Annexes to COM(2005)414 - EC position in respect of the prolongation of the International Sugar Agreement, 1992

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Agreements |

TITLE OF ACTION: EUROPEAN COMMUNITY CONTRIBUTION TO THE INTERNATIONAL SUGAR ORGANISATION |

1. BUDGET LINE + HEADING:

Heading 4 – External Relations

05 06 01: International agricultural agreements

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): EUR 930,000 for commitment

2.2. Period of application: 1.1.2006 to 31.12.2007

2.3. Overall multi-annual estimate on expenditure (EUR million) (*) :

2006 | 2007 | Total |

Commitments | 0.460 | 0.470 | 0.930 |

Payments | 0.460 | 0.470 | 0.930 |

(*) Account has been taken of the enlarged EUR-25 on the basis of ISO estimates of future contributions for the new Member States. |

2.4. Compatibility with the financial programming and the financial perspective

X Proposal compatible with the existing financial programming

2.5. Financial impact on revenue

X No financial implications (involves technical aspects regarding implementation of a measure).

3. BUDGET CHARACTERISTICS

Type of expenditure | New | EFTA participation | Participation applicant countries | Heading Financial Perspective |

Comp | Diff | NO | NO | NO | 4 External action |

4. LEGAL BASIS

Article 133 of the Treaty.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

Because of its economic importance, especially in the agricultural sector, the EC must be represented in international agricultural agreements, which represent an important means for following global developments and defending Community interests for the products concerned.

The payment of EC membership contributions enables the objectives of the International Sugar Agreement to be attained. The International Sugar Organisation, which is responsible for administering the Agreement, promotes the objectives of the Agreement, such as international cooperation, exchange of statistical information, forecasting market trends, etc. It is therefore in the interests of the EC to be a part of the Agreement.

The membership contributions are determined on an annual basis and are due for as long as the EC is a member of the Agreement.

It is clear that if the EC had to carry out on its own the same actions as are carried out by the ISO, the total coast of these would be much greater than the cost of the membership contributions.

5.2. Actions envisaged and arrangements for budget intervention

The EC pays membership dues on an annual basis for the International Sugar Agreement.

The dues are paid for as along as the EC remains a signatory to the Agreement.

The European Commission participate fully in the activities of the ISO and take full advantage of the benefits of membership.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B (*)

Commitments in EUR million (to the 3rd decimal place)

Breakdown | Year 2006 | Year 2007 | Total |

EC Contribution | 0.460 | 0.470 | 0.930 |

TOTAL | 0.460 | 0.470 | 0.930 |

(*) Account has been taken of the enlarged EUR-25 on the basis of ISO estimates of future contributions for the new Member States. |

6.1. Calculation

Each contribution is fixed in proportion to the number of votes attributed to the member concerned (out of a total of 2 000) and proportionally to its importance in the international market of sugar. For 2006 and 2007, the number of votes allocated to the Community is estimated at 542 resulting in a Community contribution of EUR 460 000 and 470 000 respectively.

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

Types of post | Staff to be assigned to management of the action using existing and/or additional resources | Total | Description of tasks deriving from the action |

Number of permanent posts | Number of temporary posts |

Permanent officials or temporary staff | A B C | 0.3 – – | – – – | 0.3 – – | Preparation for attendance at and follow up from meetings of the ISO |

Other human resources | – | – | – |

Total | 0.3 | – | 0.3 |

7.2. Overall financial impact of human resources

Type of human resources | Amount EUR | Method of calculation |

Officials Temporary staff | 32 400 | 0,3 x 108 000 |

Other human resources |

Total | 32 400 |

The amounts are total expenditure for twelve months.

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

The ISO activities are closely followed by its members and EC fully participate in ISO’s regular meetings. A report of ISO activities is regularly published.

9. ANTI-FRAUD MEASURES

Payments will only be made directly to the bank account of the ISO on receipt of a written request, after verification that the request coincides with the figure agreed by the Council of the International Sugar Agreement.

[1] OJ L 379, 23.12.1992, p. 15.