The European Parliament has voted in favor of a new set of EU rules, which is designed to protect 100% of European farmers, as well as small and medium-sized suppliers from unfair trade practices in the food supply chain.
The new European law is based on a proposal submitted by the European Commission and will cover agricultural and food products traded in the food supply chain, banning for the first time up to 16 unfair trading methods imposed unilaterally by one trading partner to another.
The adopted rules will apply to all persons participating in the food supply chain with a turnover of 350 million euros with a differentiated level of protection below this threshold. The new rules will apply to retailers, food producers, wholesalers, cooperatives or producer organizations, or to one manufacturer who will engage in any of the unfair trade practices identified. Inappropriate trading practices include: late payments for perishable food; Last minute cancellation unilateral or reverse changes in contracts; forcing a supplier to pay for lost products and refusing written contracts.Other practices will be allowed only if there is a clear and unequivocal preliminary agreement between the parties: the buyer returns unsold food to the supplier; the buyer charges a supplier for securing or maintaining a food supply agreement; the supplier pays for the buyer's promotion, advertising or marketing campaign. Member States are expected to formally approve the new rules before they take effect.