CELEX: 51992PC0418
Language: en
Date: 1992-10-09
Title: Proposal for a COUNCIL DECISION on the signing and conclusion of the International Sugar Agreement, 1992

COMMISSION OF THE EUROPEAN COMMUNITIES
                                      COM(92) 418 final
                                      Brussels, 9 October 1992
                      Proposal for a
                     COUNCIL DECISION
          ON THE SIGNING AND CONCLUSION OF THE
           INTERNATIONAL SUGAR AGREEMENT, 1992
              (presented by the Commission)
 ---pagebreak---                                                                        z
                        EXPLANATORY  MEMORANDUM
1. The United Nations Sugar Conference was held in Geneva from 16 to
   20 March 1992. The Commission, assisted by the 113 Committee,
   negotiated on behalf of the European Economic Community, on the
   basis of the directives approved by the Council on 19 December
   1991.
2. The Negotiating Conference concluded       with  the  text  of  the
    international Sugar Agreement of 1992.
3. Like the present agreement, which expires on 31.12.92, the new one
   will be of an administrative type, with no economic provisions such
   as quotas or prices. It does, however, permit the negotiation of
   an agreement with such provisions at any time in the future,
   although this will no longer be one of the specific objectives. A
   further change in the objectives is that "to encourage the
   consumption of sugar" now reads "to encourage increased demand for
   sugar, particularly for non-traditional uses".
4. The agreement Is open for signature from 1 May until 31 December at
    the Headquarters of the United Nations in New York.
5.  In conformity with Article 40, the Agreement will enter into force
   automatically only if countries holding 60% of the votes have
   deposited the appropriate instruments to become members.
 ---pagebreak---                                                                      3
The Commission proposes to the Council :
(i)     to agree by 31 October at the latest on the signature       and
        conclusion of the International Sugar Agreement of 1992;
(ii)    to designate the person empowered to sign the agreement for the
        Community before 31 December 1992.
A draft decision is to be found in Annex.
The text of the International Sugar Agreement of 1992 is attached to
the draft decision.
 ---pagebreak---                                                                              V
                              Proposal for a
                             COUNCIL DECISION
                                 OF
                  ON THE SIGNING AND CONCLUSION OF THE
                   INTERNATIONAL SUGAR AGREEMENT, 1992
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 proposal from the Commission,
Whereas the    International Sugar Agreement        of 1992 wilt      foster
international co-operation In the sugar sector; whereas the Community,
in view of its importance as producer, exporter and importer of this
product, should be a member of this agreement,
HAS DlCEDED AS FOLLOWS :
                                 Article 1
The International Sugar Agreement, 1992 is hereby approved on behalf of
the European Economic Community.
The text of the Agreement is attached to this Decision.
                                Article 2
The President of the Council is hereby authorized to designate the
person empowered to sign the agreement referred to in Article 1 and to
deposit the instrument of approval by the ConraunTty.
                                Article 3
This Decision shall    be  published    in  the  Official   Journal  of  the
European Community.
Done at Brussels»
                                          For the CounclI
                                          The President
 ---pagebreak---                                                                              s
UNITED
NATIONS                                                                        m
              United Nations Conference
WÊ            on Trade and Development
                                                             Dtstr.
                                                             GENERAL
                                                             TD/SUGAR.12/6
                                                             3 Avril 1992
                                                             Original: ENGLISH
  UNITED NATIONS SUGAR CONFERENCE, 1992
                         INTERNATIONAL SUGAR AGREEMENT. 1992
 ---pagebreak---                                                                           to
                                                                TD/SUGAR.12/6
                                                                page iii
                        INTERNATIONAL SUGAR AGREEMENT. 1992
                                       CONTENTS
Article                                                                     Page
                               CHAPTER I. OBJECTIVES
1.    Objectives                                                             1
                              CHAPTER II. DEFINITIONS
2.    Definitions                                                             2
                  CHAPTER III. INTERNATIONAL SUGAR ORGANIZATION
3.    Continuation, headquarters and structure of the International
      Sugar Organization                                                     3
4.    Membership of the Organization                                         3
5.    Membership by intergovernmental organizations                           3
6.    Privileges and immunities                                               3
                     CHAPTER IV.    INTERNATIONAL SUGAR COUNCIL
7.    Composition of the International Sugar Council                          5
8.    Powers and functions of the Council                                     5
9.    Chairman and Vice- Chairman of the Council                              5
10.   Sessions of the Council                                                 6
 1 i. Votes                                                                    6
12. Voting procedure of the Council                                           6
13.   Decisions of the Council                                                7
14.   Cooperation with other organizations                                    7
15.   Relationship with the Common Fund for Commodities                       7
16.   Admission of observers                                                  7
17.   Quorum for the Council                                                  8
                       CHAPTER V.    ADMINISTRATIVE COMMITTEE
 18.  Composition of the Administrative Committee                             9
 19.   Election to the Administrative Committee                               9
20.   Delegation of powers by the Council to the
      Administrative Committee                                              10
21.   Voting procedure and decisions of the Administrative Committee....    11
22.   Quorum for the Administrative Committee                               11
                     CHAPTER VI. EXECUTIVE DIRECTOR AND STAFF
23.   Executive Director and staff                                          12
                                CHAPTER VII.   FINANCE
24.   Expenses                                                              13
2b.   Adoption of the administrative budget and contributions of Members    13
26.   Payment of contributions                                              15
27.   Audit and publication of accounts                                     15
 ---pagebreak--- TD/SUGAR.12/6
page i v
                                                                  -7
                                CONTENTS (continued)
Article                                                           Page
                  CHAPTER VII1.   GENERAL UNDERTAKINGS OF MEMBERS
28.    Undertakings by Members                                    16
29.    Labour standards                                           16
30.    Environmental aspects                                      16
31.    Financial liabi lity of Members                             16
                        CHAPTER IX.  INFORMATION AND STUDIES
32.    Information and studies                                     17
33.    Market evaluation, consumption and statistics               17
                        CHAPTER X.  RESEARCH AND DEVELOPMENT
34 .    Research and development                                   18
                   CHAPTER XI.   PREPARATIONS FOR A NEW AGREEMENT
35.    Préparât ions for a new agreement                           19
                           CHAPTER XII.   FINAL PROVISIONS
36.    Depositary                                                  20
37.    Signature                                                   20
38.    Ratification, acceptance and approval                       20
 39.   Nofication of provisional application                       20
 40.   Entry into force                                            20
41.    Accession                                                   21
42.    Withdrawal                                                  21
43.    Settlement of accounts                                     21
44.    Amendment                                                   22
45.    Duration, extension and termination                         22
46.    Transitional measures                                       23
                                        ANNEX
       Allocation of votes for the purposes of article 25          24
 ---pagebreak---                                                                TD/SUGAR.12/6
                                                               page 1
                             CHAPTER I.   OBJECTIVES
                                    Article 1
                                   Objectives
      The objectives of the International Sugar Agreement, 1992 (hereinafter
referred to as this Agreement), in the light of the terms of resolution 93
(IV) adopted by the United Nations Conference on Trade and Development, are:
      (a) To ensure enhanced International cooperation in connection with
      world sugar matters and related issues;
      (b) To provide a forum for Intergovernmental consultations on sugar and
      on ways to improve the world sugar economy;
       (c) To facilitate trade by collecting and providing information on the
      world sugar market and other sweeteners;
       (d) To encourage increased demand for sugar, particularly for
      non- traditional uses.
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page 2
                                                                                3
                             CHAPTER 11.   DEFINITIONS
                                     Article 2
                                    Definitions
       For the purpose of this Agreement :
1.     "Organization" means the International Sugar Organization referred to in
       article 3;
2.     "Council" means the international Sugar Council referred to in article
       3, paragraph 3;
3.     "Member" means a Party to this Agreement;
4.     "special vote" means a vote requiring at least two thirds of the votes
       cast by Members present and voting, on condition that these votes are
       cast by at least two thirds of the number of Members present and voting;
5.     "simple majority vote" means a vote requiring more than half of the
       total votes of Members present and voting, on condition that these votes
       are cast by at least half of the number of Members present and voting;
6.     "year" means the calendar year;
7.     "sugar" means sugar in any of its recognized commercial forms derived
       from sugar cane or sugar beet, including edible and fancy molasses,
       syrups and any other form of liquid sugar, but does not include final
       molasses or low-grade types of non-centrifugal sugar produced by
       primitive methods;
8.     "entry into force" means the date on which this Agreement enters into
       force provisionally or definitively, as provided for in article 40;
 9.    "free market" means the total of net imports of the world market, except
       those resulting from the operation of special arrangements as defined in
       chapter IX of the International Sugar Agreement. 1977;
 10.    "world market" means the international sugar market and includes both
       sugar traded on the free market and sugar traded under special
       arrangements as defined in chapter IX of the International Sugar
       Agreement, 1977.
 ---pagebreak---                                                                    TD/SUGAR.12/6
                                                                   page 3
                   CHAPTER 111.  INTERNATIONAL SUGAR ORGANIZATION
                                      Article 3
                  Continuation, headquarters and structure of the
                          International Sugar Organization
1.     The International Sugar Organization established under the International
Sugar Agreement, 1968, and maintained in existence under the International
Sugar Agreements, 1973, 1977, 1984 and 1987, shall continue in being for the
purpose of administering this Agreement and supervising its operation, with
the membership, powers and functions set out in this Agreement.
2.     The headquarters of the Organization shall be in London, unless the
Council decides otherwise by special vote.
3.     The Organization shall function through the International Sugar council,
its Administrative Committee and its Executive Director and staff.
                                      Article 4
                           Membership of the Organization
       Each Party to this Agreement shall be a Member of the organization.
                                      Article 5
                    Membership by intergovernmental organizations
       Any reference in this Agreement to a "Government" or "Governments" shall
be construed as including the European Economic Community and any other
intergovernmental organization having responsibilities in respect of the
negotiation, conclusion and application of international agreements, in
particular commodity agreements. Accordingly, any reference in this Agreement
 to signature, ratification, acceptance or approval, or to notification of
provisional application or to accession shall, in the case of such
 intergovernmental organizations, be construed as including a reference to
signature, ratification, acceptance, or approval, or to notification of
provisional application, or to accession, by such intergovernmental
organizations.
                                      Article 6
                              Privileges and immunities
 i.     The Organization shall have International Irgal p*»c r.onal It. y.
2.     The Organization shall have the capacity to contract, to acquire and
dispose of movable and immovable property and to institute legal proceedings.
3.     The status, privileges and immunities of the Organization 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 Sugar Organization signed
at London on 29 May 1969, with such amendments as may be necessary for the
proper functioning of this Agreement.
 4.     If the seat of the Organization is moved to a country which is a Member
of the Organization, that Member shall, as soon as possible, conclude with the
Organization an agreement to be approved by the Council relating to the
status, privileges and immunities of the Organization, of its Executive
Director, staff and experts and of representatives of Members while in that
country for the purpose of exercising their functions.
 ---pagebreak--- TD/SUGAR.12/6
Page 4
5.    Unless any other taxation arrangements are implemented under the
agreement envisaged in paragraph 4 of this article and pending the conclusion
of that agreement the new host Member shall:
       (a) Grant exemption from taxation on the remuneration paid by the
      Organization to its employees, except that such exemption need not apply
       to its own nationals; and
       (b) Grant exemption from taxation on the assets, income and other
      property of the Organization.
6.     If the seat of the Organization is to be moved to a country which is not
a Member of the Organization, the Council shall, before that move, obtain a
written assurance from the Government of that country:
       (a) That it shall, as soon as possible, conclude with the Organization
       an agreement as described in paragraph 4 of this article; and
       (b) That, pending the conclusion of such an agreement, it shall grant
       the exemptions provided for in paragraph 5 of this article.
7.     The Council shall endeavour to conclude the agreement described in
paragraph 4 of this article with the Government of Lhe country to which the
seat of the Organization is to be moved before transferring the seat.
 ---pagebreak---                                                                  TD/SUGAR.12/6   '/ <J
                                                                 page 5
                      CHAPTER IV.  INTERNATIONAL SUGAR COUNCIL
                                      Article 7
                   Composition of the International Sugar Council
1.     The highest authority of the Organization shall be the International
Sugar council, which shall consist of all the Members of the Organization.
2.     Each Member shall have one representative in the Council, and if it so
desires, one or more alternates. Furthermore, a Member may appoint one or
more advisers to its representatives or alternates.
                                      Article 8
                         Powers and functions of the Council
1.     The Council shall exercise all such powers and perform or arrange for
the performance of all such functions as are necessary to carry out the
provisions of this Agreement and to pursue the liquidation of the Stock
Financing Fund established under article 49 of the International Sugar
Agreement, 1977, as delegated by the Council under that Agreement to the
Council under the International Sugar Agreement, 1964, and the International
Sugar Agreement, 1987. pursuant to article 8, paragraph 1, of the latter.
 2.    The Council shall adopt, by special vote, such rules and regulations as
are necessary to carry out the provisions of this Agreement and are consistent
 therewith, including rules of procedure for the Council and its committees,
 and the financial and staff regulations of the Organization. The Council may,
 in its rules of procedure, provide a procedure whereby it may, without
meeting, decide specific questions.
 3.     The Council shall keep such records as are required to perform its
 functions under this Agreement and such other records as it considers
 appropriate.
 4.     The Council shall publish an annual report and such other information as
 it considers appropriate.
                                       Article 9
                      Chairman and Vice-chairman of the Council
 1.     For each year, the Council shall elect from among the delegations a
 Chairman and a vice Chairman, who may be re-elected and shall not be paid by
 the Organization.
 2.     In the absence of the Chairman, the duties of the post shall be carried
 out by the Vice-chairman. In the temporary absence of both the Chairman and
 the Vice-chairman or the permanent absence of one or both, the Council may
 elect from among the delegations new officers, temporary or permanent as
 appropriate.
 3.     Neither the Chairman nor any other officer presiding at meetings of the
 Council shall vote. They may, however, appoint another person to exercise the
 voting rights of the Member which they represent.
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page 6                                                                   *\ 3
                                     Article 10
                               Sessions of the Council
1.    As a general rule, the Council shall hold one regular session in each
year.
2.     In addition, the Council shall meet in special session whenever it so
decides or at the request of:
       (a) Any five Members;
       (b) Two or more Members holding collectively 250 votes or more under
             article 11 as determined under article 25; or
       (c) The Administrative committee.
3.     Notice of sessions shall be given to Members at least 30 calendar days
in advance, except in case of emergency, when such notice shall be given at
least 10 calendar days in advance.
4.     Sessions shall be held at the headquarters of the Organization unless
the Council decides otherwise by special vote. If any Member invites the
Council to meet elsewhere than at the headquarters of the Organization, and
the Council agrees so to do, that Member shall pay the additional costs
involved.
                                      Article 11
                                         Votes
1.     For the purpose of voting under this Agreement, Members shall hold a
total of 2,000 votes distributed as determined under article 25.
2.     Whenever a Member has its voting rights suspended under article 26,
paragraph 2, of this Agreement, its votes shall be distributed among the other
Members according to their shares as determined under article 25. The same
procedure shall apply when the Member recovers its voting rights, the Member
concerned being included in the distribution.
                                      Article 12
                           Voting procedure of the Council
1.     Each Member shall be entitled to cast the number of votes it holds under
article 11 as determined under article 25. It shall not be entitled to divide
such votes.
2.     By informing the Chairman in writing, any Member may authorize any other
Member to represent its interests and to cast its votes at any meeting or
meetings of the Council. A copy of such authorizations shall be examined by
any credentials committee that may be set up under the rules of procedure of
the Courir: i I .
3.     A Member authorized by another Member to cast the votes held by the
authorizing Member under article 11 as determined under article 25 shall cast
such votes as authorized and in accordance with paragraph 2 of this article.
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                                                                                TD/SUGAR.12/6
                                                                                page 7
                                        Article 13
                                 Decisions of the Council
1.     All decisions of the Council shall be taken and all recommendations
shall be made, in principle, by consensus. In the absence of consensus,
decisions and recommendations shall be made by simple majority vote, unless
this Agreement provides for a special vote.
2.     In arriving at the number of votes necessary for any decision of the
Council, votes of Members abstaining shall not be reckoned and those Members
shall not be considered as 'voting' for the purposes of article 2, definition
4 or definition 5, as the case may be. Where a Member avails itself of the
provisions of article 12, and its votes are cast at a meeting of the Council,
such Member shall, for the purposes of paragraph 1 of this article, be
considered as present and voting.
3.     All decisions of the Council under this Agreement shall be binding upon
Members.
                                        Article 14
                         Cooperation with other organizations
 1.     The Council shall make whatever arrangements are appropriate for
consultation or cooperation with the United Nations and its organs, in
 particular the United Nations Conference on Trade and Development, and with
 the Food and Agriculture Organization and such other specialized agencies of
 the United Nations and intergovernmental organizations as may be appropriate.
 2.     The Council, bearing in mind the particular role of the United Nations
 Conference on Trade and Development in international commodity trade, shall as
 appropriate keep the United Nations Conference on Trade and Development
 informed of its activities and programmes of work.
 3.     The Council may also make whatever arrangements are appropriate for
 maintaining effective contact with international organizations of sugar
 producers, traders and manufacturers.
                                         Article 15
                   Relationship with the Common Fund for Commodit les
  1.    The Organization shall take full advantage of the facilities of the
 Common Fund for Commodities.
 2.      In respect of the implementation of any project under paragraph 1 of
  this article, the Organization shall not act as an executing agency, nor incur
 any financial obligation for guarantees given by individual Members or other
 entities. No Member shall be responsible by reason of its membership in the
 Organization for any liability arising from borrowing or lending by any other
 Member or entity in connection with such projects.
                                         Article 16
                                   Admission of observers
  1.     The Council may invite any non member State to attend any of its
 meetings as an observer.
  ,\.    The Council may .i I :;o lnvM<* «"WiY ol U I P <>I <|,m i/.H lotir; t «-1 «» r f *»« 1 i<> in
  article 14, paragraph I, to al rond any ot its meetings as an observer.
 ---pagebreak--- TD/SUGAR.12/6
page 8
                                                                             Is
                                   Article 17
                             Quorum for the Council
      The quorum for any meeting of the Council shall be the presence of more
than two thirds of all Members, the Members thus present holding at least two
thirds of the total votes of all Members under article 11 as determined under
article 25. If there is no quorum on the day appointed for the opening of any
Council session, or if in the course of any Council session there is no quorum
at three successive meetings, the Council shall be convened seven days later;
at that time, and throughout the remainder of that session, the quorum shall
be the presence of more than half of all Members, the Members thus present
representing more than half of the total votes of all Members under article 11
as determined under article 25. Representation in accordance with article 12,
paragraph 2. shall be considered as presence.
 ---pagebreak---                                                                                 AG
                                                                 TD/SUGAR.12/6
                                                                 page 9
                        CHAPTER V.  ADMINISTRATIVE COMMITTEE
                                     Article 18
                    Composition of the Administrative Committee
1.     The Administrative Committee shall consist of 18 members. Ten shall, in
principle, be the 10 largest financial contributing Members in each year, and
8 members shall be elected from the remaining Membership of the Council.
2.     If one or more of the 10 largest financial contributing Members in each
year does not wish to be automatically appointed to the Administrative
Committee, the shortfall in membership shall be made good by appointing the
next largest financial contributing Member or Members willing to serve. When
those 10 members of the Administrative committee have thus been appointed, the
other 8 members of the Committee shall be elected from the remaining
Membership of the Council.
3.     The election of the additional 8 members shall take place each year on
the basis of votes under article 11 as determined under article 25. The
Members appointed to the Administrative Committee under the provisions of
paragraphs 1 or 2 of this article shall not be entitled to vote in this
election.
 4.    No Member shall be eligible to sit on the Administrative Committee
unless it has paid its contributions in full in accordance with article 26.
5.      Each member of the Administrative Committee shall appoint one
 representative and may appoint in addition one or more alternates and
advisers. In addition, all Members of the Council shall be eligible to attend
 this Committee as observers and may be invited to speak.
f).    The Administrative Committee shall elect its chairman and Vice Chairman
 tor each year. The Chairman shall not have the right to vote and may be
 re-elected. In the absence of the Chairman, the duties of the post shall be
carried out by the Vice-chairman.
 7.    The Administrative Committee shall normally meet three times a year.
 8.     The Administrative Committee shall meet at the headquarters of the
 Organization, unless it decides otherwise. If any Member invites the
 Administrative Committee to meet elsewhere than at the headquarters of the
Organization, and the Administrative Committee agrees so to do, that Member
 shall pay the additional costs involved.
                                      Article 19
                      Election to the Administrative Committee
 1.    The Members selected from among the largest financial contributing
Members in each year under the procedure in paragraphs 1 or 2 of article 18
shall be appointed to the Administrative Committee.
 2.    The election of the additional 8 members of the Administrative Committee
shall take place in the Council. Each Member eligible pursuant to the
provisions of article 18, paragraphs 1, 2, and 3. shall cast all the votes to
which it is entitled under article 11 as determined under article 25 for a
single candidate. A Member may cast for another candidate any votes which it
exercises pursuant to article 12, paragraph 2. The 8 candidates receiving the
 largest number of votes shall be elected.
 ---pagebreak--- TD/SUGAR.12/6
page 10
                                                                           1-1-
3.    If a member of th«» Administrative Committee is suspended from the
exercise of its voting rights under any of the relevant provisions of this
Agreement, each Member which has voted for it or assigned its votes to it in
accordance with this article may, during such time as that suspension is in
force, assign its votes to any other member of the Committee.
4.    If a Member appointed to the Committee under the provisions of
paragraphs I or 2 of article 18 ceases to be a Member of the Organization, it
shall be replaced by the next largest financial contributing Member willing to
serve and, if necessary, an election shall be held to select an additional
elected member of the Committee. If a Member elected to the Committee ceases
to be a Member of the Organization, an election shall be held to replace that
Member on the Committee. Any Member which voted for or assigned its votes to
the Member which has ceased to be a Member of the Organization, and which does
not vote for the Member elected to fill the vacancy on the Committee, may
assign its votes to another member of the Committee.
5.     in special circumstances, and after consultation with the member of the
Administrative committee for which it voted or to which it assigned its votes
in accordance with the provisions of this article, a Member may withdraw its
votes from that member for the remainder of the year. That Member may then
assign these votes to another member of the Administrative Committee but may
not withdraw these votes from that other member for the remainder of that
year. The member of the Administrative Committee from which the votes have
been withdrawn shall retain its seat on the Administrative Committee for the
remainder of that year. Any action taken pursuant to the provisions of this
paragraph shall become effective after the Chairman of the Administrative
Committee has been informed in writing thereof.
                                         Article 20
                       Delegation of powers by the Council to the
                                  Administrative Committee
1.     The Council may, by special vote, delegate to the Administrative
Committee the exercise of any or all of its powers, other than the following:
       (a) Location o£ the headquarters of the Organization under article 3,
       paragraph 2;
       (b) Appointment of the Executive Director and any senior official under
       article 23;
       (c) Adoption of the administrative budget and assessment of
       contributions under article 25;
       (d) Any request to the Secretary-General of the United Nations
       Conference on Trade and Development to convene a negotiating conference
       under article 35, paragraph 2;
       (e) Recommendation of an amendment under article 44;
       (f) Extension or termination of this Agreement under article 45.
 ?..   The Council may at any time revoke the delegation of any power to the
Admin I.M r«it I vc Comml \ t»M>.
 ---pagebreak---                                                                             IB
                                                                TD/SUGAR.12/6
                                                                page 11
                                    Article 21
          Voting procedure and decisions of the Administrative committee
1.     Each member of the Administrative Committee shall be entitled to cast
the number of votes received by it under article 19, and cannot divide these
votes.
2.     Any decision taken by the Administrative Committee shall require the
same majority as that decision would require if taken by the Council and shall
be reported to the Council.
3.    Any Member shall have the right of appeal to the Council, under such
conditions as the Council may prescribe in its rules of procedure, against any
decision of the Administrative Committee.
                                    Article 22
                      Quorum for the Administrative Committee
       The quorum for any meeting of the Administrative Committee shall be the
presence of more than half of all members of the Committee, the members thus
prosent representing at least two thirds of the total votes of all members of
the Committee.
 ---pagebreak--- TD/SUGAR.12/6
page 12
                                                                         /]0)
                    CHAPTER VI. EXECUTIVE DIRECTOR AND STAFF
                                    Article 23
                           Executive Director and staff
1.    The Council shall appoint the Executive Director by special vote. The
terms of appointment of the Executive Director shall be fixed by the council.
2.    The Executive Director shall be the chief administrative officer of the
Organization and shall be responsible for the performance of the duties
devolving upon him in the administration of this Agreement.
3.    The Council, after consulting the Executive Director, shall by special
voce appoint any senior official on such terms as it shall determine.
4.    The Executive Director shall appoint other members of the staff in
accordance with regulations and decisions of the Council.
5.    The Council, in accordance with article 8, shall adopt rules and
regulations embodying the fundamental conditions of service and the basic
rights, duties and obligations of all members of the Secretariat.
6.    Neither the Executive Director nor any member of the staff shall have
any financial interest in the sugar industry or sugar trade.
7.    Neither the Executive Director nor any member of the staff shall seek or
receive instructions regarding their duties under this Agreement from any
Member or from any authority external to the Organization. They shall refrain
from any action which might reflect on their position as international
officials responsible only to the Organization. Each Member shall respect the
exclusively international character of the responsibilities of the Executive
Director and staff and shall not seek to influence them in the discharge of
their responsibilities.
 ---pagebreak---                                                                  TD/SUGAR.12/6
                                                                 page 13
                               CHAPTER VII.   FINANCE
                                     Article 24
                                      Expenses
1.    The expenses of delegations to the Council, the Administrative Committee
or any of the committees of the Council or of the Administrative committee
shall be met by the Members concerned.
2.     The expenses necessary for the administration of this Agreement shall be
met by annual contributions from Members, assessed in accordance with article
25. If, however, a Member requests special services, the Council may require
that Member to pay for them.
3.     Appropriate accounts shall be kept for the administration of this
Agreement.
                                     Article 25
         Adoption of the administrative budget and contributions of Members
1.     For the purpose of this article Members shall hold 2000 votes.
2.     (a) Each Member shall hold the number of votes specified in the annex,
       which shall be adjusted in accordance with sub-paragraph (d) below.
       (b)   No Member shall hold fewer than 6 votes.
        (c) There shall be no fractional votes. Rounding shall be permitted in
       the process of calculation and to ensure that the full number of votes
       is allocated.
       (d) Votes in the annex which are not taken up at the time of the entry
       into force of this Agreement shall be apportioned among individual
       Members, other than those holding 6 votes in the annex. The unallocated
       votes shall be distributed in the proportion that the number of their
       votes in the annex bears to the total number of votes of all Members
       holding more than 6 votes.
 3.    Votes shall be revised on an annual basis according to the following
 procedure:
        (a) Each year, including the year of entry into force of this
       Agreement, at the time of the publication of the Sugar Year Book by the
       International Sugar Organization, a composite tonnage basis shall be
       calculated for each Member which shall comprise:
             35 per cent of that Member's exports to the free market
                  plus
             15 per cent of that Member's total exports under special
             arrangements
                  plus
             35 per cent of that Member's free market imports
                  plus
             15 per cent of that Member's total imports under special
             arrangements.
 ---pagebreak--- TD/SUGAR.12/6                                                                       7 0
page 14                                                                                 I
            The data used to calculate the composite tonnage basis of each
      Member shall be, for each category above, the average of that category
      for the highest three of the four last years published in the most
      recent edition of the Organization's Sugar Year Book. The share of each
      Member in the total of all Members' composite tonnage bases shall be
      calculated by the Executive Director. All the above data will be
      distributed to Members at the time that the calculations are made.
      (b) For the second and subsequent years after the entry into force of
      this Agreement, the votes of each Member shall be adjusted by the change
      in their share in the total of all Members' composite tonnage bases from
      that for the same membership for the previous year.
      (c) Members holding 6 votes shall not be subject to an upward
      adjustment under the provisions of sub-paragraph (b) above unless their
      share of the total of all Members' composite tonnage bases exceeds 0.3
      per cent.
4.    In the event of the accession of a Member or Members after the entry
into force of this Agreement, their votes shall be determined according to the
annex as adjusted in the light of paragraphs 2 and 3 above. If the acceding
Member or Members are not listed in the annex of this Agreement, the Council
shall decide the number of votes to be allocated to that Member or Members.
Following the acceptance by the acceding Member or Members not listed in the
annex of the number of votes allocated by the Council, the votes of existing
Members shall be re-calculated so that the total of votes remains at 2000.
5.    In the event of the withdrawal of a Member or Members, the votes of the
withdrawing Member or Members shall bo redistributed to the remaining Members
in proportion to their share in the total of all remaining Member votes so
that the total of the votes of all Members remains at 2000.
6.    Transitional arrangements:
       (a) The following provisions apply only to Members of the International
      Sugar Agreement, 1987, as of 31 December 1992 and are limited to the
       first two calendar years after the entry into force of this Agreement
       (that is up to 31 December 1994).
       (b) The total number of votes allocated to each Member in 1993 shall
      not exceed 1.33 multiplied by that Member's votes in 1992 under the
       International Sugar Agreement, 1987, and in 1994 shall not excoed 1.66
      multiplied by that Member's votes In 1992 und».*r I h»? lnt«'r nat ion.i I :;ug#ir
      Agreement, 1987.
       (c) For the purpose of establishing the contribution per vote, votes
      not taken up due to the application of paragraph 6 (b) above shall not
      be redistributed to other Members. Hence, the contribution per vote
      will be determined on the basis of the reduced number of overall votes.
7.    The provisions of article 26, paragraph 2, relating to the suspension of
voting rights for non-fulfillment of obligations, shall not apply to this
article.
8.    During the second half of each year, the Council shall adopt the
administrative budget of the Organization for the following year and shall
determine the per vote contribution of Members required to meet that budget,
in the first two years after taking into account the provisions of paragraph 6
of this article.
 ---pagebreak---                                                                               ^
                                                                  TD/SUGAR.12/6
                                                                  page 15
9.     The contribution of each Member to the administrative budget shall be
calculated by multiplying the per vote contribution Dy the number of votes
held by it under this article, as follows:
       (a) For those which are Members at the time of the final adoption of
       the administrative budget, the number of votes which they then hold; and
       (b) For those which become Members after the adoption of the
       administrative budget, the number of votes which they receive at the
       time of taking up membership, adjusted in proportion to the remainder of
       the period covered by the budget or budgets; assessments made upon other
       Members shall not be altered.
10.    If this Agreement enters into force more than eight months before the
beginning of its first full year, the Council shall at its first session adopt
an administrative budget covering the period up to the commencement of the
first full year. Otherwise, the first administrative budget shall cover both
the initial period and the first full year.
11.    The Council may, by special vote, take  such measure as it might deem
appropriate in order to mitigate the effects   on Members' contributions
resulting from a possibly limited membership    at the time of the adoption of
the administrative budget for the first year   of this Agreement or from any
major decrease of membership thereafter.
                                     Article 26
                             Payment of contributions
1.     Members shall pay their contributions to the administrative budget for
each year in accordance with their respective constitutional procedures.
Contributions to the administrative budget for each year shall be payable in
freely convertible currencies and shall become due on the first day of that
year; contributions of Members in respect of the year in which they join the
Organization shall be due on the date on which they become Members.
2.     If, at the end of four months following the date on which its
contribution is due in accordance with paragraph 1 of this article, a Member
has not paid its full contribution to the administrative budget, the Executive
Director shall request the Member to make payment as quickly as possible. If,
at the expiration of two 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 Administrative Committee shall be suspended until such time
as it has made full payment of the contribution.
3.     The Council may decide, by special vote, thai «i Member with two years
contributions unpaid shall cease to enjoy the rights of membership and/or
cease to be assessed for budgetary purposes. It shall remain liable to meet
any other of its financial obligations under this Agreement. By payment of
 the arrears the Member will regain the rights of membership. Any payments
made by Members in arrears will be credited first to those arrears, rather
than to current contributions.
                                     Article 27
                         Audit and publication of accounts
       As soon as possible after the close of each year, the financial
statements of the Organization for that year, certified by an independent
auditor, shall be presented to the Council for approval and publication.
 ---pagebreak--- TD/SUGAR.12/6                                                      ^
page 16                                                          P    -N
                  CHAPTER VIII.  GENERAL UNDERTAKINGS OF MEMBERS
                                     Article 28
                              Undertakings by Members
       Members undertake to adopt such measures as are necessary to enable them
to fulfil their obligations under this Agreement and fully to cooperate with
one another in securing the attainment of the objectives of this Agreement.
                                     Article 29
                                  Labour standards
       Members shall ensure that fair labour standards are maintained in their
respective sugar industries and, as far as possible, shall endeavour to
improve the standard of living of agricultural and industrial workers in the
various branches of sugar production and of growers of sugar cane and sugar
beet .
                                     Article 30
                               Environmental aspects
       Members shall give due consideration to environmental aspects in all
stages of sugar production.
                                     Article 31
                          Financial liability of Members
       Each Member's financial liability to the Organization and to other
Members is limited to the extent of its obligations concerning contributions
to the administrative budgets adopted by the Council under this Agreement.
 ---pagebreak---                                                                 TD/SUGAR.12/6
                                                                page 17
                                                                              *y
                      CHAPTER IX.   INFORMATION AND STUDIES
                                   Article 32
                             Information and studies
1.    The Organization shall act as a centre for the collection and
publication of statistical information and studies on world production.
prices, exports and imports, consumption and stocks of sugar (including both
raw and refined sugar as appropriate) and other sweeteners, as well as taxes
on sugar and other sweeteners.
2.    Members undertake to supply within the time which may be prescribed in
the rules of procedure all available statistics and information as may be
identified in those rules as necessary to enable the Organization to discharge
its functions under this Agreement. Should this become necessary, the
Organization shall use such relevant information as may be available to it
from other sources. No information shall be published by the Organization
which might serve to identify the operations of persons or companies
producing, processing or marketing sugar.
                                   Article 33
                  Market evaluation, consumption and statistics
i.    The Council shall establish a Committee on Sugar Market Evaluation,
Consumption and Statistics, composed of all Members, under the Chairmanship of
the Executive Director.
2.    The Committee shall keep under continuous review matters relating to the
world economy of sugar and other sweeteners and shall apprise Members of the
outcome of its deliberations, for which purpose it shall hold meetings,
normally twice a year. In its review, the Committee shall take account of all
relevant information gathered by the Organization pursuant to article 32.
3.    The Committee shall undertake work in the following areas:
       (a) Preparation of sugar statistics and statistical analysis of sugar
      production, consumption, stocks, international trade and prices;
       (b) Analysis of market behaviour and factors which affect it, with
      special reference to participation of developing countries in world
       trade;
       (c) Analysis ot demand tor sugar. Including the ettocls ol the use ot
      any form of natural and artificial substitutes for sugar on world trade
      in, and consumption of, sugar;
       (d) Other issues as approved by the Council.
4.    Each year the Council shall consider a draft forward work programme,
with estimated resource requirements, prepared by the Executive Director.
 ---pagebreak--- TD/SUGAR.12/6
page 18                                                                 ^
                      CHAPTER X.  RESEARCH AND DEVELOPMENT
                                   Article 34
                            Research and development
      In order to achieve the objectives set out in article 1, the Council may
assist both in scientific research and development in the sugar economy and in
the dissemination of the results obtained in this field. To this end, the
Council may cooperate with international organizations and research
institutions on condition that no additional financial obligations are
incurred by the Council.
 ---pagebreak---                                                                              ^
                                                               TD/SUGAR.12/6
                                                               page 19
                  CHAPTER XI. PREPARATIONS FOR A NEW AGREEMENT
                                    Article 35
                         Preparations for a new agreement
1.    The Council may study the feasibility of negotiating a new international
sugar agreement, including a possible agreement with economic provisions, and
report to the Members and make such recommendations as it deems appropriate.
?..   The Council may, as soon as it considers appropriate, request the
Secretary General of the United Nations Conference on Trade and Development to
convene a negotiating conference.
 ---pagebreak--- TD/SUGAR.12/6                                                        -> _,
page 20                                                            <rl 4-
                          CHAPTER XII.    FINAL PROVISIONS
                                     Article 36
                                     Depositary
       The Secretary-General of the United Nations is hereby designated as the
depositary of this Agreement.
                                     Article 37
                                      Signature
       This Agreement shall be open for signature at the United Nations
Headquarters from 1 May until 31 December 1992 by any Government invited to
the United Nations Sugar Conference, 1992.
                                     Article 38
                       Ratification, acceptance and approval
1.     This Agreement shall be subject to ratification, acceptance or approval
oy the signatory Governments in accordance with their respective
constitutional procedures.
2.     Instruments of ratification, acceptance or approval shall be deposited
with the depositary not later than 31 December 1992. The Council may,
however, grant extensions of time to signatory Governments which are unable to
deposit their instruments by that date.
                                     Article 39
                      Notification of provisional application
1.     A signatory Government which intends to ratify, accept or approve this
Agreement or a Government for which the Council has established conditions for
accession but which has not yet been able to deposit its instrument may, at
any time, notify the depositary that it will apply this Agreement
provisionally either when it enters into force in accordance with article 40
or, if it is already in force, at a specified date.
 ?..   A Government which has notified under paragraph I of this article that
 it will apply this Agreement either when it enters into force or, if it is
 already in force, at a specified date shall, from that time, be a provisional
 Member until it deposits its instrument of ratification, acceptance, approval
 or accession and thus becomes a Member.
                                     ALL tel e_<LQ
                                  Entry into force
 1.    This Agreement shall enter into force definitively on 1 January 1993, or
on any date thereafter if, by that date instruments of ratification,
acceptance, approval or accession have been deposited on behalf of Governments
holding 60 per cent of the votes in accordance with the distribution
established in the annex to this Agreement.
2.     If, by 1 January 1993, this Agreement has not entered into force in
accordance with paragraph 1 of this article, it shall enter into force
provisionally if by that date instruments of ratification, acceptance or
approval or notifications of provisional application have been deposited on
behalf of Governments satisfying the percentage requirements of paragraph 1 of
 this article.
 ---pagebreak---                                                                         SX
                                                                TD/SUGAR.12/6
                                                                page 21
3.     If, by 1 January 1993, the required percentages for entry into force of
this Agreement in accordance with paragraph i or paragraph 2 of this article
are not met, the Secretary-General of the United Nations shall invite the
Governments on whose behalf instruments of ratification, acceptance or
approval or notifications of provisional application have been deposited to
decide whether this Agreement shall enter into force definitively or
provisionally among themselves, in whole or in part, on such date as they may
determine. If this Agreement has entered into force provisionally in
accordance with this paragraph, it shall subsequently enter into force
definitively upon fulfilment of the conditions set out in paragraph 1 of this
article without the necessity of a further decision.
4.     For a Government on whose behalf an instrument of ratification,
acceptance, approval or accession or a notification of provisional application
is deposited after the entry into force of this Agreement in accordance with
paragraph 1, 2 or 3 of this article, the instrument or notification shall take
effect on the date of deposit and, with regard to notification of provisional
application, in accordance with the provisions of article 39, paragraph 1.
                                    Article 41
                                     Accession
       This Agreement shall be open to accession by the Governments ot all
States upon conditions established by the Council. Upon accession, the State
concerned shall be deemed to be listed in the annex to this Agreement,
together with its votes as laid down in the conditions of accession.
Accession shall be effected by the deposit of an instrument of accession with
the depositary. Instruments of accession shall state that the Government
accepts all the conditions established by the Council.
                                    Article 42
                                    Withdrawal
1.     Any Member may withdraw from this Agreement at any time after the entry
into force of this Agreement by giving written notice of withdrawal to the
depositary. The Member shall simultaneously inform in writing the Council of
the action it has taken.
?..    Withdrawal under this article shall be effective 30 days after the
receipt of the notice by the depositary.
                                    Article 43
                              Settlement of accounts
I.     The Council shall determine any settlement of accounts which it finds
equitable with a Member which has withdrawn from this Agreement or has
otherwise ceased to be Party to this Agreement. The Organization shall retain
any amounts already paid by such Member. Such Member shall be bound to pay
any amounts due from it to the Organization.
?..    Upon termination of this Agreement, 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 Organization; nor shall it be burdened
with any part of the deficit, if any, of the Organization.
 ---pagebreak--- TD/SUGAR.12/6                                                            -,
page 22                                                                   ^ 3
                                   Article 44
                                    Amendment
1.    The Council may, by special vote, recommend to the Members an amendment
of this Agreement. The Council may fix a time after which each Member shall
notify the depositary of its acceptance of the amendment. The amendment shall
become effective 100 days after the depositary has received notifications of
acceptance from Members holding at least two thirds of the total votes of all
Members under article 11 as determined under article 25, 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 Party to this Agreement, 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 45
                       Duration, extension and termination
 1.   This Agreement shall remain in force until 31 December 1995, unless
extended under paragraph 2 of this article or terminated earlier under
paragraph 3 of this article.
2.    The Council may, by special vote, extend this Agreement beyond
31 December 1995 for successive periods, not exceeding two years on each
occasion. Any Member which does not accept any such extension of this
Agreement shall so inform the Council in writing and shall cease to be a Party
to this Agreement from the beginning of the period of extension.
3.    The Council may at any time decide, by special vote, to terminate this
Agreement with effect from such date and subject to such conditions as it may
determine.
4.    Upon termination of this Agreement, the Organization 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 under
paragraph 2 or paragraph 3 of this article.
 ---pagebreak---                                                                            3c
                                                                 TD/SUGAR.12/6
                                                                 page 23
                                     Article 46
                               Transitional measures
I.     Where in accordance with the International Sugar Agreement, 1987, the
consequences of anything done, to be done or omitted to be done would, for the
purposes of the operation of that Agreement, have taken effect in a subsequent
year, those consequences shall have the same effect under this Agreement as if
the provisions of the 1987 Agreement had continued in effect for those
purposes.
?..    The administrative budget of the Organization for 1993 shall be
provisionally approved by the Council under the International Sugar Agreement.
 1987. at its last regular session in 1992. subject to final approval by the
Council under this Agreement at its first session in 1993.
        IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have
affixed their signatures under this Agreement on the dates indicated.
        DONE at Geneva, this twentieth day of March, one thousand nine hundred
 and ninety two. The texts of this Agreement in the Arabic, Chinese, English,
 French, Russian and Spanish languages shall be equally authentic.
 ---pagebreak--- TD/SUGAR.12/6
Annex
page 24
                                                                       3-i
                                       ANNEX
                Allocation of votes for the purposes of Article 25
Algeria                          38           Indonesia                      18
Argentina                        22           Jamaica                         6
Australia                       117           Japan                         176
Austria                          14           Madagascar                      6
Barbados                          6           Malawi                          6
Belarus                          11           Mauritius                      15
Belize                            6           Mexico                         49
Bolivia                           6           Morocco                        14
Brazil                           94           Nicaragua                       6
Bulgaria                         18           Norway                         19
Cameroon                          6           Panama*/                        6
Colombia                         18           Papua New Guinea*/              6
Congo*/                           6           Peru                            9
Costa Rica*/                      6           Philippines                    12
côte d'Ivoire                     6           Republic of Korea              59
Cuba                            151           Romania                        18
Dominican Republic               23           Russian Federation            135
Ecuador                           6           South Africa                   46
Egypt                            37           Swaziland                      13
El Salvador                       6           Sweden                         15
EEC                             332           Switzerland                    18
Fiji                             12           Thailand                       85
Finland                          16           Turkey                         21
Ghana                             6           Uganda                          6
Guatemala                        16           United Republic of Tanzania     6
Guyana                            6           United States of America      178
Honduras*/                        6           Uruguay                         6
Hungary                           9           Zimbabwe                        8
India                            38
                                              Total                        2000
      Mot participating in the United Nations Sugar Conference, 1992, but
      included because the country is a Member of the international Sugar
      Organization established by the International Sugar Agreement. 1987
 ---pagebreak---                          FINANCIAL IMPLICATIONS
The Community   contribution to the administrative budget of the
International Sugar Organisation is covered by line B2-516 of the
Community budget. The contribution arising from the new agreement will
be higher than the present one in view of the fact that all
participants at the Conference considered it appropriate to bring
contributions more into line with their respective strengths on the
international sugar market. This result is in conformity with the
mandate given by the Council to the Commission for the negotiation of
this Agreement. The votes of the Community will thus go from 238 in
1987 to 332 (out of 2000) under the proposed new Agreement. However,
in view of the savings made in the ISO in recent years, the amount
proposed by the Commission for line B2-516 for the 1993 Community
budget should suffice to cover the Community contribution.
 ---pagebreak---                                                                                                                                  ^3
        FINANCIAL                                 S TATEMENT
                                                                                          DATE:
  1 . BUDGET HEADING:                                                                     APPROPRIATIONS:
                                     B2-516
 2. TITLE:            proposal for a Council Decision on the signing and conclusion of the
                      International Sugar Agreement, 1992
 3. LEGAL BASIS:
                      Treaty        EEC, and i n p a r t i c u l a r Article  113      thereof.
 4. AIMS OF PROJECT:
                      S i g n a t u r e by t h e Community o f t h e I n t e r n a t i o n a l Sugar Agreement o f             1992,
                      w i t h a v i e w t o b e i n g a Member as from 1 . 1 . 9 3 .
                                                 Per led of 12 months     Current Financial Year          Following Financial Year
 5.    FINANCIAL IMPLICATIONS                              19                       19                                1993
                                                                                                               ( * • • ECU)
 5 . 0 EXPENDITURE
       -  CHARGED TO THE EC BUDGET                                                                                       160.000
       -  (REFUNDS/INTERVENTION)
       -  NATIONAL ADMINISTRATION
       -  OTHER
 5.1 REVENUE
       - OWN RESOURCES OF THE EC
          (LEVIES/CUSTOMS DUTIES)
       - NATIONAL
                                                       1994                   1995                  1996                       1997
5.0.1 ESTIMATED EXPENDITURE                       1 6 8 . 0 0 0 ECU      176.000        ECU       1 8 5 . 0 0 0 ECU        1 9 5 . 0 0 0 ECU
5.1.1 ESTIMATED REVENUE
 5.2 METHOD OF CALCULATION:
        The amounts i n d i c a t e d c o v e r t h e EEC share o f t h e ISO a d m i n i s t r a t i v e b u d g e t d r a w n up
        a n n u a l l y on t h e b a s i s o f t h e number o f v o t e s ( 3 3 2 ) w r i t t e n i n t o t h e A g r e e m e n t .
6 . 0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                                                       1B/ND
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                                                       UNO
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                                                         ;/ND
6 . 3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                                                      YES/I
OBSERVATIONS:
 ---pagebreak---  ---pagebreak---                                                                               sy
                                                                        ISSN 0254-1475
                                                                  COM(92) 418 final
                                                         DOCUMENTS
 EN                                                                           11 03
                                   Catalogue number : CB-CO-92-434-EN-C
                                                                ISBN 92-77-47915-9
( Mfice tor ( )fiicial Publications of the European Communities
L-2985 Luxembourg