INTERNATIONAL SUGAR AGREEMENT, 1987

CHAPTER I OBJECTIVES Article 1 Objectives The objectives of the International Sugar Agreement, 1987 (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, are:

(a) to further international cooperation in connection with world sugar matters and related issues;

(b) to provide an appropriate framework for the preparation of a possible new international sugar agreement with economic provisions;

(c) to encourage the consumption of sugar;

(d) to facilitate trade by collecting and providing information on the world sugar market and other sweeteners.

CHAPTER II DEFINITIONS Article 2 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);

3. ´Member' means a Party to this Agreement;

4. ´exporting member' means any Member which is listed in Annex A to this Agreement, or which is given the status of an exporting member upon accession to this Agreement or upon change of category under Article 4 (3);

5. ´importing member' means any member which is listed in Annex B to this Agreement, or which is given the status of an importing member upon accession to this Agreement or upon any change of category under Article 4 (3);

6. ´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 of the number of members in each category present and voting;

7. ´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;

8. ´year' means the calendar year;

9. ´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 does not include final molasses or low-grade types of non-centrifugal sugar produced by primitive methods or sugar destined for uses other than human consumption as food;

10. ´entry into force' means the date on which this Agreement enters into force provisionally or definitively, as provided for in Article 39;

11. ´free market' means the total of net imports of the world market, except those resulting from the operation of special arrangements as defined in Chapter IX of the International Sugar Agreement, 1977;

12. ´world market' means the international sugar market and includes both sugar traded on the free market and sugar traded under special arrangements as defined in Chapter IX of the International Sugar Agreement, 1977.

CHAPTER III INTERNATIONAL SUGAR ORGANIZATION Article 3 Continuation, headquarters and structure of the International Sugar Organization 1. The International Sugar Organization established under the International Sugar Agreement, 1968, and maintained in existence under the International Sugar Agreements 1973, 1977 and 1984, shall continue in being for the purpose of administering this 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 and its Executive Director and staff.

Article 4 Membership of the Organization 1. Each Party to this Agreement shall be a Member of the Organization.

2. There shall be two categories of members of the Organization, namely:

(a) exporting members; and (b) importing members.

3. A Member may change its category of membership on such conditions as the Council may establish.

Article 5 Membership by intergovernmental organizations Any reference in this Agreement to a ´government' or ´governments' shall be construed as including the European Economic Community and any other intergovernmental organization having responsibilities in respect of the negotiation, conclusion and application of international agreements, in particular commodity agreements. Accordingly, any reference in this Agreement to signature, ratification, acceptance or approval, or to notification of provisional application or to accession shall, in the case of such intergovernmental organizations, be construed as including a reference to signature, ratification, acceptance, or approval, or to notification of provisional application, or to accession, by such intergovernmental organizations.

Article 6 Privileges and immunities 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, with such amendments as may be necessary for the proper functioning of this Agreement.

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, 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.

CHAPTER IV INTERNATIONAL SUGAR COUNCIL Article 7 Composition of 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 have one representative in the Council, and if it so desires, one or more alternates. Furthermore, a member may appoint one or more advisers to its representatives or alternates.

Article 8 Powers and functions of the Council 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 provisions of this Agreement and to pursue the liquidation of the Stock Financing Fund established under Article 49 of the International Sugar Agreement, 1977, as delegated by the Council under that Agreement to the Council under the International Sugar Agreement, 1984, pursuant to Article 8 (1), of the latter.

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 and its committees, 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 and annual report and such other information as it considers appropriate.

Article 9 Chairman and vice-chairman of the Council 1. For each 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 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 absence of the chairman, the duties of the post shall be carried out by the vice-chairman. 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 general rule 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. They may, however, appoint another person to exercise the voting rights of the member which they represent.

Article 10 Sessions of the Council 1. As a general rule, the Council shall hold one regular session in each half of the year.

2. In addition, the Council shall meet in special session whenever it so decides or at the request of:

(a) any five members;

(b) two or more members holding collectively 250 votes or more under Article 11; or (c) the Executive Committee.

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.

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 to do so, that member shall pay the additional costs involved.

Article 11 Votes 1. For the purposes of voting under this Agreement, members shall hold a total of 2 000 votes, the exporting members holding together 1 000 votes and the importing members holding together 1 000 votes.

2. Members' shares of the total votes in their categories in paragraph 1 of this article shall be calculated as follows:

(a) Exporting members:

In the same proportion as the number of their votes in Annex A bears to the total number of votes of countries in that Annex which are members.

(b) Importing members:

i(i) for the first year, on the basis of the same criterion as in subparagraph (a) above, in respect of the votes in Annex B;

(ii) for subsequent years, on the basis of the criteria in Article 24 (3) (b).

3. There shall be no fractional votes. No member shall have fewer than five votes or more than 285 votes.

4. Whenever a member has its voting rights suspended under any provision of this Agreement, its votes shall be distributed among the other members in its category according to their shares as established under paragraph 2 of this Article. The same procedure shall apply when the member recovers its voting rights, the member concerned being included in the distribution.

Article 12 Voting procedure of the Council 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.

Article 13 Decisions of the Council 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 and those members shall not be considered as ´voting' for the purposes of Article 2, definition 6 or definition 7, as the case may be. Where a member avails itself of the provisions of Article 12, 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.

Article 14 Cooperation with other organizations 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.

Article 15 Admission of observers 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 (1), to attend any of its meetings as an observer.

Article 16 Quorum for the Council 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 under Article 11. 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 under Article 11. Representation in accordance with Article 12 (2), shall be considered as presence.

CHAPTER V EXECUTIVE COMMITTEE Article 17 Composition of the Executive Committee 1. The Executive Committee shall consist of 10 exporting members and 10 importing members, who shall be elected for each 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 year. He shall not have the right to vote and may be re-elected.

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 to do so, that member shall pay the additional costs involved.

Article 18 Election of the Executive Committee 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 (2).

3. The 10 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 fewer than 10 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 10 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 reassign 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 vote 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 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.

Article 19 Delegation of powers by the Council to the Executive Committee 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 (2);

(b) appointment of the Executive Director and any senior official under Article 22;

(c) adoption of the administrative budget and assessment of contributions under Article 24;

(d) any request to the Secretary-General of UNCTAD to convene a negotiating conference under Article 32 (2);

(e) decision on disputes under Article 33;

(f) suspension of voting and other rights of a member under Article 34 (3);

(g) exclusion of a member from the Organization under Article 42;

(h) recommendation of an amendment under Article 44;

(i) extension or termination of this Agreement under Article 45.

2. The Council may at any time revoke the delegation of any power to the Executive Committee.

Article 20 Voting procedure and decisions of 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 decision 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.

Article 21 Quorum for 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 EXECUTIVE DIRECTOR AND STAFF Article 22 Executive Director and 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.

2. The Executive Director shall be the chief administrative officer of the Organization and shall be responsible for the performance of the duties devolving upon him in the administration of this Agreement.

3. The Council, after consulting the Executive Director, shall by special vote appoint any senior official on such terms as it shall determine.

4. The Executive Director shall appoint other members of the staff in accordance with regulations and decisions of the Council.

5. The Council, in accordance with Article 8, shall adopt rules and regulations embodying the fundamental conditions of service and the basic rights, duties and obligations of all members of the secretariat.

6. Neither the Executive Director nor any member of the staff shall have any financial interest in the sugar industry or sugar trade.

7. Neither the Executive Director nor any member of the staff shall 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 staff and shall not seek to influence them in the discharge of their responsibilities.

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3. 3. 88 Official Journal of the European Communities CHAPTER VII FINANCE Article 23 Expenses 1. The expenses of delegations to the Council, the Executive Committee or 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 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.

Article 24 Adoption of the administrative budget and contribution of members 1. For the purposes of this article, members shall hold 2 000 votes, distributed as provided in Article 11 (1).

2. However, as an exceptional measure for the first three years of this Agreement, exporting members shall hold 1 150 votes and importing members 850 votes, based on the destribution specified in Annexes C and D, respectively. This special distribution of votes between the two categories of members shall also apply for any period of extension under Article 44 (2), unless the Council decides otherwise by special vote.

3. At the time of entry into force of this Agreement, whenever there is a change of membership and at the time of adoption of the administrative budget, the secretariat shall calculate the votes of individual members as follows:

(a) Exporting members:

ii(i) each exporting member shall hold the number of votes specified in Annex C, which shall be adjusted as provided in subparagraph (c) below;

i(ii) no exporting member shall hold more than 260 votes or fewer than six votes;

(iii) the votes of exporting members with six votes in Annex C shall not be subject to any adjustment under this Article;

(iv) votes involved in any change of membership in the category of exporting members shall also be apportioned as provided in subparagraph (c) below;

(b) Importing members:

ii(i) for the first year of this Agreement, each importing member shall hold the number of votes specified in Annex D, which shall be adjusted as provided in subparagraph (c) below;

i(ii) in subsequent years, the total votes held by importing members shall be distributed among them on the basis of the average of their net imports of sugar for the preceding four years for which figures are available, disregarding the year of their lowest net imports and weighted as follows:

- free market: 67 %;

- world market: 33 %;

(iii) the number of votes held by any importing member may not be increased by more than 5 % from one year to the next as a result of distributions under subparagraph (ii) above:

(iv) no importing member shall hold more than 240 votes or fewer than six votes;

(c) Votes in Annexes C and D which are not taken up at the time of the entry into force of this Agreement shall be apportioned among individual members in the relevant category or categories in the proportion that the number of their votes in the relevant Annex bears to the total number of votes of countries in that Annex which are Members;

(d) There shall be no fractional votes.

4. The provisions of Article 25 (2), and Article 34 (3) (a), relating to the suspension of voting rights for non-fulfilment of obligations, shall not apply to this Article.

5. During the second half of each year, the Council shall adopt the administrative budget of the Organization for the following year and shall determine the per vote contribution of members required to meet that budget.

6. The contribution of each member to the administrative budget shall be calculated by multiplying the per vote contribution by the number of votes held by it under this Article, as follows:

(a) for those which are members at the time of the final adoption of the administrative budget, the number of votes which they then hold; and (b) for those which become members after the adoption of the administrative budget, the number of votes which they receive at the time of taking up membership, adjusted in proportion to the remainder of the period covered by the budget or budgets; assessments made upon other members shall not be altered.

7. If this Agreement enters into force more than eight months before the beginning of its first full year, the Council shall at its first session adopt an administrative budget covering the period up to the commencement of the first full year. Otherwise, the first administrative budget shall cover both the initial period and the first full year.

8. The Council may, by special vote, take such measures as it might deem appropriate in order to mitigate the effects on members' contributions resulting from a possibly limited membership at the time of the adoption of the administrative budget for the first year of this Agreement or from any major decrease of membership thereafter.

Article 25 Payment of contributions 1. Members shall pay their contributions to the administrative budget for each year in accordance with their respective constitutional procedures. Contributions to the administrative budget for each year shall be payable in freely convertible currencies and shall become due on the first day of that year; members' contributions in respect of the 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.

Article 26 Audit and publication of accounts As soon as possible after the close of each year, the financial statements of the Organization for that year, certified by an independent auditor, shall be presented to the Council for approval and publication.

CHAPTER VIII GENERAL UNDERTAKINGS OF MEMBERS Article 27 Undertakings by members Members undertake to adopt such measures as are necessary to enable them to fulfil their obligations under this Agreement and to cooperate fully with one another in securing the attainment of the objectives of this Agreement.

Article 28 Labour standards Members shall ensure that fair labour standards are maintained in their respective sugar industries and, as far as possible, shall endeavour to improve the standard of living of agricultural and industrial workers in the various branches of sugar production and of growers of sugar cane and sugar beet.

Article 29 Financial liability of members Each member's financial liability to the Organization and to other members is limited to the extent of its obligations concerning contributions to the administrative budgets adopted by the Council under this Agreement.

CHAPTER IX INFORMATION AND STUDIES Article 30 Information and studies 1. The Organization shall act as a centre for the collection and publication of statistical information and studies on world production, prices, exports and imports, consumption and stocks of sugar (including both raw and refined sugar as appropriate) and other sweeteners, as well as taxes on sugar and other sweeteners.

2. Members undertake to supply within the time which may be prescribed in the rules of procedure all available statistics and information as may be identified in those rules as necessary to enable the Organization to discharge its functions under this Agreement. Should this become necessary, the Organization shall use such relevant information as may be available to it from other sources. No information shall be published by the Organization which might serve to identify the operations of persons or companies producing, processing or marketing sugar.

Article 31 Market evaluation, consumption and statistics 1. The Council shall establish a Committee on Sugar Market Evaluation, Consumption and Statistics, composed of both exporting and importing members, under the chairmanship of the Executive Director.

2. The Committee shall keep under continuous review matters relating to the world economy of sugar and other sweeteners and shall apprise members of the outcome of its deliberations, for which purpose it shall hold meetings, normally every 90 days. In its review, the Committee shall take account of all relevant information gathered by the Organization pursuant to Article 30.

3. The Committee shall study, inter alia, the following:

(a) market behaviour and factors which affect it, with special reference to participation of developing countries in world trade;

(b) the effects of the use of any form of substitutes for sugar, including both natural and artificial sweeteners, on world trade in, and consumption of, sugar;

(c) the relative tax treatment of sugar and other sweeteners or raw materials for the production of the latter;

(d) the effects on the consumption of sugar in different countries of ii(i) taxation and restrictive measures,

i(ii) economic conditions and, in particular, balance of payments difficulties, and (iii) climatic and other conditions;

(e) means of promoting consumption, particularly in countries where per capita consumption is low;

(f) ways and means of cooperating with agencies concerned with the expansion of consumption of sugar and related foodstuffs;

(g) research into new uses of sugar, its by-products and the plants from which it is derived;

and shall submit reports to the Council.

CHAPTER X PREPARATIONS FOR A NEW AGREEMENT Article 32 Preparations for a new agreement 1. The Council may study the bases and framework of a new international sugar agreement with economic provisions and report to the members and make such recommendations as it deems appropriate.

2. The Council may, as soon as it considers appropriate, request the Secretary-General of UNCTAD to convene a negotiating conference.

CHAPTER XI DISPUTES AND COMPLAINTS Article 33 Disputes 1. Any dispute concerning the interpretation or application of this Agreement which is not settled among the members involved shall, at the request of any member party to the dispute, be referred to the Council for decision.

2. In any case where a dispute has been referred to the Council under paragraph 1 of this Article, a majority of members holding not less than one-third of the total votes under Article 11 may require the Council, after discussion, to seek the opinion of an advisory panel constituted under paragraph 3 of this Article on the issue in dispute before giving its decision.

3. (a) Unless the Council decides otherwise by special vote, the panel shall consist of five persons as follows:

ii(i) two persons, one having wide experience in matters of the kind in dispute and the other having legal standing and experience, nominated by the exporting members;

i(ii) two such persons nominated by the importing members; and (iii) a chairman selected unanimously by the four persons nominated under (i) and (ii) above or, if they fail to agree, by the chairman of the Council.

(b) Nationals of members and of non-members shall be eligible to serve on the advisory panel.

(c) Persons appointed to the advisory panel shall act in their personal capacities and without instructions from any government.

(d) The expenses of the advisory panel shall be paid by the Organization.

4. The opinion of the advisory panel and the reasons therefor shall be submitted to the Council, which, after considering all the relevant information, shall decide the dispute by special vote.

Article 34 Action by the Council on complaints and on non-fulfilment of obligations by members 1. Any complaint that a member has failed to fulfil its obligations under this Agreement shall, at the request of the member making the complaint, be referred to the Council, which, subject to prior consultation with the members concerned, shall take a decision on the matter.

2. Any decision by the Council that a member is in breach of its obligations under this Agreement shall specify the nature of the breach.

3. Whenever the Council, whether as the result of a complaint or otherwise, finds that a member has committed a breach of this Agreement, it may, without prejudice to such other measures as are specifically provided for in other Articles of this Agreement, by special vote:

(a) suspend that member's voting rights in the Council and in the Executive Committee;

and, if it deems it necessary,

(b) suspend further rights of such member, including that of being eligible for, or of holding office in the Council or in any of its committees, until it has fulfilled its obligations; or, if such breach significantly impairs the operation of this Agreement,

(c) take action under Article 42.

CHAPTER XII FINAL PROVISIONS Article 35 Depositary The Secretary-General of the United Nations is hereby designated as the depositary of this Agreement.

Article 36 Signature This Agreement shall be open for signature at United Nations Headquarters from 1 November until 31 December 1987 by any government invited to the United Nations Sugar Conference, 1987.

Article 37 Ratification, acceptance and approval 1. This Agreement shall be subject to ratification,

acceptance or approval by the signatory governments in accordance with their respective constitutional procedures.

2. Instruments of ratification, acceptance or approval shall be deposited with the depositary not later than 31 December 1987. The Council may, however, grant extensions of time to signatory governments which are unable to deposit their instruments by that date.

Article 38 Notification of provisional application 1. A signatory government which intends to ratify, accept or approve this Agreement, or a government for which the Council has established conditions for accession but which has not yet been able to deposit its instrument, may, at any time, notify the depositary that it will apply this Agreement provisionally either when it enters into force in accordance with Article 39 or, if it is aiready in force, at a specified date.

2. A government which has notified under paragraph 1 of this Article that it will apply this Agreement either when it enters into force or, if it is already in force, at a specified date shall, from that time, be a provisional member until it deposits its instrument of ratification, acceptance, approval or accession and thus becomes a member.

Article 39 Entry into force 1. This Agreement shall enter into force definitively on 1 January 1988, or an any date thereafter, if by that date instruments of ratification, acceptance, approval or accession have been deposited on behalf of governments holding 50 % of the votes of the exporting countries and 50 % of the votes of the importing countries in accordance with the distribution established in Annexes A and B to this Agreement, respectively.

2. If, on 1 January 1988, this Agreement has not entered into force in accordance with paragraph 1 of this Article, it shall enter into force provisionally if by that date instruments of ratification, acceptance or approval or notifications of provisional application have been deposited on behalf of governments satisfying the percentage requirements of paragraph 1 of this Article.

3. If, on 1 January 1988, the required percentages for entry into force of this Agreement in accordance with paragraph 1 or paragraph 2 of this Article are not met, the Secretary-General of the United Nations shall invite the governments on whose behalf instruments of ratification, acceptance or approval or notifications of provisional application have been deposited to decide whether this Agreement shall enter into force definitively or provisionally among themselves, in whole or in part, on such date as they may determine. If this Agreement has entered into force provisionally in accordance with this paragraph, it shall subsequently enter into force definitively upon fulfilment of the conditions set out in paragraph 1 of this Article without the necessity of a further decision.

4. For a government on whose behalf an instrument of ratification, acceptance, approval or accession or a notification of provisional application is deposited after the entry into force of this Agreement in accordance with paragraphs 1, 2 or 3 of this Article, the instrument or notification shall take effect on the date of deposit and,

with regard to notification of provisional application, in accordance with the provisions of Article 38 (1).

Article 40 Accession This Agreement shall be open to accession by the governments of all States upon conditions established by the Council. Upon accession, the State concerned shall be deemed to be listed in the relevant Annexes to this Agreement, together with its votes as laid down in the conditions of accession. Accession shall be effected by the deposit of an instrument of accession with the depositary. Instruments of accession shall state that the government accepts all the conditions established by the Council.

Article 41 Withdrawal 1. Any Member may withdraw from this Agreement at any time after the entry into force of this Agreement by giving written notice of withdrawal to the depositary. The member shall simultaneously inform the Council of the action it has taken.

2. Withdrawal under this Article shall be effective 30 days after the receipt of the notice by the depositary.

Article 42 Exclusion If the Council finds that any member is in breach of its obligations under this Agreement and decides further that such breach significantly impairs the operation of this Agreement, it may, by special vote, exclude such member from the organization. The Council shall immediately notify the depositary of any such decision. 90 days after the date of the Council's decision that member shall cease to be a member of the Organization.

Article 43 Settlement of accounts 1. The Council shall determine any settlement of accounts which it finds equitable with a member which has withdrawn from this Agreement or which has been excluded from the Organization, or has otherwise ceased to be a Party to this Agreement. The Organization shall retain any amounts already paid by such member. Such member shall be bound to pay any amounts due from it to the Organization.

2. Upon termination of this Agreement, any member referred to in paragraph 1 of this Article shall not be entitled to any share of the proceeds of the liquidation or the other assets of the Organization; nor shall it be burdened with any part of the deficit, if any, of the Organization.

Article 44 Amendment 1. The Council may, by special vote, recommend to the members an amendment of this Agreement. The Council may fix a time after which each member shall notify the depositary of its acceptance of the amendment. The amendment shall become effective 100 days after the depositary has received notifications of acceptance from members holding at least 850 of the total votes of exporting members under Article 11 and representing at least three-quarters of all exporting members and from members holding at least 800 of the total votes of importing members under Article 11 and representing at least three-quarters of all importing members, or on such later date as the Council may have determined by special vote. The Council may fix a time within which each member shall notify the depositary of its acceptance of the amendment and, if the amendment has not become effective by such time, it shall be considered withdrawn. The Council shall provide the depositary with the information necessary to determine whether the notifications of acceptance received are sufficient to make the amendment effective.

2. Any member on behalf of which notification of acceptance of an amendment has not been made by the date on which such amendment becomes effective shall, as of that date, cease to be a Party to this Agreement, unless such member has satisfied the Council that acceptance could not be secured in time owing to difficulties in completing its constitutional procedures and the Council decides to extend for such member the period fixed for acceptance. Such member shall not be bound by the amendment before it has notified its acceptance thereof.

Article 45 Duration, extension and termination 1. This Agreement shall remain in force until 31 December 1990, unless extended under paragraph 2 of this Article or terminated earlier under paragraph 3 of this Article.

2. The Council may, by special vote extend this Agreement further on a year-to-year basis, for a maximum period of two years. Any member which does not accept any such extension of this Agreement shall so inform the Council before the beginning of the period of extension and shall cease to be a Party to this Agreement from the beginning of that period.

3. The Council may at any time decide, by special vote, to terminate this Agreement with effect from such date and subject to such conditions as it may determine.

4. Upon termination of this Agreement, the Organization shall continue in being for such time as may be required to carry out its liquidation and shall have such powers and exercise such functions as may be necessary for that purpose.

5. The Council shall notify the depositary of any action taken under paragraph 2 or paragraph 3 of this Article.

Article 46 Transitional measures 1. Where in accordance with the International Sugar Agreement, 1984, the consequences of anything done, to be done or omitted to be done would, for the purposes of the operation of that Agreement, have taken effect in a subsequent year, those consequences shall have the same effect under this Agreement as if the provisions of the 1984 Agreement had continued in effect for those purposes.

2. The administrative budget of the Organization for 1988 shall be provisionally approved by the Council under the International Sugar Agreement, 1984, at its last regular session in 1987, subject to final approval by the Council under this Agreement at its first session in 1988.

In witness wherof the undersigned, being duly authorized thereto, have affixed their signatures under this Agreement on the dates indicated.

Done at London, this eleventh day of September, one thousand nine hundred and eighty-seven. The texts of this Agreement in the Arabic, Chinese, English, French, Russian and Spanish languages shall be equally authentic. The authentic Arabic and Chinese texts of this Agreement shall be established by the depositary and submitted for adoption to all signatories and governments which have acceded to this Agreement.

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