Eu Moves To Tackle Unfair Practices In Food Supply Chain

There needs to be a level and fair playing field between SME food suppliers and retailers on one side and large multinational manufacturers and supermarkets on the other side,” Commission Vice-President for Internal Market and Services Michel Barnier was quoted as saying in the EU press release. “Unfair trading practices jeopardize this. The industry has already made important and valuable efforts to address unfair behavior and should continue doing so. Member States should ensure that they have effective and consistent regulatory frameworks in place to build on and complement self-regulatory initiatives,” he added. According to EU, the unfair trading practices (UTPs) include avoiding or refusing to put essential commercial terms in writing, retroactive unilateral changes in the cost or price of products or services, transfer of unjustified or disproportionate risk to a contracting party, deliberately disrupting a delivery or reception schedule to obtain unjustified advantages, unilaterally terminating a commercial relationship without notice, or subject to an unreasonably short notice period and without an objectively justified reason. The total market size of EU retail trade in food-related products is estimated at 1.05 trillion. Cross border trade among EU Member States accounts for about 20% of total EU food production.
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