Today the Council adopted the regulation concerning new rules aimed at combatting cross-border unfair trading practices in the agricultural and food supply chain.
These new rules aim to improve cooperation between EU authorities responsible for enforcing rules on unfair trading practices in cases where suppliers and buyers are established in different member states. It’s part of the EU’s effort to support farmers in the supply chain, especially by insuring a fair distribution of income at farmers’ level.
Farmers are the backbone of our food systems, working tirelessly to feed us all. Ensuring fair treatment and protection of farmers within the food supply chain is essential. These new rules will strengthen the cross-border cooperation between national authorities in different member states, and give them a stronger voice in shaping the future of the food supply chain.
Maria Panayiotou, Minister of Agriculture, Rural Development and Environment of the Republic of Cyprus
Main elements of the updated regulation
The regulation establishes a comprehensive set of rules for cross-border cooperation against unfair trading practices in business-to-business relationships within the agricultural and food supply chain. It enhances transnational cooperation in cases where suppliers and buyers are located in different member states.
It also introduces a mutual assistance mechanism, which would enable national enforcement authorities to request and exchange information or to collaborate on investigations related to unfair trading practices. The framework will facilitate the enforcement of decisions concerning fines or penalties imposed in another member state, support the coordination of enforcement actions and allow member states to notify decisions related to unfair trading practices.
Furthermore, the new legislation introduces rules on the allocation of costs in cases of mutual assistance, as well as rules on data protection and confidentiality of information, ensuring farmers and suppliers remain safe from potential retaliation.
It also establishes a mechanism for coordinated action in cases of large-scale cross-border unfair trading practices involving at least three EU countries. In such cases, a coordinator would be designated to facilitate the response.
The regulation contains rules for cooperation between Member States in cases of unfair trading practices by buyers from outside the EU, in order to better protect European farmers.
Next steps
The new rules will enter into force 18 months after their publication in the Official Journal of the EU to give member states the time to prepare the implementation of this new legal framework.
Background
In 2019, the directive on combatting unfair trading practices entered into force with the aim of addressing imbalances in bargaining power between suppliers and buyers of agricultural products. In particular, its goal was to protect farmers who, for instance, sell their products to big supermarkets and food processing companies.
Based on the experience gained since then, the Commission considered that the cross-border dimension of unfair trading practices needed to be addressed. In fact, on average around 20% of agricultural and food products consumed in an EU member state come from another member state.
The Commission published its proposal in December 2024, as part of the EU’s efforts to improve farmers’ position in the agrifood supply chain. The proposed rules also directly reflect several recommendations of the strategic dialogue on the future of EU agriculture and respond to some of the most pressing challenges that the agricultural sector faces.
Fonte: Conselho Europeu
