Evaluation of Directive (EU) 2019/633 of 17 April 2019 on unfair trading practices in B2B relationships in the agricultural and food supply chain (Incl. Mapping of national UTP legislation)

Key points

The EESC:

• recommends enhancing enforcement mechanisms at EU level to provide greater legal certainty, a level playing field across the EU and stronger protections specifically targeted at the weaker actors in the supply chain;
• recommends to work towards harmonising the Directive so that it is suitable for the single market;
• suggests to ensure that the costs of sustainable development are shared across all stakeholders, including consumers, to build a more equitable system and to support endeavours for more price transparency;
• suggests to address challenges like price volatility, seasonal shortages and administrative burdens by improving risk management and providing better support for producers and to broaden protections for producers, including stricter prohibitions on logistics fees, undisclosed rebates, and sales bonuses;
• suggests to strengthen measures to preserve small farms, and to implement appropriate penalties for violations to ensure the Directive’s deterrent effect and enhance compliance;
• recommends to improve information campaigns so that stakeholders are aware of their rights and obligations, of protection procedures and of how the authorities operate; 
• suggests the establishment of an EU-wide portal for reporting UTPs in order to address fears of retaliation and improve complaint mechanisms as well as the establishment of forums at both national and EU levels to foster dialogue and collaboration among stakeholders in the food supply chain; The EESC recognises that the creation of the European Board on the Agriculture and Food as a follow-up to the open dialogue launched by the Strategic Dialogue on the Future of EU Agriculture is a significant step forward;
• encourages the Commission to present its draft revision of the Food Information to Consumers Regulation, improving information on the origin of products to increase traceability;
• recommends to examine the Directive’s scope to address power imbalances, foster efficiency along the supply chain and ensure fairness, including an appropriate allocation of risks and profits, in supplier relationships, and increase compliance with bans on certain practices to protect all market participants effectively.