EU takes action against unfair trading practices

The European Parliament has adopted new measures to combat unfair trading practices in the agricultural supply chain. The rules are intended to provide stronger protection for farmers, particularly in cross-border trade. National authorities will be required to cooperate more closely. The aim is to ensure fairer remuneration for producers.

With 555 votes in favor, none against and 26 abstentions, the proposal received broad support. The new rules build on the 2019 UTP Directive. That directive protects farmers against practices such as late payments and last-minute cancellations. The new regulation specifically focuses on cooperation between member states in cross-border cases.

Member states may take action themselves

Member states will now be allowed to intervene directly in cross-border unfair trading practices. A formal complaint from a producer will no longer be required. This makes it possible to act more quickly. The system mirrors the existing protection framework for geographical indications within the single market.

Rapporteur Stefano Bonaccini (S&D, IT) said: “We have turned what could have been a simple administrative file into a powerful act of economic and social justice.” He also stated: “farmers will no longer be forced to submit to the unfair demands and behaviours of large buyers and retailers.”

Non-EU buyers also covered

The rules also apply to buyers based outside the European Union. They must designate a “contact person responsible for the EU.” This contact person will serve as the primary point of contact in the event of an investigation. He or she will also be required to cooperate with enforcement authorities.

In addition, national authorities will be able to exchange information through the Internal Market Information System. This existing EU system enables swift and coordinated responses. The rules still need to be approved by the Council. They will take effect eighteen months after publication in the EU Official Journal.

Europarl.europa.eu