The Committee on International Trade adopted the report by Fernando RUAS (EPP, PT) on the draft Council decision on the accession of the European Union to the International Cotton Advisory Committee (ICAC).

The committee recommended the European Parliament to give its consent to the conclusion of the Agreement.

As a reminder, the International Cotton Advisory Committee (ICAC) assists governments in promoting a sound and better informed world cotton economy by improving transparency in world cotton market, raising awareness for new challenges or problems, fostering international cooperation, gathering statistical data, providing technical information and forecasts.

Convinced that it is in the best interests of the EU as a whole to accede to the ICAC, the committee urged the European Parliament to support EU accession to this international body in order to give the EU an active role in within the ICAC.

Members recalled that in Parliament’s resolution of 14 March 2013 on sustainability in the global cotton value chain, Parliament underlined the need work together through the ICAC in order drastically to minimise environmental degradation, including water footprints and the use of pesticides and insecticides.

Members also called on the Commission to improve transparency measures, in particular with a view to reacting to excessive price volatility and ensuring that the voices of European cotton growers, ginners, traders and researchers are heard.

They, therefore, called on Parliament to accede to the ICAC.

PURPOSE: to allow the EU to accede to the International Cotton Advisory Committee (ICAC).

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: the Council may only adopt the act if Parliament has approved it.

BACKGROUND: the International Cotton Advisory Committee (ICAC) is the International Commodity Body (ICB) for cotton. Its mission is to assist governments in fostering a healthy world cotton economy. ICAC acts as a statistical observer and brings together producing, consuming, and trading countries and all segments of the cotton industry. It has an overall facilitating role. To date, the ICAC is one of the few ICBs1 where the European Union is not a member, whereas nine Member States have been members of the ICAC in their own right (Belgium, Germany, Greece, Finland, France, Italy, Netherlands, Poland and Spain).

Membership of ICAC is in the interest of the Union, owing to the significance of cotton to the Union's economy.

On various occasions (namely in its conclusions of 2004, 2008 and 2010), the Council of the European Union has requested the European Commission to consider EU membership of ICAC. It authorised the Commission in 2013 to negotiate, on behalf of the European Union and on the basis of negotiating directives, the accession of the Union to ICAC.

CONTENT: with this draft decision, the Council is called upon to permit the EU to accede to the International Cotton Advisory Committee, on behalf of the Union. The Union will pay a contribution in line with the ICAC Rules and Regulations.

BUDGETARY IMPLICATIONS: ICAC membership is based on the payment of an annual contribution. It is calculated on an annual basis as a function of the number of ICAC's members (fixed part) and the volume of raw cotton traded by each member (variable part). A first contribution of maximum EUR 400 000 would be required, which will give the EU an appropriate influence in ICAC affairs and allow broad EU involvement in ICAC's activities.

PURPOSE: to allow the EU to accede to the International Cotton Advisory Committee (ICAC).

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: the European Union is a member of a number of international commodity bodies, but it is not a member of the International Cotton Advisory Committee (ICAC).

On 27 April 2004, 27 May 2008 and 10 May 2010 the Council, in its Conclusions on the EU Action Plan on agricultural commodity chains, dependency and poverty, on the EU-Africa Partnership in support of cotton-sector development and on enhancing Union action in the area of commodities, respectively, invited the Commission to consider Union membership of the ICAC.

On 16 September 2013, the Council authorised the Commission to negotiate, on behalf of the Union, the accession of the Union to the ICAC, stating that membership of the ICAC is in the interest of the Union, owing to the significance of cotton to the Union’s agricultural and industrial economy and trade businesses. Cotton is also an important area for European development cooperation, the Union remaining one of the main donors to the African cotton sector.

Therefore, the EU should therefore accede to the ICAC and this is the aim of this proposal.

CONTENT: with this proposed Decision, the Council is called on to allow the EU to accede to the International Cotton Advisory Committee on behalf of the Union.

The Union will pay a contribution in accordance with the ICAC Rules and Regulations.

For further details, please refer to the summary of the initial legislative Commission proposal from 15.11.2016.

PURPOSE: to allow the EU to accede to the International Cotton Advisory Committee (ICAC).

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: the Council may only adopt the act if Parliament has approved it.

BACKGROUND: the International Cotton Advisory Committee (ICAC) is the International Commodity Body (ICB) for cotton. Its mission is to assist governments in fostering a healthy world cotton economy. ICAC acts as a statistical observer and brings together producing, consuming, and trading countries and all segments of the cotton industry. It has an overall facilitating role. To date, the ICAC is one of the few ICBs1 where the European Union is not a member, whereas nine Member States have been members of the ICAC in their own right (Belgium, Germany, Greece, Finland, France, Italy, Netherlands, Poland and Spain).

Membership of ICAC is in the interest of the Union, owing to the significance of cotton to the Union's economy.

On various occasions (namely in its conclusions of 2004, 2008 and 2010), the Council of the European Union has requested the European Commission to consider EU membership of ICAC. It authorised the Commission in 2013 to negotiate, on behalf of the European Union and on the basis of negotiating directives, the accession of the Union to ICAC.

CONTENT: with this draft decision, the Council is called upon to permit the EU to accede to the International Cotton Advisory Committee, on behalf of the Union. The Union will pay a contribution in line with the ICAC Rules and Regulations.

BUDGETARY IMPLICATIONS: ICAC membership is based on the payment of an annual contribution. It is calculated on an annual basis as a function of the number of ICAC's members (fixed part) and the volume of raw cotton traded by each member (variable part). A first contribution of maximum EUR 400 000 would be required, which will give the EU an appropriate influence in ICAC affairs and allow broad EU involvement in ICAC's activities.