Brussels, 15/07/2014 (Agence Europe) - On Tuesday 15 July, the European Commission adopted a communication (with no legislative measures) encouraging the member states to do more to protect small producers and retailers of foodstuffs from the unfair practices of their trade partners, who are in many cases far more powerful.
“There needs to be a level and fair playing field between SME food suppliers and retailers on one side and large multinational manufacturers and supermarkets on the other side. Unfair trading practices jeopardise this. Member states should ensure that they have effective and consistent regulatory frameworks in place to build on and complement self-regulatory initiatives”, said Michel Barnier, Vice-President of the Commission.
Unfair trade practices include: - avoiding or refusing to put essential commercial terms in writing; - retroactive unilateral changes in the cost price of products or services; - transfer of unjustified or disproportionate risk to a contracting party; - deliberately disrupting a delivery or reception scheduled to obtain unjustified advantages; - or unilaterally terminating a commercial relationship without notice, or subject to an unreasonably short notice period and without an objectively justified reason.
The suggestions outlined in the communication are based on three building blocks: 1) support of the voluntary Supply Chain Initiative (voluntary code of conduct); 2) adoption of EU-wide standards for principles of good practice; 3) effective enforcement at national level. (LC)