New draft rules to better protect farmers against buyers’ unfair
trading practices were approved by the Agriculture Committee on
Monday.
MEPs broadened the scope of the draft law to:
• include all actors in the food supply
chain, and not only small and medium-sized producers and big
buyers,
• cover trade of agricultural products
and ancillary services, on top of foodstuffs.
The proposed blacklist of unfair trading practices (UTPs), as
amended by MEPs, includes:
• payments made later than 30 days for
perishable agricultural and food products and (added by MEPs)
later than 60 days for non-perishable products, counting from the
last day of the month when the invoice was received or the agreed
delivery day,
• unilateral cancellation of an order of
perishable products less than 60 days from the agreed delivery
date (Commission proposed no clear deadline).
MEPs also agreed that the following practices should be outlawed:
• when a buyer refuses to sign a written
contract with the supplier, who would now have a newly
established right to request it, or to provide the latter with
sufficiently detailed supply terms;
• when a buyer shares or misuses
confidential information, relating to the supply agreement.
No sales below cost, unless agreed in advance
Terms of a supply agreement must never result from the supplier’s
economic dependence on the buyer, MEPs say. They also insist that
unless pre-agreed, the buyer should not sell products below the
purchase price and then ask the supplier to bridge the gap.
Clear complaints procedure
To make life easier for food producers, MEPs propose to allow
them to lodge complaints where they are established, even if UTPs
occurred elsewhere in the EU. National enforcement authorities
would be handling complaints and, following an investigation,
imposing sanctions.
Quote
“In this battle of David versus Goliath, we are arming the
weakest in the food supply chain to ensure fairness, healthier
food and social rights. Small producers, workers, consumers, all
of us, will soon stop suffering the consequences of unfair trade
practices imposed by big players in the food supply chain”, said
rapporteur Paolo De Castro (S&D,
IT).
Next steps
The text approved in the Agriculture Committee by 38 votes in
favour to four votes against, with two abstentions, will now be
submitted to the plenary to seek MEPs’ green light for
negotiations with EU ministers.
Background
Parliament called in 2016
for EU action to do away with unfair trading practices. The
Agriculture Committee demanded an EU
law against UTPs also in its 2017 position on the so-called
Omnibus proposal. MEPs also discussed the matter with several EU
agriculture ministers and agreed with them
that an EU law was necessary.
Committee on Agriculture and Rural Development
In the chair: Czesław Adam Siekierski (EPP, PL)
Further information
EP Research: “What are
unfair trading practices?” (2015)
Draft report and
amendments (see point 3)
Procedure file
Committee on Agriculture
and Rural Development
