International Sugar Agreement Act 1978 (Cth)
An Act relating to the International Sugar Agreement, 1977.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
“Agreement” means the agreement known as the International Sugar Agreement, 1977, a copy of which is set out in the Schedule;
“Stock Financing Fund” means the Stock Financing Fund established under Article 49 of the Agreement.
(2) Any moneys payable by the Commonwealth to the Stock Financing Fund in accordance with Article 53 of the Agreement are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.
(a) moneys not exceeding in the aggregate the equivalent of moneys made available to the Commonwealth by way of loan from the Stock Financing Fund under Article 53 of the Agreement; and
(b) moneys not exceeding in the aggregate the equivalent of moneys made available by the International Monetary Fund for the purpose of extending assistance to Australia (in connexion with the financing of the holding of those stocks of sugar) in accordance with the arrangements for the provision of assistance by that Fund known as the buffer stock financing facility.
(2) Moneys lent to the State of Queensland under sub-section (1) shall—
(a) in the case of moneys referred to in paragraph (1)(a)—be paid out of the Loan Fund; and
(b) in the case of moneys referred to in paragraph (1)(b)—be paid out of the Consolidated Revenue Fund,
and the Loan Fund and the Consolidated Revenue Fund are appropriated accordingly.
SCHEDULE Section 3
INTERNATIONAL SUGAR AGREEMENT, 1977
CHAPTER I—OBJECTIVES
The objectives of this International Sugar Agreement (hereinafter referred to as this Agreement), in the light of the terms of resolution 93(IV) adopted by the United Nations Conference on Trade and Development (hereinafter referred to as UNCTAD) at its fourth session are as follows:
(a) To raise the level of international trade in sugar, particularly in order to increase the export earnings of developing exporting countries;
(b) To achieve stable conditions in the international trade in sugar, including avoidance of excessive price fluctuations, at price levels which would be remunerative and just to producers and equitable to consumers, and take into account,
inter alia, the effect of inflation or deflation; variations in exchange rates: the trend in the prices, consumption, production, trade and stocks of sugar and alternative sweeteners; and the influence on sugar prices of changes in the world economic situation or monetary system;(c) To provide adequate supplies of sugar to meet the requirements of importing countries at fair and reasonable prices;
SCHEDULE—continued
(d) To increase sugar consumption and in particular to promote measures to encourage consumption in countries where per capita consumption is low;
(e) To promote equilibrium between supply of, and demand for, sugar within an expanding world sugar trade;
(f) To facilitate the co-ordination of sugar marketing policies and the organization of the market;
(g) To provide for adequate participation in, and growing access to, the markets of the developed countries for sugar from the developing countries;
(h) To assess closely developments in the use of any form of substitutes for sugar, including cyclamates and other artificial sweeteners; and
(i) To further international co-operation in sugar questions.
CHAPTER II—DEFINITIONS
For the purposes of this Agreement:
(1) “Organization” means the International Sugar Organization referred to in article 3;
(2) “Council” means the International Sugar Council referred to in article 3;
(3) “Member” means—
(a) a Party to this Agreement, other than a Party with a notification under article 77, subparagraph 1(b), currently in effect, or
(b) a territory or group of territories in respect of which a notification has been made under article 77, paragraph 3;
(4) “exporting Member” means any exporting country or territory listed as such in annex V to this Agreement which becomes a Member of the Organization, or any country or territory not so listed which is given the status of an exporting Member upon accession to this Agreement or pursuant to article 6;
(5) “importing Member” means any importing country listed as such in annex V to this Agreement which becomes a Member of the Organization, or any country not so listed which is given the status of an importing Member upon accession to this Agreement or pursuant to article 6;
(6) “Fund” means the Stock Financing Fund established under article 49;
(7) “special vote” means a vote requiring at least two thirds of the votes cast by exporting Members present and voting and at least two thirds of the votes cast by importing Members present and voting, on condition that these votes are cast by at least half the number of Members present and voting;
(8) “distributed simple majority vote” means a vote requiring more than half of the total votes of exporting Members present and voting and more than half of the total votes of importing Members present and voting, on condition that these votes are cast by at least half of the number of Members in each category present and voting;
(9) “financial year” means the quota year;
(10) “quota year” means the period from 1 January to 31 December inclusive;
(11) “tonne” means a metric ton, i.e. 1,000 kilogrammes, and “pound” means a pound avoirdupois, i.e. 453.592 grammes; amounts of sugar specified in this Agreement are in terms of raw value, net weight (the raw value of any amount of sugar means its equivalent in terms of raw sugar testing 96 degrees by the polariscope);
(12) “sugar” means sugar in any of its recognized commercial forms derived from sugar cane or sugar beet, including edible and fancy molasses, syrups and any other form of liquid sugar used for human consumption, but
(a) “sugar” as defined above shall not include final molasses or low grade types of non-centrifugal sugar produced by primitive methods nor, for the purposes of establishing the level of exports under this Agreement, sugar destined for uses other than human consumption as food. The Council shall determine the conditions under
SCHEDULE—continued
which sugar shall be considered to be destined for uses other than human consumption as food;
(b) if the Council resolves that the increased use of sugar mixtures becomes a threat to the objectives of this Agreement, these mixtures shall be deemed to be sugar in respect of their sugar content. The increase in the quantity of sugar mixtures exported over the quantity exported before the entry into force of this Agreement shall, in respect of its sugar content, be charged against the quota in effect or export entitlement of the exporting Member concerned;
(13) “free market” means the total of net imports of the world market, except those resulting from the operation of the special arrangements referred to in chapter IX of this Agreement;
(14) “net imports” means total imports of sugar after deducting total exports of sugar;
(15) “net exports” means total exports of sugar (excluding sugar supplied as stores for ships victualling at domestic ports) after deducting total imports of sugar;
(16) “basic export tonnage” means the quantity established pursuant to article 34;
(17) “global quota” means the quantity specified in article 40, paragraph 2, as may be adjusted in accordance with the provisions of article 44;
(18) “quota in effect” means the quantity of sugar which a Member may export to the free market in excess of its total imports from that market during the relevant quota year, as may be established and adjusted in accordance with this Agreement;
(19) “cent” or “cents” means United States cent or cents;
(20) “daily price” means the price calculated in accordance with the provisions of article 61, paragraph 1;
(21) “prevailing price” on any market day is the average of the daily price over the immediately preceding period of 15 consecutive market days including that market day; the position of the prevailing price in relation to any specific price level is as defined in article 61, paragraph 2;
(22) “entry into force” means the date on which this Agreement enters into force provisionally or definitively, as provided in article 75;
(23) Any reference in this Agreement to a “Government invited to the United Nations Sugar Conference, 1977” shall be construed as including a reference to the European Economic Community (hereinafter referred to as the EEC); accordingly any reference in this Agreement to “signature of this Agreement” or to the “deposit of an instrument of ratification, acceptance, approval or accession” by a Government shall, in the case of the EEC, be construed as including signatures on behalf of the EEC by its competent authority and the deposit of the instrument required by the institutional procedures of the EEC to be deposited for the conclusion of an international agreement;
(24) “developing exporting Members” and “developing importing Members” are those referred to as such in annex III.
CHAPTER III—THE INTERNATIONAL SUGAR ORGANIZATION, ITS
MEMBERSHIP AND STATUS
1. The International Sugar Organization established under the International Sugar Agreement, 1968, and maintained in existence under the International Sugar Agreement, 1973, shall continue in being for the purpose of administering the present Agreement and supervising its operation, with the membership, powers and functions set out in this Agreement.
2. The headquarters of the Organization shall be in London, unless the Council decides otherwise by special vote.
3. The Organization shall function through the International Sugar Council, its Executive Committee, its Executive Director and its staff, as well as the Stock Financing Fund and such other bodies as are provided for in this Agreement.
SCHEDULE—continued
1. Each Party shall constitute a single Member of the Organization except as otherwise provided in paragraphs 2 or 3 of this article.
2. (a) When a Party makes a notification under article 77, subparagraph 1(a), declaring that this Agreement shall extend to a developing territory or territories which wish to participate in this Agreement, there may be, with the express consent and approval of those concerned, either:
(i) joint membership for that Party together with these territories; or
(ii) when that Party has made a notification under article 77, paragraph 3 separate membership, singly, all together or in groups for the territories that would individually constitute an exporting Member and separate membership for the territories that would individually constitute an importing Member.
(b) When a Party makes a notification under article 77, subparagraph 1(b) and paragraph 3, there shall be separate membership as set out in subparagraph (a)(ii) of this paragraph.
3. A Party which has made a notification under article 77, subparagraph 1(b), and has not withdrawn that notification shall not be a Member of the Organization.
1. The Organization shall have legal personality. It shall in particular have the capacity to contract, acquire and dispose of movable and immovable property and to institute legal proceedings.
2. The status, privileges and immunities of the Organization in the territory of the United Kingdom shall continue to be governed by the Headquarters Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the International Sugar Organization signed at London on 29 May 1969.
3. If the seat of the Organization is moved to a country which is a Member of the Organization, that Member shall, as soon as possible, conclude with the Organization an agreement to be approved by the Council relating to the status, privileges and immunities of the Organization, of its Executive Director, its staff and experts and of representatives of Members while in that country for the purpose of exercising their functions.
4. Unless any other taxation arrangements are implemented under the agreement envisaged in paragraph 3 of this article and pending the conclusion of that agreement, the new host Member shall:
(a) grant exemption from taxation on the remuneration paid by the Organization to its employees, except that such exemption need not apply to its own nationals; and
(b) grant exemption from taxation on the assets, income and other property of the Organization.
5. If the seat of the Organization is to be moved to a country which is not a Member of the Organization, the Council shall, before that move, obtain a written assurance from the Government of that country.
(a) that it shall, as soon as possible, conclude with the Organization an agreement as described in paragraph 3 of this article; and
(b) that, pending the conclusion of such an agreement, it shall grant the exemptions provided for in paragraph 4 of this article.
6. The Council shall endeavour to conclude the agreement described in paragraph 3 of this article with the Government of the country to which the seat of the Organization is to be moved before transferring the seat.
A Member may change its category of membership on such terms and conditions as the Council may establish in consultation with the Member concerned. In the case of an importing
SCHEDULE—continued
Member changing to the category of an exporting Member, the Council shall also, by special vote, determine the basic export tonnage or export entitlement of that Member, which shall be deemed to be listed in annex I or annex II, as appropriate.
CHAPTER IV—THE INTERNATIONAL SUGAR COUNCIL
1. The highest authority of the Organization shall be the International Sugar Council, which shall consist of all the Members of the Organization.
2. Each Member shall be represented by a representative and, if it so desires, by one or more alternates. A Member may also appoint one or more advisers to its representative or alternates.
1. The Council shall exercise all such powers and perform or arrange for the performance of all such functions as are necessary to carry out the express provisions of this Agreement.
2. The Council shall adopt, by special vote, such rules and regulations as are necessary to carry out the provisions of this Agreement and are consistent therewith, including rules of procedure for the Council, its committees, and the Fund, and the financial and staff regulations of the Organization. The Council may, in its rules of procedure, provide a procedure whereby it may, without meeting, decide specific questions.
3. The Council shall keep such records as are required to perform its functions under this Agreement and such other records as it considers appropriate.
4. The Council shall publish an annual report and such other information as it considers appropriate.
1. For each quota year the Council shall elect from among the delegations a Chairman and a Vice-Chairman, who shall not be paid by the Organization.
2. The Chairman and the Vice-Chairman shall be elected, one from among the delegations of the importing Members and the other from among those of the exporting Members. Each of these offices shall, as a general rule, alternate each quota year between the two categories of Members; provided, however, that this shall not prevent the re-election under exceptional circumstances of the Chairman or Vice-Chairman or both when the Council so decides by special vote. In the case of such re-election of either officer, the rule set out in the first sentence of this paragraph shall continue to apply.
3. In the temporary absence of both the Chairman and the Vice-Chairman or the permanent absence of one or both, the Council may elect from among the delegations new officers, temporary or permanent as appropriate, taking account of the principle of alternating representation set out in paragraph 2 of this article.
4. Neither the Chairman nor any other officer presiding at meetings of the Council shall vote. He may, however, appoint another person to exercise the voting rights of the Member which he represents.
1. As a general rule, the Council shall hold one regular session in each half of the quota year.
2. In addition to meeting in the other circumstances specifically provided for in this Agreement, the Council shall meet in special session whenever it so decides or on the request of:
(a) any five Members;
(b) Members having at least 250 votes;
(c) the Executive Committee; or
(d) the Price Review Committee.
SCHEDULE—continued
3. Notice of sessions shall be given to Members at least 30 calendar days in advance, except in case of emergency, when such notice shall be given at least 10 calendar days in advance, and except where the provisions of this Agreement prescribe a different period.
4. Sessions shall be held at the headquarters of the Organization unless the Council decides otherwise by special vote. If any Member invites the Council to meet elsewhere than at the headquarters of the Organization, and the Council agrees so to do, that Member shall pay the additional costs involved.
1. The exporting Members shall together hold 1,000 votes and the importing Members shall together hold 1,000 votes.
2. No member shall hold more than 300 votes or less than 5 votes.
3. There shall be no fractional votes.
4. The total 1,000 votes of exporting Members shall be distributed among them pro rata to the weighted average of the following factors:
| 50 per cent |
| |
| 18 per cent |
| 7 per cent |
| 25 per cent |
The figures to be used for the purposes of (b) and (c) above shall be, for each factor, the average of the best two of the three preceding years for which figures are available.
5. Votes of importing Members shall be distributed among them in proportion to their net imports from the free market and under special arrangements, calculated separately according to the following formula:
(a) Each importing Member shall have that portion of 900 votes which its average annual net imports from the free market over the preceding four years, disregarding the year of its lowest imports from the free market, bear to the total of such average imports from the free market of all importing Members;
(b) Each importing Member shall have that portion of 100 votes which its imports under special arrangements for the preceding year bear to total imports under special arrangements of all importing Members for the preceding year.
6. Votes shall be distributed at the beginning of each quota year in accordance with the provisions of this article, which distribution shall remain in effect for a full quota year except as provided in paragraph 7 of this article.
7. Whenever the membership of the Organization, the territorial composition of a Member or the composition of the free market changes, or when any Member has its voting rights suspended or recovers its voting rights under any provision of this Agreement, the Council shall redistribute the total votes within the affected category or categories of Members on the basis of the formulae in this article.
1. Each Member shall be entitled to cast the number of votes it holds under article 11. It shall not be entitled to divide such votes.
2. By informing the Chairman in writing, any exporting Member may authorize any other exporting Member, and any importing Member may authorize any other importing Member, to represent its interests and to cast its votes at any meeting or meetings of the Council. A copy of such authorizations shall be examined by any credentials committee that may be set up under the rules of procedure of the Council.
3. A Member authorized by another Member to cast the votes held by the authorizing Member under article 11 shall cast such votes as authorized and in accordance with paragraph 2 of this article.
SCHEDULE—continued
1. All decisions of the Council shall be taken and all recommendations shall be made by distributed simple majority vote, unless this Agreement provides for a special vote.
2. In arriving at the number of votes necessary for any decision of the Council, votes of Members abstaining shall not be reckoned. Where a Member avails itself of the provisions of article 12, paragraph 2, and its votes are cast at a meeting of the Council, such Member shall, for the purposes of paragraph 1 of this article, be considered as present and voting.
3. All decisions of the Council under this Agreement shall be binding upon Members.
1. The Council shall make whatever arrangements are appropriate for consultation or cooperation with the United Nations and its organs, in particular UNCTAD, and with the Food and Agriculture Organization and such other specialized agencies of the United Nations and intergovernmental organizations as may be appropriate.
2. The Council, bearing in mind the particular role of UNCTAD in international commodity trade, shall as appropriate keep UNCTAD informed of its activities and programmes of work.
3. The Council may also make whatever arrangements are appropriate for maintaining effective contact with international organizations of sugar producers, traders and manufacturers.
1. The Council may invite any non-member State to attend any of its meetings as an observer.
2. The Council may also invite any of the organizations referred to in article 14, paragraph 1, to attend any of its meetings as an observer.
The quorum for any meeting of the Council shall be the presence of more than half of all exporting Members and more than half of all importing Members, the Members thus present holding at least two thirds of the total votes of all Members in their respective categories. If there is no quorum on the day appointed for the opening of any Council session, or if in the course of any Council session there is no quorum at three successive meetings, the Council shall be convened seven days later; at that time, and throughout the remainder of that session, the quorum shall be the presence of more than half of all exporting Members and more than half of all importing Members, the Members thus present representing more than half of the total votes of all Members in their respective categories. Representation in accordance with article 12, paragraph 2, shall be considered as presence.
CHAPTER V—THE EXECUTIVE COMMITTEE
1. The Executive Committee shall consist of ten exporting Members and ten importing Members, who shall be elected for each quota year in accordance with article 18 and may be re-elected.
2. Each member of the Executive Committee shall appoint one representative and may appoint in addition one or more alternates and advisers.
3. The Executive Committee shall elect its Chairman for each quota year. He shall not have the right to vote and may be re-elected.
SCHEDULE—continued
4. The Executive Committee shall meet at the headquarters of the Organization, unless it decides otherwise. If any Member invites the Executive Committee to meet elsewhere than at the headquarters of the Organization, and the Executive Committee agrees so to do, that Member shall pay the additional costs involved.
1. The exporting and importing members of the Executive Committee shall be elected in the Council by the exporting and importing Members of the Organization respectively. The election within each category shall be held in accordance with paragraphs 2 to 7 inclusive of this article.
2. Each Member shall cast all the votes to which it is entitled under article 11 for a single candidate. A Member may cast for another candidate any votes which it exercises pursuant to article 12, paragraph 2.
3. The ten candidates receiving the largest number of votes shall be elected; however, to be elected on the first ballot a candidate must secure at least 60 votes.
4. If less than ten candidates are elected on the first ballot, further ballots shall be held in which only Members which did not vote for any of the candidates elected shall have the right to vote. In each further ballot, the minimum number of votes required for election shall be successively diminished by five until the ten candidates are elected.
5. Any Member which did not vote for any of the members elected may subsequently assign its votes to one of them, subject to paragraphs 6 and 7 of this article.
6. A member shall be deemed to have received the number of votes originally cast for it when it was elected and, in addition, the number of votes assigned to it, provided that the total number of votes shall not exceed 300 for any member elected.
7. If the votes deemed received by an elected member would otherwise exceed 300, Members which voted for or assigned their votes to such elected member shall arrange among themselves for one or more of them to withdraw their votes from that member and assign or re-assign them to another elected member so that the votes received by each elected member shall not exceed the limit of 300.
8. If a member of the Executive Committee is suspended from the exercise of its voting rights under any of the relevant provisions of this Agreement, each Member which has voted for it or assigned its votes to it in accordance with this article may, during such time as that suspension is in force, assign its votes to any other member of the Committee in its category, subject to paragraph 6 of this article.
9. If a member of the Committee ceases to be a Member of the Organization, the Members which voted for or assigned votes to it and Members which have not voted for, or assigned votes to, another member of the Committee shall, during the next session of the Council, elect a Member to fill the vacancy on the Committee. Any Member which voted for, or assigned its votes to, the member which has ceased to be a Member of the Organization and which does not vote for the Member elected to fill the vacancy on the Committee, may assign its votes to another member of the Committee, subject to paragraph 6 of this article.
10. In special circumstances, and after consultation with the member of the Executive Committee for which it voted or to which it assigned its votes in accordance with the provisions of this article, a Member may withdraw its votes from that member for the remainder of the quota year. That Member may then assign these votes to another member of the Executive Committee in its category but may not withdraw these votes from that other member for the remainder of that year. The member of the Executive Committee from which the votes have been withdrawn shall retain its seat on the Executive Committee for the remainder of that year. Any action taken pursuant to the provisions of this paragraph shall become effective after the Chairman of the Executive Committee has been informed in writing thereof.
1. The Council may, by special vote, delegate to the Executive Committee the exercise of any or all of its powers, other than the following:
(a) location of the headquarters of the Organization under article 3, paragraph 2;
SCHEDULE—continued
(b) decisions regarding change of status of Members under article 6;
(c) appointment of the Executive Director under article 22, paragraph 1, and appointment of the Manager of the Fund under article 50, paragraph 4;
(d) approval of the administrative budget and assessment of contributions under article 24, and approval of the accounts of the Fund under article 50, paragraph 2;
(e) application of article 29 to new special arrangements under paragraph 5 of that article;
(f) determination of basic export tonnages under article 34, paragraph 2;
(g) allocations of basic export tonnages under article 35, paragraph 4;
(h) establishment of the global quota under article 40;
(i) decision under article 41, paragraph 2;
(j) revision of the limitations on maximum stocks under article 48, paragraph 4;
(k) adoption of rules of procedure for the Fund under article 49, paragraph 3;
(l) adjustments of the rate of contributions, and suspension of contributions, to the Fund under article 51, paragraph 1;
(m) adjustments of the rate of lending by the Fund under article 53, paragraph 1;
(n) decisions regarding the disposition of the assets of the Fund under article 54;
(o) adjustment of price levels under article 62;
(p) relief from obligations under article 69;
(q) decision on disputes under article 70;
(r) suspension of voting and other rights of a Member under article 71, paragraph 3;
(s) accessions under article 76;
(t) exclusion of a Member from the Organization under article 80;
(u) recommendation of amendments under article 82;
(v) extension or termination of this Agreement under article 83.
2. The Council may at any time revoke any delegation of powers to the Executive Committee.
1. Each member of the Executive Committee shall be entitled to cast the number of votes received by it under article 18, and cannot divide these votes.
2. Any decisions taken by the Executive Committee shall require the same majority as that decision would require if taken by the Council.
3. Any Member shall have the right of appeal to the Council, under such conditions as the Council may prescribe in its rules of procedure, against any decision of the Executive Committee.
The quorum for any meeting of the Executive Committee shall be the presence of more than half of all exporting members of the Committee and more than half of all importing members of the Committee, the members thus present representing at least two thirds of the total votes of all members of the Committee in their respective categories.
CHAPTER VI—THE EXECUTIVE DIRECTOR AND THE STAFF
1. The Council, after having consulted the Executive Committee, shall appoint the Executive Director by special vote. The terms of appointment of the Executive Director shall be fixed by the Council in the light of those applying to corresponding officials of similar intergovernmental organizations.
SCHEDULE—continued
2. The Executive Director shall be the chief administrative officer of the Organization and shall be responsible for the performance of any duties devolving upon him in the administration of this Agreement.
3. The Executive Director shall appoint the staff in accordance with regulations established by the Council. In framing such regulations the Council shall have regard to those applying to officials of similar intergovernmental organizations.
4. Neither the Executive Director nor any member of the staff shall have any financial interest in the sugar industry or sugar trade.
5. The Executive Director and the staff shall not seek or receive instructions regarding their duties under this Agreement from any Member or from any authority external to the Organization. They shall refrain from any action which might reflect on their position as international officials responsible only to the Organization. Each member shall respect the exclusively international character of the responsibilities of the Executive Director and the staff and shall not seek to influence them in the discharge of their responsibilities.
CHAPTER VII—FINANCE
1. The expenses of delegations to the Council, representatives on the Executive Committee and representatives on any of the committees of the Council or of the Executive Committee shall be met by the Members concerned.
2. The expenses necessary for the administration of this Agreement, excluding the costs of administering the Fund, shall be met by annual contributions from Members, assessed in accordance with article 24. If, however, a Member requests special services, the Council may require that Member to pay for them.
3. Appropriate accounts shall be kept for the administration of this Agreement.
1. During the second half of each financial year, the Council shall approve the administrative budget of the Organization for the following financial year and shall assess the contribution of each Member to that Budget.
2. The contribution of each Member to the administrative budget for each financial year shall be in the proportion which the number of its votes at the time the administrative budget for that financial year is approved bears to the total votes of all Members. In assessing contributions, the votes of each Member shall be calculated without regard to the suspension of any Member’s voting rights and any redistribution of votes resulting therefrom.
3. The initial contribution of any Member joining the Organization after the entry into force of this Agreement shall be assessed by the Council on the basis of the number of votes to be held by it and the period remaining in the current financial year as well as for the following financial year if that Member joins the Organization between the adoption of the budget for, and the beginning of, that year, but assessments made upon other Members shall not be altered. In assessing contributions of Members joining the Organization after the adoption of a budget for a given quota year or years, the votes of such Members shall be calculated without regard to the suspension of any Member’s voting rights and any redistribution of votes resulting therefrom.
4. If this Agreement enters into force more than eight months before the beginning of the first full financial year of this Agreement, the Council shall at its first session approve an administrative budget covering the period up to the commencement of the first full financial year. Otherwise the first administrative budget shall cover both the initial period and the first full financial year.
5. The Council may take such measures as it might deem appropriate when adopting the budget for the first year of this Agreement and for the first year following any extension of this Agreement under article 83 in order to mitigate the effects on contributions for those years resulting from a possibly limited membership of this Agreement at the time of the adoption of budgets for those years.
SCHEDULE—continued
1. Contributions to the administrative budget for each financial year shall be payable in freely convertible currencies and shall become due on the first day of that financial year; contributions of Members in respect of the financial year in which they join the Organization shall be due on the date on which they become Members.
2. If, at the end of four months following the date on which its contribution is due in accordance with paragraph 1 of this article, a Member has not paid its full contribution to the administrative budget, the Executive Director shall request the Member to make payment as quickly as possible. If, at the expiration of two months after the request of the Executive Director, the Member has still not paid its contribution, its voting rights in the Council and in the Executive Committee shall be suspended until such time as it has made full payment of the contribution.
3. A Member whose voting rights have been suspended under paragraph 2 of this article shall not be deprived of any of its other rights or relieved of any of its obligations under this Agreement, unless the Council so decides by special vote. It shall remain liable to pay its contribution and to meet any other of its financial obligations under this Agreement.
As soon as possible after the close of each financial year, the financial statements of the Organization for that financial year, certified by an independent auditor, shall be presented to the Council for approval and publication.
CHAPTER VIII—SCOPE OF THE REGULATION OF EXPORTS
This Agreement regulates supplies of sugar to the free market and makes provision for other related matters. It takes account of the special arrangements referred to in chapter IX and allows for certain donations of sugar to be made without charge to quotas in effect or export entitlements, as referred to in article 28.
1. Donations of sugar by an exporting Member through assistance programmes of the United Nations or of any of its specialized agencies shall not be charged against the quota in effect or export entitlement of the donor Member, unless the Council decides otherwise.
2. The Council shall lay down the
conditions under which donations of sugar by an exporting Member other than
those under paragraph 1 of this article shall not be charged against the quota
in effect or export entitlement of the donor Member. These conditions shall
provide,
3. All donations of sugar by an exporting Member shall be notified promptly to the Council by the donor Member. Without prejudice to paragraphs 1 and 2 of this article, any Member which considers that any donations are causing or are likely to cause prejudice to its interests may request the Council to examine the matter. The Council shall, upon such examination, make such recommendations as it deems appropriate.
4. In its annual report, the Council shall include a report on developments concerning donations of sugar.
SCHEDULE—continued
CHAPTER IX—SPECIAL ARRANGEMENTS
1. None of the provisions of the other chapters of this Agreement shall interfere with or restrict the rights and obligations of Members under the special arrangements referred to in articles 30, 31, 32 and 33. These special arrangements shall be dealt with as provided for in those articles, subject to paragraphs 2 to 4 of this article.
2. Members recognize that the basic export tonnages and export entitlements established pursuant to articles 34 and 35 are based on the continuity and stability of the special arrangements referred to in articles 30, 31, 32 and 33. If there is any change in the membership of one or more of the special arrangements referred to in those articles and this change affects a Member or Members, or if there is any significant change in the position of one or more Members participating in one or more of these arrangements, the Council shall meet to consider appropriate compensating adjustments to the basic export tonnages or export entitlements established pursuant to articles 34 and 35 in accordance with the following provisions:
(a) Subject to subparagraphs (b), (c) and (d) of this paragraph, the basic export tonnages of the Member or Members involved shall be reduced by the full extent of any increase (or increased by, or established at a level equal to, the full extent of any reduction) in their annual export entitlements under the special arrangement or arrangements concerned, resulting from the changes in membership or position referred to above;
(b) Where compensating adjustments have been made under subparagraph (a) of this paragraph, the Council shall also establish any necessary transitional arrangements covering the year in which such changes occur;
(c) Where compensating adjustments as envisaged in subparagraphs (a) and (b) of this paragraph cannot be made to the basic export tonnages established pursuant to article 34, because the changes in membership or position in the special arrangements referred to above involve a major structural change in the sugar market or a significant change in the position of any major supplier or suppliers under any such special arrangement, the Council shall make recommendations to Members for an amendment of this Agreement under the provisions of article 82 or for the immediate renegotiation of the basic export tonnages. Pending the incorporation of changes in basic export tonnages resulting from such amendment or renegotiation, the changes in, or establishment of, basic export tonnages shall be applied on a provisional basis;
(d) Any Member or Members not satisfied with the results of the renegotiation under subparagraph (c) of this paragraph may withdraw from this Agreement in accordance with the provisions of article 79.
3. Members which participate in the special arrangements referred to in article 30 shall arrange for the Council to be informed of the details of those arrangements, of the amounts of sugar to be imported or exported under them in each year of this Agreement, and of any change in the nature of those arrangements within 30 days of its occurrence.
4. Members participating in any of the special arrangements mentioned in this chapter shall conduct their sugar trade within those arrangements in a manner which shall not prejudice the objectives of this Agreement. Where special arrangements involve re-exports of sugar to the free market, Members participating in such arrangements shall take such measures as they deem appropriate to ensure that, in those cases where there are no quantitative provisions in the relevant articles of this Agreement relating to such re-exports, any increase of trade under those arrangements over and above the quantities annually traded before the entry into force of this Agreement does not result in an increase of re-exports to the free market.
5. At the request of the Members concerned, the Council may, by special vote, apply the provisions of this article to special arrangements established after the entry into force of this Agreement. The basic export tonnages of the Member or Members involved shall be automatically reduced by the full extent of their annual export entitlements under the special arrangement or arrangements concerned.
SCHEDULE—continued
Exports to the EEC under the terms of the Lomé Convention of 1975, the decision of the Council of the EEC of 29 June 1975 relating to the association of overseas countries and territories with the EEC, and the Agreement of 19 July 1975 between the EEC and India, up to the amounts covered by those acts and agreements as may be adjusted under the provisions of those acts and agreements, shall not be charged against the quotas in effect or export entitlements of the Members concerned under chapter X.
1. Exports by Cuba to the following socialist countries shall not be charged against its quota in effect under chapter X: Bulgaria, Czechoslovakia, the German Democratic Republic, Hungary, Mongolia, Poland, Romania and the Union of Soviet Socialist Republics.
2. Exports by Cuba to Albania, China, the Democratic People’s Republic of Korea, Viet Nam and Yugoslavia up to a total of 650,000 tonnes in each of the first two quota years of this Agreement shall not be charged against its quota in effect under chapter X in those years. The quantity up to which Cuba’s exports to those countries will not be charged against Cuba’s quota in effect in the third, fourth and fifth quota years shall be determined by the Council in the first quarter of the third quota year in the light of performance during the first two quota years. Such quantity as may be exported to these countries in the first two quota years in excess of an annual total of 650,000 tonnes shall be used for the purposes either of determining the relevant quantity for the third, fourth and fifth quota years or of establishing Cuba’s basic export tonnage for these years under article 34, paragraph 2, but not for both purposes.
1. Without prejudice to article 31, all imports by the Union of Soviet Socialist Republics from all origins shall be taken into account and shall therefore give the USSR the status of an importing Member.
2. Without prejudice to its status as established in this article, the USSR shall undertake to limit its total exports of sugar to the free market in each of the first two quota years of this Agreement to 500,000 tonnes.
3. The quantity specified in paragraph 2 of this article and the tonnages to be subsequently established for the following quota years under paragraph 6 of this article shall not include exports by the USSR to any of the countries referred to in article 31, paragraphs 1 and 2.
4. Exports by the USSR under this article shall not be subject to any reduction under chapter X.
5. The USSR shall not be bound by this article during any period when, by virtue of article 44, paragraph 4, quotas and other limitations on exports are inoperative.
6. When considering basic export tonnages for the third, fourth and fifth quota years under article 34, paragraph 2, the Council shall, in agreement with the USSR, establish the tonnages for the USSR’s exports for those years.
1. The German Democratic Republic shall undertake on becoming an importing Member to limit its total exports of sugar to the free market in each of the first two quota years of this Agreement to 75,000 tonnes.
2. Exports by the German Democratic Republic under this article shall not be subject to any reduction under chapter X.
3. The German Democratic Republic shall not be bound by this article during any period when, by virtue of article 44, paragraph 4, quotas and other limitations on exports are inoperative.
SCHEDULE—continued
4. When considering basic export tonnages for the third, fourth and fifth quota years under article 34, paragraph 2, the Council shall, in agreement with the German Democratic Republic, establish the tonnages for the German Democratic Republic’s exports for those years.
CHAPTER X—REGULATION OF EXPORTS
1. The exporting countries listed in annex I shall, upon becoming Members, have the basic export tonnages for each of the first two quota years of this Agreement as specified therein, subject to article 76, subparagraph 2(b) and paragraph 3.
2. (a) In the first quarter of the third quota year, the basic export tonnages specified in annex I shall be renegotiated. In that renegotiation account shall be taken of:
(i) the assessment of the free market for the relevant period and the proportion of that market available to exporting Members with basic export tonnages;
(ii) the basic export tonnages of Members as specified in annex I;
(iii) export performance and fulfilment of quota and stock obligations during the first two quota years based on statistics satisfactory to the Council. For this purpose the exporting Members concerned undertake to supply to the Council statistics on their production, consumption, exports and imports for the quota year 1979 not later than 15 February 1980;
(iv) cases where the Council has accepted by special vote that
force majeure or other special circumstances affected export performance or the fulfilment of obligations under this Agreement;(v) the role of sugar in the economy, dependence upon the free market and the special position of small developing Members whose export earnings are heavily dependent upon the export of sugar;
(vi) realized expansion projects by developing exporting Members with basic export tonnages not exceeding 300,000 tonnes or listed in annex II which have been registered in detail by the Members concerned with the Executive Director upon entry into force of this Agreement as committed projects of major significance for the economies of the countries concerned;
(vii) any other relevant factors.
(b) The purpose of the renegotiation shall be to establish revised basic export tonnages acceptable to Members. Upon completion of the renegotiation the Council may determine by special vote, which shall include in this instance the affirmative votes of at least two thirds of the exporting Members present and voting, the revised basic export tonnages for each of the third, fourth and fifth quota years.
(c) In the event that the Council has not established revised basic export tonnages for a particular quota year by the process set forth in subparagraph (b) of this paragraph before the end of the first quarter of that year, the basic export tonnage for each Member listed in annex I shall be determined in accordance with the following formula:
(i) for the third quota year, 50 per cent of its basic export tonnage and 50 per cent of its average relative export performance during 1978 and 1979;
(ii) for the fourth quota year, the average of its relative export performance during 1978, 1979 and 1980, excluding the year of its lowest relative export performance;
(iii) for the fifth quota year, the average of its relative export performance in 1979, 1980 and 1981, excluding the year of its lowest relative export performance.
SCHEDULE—continued
(d) Relative export performance for each quota year shall mean, for each Member subject to the formula in subparagraph (c) of this paragraph, its net exports to the free market, less any excess beyond the tolerance in article 45, paragraph 2, and less the amount of any deficit in its stock obligations under article 46, divided by the aggregate of such net exports as so adjusted for that quota year for all Members subject to the formula, and multiplied by the aggregate of their basic export tonnages including any allocations under article 39 for the previous quota year. In cases where the Council has accepted by special vote that a Member’s net exports to the free market were affected by
force majeure or other special circumstances, that Member’s net exports shall be adjusted to the extent so accepted by the Council. Similarly, in cases where the Council has for similar reasons granted temporary relief of stock obligations, the relief so granted shall not be treated as a deficit.(e) A Member which, in each of the previous quota years, has fulfilled its quota in effect without incurring any shortfall, whether declared or not, and has taken up its full share of any redistributed shortfalls up to the level of its basic export tonnage, and which has exported to the free market the full amount of its basic export tonnage in any quota year in which quotas were suspended at least six months before the end of that year and has not, in any quota year, been in default of its stock obligations, shall not, as a result of the application of the formula in subparagraph (c) of this paragraph, receive a lower basic export tonnage than its basic export tonnage in the immediately preceding quota year.
(f) The basic export tonnage assigned to a Member acceding to this Agreement after the first quota year, or assigned to a Member pursuant to article 35 shall not be reduced as a result of the application of the formula in subparagraph (c) of this paragraph, unless such Member has had a basic export tonnage for the entire applicable quota years on which the pertinent part of the formula is based.
(g) The following procedure shall apply for each developing exporting Member with an initial basic export tonnage of 300,000 tonnes or less with any realized expansion project involving investment in agricultural development and increased milling capacity resulting in additional sugar production for the free market in excess of 10,000 tonnes which has been registered in detail with the Executive Director upon entry into force of this Agreement as a committed project of major significance for the economy of the country concerned and which was subject to verification by the Council within three months of the entry into force of this Agreement. There shall be added to the basic export tonnage established under subparagraphs (c) (i), (ii) and (iii) of this paragraph, as appropriate, an amount of 80 per cent of any unexportable surplus arising from such a project at the beginning of the relevant quota year. By unexportable surplus is meant that quantity of sugar which is held in stock at 31 December over and above domestic consumption requirements, the full stock obligation under article 46, and any quantities due to be shipped under special arrangements, excluding any stocks held in breach of article 48, which surplus could not be exported against quotas in effect, provided that:
(i) the unexportable surplus shall be subject to verification according to such rules and procedures as may be established by the Council;
(ii) the Member in question has met all the conditions set out in sub-paragraph (e) of this paragraph;
(iii) the aggregate of such additions does not exceed 200,000 tonnes in each of the quota years 1980, 1981 and 1982. In the event of any excess the individual additions shall be reviewed and reduced to the extent necessary by the Committee established under article 39, paragraph 1, in accordance with the principles and procedures in that article and taking into account any allocations already made under article 39 to the Member concerned;
(iv) the residual amount of the unexportable surplus shall not be taken into account in subsequent quota years.
SCHEDULE—continued
3. Notwithstanding paragraph 1 of this article, Colombia’s situation shall be taken into account during the negotiations referred to in paragraph 2 of this article, at which time Colombia shall be provided with a basic export tonnage commensurate with its production and domestic consumption.
1. Each exporting Member listed in annex II shall, in each quota year, have an export entitlement to the free market of 70,000 tonnes which shall not be subject to any adjustment under this chapter.
2. Each Member referred to in paragraph 1 of this article shall inform the Council at least 45 calendar days before the beginning of a quota year of the amounts of sugar it expects to have available for export to the free market within its export entitlement in that quota year. In addition, each such Member shall notify the Council of any change in its expected exports as provided for in article 42. Any such Member which fails to comply with the notification procedure in this paragraph shall have its voting rights suspended for the relevant quota year.
3. The Members referred to in paragraph 1 of this article shall not be subject to the obligations to hold special stocks under article 46. They shall, however, be entitled to hold such stocks up to the quantity, and under the conditions, referred to in paragraph 1 of that article.
4. Any Member referred to in paragraph 1 of this article which considers that, in the light of the development of its production, it should be authorized to export to the free market more than 70,000 tonnes in any quota year, may request the Council to allocate to it a basic export tonnage in excess of that entitlement. If and when the Council by special vote accedes to the request by allocating to that Member such basic export tonnage as it considers appropriate, that Member shall be deemed to be listed in annex I and shall become subject to all the provisions of this Agreement applicable to the Members listed in that annex.
1. All imports by Czechoslovakia, Hungary, Poland and Romania, except those under article 31, shall be deducted from those Members’ total exports when calculating their net exports to the free market.
2. Transfers of sugar within the East African Community by any one of the Partner States of the Community of up to a total amount of 10,000 tonnes shall not be charged against its export entitlement in the relevant quota year; this amount shall not be subject to any adjustments under this chapter.
3. Sugar exported to the members of the Caribbean Community which do not produce sugar (namely, Antigua, Dominica, Grenada, Montserrat, St Lucia and St Vincent) by Barbados, Belize, Jamaica, Guyana, St Kitts—Nevis—Anguilla and Trinidad and Tobago shall not be charged against their quotas in effect or export entitlements in the relevant quota year, provided that the total amount of sugar traded within the Community does not exceed 20,000 tonnes within any one quota year. The exporting Members concerned undertake to inform the Council before the beginning of each quota year of the amount of sugar they intend to export to the other members of the Caribbean Community.
1. The fact that one of the land-locked developing exporting Members has not used all of its quota in effect or export entitlement, as appropriate, in one or more quota years shall not be a ground for considering that it has not fulfilled its obligations under this Agreement, thereby incurring the cancellation of its entitlement in the renegotiation provided for in article 34, paragraph 2.
2. In view of the fact that sugar exports of land-locked developing countries are hampered and burdened by the additional cost of transport to seaports, the Council shall consider, in consultation with UNCTAD, in what manner land-locked developing exporting Members might best benefit from the special fund for the land-locked developing countries established by General Assembly resolution 3504 (XXX) of 15 December 1975, up to the maximum such Members are entitled to export.
SCHEDULE—continued
A developing importing Member may, after due notification to the Council before the beginning of a quota year, export sugar in quantities exceeding its imports, provided that, by the end of that quota year, its net exports do not exceed 10,000 tonnes. Such entitlement shall not be considered as a basic export tonnage and shall not be subject to any adjustments under this chapter. The Members concerned shall, however, comply with such conditions as may be prescribed by the Council in respect of exports by exporting Members.
24 | |
Sri Lanka........................................................................................................................ | 5 |
SCHEDULE—continued
Sweden........................................................................................................................... | 6 |
Switzerland..................................................................................................................... | 14 |
Syrian Arab Republic..................................................................................................... | 13 |
Tunisia............................................................................................................................ | 11 |
Union of Soviet Socialist Republics............................................................................... | 105 |
United States of America................................................................................................ | 297 |
Upper Volta.................................................................................................................... | 5 |
Yugoslavia...................................................................................................................... | 11 |
Zaire................................................................................................................................ | 5 |
| 1,000 |
(
0
0
0