| Author (Corporate) | European Commission |
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| Series Details | COM (2014) 472 |
| Publication Date | 15/07/2014 |
| Content Type | Policy-making |
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Summary: Communication published by the European Commission in July 2014 on tackling unfair trading practices (UTPs) to protect food supply chains across the European Union. Further information: The food supply chain ensures the delivery of food and drink products to the general public for personal or household consumption. Before a product reaches the consumer, a number of market participants (producers, processors, retailers, etc.) add to its value and have an impact on the final price paid by the consumer. In this respect, the Single Market was seen as bringing major benefits to operators in the food supply chain. Suppliers and retailers gained access to more market opportunities and a bigger customer base. Therefore, a well-functioning and efficient food supply chain throughout the EU can significantly contribute to the Single Market. However, developments such as the increased concentration and vertical integration of market participants across the EU led to structural changes in the food supply chain. These developments contributed to a situation of significantly different levels of bargaining power and economic imbalances in individual trade relations between the actors in the chain. While differences in bargaining power are common and legitimate in commercial relationships, the abuse of such differences may sometimes lead to unfair trading practices (UTPs). UTPs can broadly be defined as practices that grossly deviate from good commercial conduct, are contrary to good faith and fair dealing and are unilaterally imposed by one trading partner on another. This Communication does not foresee regulatory action at EU level and does not prescribe a single solution to address the issue of UTPs, but rather encourages stakeholders and Member States to tackle UTPs in an appropriate and proportionate manner, taking into account national circumstances and best practice. It encourages operators in the European food supply chain to participate in voluntary schemes aiming at promoting best practices and reducing UTPs. It also emphasises the importance of effective redress. The European Parliament discussed and adopted in June 2016 a non-legislative resolution in response to this Communication. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2014:472:FIN |
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| Subject Categories | Business and Industry |
| Subject Tags | Food | Drinks, Trade Policy |
| International Organisations | European Union [EU] |
