|Author (Corporate)||European Commission|
|Series Details||COM (2018) 173|
Legislative proposal - published by the European Commission in April 2018 - which bans the more damaging unfair trading practices in the food supply chain and features a set of effective enforcement provisions.
The adoption of this draft law on 12 April 2018 followed the acknowledgment of significant concern 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 aims 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.
Following the adoption of the proposal by the Commission, the European Parliament's plenary session adopted its negotiating position on 25 October 2018. 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. An informal agreement between the co-legislators was reached on a compromise text on 19 December following six rounds of trilogue negotiations. The Parliament's plenary session formally endorsed the compromise on 12 March 2019.
|Subject Categories||Business and Industry|
|Subject Tags||Agriculture, Food|
|International Organisations||European Union [EU]|