Cross-border enforcement of unfair trading practices: Single Market must come first, says EuroCommerce

At the opening session of the EU Agri-Food Days, Agriculture Commissioner Hansen announced several measures aimed at supporting competitiveness, sustainability and resilience of the agri-food chain, including a proposal for a Regulation on cross-border enforcement of unfair trading practices rules in the agri-food supply chain.

EuroCommerce – the association representing retailers and wholesalers in Europe – welcomes a more inclusive approach to addressing the key challenges facing the agri-food chain. However, it is also worried that the proposal will undermine the Single Market. “Retail and wholesale are key partners in the agri-food chain, and a well-functioning Single Market plays a key role in supporting a resilient and competitive agri-food chain. We are extremely worried that the proposal on cross-border enforcement of unfair trading practices rules could allow member states to apply enforcement measures in other EU countries on the basis of national rules which are not harmonised. This risks re-nationalisation of the EU agri-food market. As Enrico Letta noted in his report, such re-nationalisation will ultimately affect the benefits derived from the Single Market for consumers”, commented Christel Delberghe, EuroCommerce Director General at a panel of the EU Agri-Food Days in Brussels today.

The proposal is presented as a procedural measure with no impact assessment or stakeholder consultation. EuroCommerce fails to see the urgency of proposing procedural rules now when the substantive legislative framework will be reviewed in less than a year. An impact assessment is necessary as the rights and obligations of stakeholders may be affected.

The Commission first announced the principle as part of a non-paper drawn up during the farmers' protests. Retailers and wholesalers sympathise with the situation facing farmers. The proposal, however, raises serious legal concerns for the Single Market due to the risk that it undermines businesses’ rights to choose the law and jurisdiction applicable to their contracts.

Member States have shown a keen interest in extending their sometimes stricter national rules beyond their borders. Therefore, the Single Market is at real risk of fragmentation. Co-legislators must preserve the EU single market by including strong safeguards that the proposed regulation can only apply to rules harmonised at EU level.