Chapter 2: Agreements reported for information
Grains Trade Convention, 1995 (CP 159, 2019)14
20.The Grains Trade Convention was laid on 18 July 2019; at the time of writing, given the likely prorogation of Parliament, it is unclear when the scrutiny period of 21 sitting days will end. It was considered by the EU Energy and Environment Sub-Committee on 4 September 2019.
21.The Convention dates back to 1949, when the International Wheat Agreement 1949, to which the UK was party, established the International Grains Council (IGC), basing its headquarters in London. The International Wheat Agreement was revised in 1995 and constituted as a new legal instrument, the Grains Trade Convention. The EU signed the Convention in 1995,15 at which point the UK’s participation in the ICG continued by virtue of its membership of the EU.
22.The Convention’s objectives include furthering international cooperation in all aspects of trade in grains and improving transparency to enhance grain market stability and world food security.
23.The Government’s Explanatory Memorandum states that the UK would seek to become a party to the Convention as soon as possible after its withdrawal from the EU. Independent membership of the Convention will cost approximately £25,000 per annum.
24.The Government highlights that the UK is the host state of the IGC, and that both the UK grain industry and wider economy benefit from the employment opportunities and economic activities that this provides. It points to the risk that the IGC could move its headquarters to another country if the UK does not remain a member of the organisation. This appears to be a small risk, however, as the accession procedure means there should not be a significant gap in UK membership.
25.We report the Grains Trade Convention for information.
International Sugar Agreement, 1992 (CP 157, 2019)16
26.The International Sugar Agreement (ISA) was laid on 18 July 2019; at the time of writing, given the likely prorogation of Parliament, it is unclear when the scrutiny period of 21 sitting days will end. It was considered by the EU Energy and Environment Sub-Committee on 4 September 2019.
27.The International Sugar Agreement 1968 established the International Sugar Organisation (ISO) with its headquarters in London and with the UK as a member state. The European Union joined the ISO in 1992,17 at which point the ISA was revised, and the UK’s membership of the ISO continued by virtue of its membership of the EU.
28.The ISO is responsible for facilitating international cooperation in the trade of sugar. It provides a forum for intergovernmental consultations on sugar, and provides information and research on the global sugar market.
29.The Government’s Explanatory Memorandum states that the UK would seek to become a party to the Agreement as soon as possible after its withdrawal from the EU. Independent membership of the Convention will cost approximately £38,000 per annum.
30.The EM highlights the UK’s “active interest” in maintaining the ISO’s presence in London, noting that both the UK sugar industry and wider economy benefit from the employment opportunities and economic activities that the ISO brings. It points to the risk that the ISO could move its headquarters to another country if the UK does not remain a member of the organisation. This appears to be a small risk, however, as the accession procedure means there should not be a significant gap in UK membership.
31.We report the International Sugar Agreement for information.
International Coffee Agreement, 2007 (CP 155, 2019)18
32.The International Coffee Agreement was laid on 18 July 2019; at the time of writing, given the likely prorogation of Parliament, it is unclear when the scrutiny period of 21 sitting days will end. It was considered by the EU Energy and Environment Sub-Committee on 4 September 2019.
33.The International Coffee Agreement (ICA) 1962 established the International Coffee Organisation (ICO) with its headquarters in London and with the UK as a member state. The European Union joined the ICO in 2007,19 at which point the ICA was revised, and the UK’s membership of the ICO continued by virtue of its membership of the EU. The ICO aims to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment for the betterment of all participants in the sector in economic, social and environmental terms. The ICO provides a forum for consultations to understand long-term trends in production and consumption, and it provides its members with publications on economic, technical and scientific information, as well as research papers on coffee matters.
34.The Government’s Explanatory Memorandum states that the UK will seek to become a party to the Agreement as soon as possible after its withdrawal from the EU. Independent membership of the Convention will cost approximately £67,000 per annum.
35.The Government highlights that the UK is the host state of the ICO, and that both the UK coffee industry and wider economy benefit from the employment opportunities and economic activities that this provides. It points to the risk that the ICO could move its headquarters to another country if the UK does not remain a member of the organisation. This appears to be a small risk, however, as the accession procedure means there should not be a significant gap in UK membership.
36.We report the International Coffee Agreement for information.
Agreement establishing the International Organisation of Vine and Wine (CP 156, 2019)20
37.The Agreement establishing the International Organisation of Vine and Wine was laid on 18 July 2019; at the time of writing, given the likely prorogation of Parliament, it is unclear when the scrutiny period of 21 sitting days will end. It was considered by the EU Energy and Environment Sub-Committee on 4 September 2019.
38.This multilateral Agreement, adopted in 2001, establishes the International Organisation of Vine and Wine (known as the OIV), which seeks to further international cooperation in the trade in and production of wine and other vine products. OIV resolutions form the basis for most global wine laws. The EU is not a member of the OIV, but as an international intergovernmental organisation has a ‘special status’, allowing it to intervene and to attend meetings; in return, the EU directly incorporates OIV resolutions into EU law, which currently binds the UK as an EU Member State. The Government is now seeking for the UK to become a Party to the OIV Agreement.21
39.Parties to the Agreement agree measures to guarantee the authenticity of vine products, harmonise regulations, monitor scientific developments with an impact on the wine sector, work to protect consumer safety and contribute to training networks.
40.Acceding to the Agreement would allow the UK to retain a role in influencing the rules that govern the trade of wine and other vine products. The Government estimates that the cost of membership to the OIV for the UK will be around £30,000 a year.
41.In the event of a ‘no deal’ Brexit, there will be a period of at least seven months during which the UK will not have access to the OIV. The Government’s EM did not clarify what impact this would have on the UK or its wine producers, but officials told us that the UK not being a member of the OIV would not affect the status quo with regard to the UK wine sector or sales. However, it would mean that the UK would not be able to engage with, or express opinions at, the OIV with regard to resolutions.
42.We report the Agreement establishing the International Organisation of Vine and Wine for information.
14 Grains Trade Convention, 1995, CP 159, 2019: https://www.gov.uk/government/publications/grains-trade-convention-1995-ms-no312019 [accessed 6 September 2019]
15 Council Decision 1996/88/EC of 19 December 1995 concerning the approval by the European Community of the Grains Trade Convention and the Food Aid Convention, constituting the International Grains Agreement 1995 (OJ L 21, 27 January 1996, pp 47–48))
16 International Sugar Agreement, 1992, CP 157, 2019: https://www.gov.uk/government/publications/international-sugar-agreement-1992-ms-no302019 [accessed 6 September 2019]
17 Council Decision 92/580/EEC of 13 November 1992 on the signing and conclusion of the International Sugar Agreement 1992 (OJ L 379, 23 December 1992, p 15)
18 International Coffee Agreement, 2007, CP 155, 2019: https://www.gov.uk/government/publications/international-coffee-agreement-2007-ms-no282019 [accessed 6 September 2019]
19 Council Decision 2008/579/EC of 16 June 2008 on the signing and conclusion on behalf of the European Community of the International Coffee Agreement 2007 (OJL 186,15 July 2008, p 12)
20 Agreement establishing the International Organisation of Vine and Wine, CP 156, 2019: https://www.gov.uk/government/publications/agreement-establishing-the-international-organisation-of-vine-and-wine-ms-no292019 [accessed 9 September 2019]
21 There is no provision within the Agreement for individual states to be granted ‘special status’ equivalent to that of the EU.