Documents considered by the Committee on 11 February 2015 - European Scrutiny Contents


6 International Organisation for Vine and Wine

Committee's assessment Legally important
Committee's decision(a) Cleared from scrutiny (decision reported on 5 November 2014) (b) Cleared from scrutiny (decision reported on 15 October 2014)
Document details(a) Draft Council Decision (as revised) establishing a common position on the EU's behalf in respect of certain resolutions of the International Organisation for Vine and Wine (OIV); (b) Draft Council Decision establishing a common position on the EU's behalf in respect of certain resolutions of the OIV
Legal baseArticles 43 and 218(9) TFEU; QMV
DepartmentEnvironment, Food and Rural Affairs
Document numbers(a) (36293), 12679/14 + ADD 1 REV 1, COM(14) 528; (b) (34878), 8743/13, COM(13) 243

Summary and Committee's conclusions

6.1 The International Organisation for Vine and Wine (OIV)[18] is an intergovernmental organisation which sets standards for viticulture, oenological practices, definitions, labelling and methods of analysis. There are 21 Member States who are also members of the OIV in their own right; the UK and the EU are not.

6.2 Resolutions adopted by the OIV (by consensus of its participating members) are not legally binding. However, since Regulation 1308/2013[19] makes references to certain OIV resolutions, those resolutions can affect the EU legal framework for wine. For this reason, from 2012 onwards, the Commission has proposed draft Council Decisions, in part based on Article 218(9) TFEU, to establish common positions on OIV resolutions falling within EU competence. The Council Decisions require the EU members of the OIV to vote on resolutions at Annual General Assembly meetings in line with the Decisions.

6.3 Although document (b) was not adopted in 2013, we continued to keep that document under scrutiny because the Government had told us that legal proceedings challenging the 2012 Decision had been brought by Germany before the Court of Justice, partly supported by the UK.[20] In those proceedings, Germany sought to annul the 2012 Decision, on the grounds that the Article 218(9) TFEU legal base was incorrect where a position was being established in an international organisation to which the EU was not a party and the resolutions to be adopted by that organisation were not legally-binding.

6.4 After document (a), a similar Council Decision, prepared for the OIV's Annual General Assembly meeting in November 2014, was agreed by Member States on 28 October (with the UK abstaining) and after receiving the Government's initial view on the ECJ's judgment of 7 October rejecting Germany's challenge, we cleared that document from scrutiny on 5 November.

6.5 In our Report of 5 November, we said that we would be interested to learn from the Minister, the Parliamentary Under-Secretary for Farming, Food and Marine Environment (George Eustice), in due course, whether the Government had identified which other international organisations might fall within the scope of the ECJ judgment, particularly those of which the UK was a member. The Minister now writes in response.

6.6 We thank the Minister for his letter and have no further questions in relation to these documents.

Full details of the documents: (a) Draft Council Decision (as revised) establishing a common position on behalf of the European Union with regard to certain resolutions to be voted in the framework of the International Organisation for Vine and Wine (OIV): (36293), 12679/14 + ADD 1 REV 1, COM(14) 528; (b) Draft Council Decision establishing the position to be adopted on behalf of the European Union with regard to certain resolutions to be voted in the framework of the International Organisation for Vine and Wine (OIV): (34878), 8743/13, COM(13) 243.

Background and previous scrutiny

6.7 The full background to document (b), an overview of its provisions and the Government's view of it, particularly concerning the proposed legal base, are set out in our Third Report of 2013-14. Document (a) (as revised) shares much of the same background and its substance was specifically considered in our Thirteenth Report of 2014-15.

The Minister's letter of 3 February 2015

6.8 The Minister says the following in response to the Committee's request set out in paragraph 6.5 above:

    "I would like to give the Committee some background to this case first, and the position that the Government adopted. The Government supported all the resolutions being considered for adoption by the OIV, but had concerns over the use of Article 218(9) as a legal base for the Council Decision. Whitehall lawyers took the view that the article referred to legal effects at the international level only. Since OIV resolutions do not have effect in international law, the use of this legal base in this instance would create an unhelpful precedent and have significant implications for EU external representation.

    "The Government considered that the correct approach would be for a coordinated EU position to be set out in position papers agreed by consensus at Working Party level. The UK therefore focused on this issue in its support of Germany's challenge to the Council Decision during the CJEU oral hearing last year. Germany also argued that a 218(9) decision was inappropriate in circumstances where the EU was not a member of the relevant organisation. The UK did not run this second argument because the practice of using such Decisions was well established in those cases e.g. the Convention on Trade in Endangered Species, which the Court had already had cause to consider and not opposed (Case C-370/07).

    "The Court concluded in its judgment of 7 October 2014 that the wording of Article 218(9) TFEU does not prevent the EU from 'establishing a position to be adopted' on the EU's behalf in a body set up by international agreement to which it is not a party. Where the EU has competence in an area it may act through the Member States to establish a position in relation to an international agreement, even if it is not a party to it. This was not unexpected, but the Court also held, contrary to the UK's arguments, that article 218(9) does apply in circumstances where the decisions being taken by an international body, despite not having legal effects at the international level, may 'decisively influence the content of EU legislation'. We are still looking closely at the potential implications this ruling has for the UK.

    "Despite our concerns, a mandate was agreed at the Environment Council on 28 October 2014 as an 'A' point. The UK abstained but the decision was carried on the basis of a qualified majority in favour.

    "It is not yet clear how the Commission will respond to the OIV judgment and whether they are likely to propose decisions based on article 218(9) in other cases. That is likely to depend on the individual circumstances of particular international negotiations.

    "It would also be very difficult to identify a list of international organisation and arrangements which could clearly be said to be affected by this ruling. The status of the EU and what it is able to do in different parts of the international system varies a great deal. The Government would prefer to consider this issue on an individual case by case basis, looking at any proposed Decisions critically and opposing them where necessary.

    "In some cases, the Commission is looking to enhance EU status in certain organisations. For example, in the Food and Agriculture Organisation, the Commission has proposed a revision of the internal EU arrangements for EU representation in that organisation, and with the UN High Commission for Refugees the EU is seeking more formal participation.

    "Given the range of circumstances which might apply to the many international organisations across Government in which the UK has an interest, attempting to set out a definitive list at this point might well be misleading. Officials across Government will be tracking this carefully and we will, of course, keep you informed of any further developments and ensure that the Committee has the opportunity to consider fully any cases where this issues arises when proposals come before them for scrutiny."

Previous Committee Reports

(a) and (b) Eighteenth Report HC 219-xvii (2014-15), chapter 7 (5 November 2014); Thirteenth Report HC 219-xiii (2014-15), chapter 12 (15 October 2014); (b) Third Report HC 83-iii (2013-14), chapter 8 (21 May 2013).


18   From the French acronym for Organisation Internationale de la Vigne et du Vin. Back

19   This has now repealed the Regulation we have referred to in our Third Report of 2013-14: Regulation No. 1234/2007. Back

20   Case C-399/12 Germany v CouncilBack


 
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