DECREE NO. 5,302 OF December 10, 2004

Promults the new version of the International Cacau Agreement (AICACAU/200l), which replaces the AICACAU/1993.

The PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers it the art. 84, inciso IV, of the Constitution, and

Whereas the National Congress adopted the text of the new version of the International Cacau Agreement (AICACAU/2001), adopted in Geneva, on March 2, 2001, by means of the Decree Legislative No. 221, of June 30, 2004;

Whereas this Agreement entered into force for Brazil, on September 22, 2004, pursuant to paragraph 4º of its Article 58;

DECRETA:

Art. 1º The International Agreement of the AICACAU/2001, apensed by copy to the present Decree, will be executed and fulfilled as entirely as it contains.

Art. 2º Are subject to the approval of the National Congress any acts that may result in revision of the said Agreement or that carries charges or commitments engraved to the national heritage, pursuant to art. 49, inciso I, of the Constitution.

Art. 3º This Decree comes into force on the date of its publication.

Brasilia, December 10, 2004; 183º of Independence and 116º of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

INTERNATIONAL COCOA AGREEMENT-AICACAU/2001

FIRST PART: GOALS AND DEFINITIONS

CHAPTER I. GOALS

Article 1º

Objectives

1. The objectives of the Sixth International Cocoa Agreement are the following:

1. Promoting international cooperation in the world cocoa economy;
2. Provide a framework appropriate for the discussion of all matters concerning all sectors of the said economy;
3. Contributing to the strengthening of the national cacao economies of the Member countries, in particular by drawing up appropriate projects to be submitted to the relevant institutions for the purposes of financing and implementation;
4. Contributing to a balanced development of the world cocoa economy in the interest of all Members, by appropriate measures that include:

1. A promotion of a sustainable cocoa economy;
2. The promotion of researches and the implementation of their results;
3. The promotion of transparency in the world cocoa economy by collecting, analysing and disseminating the relevant statistics and carrying out appropriate studies; and
4. The promotion and the incentive, in close cooperation with the private sector, consumption of chocolate and cocoa-derived products, with a view to fostering cocoa demand.

1. By pursuing these goals, members will encourage, within the framework of the appropriate framework, the greater participation of the private sector in the work of the Organization.

CHAPTER II. DEFINITIONS

Article 2º

Definitions

For the purposes of this Agreement:

1. The term cacao assigns seeds of cocoa and the products derived from cocoa;
2. The expression Products derived from cocoa designates the products manufactured exclusively from the cocoa seed, such as paste / liquor of cocoa, cocoa butter, cocoa powder without added sugar, cocoa tart and cocoa almond, as well as any other products containing cocoa, as per determination of the Council;
3. The expression year cacauterous designates the 12-month period between 1º October and September 30, inclusive;
4. The expression part contracting designates a Government or an intergovernmental organization under Article 4º, which has agreed to link itself by this Agreement to provisional or final title;
5. The term Council designates the International Council of the Cocoa referred to in Article 6º;
6. The daily price expression designates the representative indicator of the international price of cocoa, used for the purposes of this Agreement, and calculated in accordance with the provisions of Article 40o;
7. The expression entry into force designates, unless otherwise stipulated, the date on which the this Agreement shall enter into force, either on a provisional or final basis;
8. The expression exporting country or exporting Member designates, respectively, a country or member whose exports of cocoa, expressed in its equivalent in cocoa seeds, exceed its imports. In the meantime, a country whose imports of cocoa, expressed in its equivalent in cocoa seeds, exceed its exports, but whose production exceeds its imports could, if it so wishes, be an exporting Member;
9. The expression export of cocoa designates all the cocoa that leaves the customs territory of any country, and the expression import of cocoa designates all cocoa entering the customs territory of any country, understanding itself as customs territory, for the purposes of such definitions, in the case of a Member who understands more than one customs territory, the set of the customs territories of the said Member;
10. The fine or scent cacao expression designates the cacao recognized for its unique flavor and color, produced by the related countries in Annex C to this Agreement;
11. The expression country importer or importing member designates, respectively, a country or a Member whose imports of cocoa expressed in its equivalent in cocoa seeds exceed its exports;
12. The term member assigns a Contracting Party under the definition above;
13. The term organization designates the International Cacau Organization to which refers to article 5º;
14. The expression private sector designates all private sector entities that develop their main activities in the cacaurier sector, inclusive farmers, dealers, processors, manufacturers and research institutes. Within the framework of this Agreement, the expression of private sector also covers public enterprises, agencies and institutions which, in certain countries, perform functions which, in other countries, are performed by the private sector;
15. The expression country producer designates a country that produces cacao in significant quantities from the commercial point of view
16. The expression simple distributed majority means the majority of the votes issued by the exporting Members and the majority of the votes issued by the importing Members, computed separately;
17. A expression Special Right of Saque (DES) designates the Special Right of Saque of the International Monetary Fund;
18. The expression special vote designates every vote that requires a majority of two-thirds of the votes issued by the exporting Members and two-thirds of the votes issued by the importing Members, computed separately, on the condition that they are present at least five exporting Members and one majority of importing members;
19. The expression sustainable cocoa economy designates a system in which all stakeholders maintain productivity at levels economically viable, ecologically safe and culturally acceptable, by the efficient manhandling of resources;
20. The term tonne designates a mass of 1,000 kilograms or 2,204.6 pounds-weight, and libra-weight designates 453.597 grams;
21. The expression stocks of cocoa seeds designates all dried cocoa seed identified as such on the last day of the year cacaueiro (September 30), regardless of location, ownership or purpose.

SECOND PART: CONSTITUTIONAL PROVISIONS

CHAPTER III. Members

Article 3º

Organization Members

1. Every Contracting Party will be Member of the Organization.
2. Categories of Organization Members will be two, namely:

1. Exporters Members; and
2. Importers members.

1. A Member will be able to change category in the conditions that the Council comes to establish.

Article 4º

Participation of inter-governmental organizations

1. Any reference in this Agreement to "a Government" or "Governments" shall also apply to the European Union and to any intergovernmental organization with responsibilities with regard to the negotiation, conclusion and application of agreements international, in particular agreements on basic products. Therefore, any reference in this Agreement to signature, ratification, acceptance or approval; notification of application on a provisional basis; or accession shall, in the case of such intergovernmental organizations, be interpreted as also valid for signature, ratification, acceptance or approval; notification of provisional application; or accession by such intergovernmental organizations.

2. In the case of voting in matters of their competence, the said intergovernmental organizations shall dishold a number of votes equal to the total number of votes attributable to their member states under the terms of Article 10o. In such cases, member states of these intergovernmental organizations will not exercise their individual voting rights.

1. The said organizations will be able to participate in the Executive Committee with regard to matters of its competence.

CHAPTER IV. ORGANIZATION AND ADMINISTRATION

Article 5º

Creation, headquarters and structure of the International Cacau Organization

1. The International Cocoa Organization, created by the 1972 International Cocoa Agreement, will continue to exist, and should administer the provisions of this Agreement and oversee its application.

2. The Organization will exercise its functions through:

a. of the International Council of the Cacau and its subsidiary bodies; and

b. of the Chief Executive Officer and other members of his personnel framework.

3. The headquarters of the Organization shall be in London, unless otherwise decided by the Council, by special vote.

Article 6º

Composition of the International Cacau Council

1. The supreme authority of the Organization shall be the International Council of the Cocoa, composed of all the Members of the Organization.

2. Every Member shall be represented in the Council by a representative and, if he so wishes, by one or more alternates. Members will also be able to nominate one or more advisor to their representative or their alternates.

Article 7º

Powers and functions of the Council

1. The Council shall exercise all powers and shall perform or zealt for the performance of all functions necessary for the fulfilment of the express provisions of this Agreement.

2. The Council will not be empowered, and Members will not be able to consent to it to assume any obligations outside the scope of this Agreement, in particular with regard to the hiring of financial loans. In the exercise of its capacity to conclude contracts, the Council shall include in its contracts the terms of this provision, as well as the terms of Article 24º, to make them aware of the knowledge of the remaining parties who conclude contracts with the Council. In the meantime, the fact that these terms are not included will not invalidate the aforementioned contracts, nor will it make it understood that the Board has acted ultra vires.

3. The Council may, at any time, by special vote, delegate any of its powers to the Executive Committee, except as far as it relates to:

a. Redistribution of votes under the terms of Article 10o;

b. Approval of the administrative budget and fixation of contributions pursuant to Article 25º;

c. Revision of the list of producers of fine cocoa or aroma under the terms of article 46º;

d. Exemption from obligations under Article 47º;

e. Deliberation on controversies under the terms of article 50o;

f. Suspension of rights pursuant to paragraph 3º of Article 51º;

g. Definition of conditions for accession under the terms of Article 56º;

h. Deletion of Members pursuant to article 61º;

i. Prolongation or termination of this Agreement pursuant to Article 63º; and

j. Recommendation of amendments to Members pursuant to Rule 64º.

4. The Council may, by special vote, deliberate on other exceptions set out in paragraph 3º above, and may, still, revoke any delegation of power under paragraph 3º above by means of the same vote.

5. The Council shall adopt, by special vote, the standards and regulations necessary for the implementation of the provisions of this Agreement and with these compatible, including its own internal regiment and that of its committees, the financial regulation and the staff regulation of the organization. In its internal regiment, the Council will be able to have a procedure that allows it, without the need to meet, to deliberate on specific issues.

6. The Board shall maintain the records necessary for the performance of its duties pursuant to this Agreement, as well as any other records that it judges appropriate.

7. The Board will be able to create working group (s), as appropriate, to assist you in the fulfillment of your assignments.

Article 8º

Chairman and Vice Chairs of the Council

1. For each waterfall year, the Council shall elect a president, as well as a first and a second deputy chairpersons, which shall not be remunerated by the Organization.

2. Both the President and the first vice president will be chosen from among the representatives of the exporting Members, or from among the representatives of the importing Members, and the second vice president among the representatives of the other category. These posts will be alternated with each year cacaucous between the two categories.

3. In the simultaneous temporary absence of the president and the two vice presidents, or in the permanent absence of one or more of these, the Council will be able to elect new holders to those posts, in temporary or permanent character, as the case may be, among the representatives of the exporting Members, or from among the representatives of the importing Members.

4. Neither the President, nor any other member of the table who chairs a meeting of the Council will participate in the vote. Your alternate will be able to exercise the right to vote of the Member representing.

Article 9º

Council Sessions

1. As a general rule, the Council shall meet in ordinary session once each semester of the year cacaucous.

2. The Council shall meet in extraordinary session whenever it so decides or upon request:

a. Of any five Members;

b. Of a Member or Members who hold at least 200 votes;

c. From the Executive Committee; or

d. From the Chief Executive Officer, for the purposes of Articles 23º and 60th.

1. The notifications about the Council sessions will be dispatched at the minimum 30 calendar days in advance, save in the event of urgency.

4. The sessions will be held at the headquarters of the Organization, unless otherwise decided by the Council upon special voting. If, at the invitation of any Member, the Council convenes at another location other than the headquarters of the organization, the said Member shall bear the additional expenses resulting therefrom.

Article 10

Attribution of votes

1. The exporting Members shall jointly hold 1,000 votes and the importing Members shall jointly hold 1,000 votes, distributed among each category of members-i.e., exporting Members and importers, respectively-in accordance with the subsequent paragraphs of this article.

2. For each waterfall year, the votes of the exporting Members shall be assigned as follows: each exporting Member shall have five basic votes. The remaining votes will be divided among all exporting Members, in proportion to the average volume of their respective cocoa exports during the previous three cacao years, for which the Organization has published data in the last edition of its Quarterly Bulletin of Cacau Statistics. For so much, exports will be calculated by adding to the net exports of cocoa seeds the net exports of cocoa-derived products, converted into its equivalent in cocoa seeds, applying the conversion factors specified in Article 41º.

3. For each waterfall year, the votes of the importing Members will be assigned as follows: 100 votes will be distributed in equal parts among all the importing members, rounding up the result for the whole number of the nearest votes for each Member. The remaining votes shall be distributed in proportion to the percentage that the average of the annual imports from each importing Member, during the previous three cacaucous years for which the Organization possesses definitive data, represent in total of the averages of the set of the importing Members. For so much, imports will be calculated by adding to the net imports of cocoa seeds the gross imports of cocoa-derived products, converted into its equivalent in cocoa seeds, applying the conversion factors specified in Article 41º.

4. If, for any reason, difficulties arise with regard to the determination or updating of the statistical basis for the calculation of votes in accordance with the provisions of paragraphs 2º and 3º of this Article, the Council may, upon a vote special, decide to use a different statistical basis for the calculation of votes.

5. No Member will be able to have more than 400 votes. The votes that exceed that total, resulting from the calculations specified in paragraphs 2º, 3º and 4º of this Article, shall be redistributed among the remaining Members, in accordance with the provisions of those paragraphs.

6. Where the composition of the Organization is amended, or where the right to vote of a Member is suspended or reinstated by virtue of any of the provisions of this Agreement, the Council shall redistribute the votes in accordance with the this article.

7. There will be no fractionation of votes.

Article 11

Procedure for voting by the Council

1. Each Member shall be entitled to issue the number of votes he holds, and may not divide their votes. A member shall not, however, be required to issue in the same sense of his own votes those votes which are allowed to be issued pursuant to paragraph 2º of this Article.

2. Upon written notification addressed to the President of the Council, any exporting Member may authorize any other exporting Member, and any importing Member may authorize any other importing Member, to represent their interests and issue their votes at any meeting of the Council. In such a case, the limitation provided for in paragraph 5º of Article 10o.

3 shall not apply. A Member authorized by another Member to issue the votes that this other Member holds pursuant to Article 10o, shall issue such votes in accordance with the instructions received from the Member granting the authorization.

Article 12

Council decisions

1. The Council shall take all decisions and shall make all the recommendations by a simple distributed majority of votes, save where the present Agreement determines special voting.

2. In the counting of the votes required for any decision or recommendation of the Council, the votes of the Members who abstained from voting shall not be considered.

3. For any decision which, by virtue of this Agreement, the Council should adopt by special vote, the following procedure shall apply:

a. The proposal that does not obtain the majority required by virtue of the negative vote of three exporting Members or less, or of three importing Members or less, shall be subject to a further vote within 48 hours, if the Council so decides on voting by simple majority distributed;

b. If, in the second ballot, the proposal does not yet obtain the majority required for its approval by virtue of the negative vote of two exporting Members or less, or of two importing Members or less, this will be submitted to a new vote on the deadline of 48 hours, if the Council so decides on a distributed simple majority vote;

c. If, in the third ballot, the proposal still did not obtain the majority required by virtue of the negative vote of an exporting Member, or an importing Member, it is deemed to be adopted;

d. If the Council does not submit the proposal to the new vote, it will be considered rejected.

1. The Members undertake to accept as binding all the decisions taken by the Council in accordance with the provisions of this Agreement.

Article 13

Cooperation with other organizations

1. The Council shall adopt all necessary arrangements for consultation or cooperation with the United Nations and its bodies, in particular with the United Nations Conference on Trade and Development and with the United Nations Organization for Agriculture and Food, as well as with any other specialized agencies in the United Nations and intergovernmental organizations, as appropriate.

2. The Council, bearing in mind the special role assigned to the United Nations Conference on Trade and Development in the international trade of commodities, will maintain, as appropriate, that organization informed about its activities and your work programs.

3. The Council may also adopt all necessary arrangements, as appropriate, to maintain effective contact with the international organizations of producers and merchants of cocoa, as well as manufacturers of products derived from the cacao.

4. The Council will seek to involve international financial agencies and other parties with interests in the global cocoa economy in their work pertaining to the policy of production and consumption of cocoa.

Article 14

Admission of observers

1. The Council may invite any non-member state to participate, in the capacity of observer, of any of its meetings.

2. The Council may also invite any of the organizations referred to in Article 13º to participate, in the quality of observer, of any of its meetings.

Article 15

Composition of the Executive Committee

1. The Executive Committee will be composed of ten exporting Members and ten importing Members. If, in the meantime, the number of exporting Members or Importing Members of the Organization is less than ten, the Council may, by holding the parity between the two categories of Members, determine by special voting the total number of members of the Executive Committee. Members of the Executive Committee shall be elected for each year cacaucous in accordance with the provisions of Article 16º, their re-election being permitted.

2. Each elected member shall be represented on the Executive Committee by a representative and, if he so wishes, by one or more alternates. Each of these members will also be able to nominate one or more aides to their representative or to their alternates.

3. The President and the Vice Chairman of the Executive Committee, elected by the Council for each cocoa year, shall be chosen from among the representatives of the exporting Members, or from among the representatives of the importing Members. These posts will be alternated, each year cacaucous, between the two categories of Members. In the temporary or permanent absence of the President and the Vice President, the Executive Committee will be able to elect, among the representatives of the exporting members, or among the representatives of the importing Members, as appropriate, new holders for these posts, in temporary or permanent character, as the case may be. Neither the President, nor any other member of the table presiding over a meeting of the Executive Committee will be able to participate in the vote. Your alternate will be able to exercise the right to vote of the Member representing.

4. The Executive Committee shall meet at the headquarters of the Organization, unless otherwise decided by a special vote. If, at the invitation of any Member, the Executive Committee convenes at another location other than the headquarters of the Organization, that Member shall bear the additional expenses resulting therefrom.

Article 16

Election of the Executive Committee

1. The exporting Members and the importing members of the Executive Committee shall be elected in the Council by the exporting and importing Members, respectively. The election in each category shall be held in accordance with paragraphs 2º and 3º of this Article.

2. Each Member shall ascribe to one candidate all the votes available to them under the terms of Article 10o. A Member may assign to another candidate the votes to which he is entitled in accordance with paragraph 2º of Article 11º.

3. Candidates who obtain the highest number of votes will be elected.

Article 17

Voter process and decisions of the Executive Committee

1. Each Member of the Executive Committee shall be entitled to issue the number of votes it receives pursuant to Rule 16º, not being provided to any Member of the Executive Committee the division of its votes.

2. Without prejudice to paragraph 1º of this Article and by written notification addressed to the President, any exporting Member or importer who is not a Member of the Executive Committee and who has not issued their votes pursuant to the Paragraph 2º of Article 16 in favor of any of the elected members, may authorize any exporting Member or importer of the Executive Committee, as appropriate, to represent their interests and issue their votes on the Executive Committee.

3. In the transcurring of any year cacao a Member may, after consultation with the Member of the Executive Committee in which he has voted in accordance with Rule 16º, withdraw the votes assigned to that Member. The votes thus withdrawn may then be assigned to another exporting Member or importer of the Executive Committee, as appropriate, and may not, in the meantime, be withdrawn during the remainder of the said cacaurier year. The Member of the Executive Committee of which the housees votes have been withdrawn will, meanwhile, retain his seat on the Executive Committee during the remainder of the cacaureous year in question. Any measure adopted by virtue of the provisions of this paragraph shall enter into force after the President of it has been informed in writing.

4. Any decisions made by the Executive Committee will require the same majority that would be required if it were taken by the Council.

5. Any Member shall have the right to appeal before the Council in respect of any decision of the Executive Committee. The conditions for the said appeal will be defined by the Council in its internal regiment.

Article 18

Competence of the Executive Committee

1. The Executive Committee shall hold accountable to the Council and shall exercise its functions under the general direction of the Council.

2. The Executive Committee should follow up on the progress of the administrative, financial and structural issues of the organization, in particular:

a. Examine the project of the annual work program to be submitted to the Council's approval;

b. To consider and evaluate the report submitted by the Executive Director on the implementation of the work program and the list of priorities;

c. Review and recommend the annual administrative budgets;

d. Monitor the execution of the budget; in particular, analyze revenues and expenses;

e. Assist the Council in the appointment of the Executive Director and graduate staff of the organization;

f. Approve projects to be funded by the Common Fund for Base Products and by other donor organizations at the intervals between the Council sessions.

Article 19

Quorum at the Council and Executive Committee meetings

1. The quorum required for opening meeting of any period of Council sessions shall be constituted by the presence of at least five exporting Members and the majority of the importing Members, provided that the set of the members of each category hold at least two thirds of the total votes of the Members belonging to that category.

2. If the quorum provided for in paragraph 1º of this Article is not reached on the day set for the opening meeting of any sessions period, the following day and during the remainder of the session period, the quorum for the opening session will be made up of the presence of exporting Members and importing Members who hold a simple majority of the votes of each category.

3. The quorum required for subsequent meetings to the opening meeting of any period of sessions pursuant to paragraph 1º of this Article shall be that provided for in paragraph 2º of this Article.

4. Any Member representing in accordance with paragraph 2º of Article 11º

5 shall be deemed to be present.

5. The quorum required for the opening meeting of any period of sessions of the Executive Committee shall be constituted by the presence of at least four exporting Members and four importing Members, provided that the set of such Members detains, in each category, at least the simple majority of the votes of the Members of that category.

Article 20

The Organization staff

1. The Council shall appoint the Chief Executive Officer, by special vote, for a period not exceeding the duration of the Agreement and its extensions, if any. The standards for the selection of candidates and the conditions for the appointment of the Chief Executive Officer shall be fixed by the Council.

2. The Chief Executive Officer shall be the highest administrative official of the Organization, being responsible to the Council for the administration and the operation of this Agreement in accordance with the decisions of the Council.

3. The staff of the Organization shall be responsible to the Executive Director.

4. The Executive Director shall appoint the staff in accordance with the regulation to be defined by the Council. When drawing up that regulation, the Council will take into account those regulations applicable to the personnel of congenic intergovernmental organizations. The officials will, as far as possible, be selected from among the nationals of the exporting Members and importers.

5. Neither the Executive Director, nor any other member of the personnel framework will have any financial interest in the industry, trade, transportation or advertising of cocoa.

6. In the performance of their duties, the Chief Executive Officer and the remaining members of the personnel framework shall neither request nor receive instructions from any Member or from any foreign authority to the Organization, abstaining from any act incompatible with their situation of international officials responsible solely before the Organization. Each member undertakes to respect the uniquely international character of the duties of the Executive Director and staff, and to not seek to influence them in the exercise of these functions.

7. The Executive Director and the remaining members of the Organization's personnel framework shall refrain from disclosing any information relating to the operation or administration of this Agreement, unless authorized by the Council, or if the good performance of its functions within the framework of this Agreement thus require it.

Article 21

Work Programme

1. At the last session of each waterfall year and on the recommendation of the Executive Committee, the Board will adopt a work program for the Organization regarding the subsequent year, drawn up by the Chief Executive Officer. The work program will include projects, initiatives and activities to be carried out by the Organization in the subsequent cacaureous year The implementation of the work program will be borne by the Executive Director.

2. During its last meeting of each waterfall year, the Executive Committee will evaluate the implementation of the work program for the current year, based on a report drawn up by the Chief Executive Officer. The Executive Committee will inform the Council of the results obtained.

3. In its first session pursuant to this Agreement and on the recommendation of the Executive Committee, the Council shall adopt a list of priorities consistent with the objectives of the Agreement, which shall prevail for the duration of the same. That list will serve as a basis for the drafting of the annual work programme. During the last meeting of each waterfall year, the Executive Committee will review and update, based on a report by the Chief Executive Officer, the said list of priorities, with particular emphasis on the subsequent year.

CHAPTER V. PRIVILEGES AND IMMUNITIES

Article 22

privileges and immunities

1. The organisation will have legal personality. In particular, it will have the capacity to conclude contracts, acquire and alienate movable and immovable property and institute legal proceedings.

2. The situation, privileges and immunities of the Organization, its Chief Executive Officer, its staff and specialists, as well as of the representatives of the members who meet in the territory of the United Kingdom of Great Britain and Northern Ireland for the purposes of the Exercise of its duties, will continue to be governed by the Headquarters Agreement in London on March 26, 1975 between the Government of the United Kingdom of Great Britain and Northern Ireland, henceforth called the "host government", and the Organization International Cacau, with the necessary changes to the proper functioning of this Agreement.

3. If the headquarters of the Organization is transferred to another country, the new host Government will conclude with the Organization, as soon as possible, a headquarters agreement that is to be approved by the Council.

4. The Seat Agreement referred to in paragraph 2º of this Article shall be independent of this Agreement and may, however, be terminated:

a. By mutual agreement between the host government and the Organization;

b. If the seat of the Organization is transferred from the territory of the host government; or

c. If the Organization cede exists.

5. The Organization shall be able to conclude with one or more Member Agreements that should be approved by the Council, relating to the privileges and immunities that are necessary for the proper functioning of this Agreement.

THIRD PART: FINANCE

CHAPTER VI. FINANCE

Article 23

Finance

1. An administrative account shall be maintained for the purposes of administo this Agreement. The expenses necessary to the administration of this Agreement shall be charged to the administrative account and covered by the annual contributions of the Members fixed in accordance with Article 25º. However, if a Member requests special services, the Advice will be able to abide by this request and require the respective payment by the said Member.

2. The Council will be able to create separate accounts for specific purposes that will come to define in accordance with the objectives of this Agreement. These accounts will be funded by voluntary contributions from the Members and other bodies.

3. The financial year of the Organization will coincide with the year cacauger.

4. The expenses of the delegations of the Council, the Executive Committee and any other Committees of the Council or of the Executive Committee shall be borne by the interested Members.

5. If the financial situation of the Organization is or appears to be insufficient to finance the expenses of the remainder of the waterfall year, the Executive Director shall convene an extraordinary session of the Council within twenty working days, save if a meeting of the Council is scheduled for a term of 30 calendar days.

Article 24

Members ' responsibilities

The responsibility of a Member before the Council and other Members shall be limited to their obligations with regard to the contributions specifically provided for in this Agreement. It shall be considered that third parties who maintain relations with the Council are aware of the provisions of this Agreement in respect of the powers of the Council and the obligations of the Members, in particular paragraph 2º of Article 7º and the first sentence of the this article.

Article 25

Approval of the administrative budget and fixation of contributions

1. During the second half of each financial year, the Council shall approve the administrative budget of the Organization for the subsequent financial year and shall fix the contribution of each Member to the said budget.

2. In each financial year, the contribution of each member to the administrative budget shall be made in the proportion that the number of his or her votes represent in relation to the total number of votes of the Member's set, when the approval of the budget administrative for that financial year. For the purposes of fixing the contributions, the votes of each Member shall be calculated without taking into account the suspension of the voting rights of any Member, as well as any redistribution of the resulting votes.

3. The initial contribution of any Member acceding to the Organization after the entry into force of this Agreement shall be fixed by the Council on the basis of the number of votes that are assigned to that Member and in the fraction represented by the remaining period of the financial year in progress. In the meantime, the contributions already fixed to other Members for the ongoing financial year will not be changed.

4. If the present Agreement enters into force before the start of the first full financial year, the Council shall, in its first session, approve an administrative budget corresponding to the period transcurring until the beginning of the first financial year complete financial.

Article 26

Payment of contributions to the administrative budget

1. The contributions to the administrative budget regarding each financial year will be paid in freely convertible currencies, will be exempt from foreign exchange restrictions, and will win on the first day of that financial year. The Members ' contributions regarding the financial year in which they join the Organization shall expire on the date on which they become Members.

2. The contributions to the administrative budget approved under paragraph 4º of Article 25º shall be paid within three months of the date on which they are set.

3. If, at the end of five months after the commencement of the financial year or, in the case of a new Member, three months after the Board has fixed its contribution, a Member shall not have paid in full its contribution to the administrative budget, the Executive Director will request that Member to make the payment in the shortest possible time. If, decorated two months of the Executive Director's request, the Member in question still has not paid his contribution, his voting rights in the Board and the Executive Committee will be suspended until full payment of the contribution is checked out.

4. A member whose voting rights have been suspended pursuant to paragraph 3º of this Article shall not be deprived of any other rights or waived from any of its obligations in accordance with this Agreement, unless a decision as opposed to the Council by special vote. The said Member shall continue to pay his / her contribution and to comply with any other financial obligations under this Agreement.

5. The Council shall assess the question of the participation of any Member whose contribution has not been paid for a period of two years and may decide, by special vote, that the same shall cease to enjoy the rights conferred upon it in the quality of Member and / or will cease to be taken into consideration for budgeting purposes. By regularizing the situation of your contributions, you will regain the rights conferred upon you in the quality of Member. Any payments effected by Members whose contributions are in arrears will be credited initially to the payment of the arrears and not to the regularization of the contributions for the current financial year.

Article 27

Audit and publication of accounts

1. As soon as possible, but in a period not exceeding six months after the close of each financial year, the excerpts from the accounts of the Organization regarding that financial year, as well as the balance corresponding to the closure of the even, in the title of the accounts referred to in Article 23º, they shall be subjected to an audit. The audit in question shall be carried out by an independent auditor of recognized competence, in cooperation with two qualified auditors of the Member Governments, being a representative of the exporting Members and a representative of the Members importers, which shall be elected by the Council for each financial year. The auditors of the member governments shall not be remunerated by the Organization for the professional services provided. In the meantime, travel and daily expenses may be reimbursed by the Organization under the terms and conditions to be fixed by the Council.

2. The conditions for designation of the independent auditor of recognized competence, as well as the intentions and objectives of the audit will be set out in the financial regulation of the Organization. The excerpt and the balance of the audited Organization's accounts will be submitted to the Board at its next ordinary session, for approval.

3. A summary of the accounts and balance submitted to the audit will be published.

Article 28

Relation with the Common Fund and with other multilateral and bilateral donors

1. The Organization will make the best possible use of the facilities of the Common Base Products Fund, in order to assist in the preparation and financing of projects of interest of the world cocoa economy.

2. The Organization will engage in cooperation with other international organizations, as well as with multilateral and bilateral donor agencies, in order to obtain funding for programs and projects of interest of the cacao economy, as per appropriate.

3. Under no circumstances will the Organization take on financial obligations relating to projects, either in its own name or on behalf of the Members. No Member of the Organization shall hold, on the grounds of its membership of the Organization, for any obligations arising out of loans contracted or granted by any other Member or entity within the framework of those projects.

Article 29

Role of the Organization in relation to projects

1. The Organization shall engage to assist the members in the drafting of projects of interest of the cacao economy, to be financed by other agencies or bodies.

2. In exceptional cases, the Council shall approve the involvement of the Organization in the implementation of approved projects. Under no circumstances will such involvement entail additional costs for the administrative budget of the Organization.

CHAPTER VII. CONSULTATIVE JUNTA OF THE WORLD COCOA ECONOMY

Article 30

Creation of the Consultative Junta of the World Cacau Economy

1. The Council will create the Cacau World Economy Consultative Board, with views both to encourage the active participation of private sector experts, as defined in Article 2º of this Agreement, in the work of the Organization, as to promote a continuous dialogue between experts from the public and private sectors.

2. The Junta will be an advisory body that will be able to make recommendations to the Council on any matter under this Agreement.

Article 31

Composition of the Consultative Junta of the World Cacau Economy

1. The Cacau World Economy Advisory Board will be made up of experts from all sectors of the cacao economy, such as:

a. Trade and industrial associations;

b. National and regional cocoa-producing organizations, both from the public sector and the private sector;

c. National exporting organizations of cocoa;

d. Research institutes on cacao; and

e. Other associations or institutions of the private sector with an interest in the cacao economy.

2. These experts will act individually or on behalf of their respective associations.

3. Members of the Organization will be able to participate in the quality of observers.

4. The Junta shall be composed of seven members of the exporting countries and seven members of the importing countries, as defined in paragraph 1º of this Article, appointed by the Council every two years cacaucous. Members will be able to assign one or more alternates and advisors. In light of the Junta's experience, the Board will be able to increase the number of members of the Board.

1. The Junta will also be able to invite eminent experts or personality of recognized competence in a specific area, from the public or private sectors, to participate in its works.

6. The President of the Junta will be chosen from among its members. The Chair will be alternated between exporting countries and importers every two years cacaucous.

7. When of its creation, the Consultative Board will set its own standards and recommend them for adoption by the Board.

Article 32

Mandate of the Consultative Junta on the World Cacau Economy

1. The Junta, in its capacity of advisory body will have, among others, the following attributions:

a. Contribute to the development of a sustainable cocoa economy;

b. Identify threats to supply and demand and propose actions to beat the challenges;

c. Facilitate the exchange of information on production, consumption and stockpiles; and

d. Provide consultancy in other matters concerning cocoa within the framework of this Agreement.

2. The Junta will be able to set up ad hoc working groups to assist it in the exercise of its mandate, provided that the operating cost of these working groups does not result in budgetary implications for the Organization.

3. The Executive Director will assist the Board as appropriate.

Article 33

Meetings of the Consultative Junta on the World Cacau Economy

1. As a general rule, the Board shall meet twice a year at the headquarters of the Organization, simultaneously to the ordinary sessions of the Council. The Junta will be able to hold extraordinary meetings upon the approval of the Council.

2. When the Council accepts an invitation from a Member to hold a meeting on its territory, the Board shall meet in that territory. In such a case, the additional costs involved that exceed those arising from the holding of the meeting at the headquarters of the Organization shall be borne by that Member.

3. The Chairman of the Board will draw up the agendas of his meetings in coordination with the Chief Executive Officer.

4. The Junta will keep the Board permanently informed about its procedures.

FOURTH PART: PROVISIONS REGARDING THE MARKET

CHAPTER VIII. SUPPLY AND DEMAND

Article 34

Market Committee

1. In order to contribute to the highest possible growth of the waterfall economy and to the balanced development of cocoa production and consumption, with a view to ensuring a sustainable balance between supply and demand, the Council will create a Committee of Market made up of all exporting and importing Members. The purpose of the Committee will be to analyze trends and perspectives for the production and consumption of cocoa, stocks and prices, and to identify market imbalances in its initial phase, as well as the obstacles to the expansion of cocoa consumption in the countries exporters and importers.

2. In its first session after the start of a new waterfall year, the Market Committee will examine the annual forecasts regarding worldwide production and consumption for the following five cacauterous years. The Executive Director will provide the data necessary for the elaboration of these predictions. The forecasts provided will be analyzed and reviewed annually, if necessary.

3. The Executive Director will present, by illustrative title only, various scenarios based on indicative values for annual global production levels needed to achieve and maintain the balance between supply and demand at certain price levels real. The factors to be taken into account will include the expected variations in production and consumption, as per movements in real prices and the estimated variances of inventory levels.

4. Based on these predictions, and in order to address the problems of market imbalances in the medium and long term, the exporting Members will be able to make the commitment to coordinate their national production policies.

5. All members will engage to encourage consumption of cocoa in their countries. Each member shall hold each responsibility for the means and methods to be employed to this end. In particular, all Members will engage to eliminate or reduce substantial internal obstacles to the expansion of cocoa consumption. In that regard, Members shall regularly provide the Executive Director with information on relevant internal regulations and measures, as well as information regarding consumption of cocoa, inclusive domestic taxes and customs tariffs.

6. The Committee will present detailed reports in each ordinary session of the Council, on the basis of which the Council will consider the overall situation assessing, in particular, the global supply and demand movement, in light of the provisions of this article. The Council will be able to make recommendations to the Members on the basis of that assessment.

7. The Committee will set its own standards and its own regulations.

8. The Executive Director will provide the Committee with the necessary assistance.

Article 35

Market Transparency

1. In order to promote market transparency, the Organization will maintain up-to-date information on the activities of the members with regard to milling, consumption, production, exports (inclusive reexports) and imports of cocoa and products derived from cocoa, as well as their stockpiles. For as much, as far as possible, Members will provide the Executive Director with the relevant statistics within reasonable time and in the most detailed and accurate manner possible.

2. If a Member is left to provide, or has difficulties to provide, within a reasonable time, the statistical information required by the Council for the appropriate operation of the Organization, the Council may require the Member in question to explain the reasons why it has ceased to comply with the said requirement. Should you deem it necessary to provide assistance, the Council will be able to contribute with the necessary support measures for the said Member to overcome existing difficulties.

3. The Council shall adopt the supplementary measures which it shall deem necessary to ensure compliance with the provisions of this Article.

4. The Board will take the necessary arrangements for the regular collection of other information that it considers relevant to monitor market misfolds and assess the production and consumption capacity of actual and potential cocoa.

Article 36

Stocks

1. In order to promote market transparency with regard to the levels of world cocoa stocks, each Member will assist the Chief Executive Officer in obtaining information on the volume of cocoa stocks in their countries. As far as possible, Members will provide the Chief Executive Officer, at the latest by the end of May, information on the cocoa stocks held in their respective countries at the end of the previous cacaureous year, in the most detailed, timely manner and needs possible.

2. If a Member cees to provide, or has difficulties to provide, within a reasonable time, the statistical information on stocks required by the Council for the appropriate operation of the Organization, the Council may require the Member in question to explain the reasons why you stopped complying with the said requirement. Should you deem it necessary to provide assistance, the Council will be able to contribute with the necessary support measures for the said Member to overcome existing difficulties.

3. The Executive Director will seek the full cooperation of the private sector in that exercise, while respecting the aspects of commercial secrecy associated with this information.

4. The information will give respect to the stockpiles of cocoa seeds.

5. The Executive Director will prepare an annual report for the Market Committee based on the information received on the levels of cocoa stocks around the world.

Article 37

Promotion

1. The Members undertake to encourage, by all possible means, the consumption of chocolate and cocoa-derived products in order to increase the demand of cocoa.

2. To achieve this goal, the Council will create a Promotion Committee to promote the consumption of cocoa.

3. The Committee will be open to the participation of all members of the Organization.

4. The Committee will operate and, through the Chief Executive Officer, administer a Promotional Fund that will be used exclusively to fund promotional campaigns, promote research and studies concerning cocoa consumption and to cover expenses related administrative.

5. The Committee will seek the collaboration of the private sector for the implementation of its activities.

6. The promotional activities of the Committee will be funded with resources that will be able to be provided by Members, non-Members, other organizations and by the private sector. Participants or private sector institutions will also be able to contribute to the promotional programs, in accordance with the modalities to be fixed by the Committee.

7. All decisions of the Committee regarding campaigns and promotional activities will be taken by the Members who contribute to the Fund.

8. The Committee will get the approval of a country before carrying out a promotional campaign on the territory of that country.

9. The Committee will set its own standards and its own regulations and will keep the Board permanently informed about its activities.

10. The Executive Director will provide the Committee with the necessary assistance.

Article 38

Sucedant of the cocoa

1. The Members recognize that the use of substitutes could produce negative impacts on the expansion of cocoa consumption and the development of a sustainable cocoa economy. In that context, the Members will take into account the recommendations and decisions of the relevant international bodies.

2. The Executive Director will present regular reports to the Market Committee on the developments of the situation. On the basis of these reports, the Market Committee will evaluate the situation and, if necessary, make recommendations to the Council regarding the adoption of the relevant decisions.

CHAPTER IX. DEVELOPMENT OF A SUSTAINABLE ECONOMY OF THE CACAU

Article 39

Sustainable cocoa economy

1. Members will assign due consideration to the sustainable manhandling of the cacao resources, in order to propitiate fair economic return to all parties involved in the cacao economy, keeping in mind the principles and objectives of development sustainable contained in Agenda 21 adopted by the United Nations Conference on Environment and Development (UNCED), on June 14, 1992.

2. The Organization will act as the focal point for a permanent dialogue between all the parties involved, as appropriate, to foster the development of a sustainable cocoa economy.

3. The Council shall adopt and periodically review the programs and projects relating to a sustainable cocoa economy in accordance with paragraph 1º of this article.

4. In this sense, the Council will coordinate its activities with other organs as necessary in order to avoid duplication of effort.

CHAPTER X. PROVISIONS ON MARKET MONITORING

Article 40

Daily Price

1. For the purposes of this Agreement and, in particular, in order to monitor the evolution of the cocoa market, the Executive Director shall calculate and publish a daily price for cocoa seeds. The price will be expressed in Special Draesing Rights (DES) per tonne.

2. The daily price will be the average, calculated daily, of the cocoa seed quotes during the three months active near term on the London International Financial Futures Exchange (LIFFE) and the New York City Commercial Board at the time of the closing of the London Stock Exchange. London prices will be converted into U.S. dollars per tonne, utilizing the exchange rate projected for six months at the close in London. The average London and New York prices, expressed in U.S. dollars, will be converted into its equivalent in DES at the official exchange rate of the day of the U.S. dollar in DES, published by the International Monetary Fund. The Council will decide the method of calculation to be used when quotations are available in only one of these two cocoa markets, or when the London Divising Market is closed. The passage for the following period of three months will give you on the 15º day of the month immediately preceding the closest active month in which the contracts expire.

3. The Council may, by special vote, decide to use any other method to calculate the daily price that it considers to be more satisfactory than the one indicated in this Article.

Article 41

Conversion Factors

1. To determine the equivalent in seeds of cocoa-derived products, the conversion factors will be as follows: cocoa butter: 1.33; cocoa pie and cocoa powder: 1.18; pasta/cocoa liqueur and cocoa almond: 1.25. The Council may, if necessary, determine that other cocoa-containing products are products derived from cocoa. The conversion factors applicable to cocoa-derived products other than those whose conversion factors are mentioned in this paragraph shall be fixed by the Council.

2. The Council may, by special vote, review the conversion factors provided for in paragraph 1º of this Article.

CHAPTER XI. INFORMATION, STUDIES AND RESEARCH

Article 42

Information

1. The Organization will function as a worldwide information center for the efficient collection, comparison, exchange and dissemination of all the factors concerning cocoa and cocoa-derived products. This information will include:

a. Statistical information on production, prices, exports and imports, consumption and world cocoa stocks;

b. In so far as it deems it appropriate, technical information on the cultivation, marketing, transportation, processing, use and consumption of cocoa; and

c. Information on government policies, taxes, standards, regulations and national laws on cocoa.

2. On appropriate dates, and at least twice every waterfall year, the Board will publish estimates of the production of cocoa seeds and milling for the current cacaurier year.

Article 43

Studies

As far as it judges necessary, the Council will promote studies on the economy of cocoa production and distribution, including trends and projections, the impact of government measures adopted by the exporting and importing countries on the production and consumption of cocoa, the opportunities for expansion of cocoa consumption intended for its traditional uses and possible new uses, as well as the effects of the application of this Agreement on exporters and importers of cocoa, inclusive of their conditions of marketing. The Council will be able to make recommendations to the Members on the subject of such studies. In the promotion of such studies, the Council will be able to work in cooperation with international organizations and other relevant institutions, as well as with the private sector. The Council will still be able to promote studies that may come to contribute to greater transparency of the market.

Article 44

Scientific research and development

The Council will be able to encourage and promote scientific research and development in the areas of production, transportation, processing and consumption of cocoa, as well as the dissemination and practical application of the results obtained in that field. For so much, the Organization will be able to work in cooperation with international organizations, research institutes and the private sector.

Article 45

Annual Report

The Board will publish an Annual Report.

FIFTH PART: OTHER PROVISIONS

CHAPTER XII. CACAO FINE OR AROMA

Article 46

Cacau fine or aroma

1. In its first session after the entry into force of this Agreement, the Council shall consider Annex C to this Agreement and, if necessary, make its review, by special vote, by determining the proportions to which the countries included in the said attachment produce and export, exclusive or partially, fine cocoa or aroma. Thereafter, and at any time during the duration of this Agreement, the Council may re-examine and, if necessary, review Annex C by special vote. The Council shall request the opinion of experts in the matter, if appropriate.

2. The Market Committee will be able to make proposals for the Organization to draw up and implement a system of statistics from the production and trade of fine cocoa or aroma.

3. Conferring due importance on fine or scent cocoa, Members shall examine and adopt, as appropriate, projects concerning fine or scent cocoa, observing the provisions of Articles 37 and 39.

CHAPTER XIII: EXEMPTION OF OBLIGATIONS AND DIFFERENTIATED MEASURES AND CORRECTIVES

Article 47

exemption from obligations in exceptional circumstances

1. The Council may, by special vote, exempt a Member from an obligation by virtue of exceptional or emergency circumstances, reasons for force majeure, or international obligations provided for in the Charter of the United Nations in relation to the territories administered under the tutelage regime.

2. By granting exemption to a Member pursuant to paragraph 1º of this Article, the Council shall, explicitly, declare the terms and conditions, the term of the said exemption as well as the respective grounds thereof.

3. Notwithstanding the foregoing provisions of this article, the Council shall not exempt any Member from its obligation to pay contributions by virtue of Article 26º, nor of the consequences arising from the lack of payment.

4. The basis for calculating the distribution of the votes of an exporting Member for which the Council has recognized a case of force majee will be the effective volume of its exports in the year in which the force majee occurred and subsequently in the three years following the said force majee.

Article 48

Differential and corrective measures

The developing countries that are importing Members and the least developing countries on which they are Members, whose interests are prejudiced by measures adopted pursuant to this Agreement, may ask the Council to apply appropriate differentiated and corrective measures. The Council will study the adoption of these measures in the light of the provisions of resolution 93 (IV) adopted by the United Nations Conference for Trade and Development.

CHAPTER XIV. QUERIES, CONTROVERSIES AND COMPLAINTS

Article 49

Consultations

Each member will fully acclaim any remarks that are presented to him by another member in what concerne à interpretation or to the application of this Agreement, giving it the appropriate opportunities for consultation. In transacting from these consultations, upon request by one of the parties and with the consent of the other, the Executive Director shall establish the appropriate conciliation procedure. The expenses arising from that procedure shall not be charged to the Organization. If the procedure in question leads to a solution, this will be communicated to the Chief Executive Officer. In the absence of a solution, the matter may, upon request by either party, be submitted to the Council pursuant to Article 50º.

Article 50

Controversies

1. Any controversy concerning the interpretation or application of this Agreement that is not resolved by the parties involved shall, upon request by either party, be submitted to the Council Decision.

2. When a controversy has been submitted to the Council pursuant to paragraph 1º of this Article and there has been an object of debate, a set of Members holding at least one third of the total votes, or any five Members, may require the Council to, prior to making its decision, request the opinion of an ad hoc advisory panel, to be constituted in accordance with paragraph 3º of this Article:

3. (a) Unless otherwise decided by the Council, by special voting, the ad hoc advisory panel shall have the following composition:

1. Two persons indicated by the Exporting members, being one with extensive experience in issues analogous to the one that gave rise to the controversy, and the other a qualified jurist with extensive experience;
2. Two people indicated by the importing Members, being one with extensive experience in issues analogous to the one that gave rise to the controversy, and the other a qualified jurist with extensive experience;
3. A president chosen unanimously by the four persons indicated in the terms of points (i) and (ii) above or, in the event of disagreement, by the President of the Council.

(b) There will be no impediment for nationals of the Members to participate in the ad hoc advisory panel;

(c) Members of the ad hoc advisory panel will act on a personal basis, without receiving instructions from any Government;

(d) The expenses of the panel ad-hoc advisory will run on account of the Organization.

4. The opinion of the ad hoc advisory panel, as well as its substantiations, will be submitted to the Council which, after analyzing all relevant information, will resolve the controversy.

Article 51

Complaints and measures of the Council

1. Any complaint arising from the failure to comply, by a Member, of the obligations imposed by this Agreement shall, by the author of the complaint, be submitted to the Council which shall examine it and shall act on the matter.

2. The decision by which the Council concludes that a Member has ceased to fulfill its obligations under this Agreement shall be taken by a simple majority distributed and shall specify the nature of the infraction.

3. Where you see, either in a complaint or otherwise, that a Member has ceased to fulfill its obligations under this Agreement, the Council may, by special vote, without prejudice to other measures expressly provided for in other articles of this Agreement, inclusive of Article 61:

(a) Suspend the voting rights of the said Member in the Council and the Executive Committee; and

(b) If judging necessary, suspend other rights of that Member, including with respect to his eligibility for duties in the Council or any of his or her committees or, still, the right to exercise such duties, until the said Member has fulfilled its obligations.

4. A member whose voting rights have been suspended pursuant to paragraph 3º of this Article shall be obliged to comply with its financial obligations, as well as any other obligations provided for in this Agreement.

CHAPTER XV. STANDARD OF LIVING AND WORKING CONDITIONS

Article 52

Standard of living and working conditions

Members will consider the possibilities for the improvement of the standard of living and conditions of work of the populations engaged in the cacaureous sector, in line with their stage of development and keeping in mind the principles concerning these internationally recognized issues. Also, the Members agree not to be worth of labor standards for the purposes of trade protectionism.

CHAPTER XVI. FINAL PROVISIONS

Article 53

Depository

The Secretary-General of the United Nations shall be designated the depositary of this Agreement.

Article 54

Signature

This Agreement will be open for the signing of the Parties to the International Cocoa Agreement of 1993 and of the Governments invited to the Conference of Nations United States on the 2000 Cacau in the United Nations Seas in the period 1º May 2001 a to December 31, 2002 inclusive. In the meantime, the Council, pursuant to the International Cocoa Agreement of 1993, or the Council, pursuant to this Agreement, shall be able to extend the deadline for signing this Agreement once the deadline. The Council shall immediately notify the depositary of such an extension.

Article 55

Ratification, acceptance, approval

1. This Agreement shall be subject to ratification, acceptance or approval by the signatory Governments, in accordance with their respective constitutional requirements.

2. Instruments of ratification, acceptance or approval shall be deposited with the depositary at the latest by December 31, 2003. In the meantime, the Council, pursuant to the 1993 International Cocoa Agreement, or the Council, pursuant to this Agreement, shall be able to grant extension of time to the signatory Governments that are unable to deposit their instruments until that date.

3. Each Government that deposits an instrument of ratification, acceptance or approval shall indicate, at the time of the said deposit, whether it is an exporting Member or importing Member.

Article 56

Accession

1. This Agreement shall be open to the accession of the Government of any State authorised to confirm it.

2. The Council shall determine in which of the Annexes to this Agreement the acceding State shall appear, if it does not yet figure in any of those Annexes.

3. The accession shall be by the deposit of an instrument of accession together with the depositary.

Article 57

Notification of application to provisional title

1. A signatory Government which intends to ratify, accept or approve this Agreement, or a Government proposing to accede to it, but who has not yet been able to deposit its instrument could, at any time, notify the depositary that, in accordance with its constitutional norms and / or its legislation and its internal regulations, it shall apply this Agreement, on a provisional basis, either when its entry into force, in accordance with Article 58º, whether or not is already in place, on a specific date. A Government issuing such notification shall declare, at the same opportunity, whether it shall be an exporting Member or an importing Member.

2. A Government which has, in accordance with paragraph 1º of this Article, notified that it shall apply this Agreement either when it enters into force, or on a specific date, shall become, as of that date, an interim Member. The Government that so shall proceed shall maintain the status of provisional member until the date of the deposit of its instrument of ratification, acceptance, approval or accession.

Article 58

Entry into force

1. This Agreement shall enter into force on a definite basis in 1º October 2003, or at any subsequent date if, up to that date, the Governments representatives of at least five exporting countries holding at least 80% of exports totals of the countries listed in Annex A and the Governments representatives of importing countries holding at least 60% of the total imports as set out in Annex B, housees deposited their instruments of ratification, acceptance, approval or accession with the depositary. This Agreement shall also enter into force, on a definite basis, as it has entered into force on a provisional basis and as soon as the requirements for the percentages are met by the deposit of instruments of ratification, acceptance, approval or accession.

2. Should this Agreement not enter into force for final title in accordance with paragraph 1º of this article, it shall enter into force on a provisional basis on 1º January 2002 provided that, on that date, the Governments representing at least five exporting countries that hold at least 80% of the total exports of the countries listed in Annex A and the Governments representing importing countries holding at least 60% of the total imports as set out in Annex B, housee deposited its instruments of ratification, acceptance, approval or accession, or have notified the depositary that they will apply the present Agreement to provisional title when it comes into force. These Governments shall be Interim Members of the Agreement.

3. If the requirements for entry into force provided for in paragraph 1º or paragraph 2º of this Article shall not be fulfilled until 1º September 2002, the Secretary General of the United Nations shall convene, in the earliest possible time, a meeting of the governments that have deposited instruments of ratification, acceptance, approval or accession, or who have notified the depositary that they will apply the present Agreement on a provisional basis. Those governments will be able to decide whether to apply to each other the present Agreement on a provisional or final basis, in whole or in part, on date that they come to be fixed, or adopt any other arrangements they deem necessary.

4. For a Government in whose name an instrument of ratification, acceptance, approval or accession has been deposited, or a notification of provisional application after the entry into force of this Agreement in accordance with paragraph 1º, the paragraph 2º or paragraph 3º of this Article, the instrument or notification shall invigorate on the date of the said deposit and, with regard to the notification of provisional application, in accordance with the provisions of paragraph 1º of the article 57º.

Article 59

Reserves

No reservations can be made in what concerne to any of the provisions of this Agreement.

Article 60

Denpronunciation

1. Any Member may, at any time, after the entry into force of this Agreement, report it by means of notification in writing to the depositary. The Member shall immediately inform the Council of its decision.

2. The complaint shall take effect 90 days after the notification has been received by the depositary. If, as a consequence of the complaint, the number of members of this Agreement does not fulfil the requirements set out in paragraph 1º of Article 58º for the purposes of its entry into force, the Council shall meet in extraordinary session to look at the situation and take the relevant decisions.

Article 61

Exclusion

If, in accordance with paragraph 3º of Article 51º, the Council concludes that any Member has ceased to fulfill its obligations under this Agreement and to decide, in addition, that such infringement substantially impairs the operation of this Agreement, may, by special vote, exclude the said member of the Organization. The Council shall immediately notify the depositary of such exclusion. Ninety days after the date of the decision of the Council, the said Member shall cease to be a member of the Organization.

Article 62

Settlement of accounts in case of denunciation or deletion of members

In the event of denunciation or exclusion of a Member, the Council shall determine the settlement of the accounts of that Member. The Organization shall withhold the amounts already paid by that Member, which shall be obliged to pay any amounts for it due to the Organization on the effective date of the complaint or exclusion. In the meantime, in the case of a Contracting Party which cannot accept an amendment and, therefore, stop participating in this Agreement pursuant to paragraph 2º of Article 64º, the Council may determine the settlement of the accounts in the manner that consider fair.

Article 63

Vigance, prolongation and termination

1. This Agreement shall remain in force until the end of the fifth full cacao year subsequent to its entry into force, unless extended in accordance with paragraph 3º of this Article, or terminated previously in accordance with the provisions of the paragraph 4º of this article.

2. During the duration of this Agreement, the Council may, by special vote, decide to renegotiate it, with a view to which the renegotiated agreement enters into force at the end of the fifth year cacaurier referred to in paragraph 1º of this Article, or at the end of any period of extension decided by the Council in accordance with paragraph 3º of this Article.

3. The Council may, by special vote, extend the present Agreement in whole or in part for two periods not exceeding two years cacaucous each. The Council shall notify the depositary of such an extension.

4. The Council may, at any time, decide to rescind the present Agreement. Such termination shall pass the viger on the date fixed by the Council, provided that the obligations of the Members assumed in accordance with Article 26º shall be retained until the financial commitments relating to the operation of this Agreement have been satisfied. The Council shall notify the depositary of that decision.

5. Notwithstanding the termination of this Agreement by any of the above means, the Council shall continue to exist for the time necessary for the liquidation of the Organization, the discharge of its accounts and the disposal of its assets. During that period, the Council shall retain the necessary powers for the solution of all administrative and financial matters.

6. Notwithstanding the provisions of paragraph 2º of Article 60th, a Member who does not wish to participate in this Agreement as extended under the terms of this Article shall inform the depositary and the Council of that fact. That Member shall cease to be a part of this Agreement as of the beginning of the extension period.

Article 64

Emendas

1. The Council may, by special vote, recommend an amendment of this Agreement to the Contracting Parties. The amendment will enter into force 100 days after the depositary has received the acceptance notifications of Contracting Parties representing at least 75% of the exporting Members holding minimum 85% of the votes of the Members exporters, and of Contracting Parties representing at least 85% of the votes of the importing Members holding at least 85% of the votes of the importing members, or at a later date as the Council, by special vote, come fixing. The Council shall be able to set a deadline in which the Contracting Parties shall notify the depositary of acceptance of the amendment. If, that period has elapsed, the amendment has not entered into force, the same shall be deemed to be withdrawn.

2. Any Member in the name of which no notification of acceptance of an amendment has been issued until the date of its entry into force shall, as from that date, leave to participate in this Agreement, unless the Council decides to extend the deadline for acceptance, so that the said Member can complete their internal procedures. This Member will not be bound by the amendment until you have notified your acceptance of the same.

3. Immediately following the adoption of a recommendation for amendment, the Council shall transmit to the depositary a copy of the text containing the amendment. The Council shall provide the depositary with the information necessary to determine whether the number of acceptance notifications received is sufficient for the amendment to produce effects.

CHAPTER XVII. ADDITIONAL AND TRANSITIONAL PROVISIONS

Article 65

Special Booking Fund

1. A Special Reserve Fund will be held for the exclusive purpose of making the front of the possible settlement expenses of the Organization. The Council shall decide in what way the interest arising from the said Fund shall be employed.

2. The Special Booking Fund set up by the Council in accordance with the International Cocoa Agreement of 1993 shall be transferred to this Agreement for the purposes set out in paragraph 1º.

3. A non-Member of the International Cocoa Agreement of 1993 to become a Member of this Agreement should contribute to the Special Reserve Fund. The contribution of that Member shall be fixed by the Council, on the basis of the number of votes allocated to the said Member.

Article 66

Other additional and transitional provisions

1. This Agreement shall replace the International Cocoa Agreement of 1993.

2. All measures adopted by the Organization or in its name, or by any of its organs, by virtue of the International Cocoa Agreement of 1993, which are behollered on the date of the entry into force of this Agreement and whose terms do not stipulate its expiration on that date, they shall remain in force, unless amended by the provisions of this Agreement.