From farms to supermarkets: MEPs approve new EU rules against unfair trading

Supermarket 2019__

(Joshua Rawson-Harris, Unsplash)

This article is brought to you in association with the European Parliament.


New EU rules to protect farmers against unfair trading practices by buyers were approved, on Tuesday.

New rules, approved by 589 votes in favour to 72 against, with nine abstentions, blacklist practices, such as late payments for delivered products, late unilateral cancellations or retroactive order changes, refusal by the buyer to sign a written contract with a supplier and the misuse of confidential information. Threats of retaliation against suppliers, for instance delisting their products or delaying payments, to punish them for filing complaints, will also be outlawed.

Buyers will no longer be allowed to request payments from suppliers for deterioration or loss of products at the buyers’ premises, unless caused by the suppliers’ negligence or to make suppliers pay for the cost of examining customer complaints.

Other practices, such as returning unsold products to a supplier without paying for them, forcing suppliers to pay for the advertising of products, charging suppliers for stocking or listing of products, or imposing discount costs onto the supplier, would also be outlawed unless pre-agreed in the supply agreement.

Clear complaints procedure

Food suppliers will be allowed to lodge complaints where they are based, even if unfair trading occurred elsewhere in the EU. National enforcement authorities would handle complaints, conduct investigations and ensure solutions.

Protecting small and mid-range suppliers

New rules will protect small, medium-sized and mid-range suppliers with an annual turnover below €350 million. These suppliers will be divided into five sub-categories, (with turnovers below €2m, €10m, €50m, €150m and €350m), with the most extensive protection given to the smallest ones.

More information about the new EU rules is available here.

Quote

“David has finally defeated Goliath. Fairness, healthier food and social rights have finally prevailed over the unfair trading practices in the food supply chain. For the very first time in the EU history, farmers, food producers and consumers will no longer be bullied by big players”, said rapporteur Paolo De Castro (S&D, IT).

“This is a great success for all Europeans. This is the EU we stand for: the EU that affects people’s daily lives by eradicating inequalities and fighting for citizens’ health, environment and fairness”, he added.

Next steps

The anti-UTPs directive needs to be formally endorsed by the Council before it can enter into force. EU states will then have 24 months to introduce it to national laws. New rules should be applied 30 months after entering into force.

Background

The European Parliament has repeatedly called for measures to tackle unfair trading practices (UTPs) in the food supply chain, since 2010, after adopting the resolution on fairer revenues for farmers and better functionality of the supply chain.

According to Commission estimates, agriculture and food processing SMEs in the EU lose between €2.5 – €8 billion per year (1% – 2% of their turnover) due to UTPs.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

How electrification will make the world more inclusive

“What a Wonderful World”: the unsettled relationship between Climate Change and Human Health

Students in Milan are moving in with the elderly to fight loneliness and save money

A Brussels antithesis reveals where the EU is heading

MEPs agree on future regional and cohesion funding

EU ready to relinquish its internal tax havens

It’s time to strengthen global digital cooperation

Merkel had it her way with the refugees & immigrants but can Greece and Turkey deliver?

How do we design an inclusive energy transition?

Greece may offer to China a European gateway

COP21 Breaking News: “We must accelerate the process”, Laurent Fabius cries out from Paris

Climate change and health: public health awareness in an international framework

After globalization what? Europe’s long, straining shake-up post Davos wreckage

‘Repeated attacks’ could close down key hospital in eastern Libya, says WHO

In Chad, top UN officials say humanitarian response must go ‘hand in hand’ with longer-term recovery

Alarming level of reprisals against activists, human rights defenders, and victims – new UN report

FROM THE FIELD: ‘Hope’ on the horizon as UN Peacekeepers push deep into Mali

Immigrants make good entrepreneurs. This study proves it

Diversity training doesn’t change people’s behaviour. We need to find out what does

Infinite Oath

INTERVIEW: Advancing human rights, a ‘never ending process’ says new UN rights chief

Water reuse: Commission proposes measures to make it easier and safer for agricultural irrigation

2021-2027 EU Budget: €378,1 billion to benefit all regions

FROM THE FIELD: Finding refuge in the ‘beautiful game’

UN chief welcomes formation of unity government in Madagascar

Is there a new debt crisis on the horizon?

UN recorded 64 new allegations of sexual exploitation or abuse in the past three months

UN chief praises Africa for keeping ‘hearts and borders open’ in refugee crisis

‘Bleakest period yet’ in Occupied Palestinian Territory: UN human rights expert

Pharmaceuticals: Commission refines intellectual property rules

What’s behind South Korea’s elderly crime wave?

Conflict and climate change challenge sustainable development effort: UN report

The New Year 2016 will not be benevolent to Europe

UN chief hails victory of ‘political will’ in historic Republic of North Macedonia accord

UN underscores the need to celebrate indigenous peoples, not confine them

China repels EU allegations of export subsidies

Europe’s dirty air kills 400,000 people every year

Safe drinking water, sanitation, are ‘basic human rights’: new UN Water Development report

6 things to know about press freedom around the world

Here are three ways Africa’s youth are defeating corruption

Industrial price dive may lead to point of no return

Parallel downfalls of Merkel and Deutsche Bank threaten Germany and Europe

Uganda’s Ebola preparedness ‘will go a long way’ says WHO chief

Nature is our strongest ally in ensuring global water security

Greece @ MWC14: Greek-born mobile champions at MWC 2014

How trade tariffs could help combat climate change

The ECB accuses the politicians of inaction, continues injecting billions to banks

South Africa still hasn’t won LGBTQ+ equality. Here are 5 reasons why

Pakistan has just planted over a billion trees

What happens when the Eurogroup decides to help Greece

JADE Generations Club: Connecting perspectives, changing Europe.

Smart devices must come with trust already installed

Refugee crisis update: EU seeks now close cooperation with Africa while Schulz is shocked to witness live one single wreck full of immigrants

GSMA Mobile 360 Series – Latin America, in association with The European Sting

‘World’s deadliest sea crossing’ claimed six lives a day in 2018: UN refugee agency

Nicaragua: MEPs condemn brutal repression and demand elections

This is how AI can help you make sense of the world

France: New labour laws for more competitiveness

These countries spend the most on education

168 hours left for MEPs – ECOFIN Council to deliver a Banking Union

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s