AGRI MEPs vote on cross-border cooperation against unfair practices affecting farmers

Member states should stop cross-border unfair trading practices on their own initiative

Immediate notifications about suspected unfair trading practices in the Single market

Protection against unfair trading practices of buyers from third countries

20% of the agricultural and food products come from another member state

Agriculture and Rural Development Committee proposes stronger protection of farmers against unfair trading practices of supermarkets and food processing companies.

The EU rules for cross-border enforcement against unfair trading practices in the agricultural and food supply chain were adopted with 44 votes to 1, without abstentions. The new law aims to improve cooperation of national authorities responsible for the enforcement of an EU ban of unfair trading practices, by improving and making the exchange of information, investigations, and collection of penalties mandatory.

To strengthen the protection of farmers, MEPs want member states to intervene ex officio, stopping cross-border unfair trading practices on their own initiative without any formal complaint from a producer. This system would replicate the protection regime for Geographical Indications in the Single Market.

Transparency thanks to a rapid alert system

MEPs want to improve a proposed system of alerts about unfair trading practices, which might be taking place in two or more countries. Designated points of contact from national enforcement authorities and the Commission should create a permanent information network. Thanks to the network, all members would be automatically and immediately notified about suspected unfair trading practices in other countries.

Rules extended to suppliers and buying alliances outside the EU

To prevent operators from circumventing the law by moving their base outside of the EU, MEPs want to extend the rules to protect producers suffering from unfair trading practices of buyers from third countries. At the same time, all buyers based outside the EU will have to designate an “EU responsible person” before being able to buy their agricultural and food products in the EU, say MEPs. The person would be liable for fines for breaching the rules by the seller, propose MEPs.

Extended legal framework for cooperation of authorities

MEPs want to make sure that in cases where member states have decided to prohibit more unfair trading practices than the ones banned by the current EU law - such as a ban on selling below production cost - enforcement authorities will have the possibility to apply, by mutual agreement, the new rules on their mutual cooperation.

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Rapporteur Stefano Bonaccini (S&D, IT) said: “The vote today, which follows weeks of intensive and fruitful cooperation among all political groups, represents a major step toward stronger protections for small producers and a fairer, more transparent agri-food chain, free from abuses and blackmails.”

“Our goal is now to complete the legislative process by the end of the year to ensure fair remuneration for farmers' work and the value of their products, living up to the expectations of millions of European citizens,” added the rapporteur.

Next steps

Agriculture Committee MEPs also decided to start talks with EU countries on the final shape of legislation, with the green light from Plenary in September 2025.

Background

The Unfair Trading Practices (UTP) Directive adopted in 2019 protects farmers selling their products to big supermarkets and food processing companies from practices such as late payments for products or cancelling orders at short-notice. However, as around 20% of the agricultural and food products consumed in the EU come from another member state, the new regulation on cross-border cooperation among authorities responsible for the enforcement of the UTP Directive aims to improve cooperation between these authorities in cases of unfair trading practices where suppliers and buyers are in different member states.