EUROPEAN COMMISSION

Brussels, 27.3.2023

COM(2023) 172 final

2023/0086(NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken on behalf of the European Union in the International Grains Council with respect to the extension of the Grains Trade Convention, 1995

EXPLANATORY MEMORANDUM

1.Subject matter of the proposal

This proposal concerns the decision establishing the position to be taken on the Union's behalf in the International Grains Council in connection with the envisaged adoption of extending the Grains Trade Convention, 1995, until 30 June 2025.

2.Context of the proposal

2.1.The Grains Trade Convention, 1995

The Grains Trade Convention, 1995 (‘the Convention’) aims to further international co-operation in all aspects of trade in grains, to promote the expansion of international trade in grains and to secure the freest possible flow of this trade. In addition, the Convention intends 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 provide a forum for exchange of information and discussion of members’ concerns regarding trade in grains.

The Convention entered into force on 1 July 1995.

The European Union is a party to the Convention 1 .

2.2.The International Grains Council

The International Grains Council (‘IGC’) is an intergovernmental organisation that seeks to meet the objectives laid down by Article 1 of the Convention. In particular, the IGC aims at:

·furthering international cooperation in all aspects of trade in grains;

·promoting expansion, openness and fairness of the international trade in the grains sector;

·contributing to stability of international grain market, enhancing world food security and contributing to the development of countries whose economies depend on commercial sales of grain.

These objectives are sought by improving market transparency through information-sharing, analysis and consultation on market and policy developments.

The IGC has 30 members, including many of the world’s largest cereals producers as well as importers. Besides the European Union and among others, its members are Argentina, Australia, Canada, Egypt, India, Japan, Russia, Ukraine, the United Kingdom and the USA. However, China and Brazil are not members.

The 30 members of the IGC have a total number of 2,000 votes.

For budgetary procedures (see Article 11 of the Convention), i.e. for fixing the annual financial contributions of members, the Union has 369 votes in 2022/23 2 . 

For decision-making, i.e. where votes are held (see Article 12 of the Convention), 1,000 votes are distributed for the 11 exporting members (including the Union with 244 votes) and 1,000 votes for the 19 importing members. It needs to be emphasized that in principle, the IGC operates on the basis of consensus and it is very rare that voting is actually held.

At the meetings of the International Grains Council, the European Union is represented by the European Commission. Member States can attend the IGC meetings, in particular the Council Sessions.

2.3.The envisaged act of the International Grains Council

On 14 June 2023, during its 58th session the International Grains Council is to adopt a decision regarding the extension by two years of the Convention (‘the envisaged act’).

The purpose of the envisaged act, which is based on Article 33 of the Convention, is to enable the IGC to continue with its work.

The extension of the Convention will cover the period of 1 July 2023 – 30 June 2025.

3.Position to be taken on the Union's behalf

The purpose of this proposal is to seek the Council’s authorisation to the Commission to vote, on the European Union’s behalf, in favour of the extension of the Convention up to 30 June 2025 in the IGC. The formal decision about the extension of the Convention is scheduled for the 58th session of the IGC to be held on 14 June 2023.

4.Legal basis

4.1.Procedural legal basis

4.1.1.Principles

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’

The concept of ‘acts having legal effects’ includes acts that have legal effects by virtue of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’ 4 .

4.1.2.Application to the present case

The envisaged act of the IGC has the effect of extending the validity of the Convention which is an international agreement binding the Union. The envisaged act has therefore legal effects.

The envisaged act does not supplement or amend the institutional framework of the Agreement.

Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.

4.2.Substantive legal basis

4.2.1.Principles

The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act in respect of which a position is taken on the European Union's behalf. If the envisaged act pursues two aims or has two components and if one of those aims or components is identifiable as the main one, whereas the other is merely incidental, the decision under Article 218(9) TFEU must be founded on a single substantive legal basis, namely that required by the main or predominant aim or component.

4.2.2.Application to the present case

The main objective and content of the envisaged act relate to trade in agricultural products.

Therefore, the substantive legal basis of the proposed decision is Article 207(4), first subparagraph, TFEU.

4.3.Conclusion

The legal basis of the proposed decision should be Article 207(4), first subparagraph, TFEU, in conjunction with Article 218(9) TFEU.

5.Publication of the envisaged act

As the act of the IGC will extend the duration of the Convention, it will be published on the official website of the IGC.

2023/0086 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken on behalf of the European Union in the International Grains Council with respect to the extension of the Grains Trade Convention, 1995

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(4), first subparagraph, in conjunction with Article 218(9) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The Grains Trade Convention, 1995 (‘the Convention’) was concluded by the Union by means of Council Decision 96/88/EC 5 and entered into force on 1 July 1995. The Convention was concluded for a period of three years.

(2)Pursuant to Article 33 of the Convention, the International Grains Council may extend the Convention for successive periods not exceeding two years on each occasion. Since its conclusion, the Convention has regularly been extended for further periods of two years. The Convention was last extended by decision of the International Grains Council on 7 June 2021 6 and remains in force until 30 June 2023.

(3)During its 58th session to be held on 14 June 2023, the International Grains Council is to decide on the extension of the Convention for a further period of up to two years, from 1 July 2023 to 30 June 2025.

(4)It is appropriate to establish the position to be taken on the Union's behalf in the 58th  session of the International Grains Council with respect the extension of the Convention.

(5)The Union is a major cereals producer and a leading exporter of wheat and barley, while the largest importer of maize. The Union has always been an active member of the International Grains Council, which plays an important role in stabilising world grain markets and enhancing food security. Therefore, the extension of the Convention is in the interest of the Union,

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken on the Union’s behalf in the 58th session of the International Grains Council shall be to vote in favour of the extension of the Grains Trade Convention, 1995, for a further period of up to two years from 1 July 2023 to 30 June 2025.

Article 2

This Decision is addressed to the Commission.

Done at Brussels,

(1)    OJ L 21, 27.1.1996, p. 47.

(2)    The International Grains Council operates on a fiscal year basis, which runs from 1 July to 30 June.

(3)    OJ L 21, 27.1.1996, p. 47.

(4)    Judgment of the Court of Justice of 7 October 2014, Germany v Council, C-399/12, ECLI:EU:C:2014:2258, paragraphs 63 and 64.

(5)    Council Decision 96/88/EC of 19 December 1995 concerning the approval by the European Community of the Grains Trade Convention and the Food Aid Convention, constituting the International Grains Agreement 1995 (OJ L 21, 27.1.1996, p. 47).

(6)    Council Decision (EU) 2021/777 of 10 May 2021 on the position to be taken on behalf of the European Union in the International Grains Council with respect to the extension of the Grains Trade Convention, 1995 (OJ L 167, 12.5.2021, p. 39).