Brussels, 17/09/2013 (Agence Europe) - On Monday 16 September, the seven main European food industry associations, along with wholesalers and retailers, launched a voluntary initiative aimed at ensuring equitable trading practices in the food supply chain.
The seven associations involved are FoodDrinkEurope, AIM, the European Retail Round Table (ERRT), EuroCommerce, EuroCoop, UGAL (Union of Groups of Independent Retailers of Europe) and CELCAA (European Liaison Committee for Agricultural and Agri-Food Trade).
COPA-COGECA decided not to take part in the initiative, as it considers that, in order to address unfair and abusive trade practices within the supply chain, it is necessary to have binding legislation.
The voluntary initiative provides a dispute settlement mechanism for the EU companies that wish to take part. Barring contrary provisions in national law, those companies may file a complaint should the principles of the initiative be violated. They have a choice of six courses of action: - the commercial method, for example by submitting the matter to a higher level in the companies concerned; - contractual options; - the appointment of a person within the company (independent of trade negotiations) to manage the disputes; - mediation (which requires agreement of both parties); - arbitration (which also requires the agreement of both sides); - or referral to the courts by the companies concerned.
The dispute settlement mechanism provides remedies, sanctions and fines, and financial compensation for failing to comply with the principles of the initiative. Furthermore, the companies taking part in the initiative are bound to refrain from all retaliatory measures against the companies that file a complaint against them.
“We recognise the work carried out by the multi-stakeholders in developing a voluntary framework to implement the principles of good practice in commercial relations. But COPA-COGECA still does not believe that the voluntary framework alone provides adequate protection to complainants”, said Pekka Pesonen, COPA-COGECA Secretary General. He went on to add: “It is the anonymity of complainants and potential sanctions which are still the weak points of this voluntary framework. The sanctions are not strong enough to prevent abusive practices. An adequate level of protection to complainants can only be achieved with legislative measures and a credible and efficient enforcement”.
Peter Kendall, Chairman of COPA-COGECA working party on the food chain, said: “Experience has shown us that codes of good practice in the food supply chain only begin to deliver for retailers, suppliers and consumers if backed by proper enforcement and oversight. COPA-COGECA favours a practical solution that combines legislation with voluntary codes backed by an enforcement that provides credibility to the system. COPA-COGECA decided last year not to sign up to the voluntary initiative and, so far, no developments in the initiative have taken place that warrant a change of position”. (LC/transl.jl)