Proposal for a Council Decision on the position to be taken by the European Union within the International Jute Study Group as regards the negotiation of new terms of reference beyond 2014

The International Jute Study Group (IJSG) was established under the aegis of United Nations Conference on Trade and Development (UNCTAD) and entered into force in 2002. The Agreement establishing the IJSG was accepted by the European Community on 15 April 2002 by Council Decision 2002/312/EC. The IJSG is an intergovernmental body set up to function as the International Commodity Board (ICB) for Jute, Kenaf and Allied Fibres. Its mandate is to promote sustainable development of the global jute sector incorporating a large role for the private sector and focusing on development of new usage, commercialization and poverty alleviation.

As the Terms of Reference of the current Agreement come to an end in April 2014, the question of its renewal, through negotiation of new Terms of Reference for the IJSG, has been discussed in the IJSG Council meetings in 2011 and 2012. It will again be addressed at the next IJSG Council meeting, to be held in November 2012, and a formal decision on opening negotiations under the aegis of UNCTAD should be taken on this occasion.

In its present and likely future form, the Commission considers that the IJSG does not bring any significant added value for the EU. In commercial terms EU imports of jute and kenaf products amount to approximately €80 million per year. Moreover, the IJSG does not provide market analysis or trade statistics as the organisation entirely relies on the data provided by the FAO Intergovernmental Group on Jute (IGG/JU). Although the private sector is represented within the IJSG by some 150 companies, only 3 of them come from the EU.

The main problem of the IJSG is its low representation. Indeed, following the withdrawal of Switzerland in 2010, the IJSG can only count India, Bangladesh as well as the EU and its 27 Member States among its members. Morocco which had shown interest in joining the IJSG is deferring its adhesion following the recent election of a new government. Other major importing countries like the USA, Canada and Turkey are not member of the IJSG. As such, the IJSG could be considered as a regional organisation rather than an international organisation.

In light of the above, the Commission does not recommend to open negotiations for the renewal of the IJSG Terms of Reference.

EUR-Lex: COM(2012)575: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2012:575:FIN

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