MEPs gave their final green light to a new legislation that will allow member states to intervene automatically and stop cross-border unfair trading practices regarding agricultural products. New rules also seek to protect EU producers from non-EU buyers. The system will replicate the protection regime for geographical indications in the single market.
An unprecedented unity was seen on Thursday, 12 February in the Plenary as not a single one MEP was against during the vote on unfair cross-border trading practices. With 555 votes in favour and 26 abstentions, parliamentarians gave their final green light to new rules that oblige national authorities to cooperate on the issue of unfair trading practices. The chief the aim is to ensure that farmers receive fair remuneration for their work. Cases of cross-border unfair trading practices damaging farmers and small producers of agricultural products will as a result be prevented, investigated, and punished.
Inside and outside the EU
To strengthen the protection of farmers, the new legislation will allow member states to intervene automatically and stop cross-border unfair trading practices on their own initiative without needing a complaint from a producer. This new system will replicate the protection regime for geographical indications in the single market.
Not only that. The legislation will prevent operators from circumventing the law by moving outside of the EU. The new rules also seek to protect producers from the unfair trading practices of non-EU buyers. Buyers based outside the EU will have to designate ’a contact person responsible for the EU’ in case an investigation is opened against them.
The regulation allows national enforcement authorities to inform each other about unfair trading practices or a risk of them taking place, through the internal market information system. This is an existing EU IT system for exchanging information among public administrations in different member states. This exchange is intended to have a deterrent effect and will ensure rapid and coordinated responses to stop unfair trading practices.
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Strengthened protection for small producers
“We are sending a clear message: farmers will no longer be forced to submit to the unfair demands and behaviours of large buyers and retailers. Today, Europe is proving that it can listen and take action. We stand with those who need support the most, strengthening protections for small producers and making sure we have an agri-food supply chain that is fair, transparent, and free from exploitation,” said rapporteur Stefano Bonaccini (S&D, ITA).
Farmers will no longer be forced to submit to the unfair demands and behaviours of large buyers and retailers. – rapporteur Stefano Bonaccini (S&D, ITA)
So far, farmers have been protected by the Unfair Trading Practices Directive which has been adopted in 2019. This legislation protects farmers from practices such as late payments or short-notice cancellations when selling their products to big supermarkets and food processing companies.
The new rules now need to be approved by Council. They will apply 18 months after being published in the EU Official Journal.
