Explanatory Memorandum to COM(2021)175 - EU position in the International Cocoa Council - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2021)175 - EU position in the International Cocoa Council. |
|---|---|
| source | COM(2021)175  |
| date | 13-04-2021 |
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 Cocoa Organization’s (hereafter: ‘ICCO’) 1 International Cocoa Council (hereafter: ‘ICCO Council’) in connection with the envisaged adoption of the extension of the International Cocoa Agreement (ICA, 2010). 2
2. Context of the proposal
2.1.The International Cocoa Agreement (ICA, 2010)
The International Cocoa Agreement (ICA, 2010) (hereafter ‘the ICA’ or ‘the Agreement’) aims to ensure enhanced international cooperation in connection with world cocoa matters and related issues, provide a forum for intergovernmental consultations on cocoa and on ways to improve the world cocoa economy, to facilitate trade by collecting and providing information on the world cocoa market and to encourage increased demand for cocoa.
The ICA entered into force on 1 October 2012 for a period of ten years until 30 September 2022 (Article 62(1) ICA).
The European Union is a party to the ICA 3 .
2.2.The International Cocoa Council
As per Article 6(1) of the ICA, the International Cocoa Council shall consist of all the members of the Organization. As per Article 7 of the ICA, 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 express provisions of the ICA.
As a general rule, the ICCO Council holds one regular session in each half of the cocoa year but has the possibility to meet in special session (Article 9 (1)(2) ICA). Article 12 of the ICA stipulates that all decisions of the ICCO Council are in principle by consensus. In the absence of consensus, decisions are made by a special vote according to the procedure as laid down in Article 12(1) ICA. Article 10 and 11 ICA provide for a specific distribution of votes and voting procedure between the Organization’s exporting and importing members.
2.3.The envisaged act of the International Cocoa Council
In September 2020, during its 102nd session, the ICCO Council recommended to extend the ICA beyond its current expiration date. This would allow for a substantial revision to be adopted in the future. The ICCO Council is to decide on the extension of the agreement, as per Article 62 i ICA, which stipulates that the Council may extend the Agreement in whole or in part for two periods not exceeding two cocoa years each.
On 22-23 April 2021, during its 103rd session, the ICCO Council is to adopt a decision regarding the extension of the ICA 2010 (‘the envisaged act’). This decision may be postponed to the next sessions of the Council.
The purpose of the envisaged act is to approve the extension of the ICA 2010 in the ICCO Council. The extension of the ICA 2010 will give the appropriate time to ICCO Members to conduct the negotiations on the revision of the ICA.
The envisaged act will become binding on the parties in accordance with Article 12(3) ICA, which stipulates that Members are committed to accept as binding all decisions of the Council under the provisions of the Agreement.
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 behalf of the Union, in favour of the extension of ICA within the ICCO Council.
Extending the ICA for a maximum of four years will give the appropriate time to ICCO Members to undergo a substantial revision that would focus on the modernisation and simplification of the Agreement.
The negotiations to partially review the ICA will be opened at the 103rd session of the ICCO Council in April 2021. The need to extend will be assessed against progress in the negotiations, to allow sufficient time to partially review the ICA.
Currently, the EU's participation in the ICCO is beneficial both to the Union and to other ICCO Member states and the ICA can be extended as it is. Extending the agreement beyond 2022 and working in parallel in a separate procedure on modernising the Agreement will lead to a reengagement of Members and a discussion on the relevance of the ICCO to meet current challenges. The possible revision of the ICA after 2022 would potentially increase its value added and the relevance of its work and possibly attract more interest in the ICCO. An extension of the Agreement is therefore in the interest of the Union.
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 ICCO Council is a body set up by an agreement, namely the International Cocoa Agreement 2010.
The act which the ICCO Council is called upon to adopt constitutes an act having legal effects. The envisaged act will be binding under international law in accordance with Article 12(3) and Article 62 i of the ICA 2010.
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 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 the common commercial policy.
Therefore, the substantive legal basis of the proposed decision is Article 207 TFEU.
4.3.Conclusion
The legal basis of the proposed decision should be Article 207 TFEU, in conjunction with Article 218(9) TFEU.