In Strasbourg, on Monday 1 October, the European Parliament’s committee on agriculture adopted its position amending the proposal for a directive on combating unfair trading practices (UTP) (see EUROPE 12107, 12105). The scope of the text is broadened to cover more actors in the food supply chain and to outlaw certain unfair trading practices.
Plenary vote on 23 October. The report on this by Paolo De Castro (S&D, Italy) was adopted in committee by 38 votes in favour, 4 against and 2 abstentions. It will be the subject of a plenary vote at the European Parliament on Tuesday 23 October, in Strasbourg, before the negotiation debate with the Council. The latter adopted a negotiating brief the same day, taking a less ambitious position (EUROPE 12107).
MEPs broadened the scope of the proposal for a directive by: - including all actors of the food supply chain and not only small and medium-sized producers and large buyers; - and covering the trade of agricultural products and ancillary services, in addition to food products.
The blacklist of UTPs proposed, as amended by MEPs, includes: - payments made later than 30 days for perishable agricultural and food products, as well as payments made later than 60 days for non-perishable products (counting from the last day of the month during which the invoice was received or from the agreed delivery date); - unilateral cancellation of an order of perishable products less than 60 days from the agreed delivery date (the European Commission did not propose any clear deadline).
Written contract. MEPs also added other practices that should be considered illegal: - refusal by the buyer to sign a written contract with the supplier, who would now have a newly established right to request such a contract, or to provide the latter with sufficiently detailed supply terms; - the buyer’s sharing or misuse of confidential information relating to the supply agreement.
No sale below the purchase price except when agreed in advance. Terms of a supply agreement must never result from the supplier’s economic dependence on the buyer, MEPs say. In addition, they underline that, unless pre-agreed, the buyer should not sell products below the purchase price and then ask the supplier to bridge the gap.
Clear complaints procedure. In order to facilitate the life of food producers, MEPs propose to allow them to lodge complaints where they are established, even if UTPs occurred elsewhere in the EU. National enforcement authorities would be handling complaints and, following an investigation, imposing sanctions.
A witch hunt? “Small producers, workers, consumers, all of us, will soon stop suffering the consequences of unfair trading practices imposed by big players in the food supply chain”, said the rapporteur, Paolo De Castro.
EU agricultural cooperatives and organisations have hailed the result of the “historic” vote in agriculture committee, as some NGOs have done, including Oxfam International. EuroCommerce, on the other hand, bemoaned the fact that the debate and the vote in Parliament had “pushed discussion towards a witch hunt against retailers and wholesalers”. (Original version in French by Lionel Changeur)