Agreement on unfair trading practices in the food supply chain will protect all EU farmers - Hogan
The European Parliament, the Council and the Commission reached today a political agreement on a new set of rules tp ensure protection of 100pc of EU farmers and of a very large majority of EU agri-food companies against practices contrary to good faith and fair dealing.
The new European law will cover agricultural and food products traded in the food supply chain, banning for the first time up to 16 unfair trading practices imposed unilaterally by one trading partner on another.
Other practices will only be permitted if subject to a clear and unambiguous upfront agreement between the parties involved.
The European Commission had tabled its legislative proposal in April 2018 to ensure more fairness in the food chain and provide a minimum protection across the EU.
This is the first time that EU level legislation will be implemented in this area. The new framework grants Member States the authority to enforce the new rules and impose sanctions in case of established infringements.
The agreement reached today will apply to anyone involved in the food supply chain with a turnover of €350m with differentiated levels of protection provided below that threshold.
The new rules will cover retailers, food processors, wholesalers, cooperatives or producers' organisations, or a single producer who would be engaging in any of the unfair trade practices identified.
The unfair trading practices to be banned include: late payments for perishable food products; last minute order cancellations; unilateral or retroactive changes to contracts; forcing the supplier to pay for wasted products and refusing written contracts.