CELEX: 51985PC0558
Language: en
Date: 1985-10-11 00:00:00
Title: Recommendation for a COUNCIL DECISION authorizing the Commission to participate in the negotiation of the extension or replacement of the Food Aid Convention 1980 (submitted to the Council by the Commission)

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Vol. 1985/0203
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 ---pagebreak---                                                                                                        C0MC85)       558 f i n a l
      COMMISSION                                                                                       Brussels,     11 O c t o b e r 1985
          OF THE
EUROPEAN COMMUNITIES                                                                                    F O R O F F I C I A L USE O N L Y
    G en erai Se cre ta riat
                                                           R e c o m m e n d a tio n  fo r  a
                                                              COUNCIL D E C IS IO N
             a u th o r iz in g      th e    C o m m is s io n t o   p a r tic ip a te     in   th e   n e g o tia tio n     of th e
                         e x te n s io n   or    re p la c e m e n t  of    th e     Food   A id   C o n v e n tio n  1980
                                      (s u b m itte d    to   th e    C o u n c il b y   th e    C o m m is s io n )
        COMC85)           558 f i n a l
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
                                         Summary
1. The life of the Food Aid Convention (F.A.C.) 1980, as already extended,
   will expire on 30.6.86.
2. At its meeting in closed session on 25.6.85 the Food Aid Committee of the
   International Wheat Agreement gave some preliminary consideration as to the
   future of the Convention on its expiry next year.
3. It was agreed that a special meeting of the Food Aid Committee should be
   held on 21.10.85 to look at possible ways of improving the current
   Convention.
4. At its next regular meeting in December 1985, the Committee will need to
   agree on any changes in the text in order that the Convention, as amended,
   may come into effect on 1.7.86.
5. The attached draft Decision presented by the Commission to the Council is
   intended to authorize the Commission to participate, with the assistance of
   the 113 Committee, in the coming discussions of the Food Aid Committee
   regarding the negotiation of a further extension to or replacement of the
   Food A i d , Convention 1980.
 ---pagebreak--- Introduction
1. The Food Aid Convention 1980 and the Wheat Trade Convention 1971 together
    comprise the International Wheat Agreement 1971. The linkage between the
    two Conventions should be retained.
2. A United Nations Conference to negotiate an International Arrangement to
    replace the International Wheat Agreement began in February 1978 and was
   adjourned sine die on 14.2.1979.
3. During the course of this Conference a wide measure of agreement was
   achieved on the terms of a new Food Aid Convention. This led to the
   elaboration of the text of a new Convention, which was formally established
   by the Conference open to all members of the Food Aid Committee at a
   meeting held on 6.3.1980.
4. The Food Aid Convention 1980, which came into operation on 1.7.80, had a
   duration of one year. Its life was, however, extended by protocol first
   until 30.6.83 and thereafter until 30.6.86.
5. Since its inception the Food Aid Convention 1980 has functioned to the
   satisfaction of its signatories (1). This being so, the Commission
   considers that it should be extended for a further period, and changes in
   the text should be kept to the minimum in order to avoid the risk of
   embarking on a fresh and prolonged negotiation.
International Food Aid - Article III of the Convention
6. Article III (3) sets out the minimum annual contributions of members of the
   Convention "towards the achievement of the objective of Article I", i.e.
   the provision "of at least 10 million tons of food aid annually to
   developing countries in the form of wheat and other grains suitable for
   human consumption".
7. Minimum contributions of members total 7,612,000 tonnes which includes
   1.650.000 tonnes on the part of the Community.
8. Spain is a member of the Convention with a minimum annual contribution of
   20.000    tonnes. Portugal is not a member.
(1) Current signatories are: Argentina, Australia, Austria, Canada, E.E.C and
                              its Member States, Finland, Japan, Norway, Spain,
                              Sweden, Switzerland, U.S.A.
 ---pagebreak--- Food Aid Needs
9.  Since the 1980 Convention came into effect not only has the 10 million
    tonne target, established by the World Food Conference in 1974, been
    superseded (the F.A.O. estimates global cereal food aid requirements now
    to be some 20 million tonnes p.a.), but there has also been an increasing
    trend in the needs of the Community's traditional beneficiaries.
10. Over the past 15 years cereal import requirements of low income food
    deficit countries (L.I.F.D.Cs), particularly those in Africa, have
    increased by approximately 10% per year on avereage. The rate of increase
    accelerated over the years and during the period 1980-85 it was about 20%
    per year.
11. Total cereal import requirements of L.I.F.D.Cs, excluding those which are
    not beneficiaries of cereals food aid (e.g. Afghanistan, China and India),
    amounted to some 20.2 million tonnes in 1981/82 and 29.7 million tonnes in
    1983/4. Requirements for 1984/85 have been estimated by the F.A.O. to be
    35.7 million tonnes.
12. Food aid as a proportion of total cereal imports by L.I.F.D.Cs fell from
    33% in 1981/82 to 28% in 1983/84.
The Community's Food Aid
13. The Community's annual commitment of 1,650,000 is shared between Community
    and Member States on a 56 %/44 % basis: Community - 927,663 tonnes and
    Member States - 722,337 tonnes.
14. During the past years, however, both the Community and Member States have
    exceeded their respective obligations as follows:
                                                                  (tonnes)
    Year              Community            Member States          Total
    1980/81              927,663              762,693             1,690,356
    1981/82           1,000,000               736,328             1,736,328
    1982/83           1,001,369               826,131             1,827,500
    1983/84           1,127,663 (1)           815,863 (1)         1,943,526
    1984/85      (2 ) 1 ,160,000 (1 )      1, 011,106 ( 1)        2 , 171,106
    (1) Not yet delivered in full
    (2) Excluding additional aid supplied under the "Dublin Plan"
 ---pagebreak--- 15. The figures above do not include aid supplied by Spain which has averaged
     about 25,000 tonnes per year between 1982/83 and 1984/85, i.e. some 5,000
     tonnes more than its commitment under the Convention.
16. The totals in paragraph 14, which reveal a steadily rising trend, indicate
     that average food aid provided annually by the Community and Spain over
     the past 3 years has been approximately 2 million tonnes. In view of this
     the Commission is of the opinion that the Community should increase its
     minimum annual F.A.C. contribution to 2 million tonnes, provided other
     donors are also willing to increase theirs.
17. Such a gesture would fit very well into the Community policy on North
     South relations. Although its implementation would at present involve
     little or no additional budgetary costs since the Community as such and
     the majority of Member States are already supplying more aid than their
     present F.A.C. commitment, it would nevertheless constitute a firm
     undertaking to continue to supply aid at this level in the future. (1)
18. The proposed quantity of 2 million tonnes would, of course, include any
     increase, which could reasonably be expected to be made, on account of the
     Community's enlargement by the accession of Spain and Portugal.
19. In the light of the foregoing, the Commission recommends that the Council
     should adopt the attached draft Decision.
(1 ) B e ca u se o f t h e d i f f i c u l t y i n e s t i m a t i n g f u t u r e c e r e a l p r i c e s , no f i n a n c i a l
     s t a t e m e n t ca n be u s e f u l l y d ra w n u p . H o w e ve r t h e q u a n t i t i e s i n v o l v e d w o u ld
     n o t s u b s t a n t i a l l y in c r e a s e , t a k in g in t o a c c o u n t th e am ount o f c e r e a ls a id
     a t p r e s e n t b e in g p r o v i d e d o v e r and a b o v e t h e Food A id C o n v e n t io n c o m m itm e n t.
 ---pagebreak---                                    COUNCIL DECISION
authorising the Commission to participate in the negotiation of the extension
or replacement of the Food Aid Convention 1980.
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to. the Treaty establishing the European Economic Community, and
in particular Article 113 thereof,
Having regard to the Recommendation from the Commission,
Whereas the Community is a party to the Food Aid Convention  198Ô,
Whereas this Convention expires on 30.6.1986,
Whereas it is in the Community's interest that the Convention be extended or
replaced by a new Convention,
HAS DECIDED AS FOLLOWS:
                                  Sole Article
The Commission is hereby authorized to take part in the negotiations for the
extension or replacement of the Food Aid Convention 1980.
The Commission shall take part in the negotiations, in consultation with the
Article 113 Committee, in accordance with the guidelines contained in the
Annex.
Done at __                                        For the Council
                                                  The President
 ---pagebreak---                                                                    ANNEX
1. The link between the Food Aid Convention and the Wheat Tr$de Convention
   should be retained.
2. As far as possible no changes should be made in the text of the present
   Convention.
3. The Community's existing contribution of 1,650,000 tonnes in Article III
   (3) should be increased to a figure not exceeding 2,000,000 tonnes
   depending on the response of other donors.
4. The present division of the Community's contribution between Member States
   (44 %) and Community (56 %) should be retained.
5. The Food Aid Convention 1980 should be further extended for such period as
   the Wheat Trade Convention 1971 is extended or for the duration of a new
   Wheat Trade Convention replacing it.