Considerations on COM(2017)378 - Membership of the EU in the International Rubber Study Group (IRSG)

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(1) The International Rubber Study Group (IRSG) was established in 1944 following the termination of the International Rubber Regulation Scheme that had operated from 1934.

(2) The IRSG is an Intergovernmental Organisation with the status of a recognised international body. The object of the Group is to: "… provide a forum for the discussion of problems affecting the production and consumption of, and trade in, natural and synthetic rubbers and to collect and disseminate comprehensive statistical information on the world rubber industry".

(3) The Group’s activities are mainly financed by Member Governments’ contributions. Of the approved budget, 60 % is to be met by basic contributions as paid in equal amounts by all Member Governments. The balance of 40 % is to be paid by Member Governments in proportion to their production or consumption (whichever is the larger) of new rubber in the calendar year previous to the financial year in question.

(4) By Council Decision 2002/651/EC of 22 July 2002 the European Community has become a member of the IRSG. The single EU membership to the IRSG dates from 1 July 2011. It has been legally established by Council Decision 2011/664/EU of 12 September 2011 on the signing and provisional application of IRSG's amended Constitution and Rules of Procedure and by Council Decision 2012/283/EU of 24 April 2012 on the conclusion by the EU of IRSG's amended Constitution and Rules of Procedure.

(5) According to the IRSG's Rules of Procedure, a 'Notice of withdrawal by a Member Government shall be delivered in writing to the Secretary-General by 1 November to be effective on 30 June of the subsequent calendar year and Member Governments giving notice after 1 November shall be liable for the membership contribution for the next ensuing financial year' (Constitution, XVI, 3. Council Decision 2011/664/EU).

(6) The IRSG has been negatively affected by the withdrawal in the past years of important member countries, thus it has become an international organisation of limited and declining relevance. IRSG's current membership is representative of only about 10% of the world production and 25% of the world consumption of natural rubber, respectively.

(7) There are no reasonable perspectives of this situation being reversed.

(8) As a consequence of the reduced number of Member Governments, the depletion of the Group's cash reserves and the evolution of the EUR/SGD exchange rate, the EU's contribution to the IRSG's budget is significant and rising.

(9) The maintenance of a membership to an inter-governmental organisation of limited and declining relevance would be inappropriate and inefficient. The EU should therefore withdraw from the International Rubber Study Group.