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The European Parliament adopted Edward Czesak’s report on unfair trading practices

7 June 2016

The European Parliament adopted Edward Czesak’s report on unfair trading practices

Today, MEPs voted for Edward Czesak’s report on unfair trading practices in the food supply chain.

Today, MEPs voted for Edward Czesak’s report on unfair trading practices in the food supply chain.“It is a problem which is being faced by all subjects in the food supply chain as well as national competitiveness bodies. Its importance is proved by concrete examples for example in Poland or Great Britain”, Mr Czesak said.

The main goal of this report is protection of small food producers and retail sellers against unfair practices of usually stronger trade partners, such as unilateral changes in the contracts with backwards effect, charges laid on suppliers by enterprises (pay to stay), payments made after 120 days (pay you later), sale below production costs or forcing suppliers to use concrete third parties which produce packaging.
MEP Czesak underlined that during work upon the report several meetings with national and multinational organisations took place. Several suggestions were presented, and experiences in terms of functioning at the national level.
“A review of solutions in terms of counteracting unfair trade practices in the member states confirms that voluntary initiatives prove to be insufficient”, Mr Czesak said.
In the report there are several guidelines supporting the need for further work on solutions improving supplier-supermarket relations, e.g. minimalizing the “fear factor” when the weaker party does not undertake any legal action being afraid that the stronger party will cease the trade relations. The rapporteur appeals for actions aimed at formulating new instruments towards strengthening efforts aimed at preventing unfair practices in the supply chain.
“Lately most of the member states introduced their own legal regulations. Therefore we need to encourage member states to exchange the experiences in terms of legal solutions. The question is: will it be enough?”, Mr Czesak asked.

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