European Parliament unanimously backs measures to protect farmers from unfair trade practices

Brussels – Unanimous vote in the European Parliament in Strasbourg to protect farmers from unfair commercial practices. With 555 votes in favour, no votes against, and 26 abstentions, MEPs gave the green light to new rules that oblige national authorities to cooperate in agricultural trade between EU countries to ensure fair remuneration for farmers. The rapporteur for the text, MEP Stefano Bonaccini of the Democratic Party, emphasises that “today, Europe is proving that it can listen and take action. We stand with those who need support the most, strengthening protections for small producers and making sure we have an agri-food supply chain that is fair, transparent, and free from exploitation.” 

The text adopted today (12 February) allows national authorities to intervene to stop unfair cross-border practices, even in the absence of a complaint from producers, replicating a model already used for the protection of geographical indications in the single market. Around 20 per cent of agricultural and food products consumed in EU countries come from another Member State.

Cases of cross-border unfair trading practices damaging farmers and small producers of agricultural products will, as a result, be prevented, investigated, and punished. “We have turned what could have been a simple administrative file into a powerful act of economic and social justice. We are thus sending a clear message: farmers will no longer be forced to submit to the unfair demands and behaviours of large buyers and retailers,” explains Stefano Bonaccini in plenary during his opening speech on the debate on unfair trading practices. 

The regulation also extends the scope of action against buyers based outside the EU: to prevent circumvention of the rules, non-European operators trading in the internal market will have to designate a contact person in the EU who will be responsible for cooperating with the authorities in the event of an investigation. Information sharing between Member States has also been strengthened. It will be possible to use the EU’s existing IT system designed for exchanges between public administrations in different Member States, allowing them to intervene more quickly.

The regulation approved in the Chamber, which must now be adopted by the Council of the EU, essentially supplements the Unfair Trade Practices Directive (UTP), which has been in force since 2022. However, that directive was limited to protecting farmers from practices such as late payments or cancellations on short notice when they sell their products to large supermarkets and food processing companies.