On Monday 1 October, the European Parliament’s agriculture committee will vote in the report by Paolo De Castro (S&D, Italy) on boosting the fight against unfair trading practices (UTP) in the food supply chain (see EUROPE 12058).
No fewer than 44 compromise amendments will be voted upon, which are the subject of quite large consensus among the political groups and aim to make the European Commission’s initial proposals more ambitious.
At the Council of the EU, the Special Agriculture Committee (SAC) will meet the same day to provide the Austrian Presidency with a mandate for talks with the European Parliament (see EUROPE 12099).
The European Parliament rapporteur, Paolo De Castro (S&D, Italy), stressed the need to find political agreement on this issue by the end of this European Parliament since great expectations are emerging. A vote in plenary at the Parliament on any political interinstitutional agreement may take place in April 2019.
Seen by this newsletter, the compromise amendments extend the text’s scope of application to all agricultural products and other players, including agricultural cooperatives.
The first compromise amendment states that the present directive applies to unfair trading practices for the sale of farm and food products by a supplier to a purchaser, and to related services provided by a buyer to a supplier. Other amendments provide detailed definitions, (UTP, economic dependence, agreement between buyer and supplier, perishable products).
Contractual relations. Compromise amendment number 8 introduces a new article on contractual relations, foreseeing that a supplier may demand that all deliveries of farm and food products to a buyer shall be subject to a written contract between the parties and/or are subject to a written offer of a contract from the first buyer.
Complaints. One compromise amendment stipulates that a supplier may lodge a complaint with the enforcement authority of the country in which the supplier is registered. This country’s enforcement authority shall submit the complaint to the authority of the member state in which the buyer suspected of committing an UTP is established. This authority shall take corrective measures and issue penalties where required.
Measures are also foreseen on a mediation or out-of-court-settlement mechanism for disputes.
List of UTP. The European Commission proposes to ban four UTPs: - the buyer must pay up within 30 days for a perishable product, 60 days for non-perishable products; - cancellation of orders; - changes in terms of the agreement; - a buyer may require suppliers to pay for any agricultural products wasted that were delivered by the agreed deadline.
The MEPs want to flesh out the list of cases that may be considered, for example: - if a buyer refuses to draw up a written contract with the supplier; - a buyer shares with third parties or misuses confidential information relating to the supply agreement, including sensitive trade information; if a buyer sells agricultural and food products at a loss (below purchase price). (Original version in French by Lionel Changeur)