Combatting unfair trading practices in the agrifood supply chain

Last April 7th, member states’ representatives in the Special Committee on Agriculture (SCA) approved the Council’s negotiating mandate on a regulation concerning new rules aimed at combatting  cross-border unfair trading practices in the agricultural and food supply chain.

Main elements of the proposal

The proposal aims to set up 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 improves transnational cooperation in cases where suppliers and buyers are in different member states.

The proposed regulation introduces a mutual assistance mechanism, which would enable national enforcement authorities to ask for and exchange information, and to request another enforcement authority to take measures on their behalf.

It also introduces 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.

Main changes agreed by the Council

The Council supports the main elements of the Commission’s proposal but suggests a series of improvements in its negotiating mandate.

In particular, the Council agrees that the regulation should contain 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.

Furthermore, the Council’s mandate introduces rules on covering costs incurred in cases of mutual assistance. The member state requesting information or asking for investigative or enforcement measures would cover the necessary costs incurred by the member state which carried out the investigation or enforcement. Additionally, any fines collected can be used to cover these costs.

The mandate also clarifies the rules under which member states can refuse to comply with a request for information from the national authority of a different member state or refuse to participate in enforcement measures.

The Council’s negotiation mandate also clarifies the data protection and confidentiality rules.

Next steps

With this agreement the presidency is ready to start negotiations with the European Parliament, once the latter has reached its position.

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 the entry into force of the directive, 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.

More information: Council of the European Union