A ban against unfair trade practices in the food supply chain

The EU commission unveiled its proposal for the protection of farmers and SMEs, which are often lacking bargaining power in the food supply chain. The initiative addresses unfair trading practices, as late payments from retailers, unilateral or retroactive changes to contracts and last minute cancellations for the order of perishable food products. According to the text, farmers and SMEs need more protection since, given to their perishable nature, their products could easily lose their value and put them in a weaker position compared to their partners in the value chain. The proposal suggests the settlement of national enforcement authorities to protect farmers and allow them to report anonymously unfair practices overcoming the fear of a possible retaliation from the buyer. The text will take the form of a directive and follow the co-decision procedure between the European Parliament and the Council.

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