Explanatory Memorandum to COM(2022)487 - EU position within the Council of Members of the International Olive Council (IOC), as regards the trade standard applying to olive oils and olive-pomace oils

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1. Subject matter of the proposal

This proposal concerns the decision establishing the position to be taken on the Union's behalf in the Council of Members of the International Olive Council ("IOC") in connection with the envisaged adoption of two decisions in relation to trade standard applying to olive oils and olive-pomace oils.

2. Context of the proposal

2.1.The International Agreement on Olive Oil and Table Olives, 2015

The International Agreement on Olive Oil and Table Olives, 2015 (‘the Agreement’) aims (i) to seek to achieve uniformity in national and international legislation relating to the physico-chemical and organoleptic characteristics of olive oils, olive pomace oils and table olives in order to prevent any obstacle to trade (ii) to conduct activities in the area of physico-chemical and organoleptic testing in order to add to the knowledge of the composition and quality characteristics of olive products, with a view to consolidating international standards, and (iii) to strengthen the role of the International Olive Council as a forum of excellence for the international scientific community in the area of olives and olive oil.

The renewed version of the Agreement entered into force on 1 January 2017.

The European Union is a party to the Agreement 1 .

2.2.The Council of Members

The Council of Members is the highest authority and decision-making organ of the IOC and shall exercise all such powers and functions as are necessary to achieve the objectives of this Agreement. As a party to the Agreement, the European Union is a member of the IOC and is represented in the Council of Members. The decisions of the Council of Members shall be taken by consensus. If consensus cannot be reached, decisions related to the trade standard would be adopted unless they are rejected by at least one quarter of the members or by a member or members with at least a total of 100 participation shares.

There are currently 18 members in the IOC and the European Union has 678 participation shares for a total of 1000.

2.3.The envisaged act of the Council of Members

On 28 May 2022, the Executive Secretariat of the IOC transmitted to its Members the text of two decisions regarding chemistry and standardisation to be adopted by the Council of Members. The decisions presented will require amendments to Commission Regulation (EEC) No 2568/91 2 .

The purpose of the envisaged acts is to modify the trade standard applying to olive oils and olive-pomace oils and update a method of analysis for waxes and fatty acid ethyl esters included therein. The Commission Staff Working Document accompanying this proposal includes the text of the decisions, the corresponding trade standard and the respective method, transmitted by the Executive Secretariat.

Pursuant to Article 20(3) of the Agreement, the quality and purity criteria included in the above mentioned trade standard adopted by the Council of Members are applicable to the international trade of the Members. Furthermore, pursuant to Article 75(5)(e) of Regulation (EU) No 1308/2013 of the European Parliament and of the Council 3 , the marketing standards shall take into account the standard recommendations adopted by international bodies. Therefore, the decisions provided for in the Annex will affect EU law since they will imply amendments to Commission Regulation (EEC) No 2568/91.

In case the adoption of the decisions during the 116th session of the IOC is postponed as a result of some Members not being in a position to give their approval, the position detailed in the present Decision will be taken on behalf of the Union also within the framework of a possible procedure for adoption by the Council of Members by exchange of correspondence, pursuant to Article 10(6) of the Agreement, before its next regular session in June 2023.

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

The decisions to be adopted by the Council of Members will:

–modify the trade standard COI/T.15/NC No. 3 applying to olive oils and olive-pomace oils by removing Annex 1 and simplifying the delta-7-stigmastenol decision trees.

–revise the method COI/T.20/Do. No 28 (Determination of the content of waxes, fatty acid methyl esters and fatty acid ethyl esters by capillary gas chromatography) to include an alternative method of analysis and make some slight changes to the existing method.

The above-mentioned decisions have been extensively discussed between scientific and technical olive oil experts of the Commission and Member States. They contribute to the international harmonisation of the olive oil standards and they will set a framework which will ensure fair competition in the trading of olive oil sector. They should therefore be supported.

The above mentioned decisions fit the Union policy as regards standards for the marketing of agricultural products as provided for in Title II of part II of Regulation (EU) No 1308/2013 of the European Parliament and of the Council.

The agenda of the meeting of the Council of Members of the IOC for its November 2022 session will still evolve and it is possible that further decisions affecting the acquis will be added to the agenda. In order to ensure efficiency of the work of the Council of Members of the IOC while respecting the rules of the Treaties, the Commission will in due time supplement and/or amend the present proposal to enable the Council to adopt the position to be taken also for those decisions.

Taking into account the decision-making process within the Council of Members of the IOC, the Union position is needed for the adoption of the decisions provided for in the Annex.

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 Council of Members is a body set up by an agreement, namely the International Agreement on Olive Oil and Table Olives.

The acts which the Council of Members are called upon to adopt constitute acts having legal effects. The envisaged acts will be binding under international law in accordance with Article 20(3) of the Agreement and are capable of decisively influencing the content of EU legislation, namely: delegated and implementing acts based on Regulation (EU) No 1308/2013, as regards olive oil marketing standards. This is because, pursuant to Article 75(5)(e) of Regulation (EU) No 1308/2013, the marketing standards shall take into account the standard recommendations adopted by international bodies.

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 i TFEU.

4.3.Conclusion

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