Explanatory Memorandum to COM(2003)318 - EC position in the respect to the prolongation of the International Agreement on Olive Oil and Table Olives, 1986

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dossier COM(2003)318 - EC position in the respect to the prolongation of the International Agreement on Olive Oil and Table Olives, 1986.
source COM(2003)318 EN
date 02-06-2003
The International Agreement on Olive Oil and Table Olives of 1986, of which the Community is a member, entered into force on 1 July 1986. It was amended in 1993 and its application prolonged to 1998. It has been extended twice for further periods of two years until 31 December 2000 and 31 December 2002. In December 2002 it was extended for a period of six months ending on 30 June 2003.

Under Article 61 of the International Agreement on Olive Oil and Table Olives of 1986 and Article 9 of the Protocol amending and extending the Agreement, the International Olive Oil Council (IOOC) may decide to prolong the Agreement for successive periods not exceeding two years on each occasion.

The IOOC is planning to take the decision to prolong the Agreement for a further period, in the course of its 88th session, which will take place between 23 and 27 June 2003.

The budgetary implications are as follows:

The European Community participation share pertaining to the Administrative Budget amounts to 781/1000, i.e. 78.1%, which is paid under budget-item B7-8210. The Community share of the IOOC-budget for 2003 is estimated at about EUR 4,000,000. This estimate has to be divided into two equal parts, as there has already been an extension of this Agreement for the first semester 2003. In the draft preliminary budget for 2004, an amount of EUR 4,235,000 is foreseen.

Moreover, the Agreement foresees an obligatory contribution of EUR 500,000/year to the Promotion Fund to be paid under budget line B1-3811. The European Community share is 809.7/1000, i.e. 80.97% and, therefore, amounts to EUR 404,850/year. This amount is fixed and will stay the same for the years 2003 and 2004.

Moreover, the mission-man-day-involvement of Commission staff for the participation in IOOC-sessions twice per year and in the various committees can be estimated at around 70 man-days/year.

The purpose of this proposal is to authorise the Commission on behalf of the Community to vote in favour of the prolongation of the Agreement for a period of 18 months maximum. Pending the results of an audit into the entire financial management of the IOOC the Commission does, however, reserve the right to alter this proposal once these results are available.