On Monday, 1 December, the European Commission published a report summarising the main findings of the first evaluation of the directive on unfair trading practices (UTPs) in the agri-food chain, which shows that the text can still be improved.
The report (https://aeur.eu/f/jt1 ) will serve as a basis for the European Commission’s reflections in the context of the revision of the rules on UTPs, which notably aims to better protect farmers from the risk of being forced to sell their products below the cost of production (see EUROPE 13750/17).
The evaluation revealed a number of shortcomings and challenges. The European Commission’s report indicates that the lessons learned show areas where the UTP framework and its application could be strengthened, including by potentially revising the directive:
- making farmers and suppliers aware of their rights;
- improving implementation and combatting the “fear factor” among suppliers (fear of retaliation);
- strengthening cross-border cooperation, for which an agreement has been reached between the European Parliament and the EU Council;
- enhancing monitoring to support evidence-based policies, notably by collecting more reliable and comparable data;
- remedying the uneven application of the directive so as to ensure greater consistency in the fight against UTPs; and
- making it easier to respond to emerging needs, specifically to prevent farmers from being systematically forced to sell [their products] at prices below their production costs.
The report states that while the revision of the directive should be approached prudently (given that it has only been fully implemented for a relatively short period of time), it is clear that “addressing remaining shortcomings and challenges will require further thought”. The European Commission stresses that this reflection will need to determine how the directive and other instruments might best support the economic performance of the agricultural sector and the agri-food chain as a whole and determine whether additional measures are necessary while preserving the market orientation of the common agricultural policy (CAP).
Between 2021 and 2024, national authorities opened more than 4,500 investigations, with a gradual increase in monitoring and enforcement. One-third of the investigations closed during this period revealed an infringement, that being 754 cases and €41.9 million in fines between 2022 and 2024—illustrating growing institutional engagement [in this area]. (Original version in French by Lionel Changeur)