Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain

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Series Details L 111
Publication Date 25/04/2019
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Summary:

Directive of the European Parliament and of the Council of 17 April 2019 aiming to reduce the occurrence of unfair trading practices (UTPs) in the food supply chain by introducing a minimum common standard of protection across the European Union.

Background and further information:

This Directive was proposed by the European Commission on 10 April 2018, following the acknowledgment of significant concerns about unfair trading practices (UTPs) at the national level. The introduction of specific UTP rules in 20 Member States also increased the heterogeneity by which those practices were addressed. On the other hand, in certain Member States there was innefective, or no specific protection against UTPs. There was also very little coordination among Member States’ enforcement authorities, due to the absence of formal coordination structures at EU level. Such coordination could improve the enforcement practices in Member States.

The proposal aimed to reduce the occurrence of unfair trading practices (UTPs) in the food supply chain by introducing a minimum common standard of protection across the European Union (EU) that consists of a short list of specific prohibited UTPs. The protection covers small and medium-sized suppliers in the food supply chain insofar as they sell food products to buyers who are not small and medium-sized. This scope aims at contributing to a fair standard of living for the agricultural community, an objective of the common agricultural policy.

The proposal was first discussed by the Council of the European Union on 16 April. The Special Committee on Agriculture (SCA) had a first exchange of views on 23 April. On 1 October, the SCA reached agreement on the Council's negotiating position on the Commission’s proposal. The European Parliament's plenary session adopted its negotiating position on 25 October, and an informal agreement between the co-legislators was reached on a compromise text on 19 December. The Parliament's plenary session formally endorsed the compromise on 12 March 2019.

Source Link https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2019.111.01.0059.01.ENG
Related Link(s)
Commentary and Analysis
Oxfam: Press Release, 12/04/2018: Key step taken to end human suffering in EU supermarket supply chains https://www.oxfam.org/en/pressroom/reactions/key-step-taken-end-human-suffering-eu-supermarket-supply-chains
EPRS: Briefing, July 2018: Unfair trading practices in the food supply chain [Initial Appraisal of a European Commission Impact Assessment] http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)621831
EPRS: Briefing, September 2018: Unfair trading practices in the food supply chain [EU Legislation in Progress] http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)625172
EPRS: At a Glance, March 2019: Unfair trading practices in the food supply chain http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2019)635538

News
EurActiv, 17/04/2018: Stakeholders call for strong enforcement to combat unfair trade practices https://www.euractiv.com/section/agriculture-food/news/stakeholders-call-for-strong-enforcement-to-combat-unfair-trade-practices/
EurActiv, 07/09/2018: Debate on the scope of unfair trade practices heats up in EU Parliament https://www.euractiv.com/section/agriculture-food/news/debate-on-the-scope-of-unfair-trade-practices-heats-up-in-eu-parliament/
EurActiv, 12/09/2018: Visegrad +4 push for extension of unfair trade practices to large suppliers https://www.euractiv.com/section/agriculture-food/news/visegrad-4-push-for-the-extension-of-unfair-trade-practices-to-large-suppliers/
EurActiv, 18/12/2018: MEPs and ministers make final bid for deal on unfair trade practices https://www.euractiv.com/section/agriculture-food/news/unfair-trade-practices-last-call-for-a-deal-before-the-end-of-year/

Official
EUR-Lex: COM(2018)173: Proposal for a Directive on unfair trading practices in business-to-business relationships in the food supply chain https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:173:FIN
EUR-Lex: SWD(2018)92: Impact assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:092:FIN
EUR-Lex: SWD(2018)93: Executive summary of the impact assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:093:FIN
EUR-Lex: SWD(2018)91: Stakeholder consultation - Synopsis report https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:091:FIN
European Parliament: Legislative Observatory: Procedure File for proposal on unfair trading practices in business-to-business relationships in the food supply chain https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2018/0082(COD)
European Parliament: Legislative Train: Unfair trading practices in the food supply chain http://www.europarl.europa.eu/legislative-train/theme-deeper-and-fairer-internal-market-with-a-strengthened-industrial-base-products/file-unfair-trading-practices-in-the-food-supply-chain
European Commission: Unfair trading practices in the food chain https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/market-measures/unfair-trading-practices-food-chain
European Commission: Press Release, 12/04/2018: European Commission acts to ban unfair trade practices in the food supply chain http://europa.eu/rapid/press-release_IP-18-2702_en.htm
European Commission: Fact Sheet, 12/04/2018: Tackling unfair trading practices in the food supply chain http://europa.eu/rapid/press-release_MEMO-18-2703_en.htm
UK Parliament: House of Lords Select Committee, June 2018: Unfair trading in the food supply chain https://www.parliament.uk/business/committees/committees-a-z/lords-select/eu-energy-environment-subcommittee/scrutiny-work/parliament-2017/unfair-trading-food-supply-chain/
European Commission: Press Release, 19/12/2018: Agreement on unfair trading practices in the food supply chain will protect all EU farmers http://europa.eu/rapid/press-release_IP-18-6790_en.htm
European Parliament: Press Release, 12/03/2019: From farms to supermarkets: MEPs approve new EU rules against unfair trading http://www.europarl.europa.eu/news/en/press-room/20190307IPR30742/

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