set out in part A of the Annex. 2.  For the purposes of the assessment of financial contributions pursuant to Article 21, the votes  of members shall be based on those set out in the Annex, subject to the provisions of this Article  and the associated Rules of Procedure. 3.  Whenever this Convention is extended pursuant to paragraph 2 of Article 33, the Council shall  review and adjust the votes of members under this Article. Such adjustments shall bring the  distribution of votes more closely into line with current grain trade patterns, and shall be in  accordance with the methods specified in the rules of procedure. 4.  If the Council decides that a significant shift in world grain trading patterns has occurred it  shall review, and may adjust, the votes of members. Such adjustments shall be regarded as  amendments to this Convention, and shall be subject to the provisions of Article 32, except that an  adjustment of votes may take effect only at the beginning of a fiscal year. After any adjustment to  member's votes pursuant to this paragraph has taken effect, no further such adjustment may be put  into effect before three years have elapsed. 5.  All redistributions of votes pursuant to this Article shall be conducted in accordance with the  rules of procedure. 6.  For all purposes regarding the administration of this Convention, other than its entry into  force pursuant to paragraph 1 of Article 28 and the assessment of financial contributions pursuant  to Article 21, the votes to be exercised by members shall be as determined pursuant to Article 12. Article 12 Determination of exporting and importing members and distribution of their votes1.   At the first session held under this Convention, the Council shall establish which members shall be  exporting members and which members shall be importing members for the purposes of this Convention.  In so deciding, the Council shall take account of the grain trading patterns of those members and  of their own views. 2.  As soon as the Council has determined which members shall be exporting and which shall be  importing members under this Convention, the exporting members, on the basis of their votes  pursuant to Article 11, shall divide their votes among them as they shall decide, subject to the  conditions laid down in paragraph 3 of this Article, and the importing members shall similarly  divide their votes. 3.  For the purposes of the allocation of votes pursuant to paragraph 2 of this Article, the  exporting members shall together hold 1  000 votes, and the importing members shall together hold 1   000 votes. No member shall hold more than 333 votes as an exporting member or more than 333 votes  as an importing member. There shall be no fractional votes. 4.  The lists of exporting and importing members shall be reviewed by the Council, in the light of  changing patterns in their grain trade, after a period of three years following the entry into  force of this Convention. They shall also be reviewed whenever this Convention is extended pursuant  to paragraph 2 of Article 33. 5.  At the request of any member, the Council may, at the beginning of any fiscal year, agree by  special vote to the transfer of that member from the list of exporting members to the list of  importing members, or from the list of importing members to the list of exporting members, as  appropriate. 6.  The distribution of the votes of exporting and importing members shall be reviewed by the  Council whenever the lists of the exporting and importing members are changed pursuant to  paragraphs 4 or 5 of this Article. Any redistribution of votes under this paragraph shall be  subject to the conditions set out in paragraph 3 of this Article. 7.  Whenever any Government becomes, or ceases to be, a party to this Convention, the Council shall  redistribute the votes of the other exporting or importing members, as appropriate, in proportion  to the number of votes held by each member, subject to the conditions set out in paragraph 3 of  this Article. 8.  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 votes at any  meeting or meetings of the Council. Satisfactory evidence of such authorization shall be submitted  to the Council. 9.  If at any meeting of the Council a member is not represented by an accredited delegate and has  not authorized another member to exercise its votes in accordance with paragraph 8 of this Article,  or if at the date of any meeting any member has forfeited, has been deprived of, or has recovered  its votes under any provisions of this Convention, the total votes to be exercised by the exporting  members at that meeting shall be adjusted to a figure equal to the total of votes to be exercised  at that meeting by the importing members and redistributed among exporting members in proportion to  their votes. Article 13 Seat, sessions and quorum1.  The seat of the Council shall be in London unless the  Council decides otherwise. 2.  The Council shall meet at least once during each half of each fiscal year and at such other  times as the chairman may decide, or as otherwise required by this Convention. 3.  The chairman shall convene a session of the Council if so requested by (a) five members or (b)  one or more members holding a total of not less than 10  % of the total votes or (c) the Executive  Committee. 4.  The presence of delegates with a majority of the votes held by the exporting members and a  majority of the votes held by the importing members, prior to any adjustment of votes pursuant to  paragraph 9 of Article 12, shall be necessary to constitute a quorum at any meeting of the  Council. Article 14 Decisions1.  Except where otherwise specified in this Convention, decisions of the  Council shall be by a majority of the votes cast by the exporting members and a majority of the  votes cast by the importing members, counted separately. 2.  Without prejudice to the complete liberty of action of any member in the determination and  administration of its agricultural and price policies, each member undertakes to accept as binding  all decisions of the Council under the provisions of this Convention. Article 15 Executive Committee1.  The Council shall establish an Executive Committee consisting  of not more than six exporting members elected annually by the exporting members and not more than  eight importing members elected annually by the importing members. The Council shall appoint the  chairman of the Executive Committee and may appoint a vice-chairman. 2.  The Executive Committee shall be responsible to and work under the general direction of the  Council. It shall have such powers and functions as are expressly assigned to it under this  Convention and such other powers and functions as the Council may delegate to it under paragraph 4  of Article 10. 3.  The exporting members on the Executive Committee shall have the same total number of votes as  the importing members. The votes of the exporting members on the Executive Committee shall be  divided among them as they shall decide, provided that no such exporting member shall have more  than 40  % of the total votes of those exporting members. The votes of the importing members on the  Executive Committee shall be divided among them as they shall decide, provided that no such  importing member shall have more than 40  % of the total votes of those importing members. 4.  The Council shall prescribe rules of procedure regarding voting in the Ececutive Committee and  may make such other provision regarding rules of procedure in the Executive Committee as it thinks  fit. A decision of the Executive Committee shall require the same majority of votes as this  Convention prescribes for the Council when making a decision on a similar matter. 5.  Any member of the Council which is not a member of the Executive Committee may participate,  without voting, in the discussion of any question before the Executive Committee whenever the  latter considers that the interests of that member are affected. Article 16 Market Conditions Committee1.  The Council shall establish a Market Conditions  Committee, which shall be a Committee of the whole. The chairman of the Market Conditions Committee  shall be the executive director, unless the Council decides otherwise. 2.  Invitations to attend the meetings of the Market Conditions Committee as observers may be  extended to representatives of non-member Governments and international organizations, as the  chairman of the Committee considers appropriate. 3.  The Committee shall keep under continuous review, and report to members on all matters  affecting the world grain economy. The Committee shall take account in its review of relevant  information supplied by any member of the Council. 4.  The Committee shall supplement the guidance given by the Council to assist the Secretariat in  carrying out the work envisaged in Article 3. 5.  The Committee shall advise in accordance with the relevant Articles of this Convention and on  any matters which the Council or the Executive Committee may refer to it. Article 17 Secretariat1.  The Council shall have a secretariat consisting of an executive  director, who shall be its chief administrative officer, and such staff as may be required for the  work of the Council and its Committees. 2.  The Council shall appoint the executive director who shall be responsible for the performance  of the duties devolving upon the secretariat in the administration of this Convention, and for the  performance of such other duties as are assigned to him by the Council and its Committees. 3.  The staff shall be appointed by the executive director in accordance with regulations  established by the Council. 4.  It shall be a condition of employment of the executive director and of the staff that they do  not hold or shall cease to hold financial interest in the grain trade and that they shall not seek  or receive instructions regarding their duties under this Convention from any Government or from  any other authority external to the Council. Article 18 Admission of observersThe Council may invite any non-member State, and any  intergovernmental organization, to attend any of its meetings as an observer. Article 19 Cooperation with other intergovernmental organizations1.  The Council may make  whatever arrangements are appropriate for consultation or cooperation with the United Nations, its  organs, and such other specialized agencies and intergovernmental organizations as may be  appropriate, in particular the United Nations Conference on Trade and Development, the Food and  Agriculture Organization, the Common Fund for Commodities and the World Food Programme. 2.  The Council, bearing in mind the particular role of the United Nations Conference on Trade and  Development in international commodity trade, will, as it considers appropriate, keep the United  Nations Conference on Trade and Development informed of its activities and programmes of work. 3.  If the Council finds that any terms of this Convention are materially inconsistent with such  requirements as may be laid down by the United Nations through its appropriate organs or by its  specialized agencies regarding intergovernmental commodity agreements, the inconsistency shall be  deemed to be a circumstance affecting adversely the operation of this Convention and the procedure  prescribed in Article 32 shall be applied. Article 20 Privileges and immunities1.  The Council 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 Council in the territory of the United Kingdom  shall continue to be governed by the Headquarters Agreement between the Government of the United  Kingdom of Great Britain and Northern Ireland and the International Wheat Council signed at London  on 28 November 1968. 3.  The Agreement referred to in paragraph 2 of this Article shall be independent of the present  Convention. It shall however terminate: (a) by agreement between the Government of the United Kingdom of Great Britain and Northern Ireland  and the Council; or(b) in the event of the seat of the Council being moved from the United  Kingdom; or(c) in the event of the Council ceasing to exist. 4.  In the event of the seat of the Council being moved from the United Kingdom, the Government of  the member in which the seat of the Council is situated shall conclude with the Council an  international agreement relating to the status, privileges and immunities of the Council, its  executive director, its staff and representatives of members at meetings convened by the Council. Article 21 Finance1.  The expenses of delegations to the Council and of representatives on its  Committees and working groups shall be met by their respective Governments. The other expenses  necessary for the administration of this Convention shall be met by annual contributions from all  members. The contribution of each member for each fiscal year shall be in the proportion which the  number of its votes in the Annex bears to the total of the votes of members in the Annex, as  adjusted pursuant to Article 11 to reflect the membership of the Convention at the time when the  budget for that fiscal year is adopted. 2.  At its first session after this Convention comes into force, the Council shall approve its  budget for the fiscal year ending 30 June 1996, and assess the contribution to be paid by each  member. 3.  The Council shall, at a session during the second half of each fiscal year, approve its budget  for the following fiscal year and assess the contribution to be paid by each member for that fiscal  year. 4.  The initial contribution of any member acceding to this Convention pursuant to paragraph 2 of  Article 27 shall be assessed on the basis of the votes agreed with the Council as a condition for  its accession, and the period of the current fiscal year remaining at the time of accession, but  the assessments of contributions to be paid by the other members in that fiscal year shall not be  altered. 5.  Contributions shall be payable immediately upon assessment. 6.  If, at the end of six months following the date on which its contribution is due in accordance  with paragraph 5 of this Article, a member has not paid its full contribution, the executive  director shall request the member to make payment as quickly as possible. If, at the expiration of  six months after the request of the executive director, the member has still not paid its  contribution, its voting rights in the Council and in the Executive Committee shall be suspended  until such time as it has made full payment of the contribution. 7.  A member whose voting rights have been suspended pursuant to paragraph 6 of this Article shall  not be deprived of any of its other rights or relieved of any of its obligations under this  Convention, unless the Council so decides by special vote. It shall remain liable to pay its  contribution and to meet any other of its financial obligations under this Convention. 8.  The Council shall, each fiscal year, publish an audited statement of its receipts and  expenditures in the previous fiscal year. 9.  The Council shall, prior to its dissolution, provide for the settlement of its liabilities and  the disposal of its records and assets. Article 22 Economic provisionsThe Council may, at an appropriate time, examine the possibility  of the negotiation of a new international agreement or convention with economic provisions, and  report to members, making such recommendations as it deems appropriate. The Council may, when it is  judged that such a negotiation could be successfully concluded, request the Secretary-General of  the United Nations Conference on Trade and Development to convene a negotiating conference. PART III FINAL PROVISIONS Article 23 Depositary1.  The Secretary-General of the United Nations  is hereby designated as the depositary of this Convention. 2.  The depositary shall notify all signatory and acceding Governments of each signature,  ratification, acceptance, approval, provisional application of, and accession to, this Convention,  as well as each notification and notice received pursuant to Articles 29 and 32. Article 24 SignatureThis Convention shall be open for signature at United Nations Headquarters  from 1 May 1995 until and including 30 June 1995 by the Governments listed in the Annex. Article 25 Ratification, acceptance, approval1.  This Convention shall be subject to  ratification, acceptance or approval by each signatory Government in accordance with its respective  constitutional procedures. 2.  Instruments of ratification, acceptance or approval shall be deposited with the depositary not  later than 30 June 1995. The Council may, however, grant one or more extensions of time to any  signatory Government which is unable to deposit its instrument by that date. The Council shall  inform the depositary of all such extensions of time. Article 26 Provisional applicationAny signatory Government and any other Government eligible to  sign this Convention, or whose application for accession is approved by the Council, may deposit  with the depositary a declaration of provisional application. Any Government depositing such a  declaration shall provisionally apply this Convention in accordance with its laws and regulations  and be provisionally regarded as a party thereto. Article 27 Accession1.  Any Government listed in the Annex may accede to the present Convention  until and including 30 June 1995, except that the Council may grant one or more extensions of time  to any Government which has not deposited its instrument by that date. 2.  This Convention shall be open for accession after 30 June 1995 by the Governments of all States  upon such conditions as the Council considers appropriate. Accession shall be effected by the  deposit of an instrument of accession with the depositary. Such instruments of accession shall  state that the Government accepts all the conditions established by the Council. 3.  Where, for the purposes of the operation of this Convention, reference is made to members  listed in the Annex, any member the Government of which has acceded to this Convention on  conditions prescribed by the Council in accordance with this Article shall be deemed to be listed  in the Annex. Article 28 Entry into force1.  This Convention shall enter into force on 1 July 1995 if  instruments of ratification, acceptance, approval or accession, or declarations of provisional  application have been deposited not later than 30 June 1995 on behalf of Governments listed in part  A of the Annex holding, at least, 88  % of the total votes set out in part A of the Annex. 2.  If this Convention does not enter into force in accordance with paragraph 1 of this Article,  the Governments which have deposited instruments of ratification, acceptance, approval or  accession, or declarations of provisional application, may decide by mutual consent that it shall  enter into force between themselves, or may take whatever action they consider the situation  requires. Article 29 WithdrawalAny member may withdraw from this Convention at the end of any fiscal year  by giving written notice of withdrawal to the depositary at least 90 days prior to the end of that  fiscal year, but shall not thereby be released from any obligations under this Convention which  have not been discharged by the end of that fiscal year. The member shall simultaneously inform the  Council of the action it has taken. Article 30 ExclusionIf the Council finds that any member is in breach of its obligations under  this Convention and decides further that such breach significantly impairs the operation of this  Convention, it may, by special vote, exclude such member from the Council. The Council shall  immediately notify the depositary of any such decision. Ninety days after the date of the Council's  decision, that member shall cease to be a member of the Council. Article 31 Settlement of accounts1.  The Council shall determine any settlement of accounts  which it finds equitable with a member which has withdrawn from this Convention or which has been  excluded from the Council, or has otherwise ceased to be a party to this Convention. The Council  shall retain any amounts already paid by such member. Such member shall be bound to pay any amounts  due from it to the Council. 2.  Upon termination of this Convention, any member referred to in paragraph 1 of this Article  shall not be entitled to any share of the proceeds of the liquidation or the other assets of the  Council; nor shall it be burdened with any part of the deficit, if any, of the Council. Article 32 Amendment1.  The Council may by special vote recommend to members an amendment of  this Convention. The amendment shall become effective 100 days after the depositary has received  notifications of acceptance from exporting members which hold two-thirds of the votes of the  exporting members and by importing members which hold two-thirds of the votes of the importing  members, or on such later date as the Council may have determined by special vote. The Council may  fix a time within which each member shall notify the depositary of its acceptance of the amendment  and, if the amendment has not become effective by such time, it shall be considered withdrawn. The  Council shall provide the depositary with the information necessary to determine whether the  notifications of acceptance received are sufficient to make the amendment effective. 2.  Any member on behalf of which notification of acceptance of an amendment has not been made by  the date on which such amendment becomes effective shall as of that date cease to be a party to  this Convention, unless such member has satisfied the Council that acceptance could not be secured  in time owing to difficulties in completing its constitutional procedures and the Council decides  to extend for such member the period fixed for acceptance. Such member shall not be bound by the  amendment before it has notified its acceptance thereof. Article 33 Duration, extension and termination1.  This Convention shall remain in force until 30  June 1998, unless extended pursuant to paragraph 2 of this Article, or terminated earlier pursuant  to paragraph 3 of this Article, or replaced before that date by a new agreement or convention  negotiated pursuant to Article 22. 2.  The Council may, by special vote, extend this Convention beyond 30 June 1998 for successive  periods not exceeding two years on each occasion. Any member which does not accept such extension  of this Convention shall so inform the Council at least 30 days prior to the extension coming into  force. Such a member shall cease to be a party to this Convention from the beginning of the period  of extension, but it shall not thereby be released from any obligations under this Convention which  have not been discharged prior to that date. 3.  The Council may at any time decide, by special vote, to terminate this Convention with effect  from such date and subject to such conditions as it may determine. 4.  Upon termination of this Convention, the Council shall continue in being for such time as may  be required to carry out its liquidation and shall have such powers and exercise such functions as  may be necessary for that purpose. 5.  The Council shall notify the depositary of any action taken pursuant to paragraph 2 or  paragraph 3 of this Article. Article 34 Relationship of Preamble to ConventionThis Convention includes the Preamble to the  International Grains Agreement, 1995. IN WITNESS WHEREOF the undersigned, having been duly authorized to this effect by  their respective Governments, have signed this Convention on the dates appearing opposite their  signatures. ESTABLISHED at London, this 7 December 1994, the texts of this Convention in the English, French,  Russian and Spanish languages being equally authentic.  ANNEX TO THE GRAINS TRADE CONVENTION, 1995 Votes pursuant to Article 11 (from 1 July  1995 to 30 June 1998) >TABLE>>TABLE> FOOD AID CONVENTION, 1995 PART I OBJECTIVE AND DEFINITIONS Article 1  ObjectiveThe objective of this Convention is to secure, through a joint effort by the  international community, the achievement of the World Food Conference target of at least 19 million  tonnes of food aid annually to developing countries in the form of grain suitable for human  consumption, and as determined by the provisions of this Convention. Article 2 DefinitionsFor the purposes of this Convention: 1. (a) 'cif` means cost, insurance and freight; (b) 'Committee` means the Food Aid Committee referred to in Article 9 of this Convention; (c) 'Convention` means the Food Aid Convention, 1995; (d) 'developing country`, unless the Committee decides otherwise, means any country or territory  which is recognized by the Development Assistance Committee of OECD as a developing country or  territory; (e) 'executive director` means the executive director of the International Grains Council; (f) 'fob` means free on board; (g) 'pulses` includes the following species: Cicer arietinum, Lens culinaris, Lupins angustifolius/albus, Phaseolus vulgaris/lunatus, Pisum sativum, Vicia faba, Vigna angularis/sinensis/unguiculata, Vigna radiata/mungoand any other species which the Committee may decide; (h) 'member` means a party to this Convention; (i) 'products of primary processing` include: (i) cereal flours; (ii) cereal groats and cereal meal; (iii) other worked cereal grains (e.g. rolled, flaked, polished, pearled and kibbled, but not  further prepared) except husked, glazed, polished or broken rice; (iv) germ of cereals, whole, rolled, flaked or ground; (v) bulgur; and(vi) any other similar grain product which the Committee may decide; (j) 'products of secondary processing` include: (i) macaroni, spaghetti and similar products; and(ii) any other product, whose manufacture  involves the use of a product of primary processing, which the Committee may decide; (k) 'rice` includes husked, glazed, polished or broken rice; (l) 'secretariat` means the secretariat of the International Grains Council; (m) 'tonne` means a metric tonne of 1  000 kilograms; (n) 'usual marketing requirement` or 'UMR` is the term, as currently used by the FAO and other  responsible international organizations, for the commitment by a country receiving a concessional  transaction to maintain the normal level of commercial imports of the commodity concerned, in  addition to the imports provided under the concessional transaction; (o) 'wheat equivalent` means the amount of a member's contribution, whether provided in grain, in  grain products, in rice or in cash, as evaluated in terms of wheat in accordance with the  provisions of Article 6 of this Convention; (p) 'year` means the period from 1 July to the following 30 June, unless otherwise stated. 2. Any reference in this Convention to a 'Government` or 'Governments` or a 'member` shall be  construed as including a reference to the European Community (hereinafter referred to as the EC).  Accordingly, any reference in this Convention to 'signature` or to the 'deposit of instruments of  ratification, acceptance or approval` or 'an instrument of accession` or to a 'declaration of  provisional application` by a Government shall, in the case of the EC, be construed as including  signature or declaration of provisional application on behalf of the EC by its competent authority,  and the deposit of the instrument required by the institutional procedures of the EC to be  deposited for the conclusion of an international agreement. PART II MAIN PROVISIONS Article 3 Contributions of members1.  The members of this Convention  agree to contribute to developing countries' grains as food aid, suitable for human consumption and  of an acceptable type and quality, or the cash equivalent thereof, in the minimum annual amounts  specified in paragraph 4. In supplying grain under this Convention, priority is to be given to  countries or territories with food import needs which are classified by the Development Assistance  Committee of the OECD as least developed countries (LDCs), other low-income countries (LICs) or  lower middle-income countries (LMICs). 2.  For the purposes of paragraph 1 of this Article, 'grain` or 'grains` means wheat, barley,  maize, millet, oats, rye, sorghum and rice, or the products (including products of primary and  secondary processing) derived therefrom, and also pulses, subject to the provisions of paragraph 3  of this Article, and any other type of grain or grain product, suitable for human consumption and  of an acceptable type and quality, that the Committee may decide. 3.  At the request of recipient countries, donors may provide limited quantities of pulses against  their obligations under this Convention, provided these are of an acceptable type and quality and  are suitable for human consumption. The Committee shall establish a rule of procedure to determine  the maximum percentage of the wheat equivalent of members' minimum annual contributions, as set out  in paragraph 4 of this Article, which may be provided in the form of pulses. 4.  The minimum annual contribution, in wheat equivalent, of each member towards the achievement of  the objective of Article 1 is as follows, subject to paragraph 9 of this Article: >TABLE>5.  For the purposes of the operation of this Convention, any member wich has  acceded to this Convention pursuant to paragraph 2 of Article 20 shall be deemed to be listed in  paragraph 4 of this Article together with its minimum contribution as determined under the  provisions of Article 20. 6.  Contributions in the form of grains shall be placed in a fob forward position by members.  However, donors are encouraged, as appropriate, to bear the costs of transporting their grain  contributions under this Convention beyond the fob stage, especially in emergency situations or in  the case of shipments to low-income, food deficit countries. Due reference to the payment of such  costs shall be made in any review of the performance of members in this Convention. 7.  Cash contributions under subparagraph (b) of Article 4: (a) shall be used, as far as possible, to buy grain from developing countries. Preference shall be  given to developing members of the Grains Trade and Food Aid Conventions, with first priority to  developing members of the Food Aid Convention. However, in all transactions resulting from cash  contributions, special regard shall be had, when deciding on a source of supply, to the quality of  the grain, the cif price advantages of using that particular supplier, the possibilities of speedy  delivery to the recipient country and the specific requirements of the recipient country; (b) shall not normally be made to purchase grain which is of the same type that the country that is  the source of supply has received as bilateral or multilateral food aid in the same year as the  purchase, or in a previous year if the grain then received is still being used. 8.  To the maximum extent possible, contributions shall be made by members on a forward planning  basis, so that recipient countries may be able to take account, in their development programmes, of  the likely flow of food aid they will receive during each year of this Convention. Furthermore,  members should, to the extent possible, indicate in advance the amount of their contributions to be  made in the form of gifts, and the grant element of any aid which is not in the form of gifts. 9.  If a member is unable to provide the amount specified in paragraph 4 of this Article in a  particular year, the unfulfilled amount shall be added to its amount in the following year, unless  the Committee decides otherwise owing to high transport costs. 10.  Members shall provide regular and timely reports to the Committee on the amount, content,  channelling and terms of their contributions under this Convention. Article 4 Terms of food aid contributionsFood aid under this Convention may be supplied on any  of the following terms: (a) gifts of grain; (b) gifts or grants of cash to be used to purchase grain for the recipient country; (c) sales of grain for the currency of the recipient country which is not transferable and is not  convertible into currency or goods and services for use by the donor members  (1); (d) sales of grain on credit, with payment to be made in reasonable annual amounts over periods of  20 years or more and with interest at rates which are below commercial rates prevailing in world  markets  (2); on the understanding that such aid shall be supplied to the maximum extent possible by way of  gifts, especially in the case of least developed countries, low per capita income countries and  other developing countries in serious economic difficulties. Article 5 Channelling of contributions1.  Members may, in respect of their contributions under  this Convention, specify a recipient country or countries. 2.  Members may make their contributions bilaterally or through intergovernmental organizations  and/or non-governmental organizations. 3.  Members shall give full consideration to the advantages of directing a greater proportion of  food aid through multilateral channels, in particular the World Food Programme. Article 6 Wheat equivalents1.  For the purposes of this Convention, all contributions pursuant  to Article 3 shall be evaluated in terms of their wheat equivalent. The evaluation shall take  account, where appropriate, of the grain content of grain products, and the commercial value of the  contribution relative to wheat. 2.  Contributions of rice shall be evaluated in terms of wheat equivalent in accordance with the  international export price relationship between rice and wheat. The Committee shall establish a  rule of procedure for the annual determination of the wheat equivalent of rice. 3.  Contributions of cash under subparagraph (b) of Article 4 shall be evaluated at prevailing  international market prices of wheat. The Committee shall establish a rule of procedure for the  annual determination of the 'prevailing international market price`. 4.  The Committee shall establish rules of procedure for the determination of the wheat equivalent  of contributions made in forms other than wheat, rice or cash. Article 7 Impact on trade and agricultural production, and conduct of aid transactions1.   Members undertake to conduct all aid transactions under this Convention in such a way as to avoid  harmful interference with normal patterns of production and international commercial trade. 2.  Members shall ensure in particular: (a) that the provision of international food aid is not tied directly or indirectly to commercial  exports of agricultural products to recipient countries; (b) that international food aid transactions, including bilateral food aid which is monetized,  shall be carried out in a manner consistent with the FAO 'Principles of surplus disposal and  consultative obligations` including, where appropriate, the system of usual marketing requirements  (UMRs). 3.  Members shall, as appropriate, act in accordance with the current guidelines and criteria for  food aid, as approved by the governing body of the World Food Programme. Article 8 Special provision for exceptional needs1.  The Committee shall keep the food situation  in developing countries under regular review. 2.  If it appears that, because of a substantial food production shortfall, or other cirumstances,  a particular country, region or regions is faced with exceptional food needs, the Committee shall  consider the matter. The Committee may recommend that members should respond to the situation by  increasing the amount of food aid available. Article 9 Food Aid Committee1.  The Food Aid Committee, established by the Food Aid Convention  of the International Grains Arrangement, 1967, shall continue in being for the purpose of  administering this Convention, with the powers and functions provided in this Convention. 2.  The membership of the Committee shall consist of all parties to this Convention. 3.  The Committee shall appoint a chairman and a vice-chairman. Article 10 Powers and functions of the Committee1.  The Committee shall keep under review the  way in which the obligations undertaken under this Convention have been fulfilled. 2.  The Committee shall exchange information on a regular basis on the functioning of the food aid  arrangements under this Convention. 3.  The Committee may receive information from recipient countries and consult with them. 4.  The Committee shall issue reports as necessary. 5.  The Committee shall establish such rules of procedure as are necessary to carry out the  provisions of this Convention. 6.  In addition to the powers and functions specified in this Article, the Committee shall have  such other powers and perform such other functions as are necessary to carry out the provisions of  this Convention. Article 11 Seat, sessions and quorum1.  The seat of the Committee shall be in London. 2.  The Committee shall meet at least twice a year in conjunction with the statutory sessions of  the International Grains Council. The Committee shall meet also at such other times as the chairman  shall decide; or at the request of three members; or as otherwise required by this Convention. 3.  The presence of delegates representing two-thirds of the membership of the Committee shall be  necessary to constitute a quorum at any session of the Committee. Article 12 DecisionsThe decisions of the Committee shall be reached by consensus. Article 13 Admission of observersThe Committee may, when appropriate, invite any non-Member  State and representatives from other international organizations to attend its open meetings as  observers. Article 14 Administrative provisionsThe Committee shall use the services of the secretariat for  the performance of such administrative duties as the Committee may request, including the  processing and distribution of documentation and reports. Article 15 Defaults and disputesIn the case of a dispute concerning the interpretation or  application of this Convention, or of a default in obligations under this Convention, the Committee  shall meet and take appropriate action. PART III FINAL PROVISIONS Article 16 DepositaryThe Secretary-General of the United Nations is  hereby designated as the depositary of this Convention. Article 17 SignatureThis Convention shall be open for signature at United Nations Headquarters  from 1 May 1995 until and including 30 June 1995 by the Governments referred to in paragraph 4 of  Article 3. Article 18 Ratification, acceptance or approvalThis Convention shall be subject to ratification,  acceptance or approval by each signatory Government in accordance with its constitutional  procedures. Instruments of ratification, acceptance or approval shall be deposited with the  depositary not later than 30 June 1995, except that the Committee may grant one or more extensions  of time to any signatory Government that has not deposited its instrument of ratification,  acceptance or approval by that date. Article 19 Provisional applicationAny signatory Government my deposit with the depositary a  declaration of provisional application of this Convention. Any such Government shall provisionally  apply this Convention in accordance with its laws and regulations and be provisionally regarded as  a party thereto. Article 20 Accession1.  This Convention shall be open for accession by any Government referred  to in paragraph 4 of Article 3 that has not signed this Convention. Instruments of accession shall  be deposited with the depositary not later than 30 June 1995, except that the Committee may grant  one or more extensions of time to any Government that has not deposited its instrument of accession  by that date. 2.  Once this Convention has entered into force in accordance with Article 21, it shall be open for  accession by any Government other than those referred to in paragraph 4 of Article 3, upon such  conditions as the Committee considers appropriate. Instruments of accession shall be deposited with  the depositary. 3.  Any Government acceding to this Convention pursuant to paragraph 1 of this Article, or whose  accession has been agreed by the Committee pursuant to paragraph 2 of this Article, may deposit  with the depositary a declaration of provisional application of this Convention pending the deposit  of its instrument of accession. Any such Government shall provisionally apply this Convention in  accordance with its laws and regulations and be provisionally regarded as a party thereto. Article 21 Entry into force1.  This Convention shall enter into force on 1 July 1995 if by 30  June 1995 the Governments, whose combined minimum contributions, as listed in paragraph 4 of  Article 3, equal at least 75  % of the total contributions of all governments listed in that  paragraph, have deposited instruments of ratification, acceptance, approval or accession, or  declarations of provisional application, and provided that the Grains Trade Convention, 1995 is in  force. 2.  If this Convention does not enter into force in accordance with paragraph 1 of this Article,  the Governments which have deposited instruments of ratification, acceptance, approval or  accession, or declarations of provisional application, may decide by unanimous consent that it  shall enter into force among themselves provided that the Grains Trade Convention, 1995 is in  force. Article 22 Duration, extension and termination1.  This Convention shall remain in force until  and including 30 June 1998, unless extended pursuant to paragraph 2 of this Article or terminated  earlier pursuant to paragraph 4 of this Article, provided that the Grains Trade Convention, 1995,  or a new Grains Trade Convention replacing it, remains in force until and including that date. 2.  The Committee may extend the Convention beyond 30 June 1998 for successive periods not  exceeding two years on each occasion, provided always that the Grains Trade Convention, 1995, or a  new Grains Trade Convention replacing it, remains in force during the period of the extension. 3.  If the Convention is extended pursuant to paragraph 2 of this Article, the annual contributions  of members pursuant to paragraph 4 of Article 3 may be subject to review by members before the  entry into force of each extension. Their respective obligations, as reviewed, shall remain  unchanged for the duration of each extension. 4.  In the event of this Convention being terminated, the Committee shall continue in being for  such time as may be required to carry out its liquidation, and shall have such powers, and exercise  such functions, as may be necessary for that purpose. Article 23 Withdrawal and rejoining1.  Any member may withdraw from this Convention at the end  of any year by giving written notice of withdrawal to the depositary at least 90 days prior to the  end of that year, but shall not thereby be released from any obligations incurred under this  Convention which have not been discharged by the end of that year. The member shall simultaneously  inform the Committee of the action it has taken. 2.  Any member which withdraws from this Convention may thereafter rejoin by giving notice to the  Committee. It shall be a condition of rejoining the Convention that the member shall be responsible  for fulfilling its full annual obligations with effect from the year in which it rejoins. Article 24 Relationship of this Conventions to the International Grains Agreement, 1995This  Convention shall replace the Food Aid Convention, 1986, as extended, and shall be one of the  constituent instruments of the International Grains Agreement, 1995. Article 25 Notification by depositaryThe Secretary-General of the United Nations as depositary  shall notify all signatory and acceding Governments of each signature, ratification, acceptance,  approval, provisional application of, and accession to, this Convention. Article 26 Authentic textsThe text of this Convention in the English, French, Russian and  Spanish languages shall all be equally authentic. (1) Under exceptional circumstances an exemption of not more than 10  % may be  granted. This limitation may be waived for transactions which are to be used for the expansion of  economic development activity in the recipient country, provided that the currency of the recipient  country is not transferable or convertible in less than 10 years.  (2) The credit sales agreement may provide for payment of up to 15  % of principal upon delivery of  the grain.