EuroCommerce Raises Concerns Over Proposed UTP Directive Amendments

EuroCommerce, the organization representing the retail and wholesale sector across Europe, has expressed serious concerns regarding the European Commission's proposed amendments to the Unfair Trading Practices (UTP) Directive in the agri-food supply chain, according to a communication published by Climate.Brussels.

The organization warns that the proposed changes could undermine the EU Single Market by allowing Member States to enforce rules across borders based on non-harmonized national laws. This, they argue, risks fragmenting the Single Market and leading to a “renationalization” of the EU agri-food market.

Legal and Procedural Concerns

EuroCommerce emphasized that the Commission is presenting the proposal as a procedural adjustment, without a proper impact assessment or stakeholder consultation, raising serious legal concerns. They argue that a full impact assessment is necessary, as the changes could directly affect the rights and obligations of stakeholders across the supply chain.

This is not the first time EuroCommerce has opposed regulatory moves on UTPs. In 2018, the organization sent a letter to EU political group leaders urging them to postpone the vote on the initial directive, citing concerns about legal uncertainty and a lack of analysis on its effects.

Parliament’s Stance

Despite EuroCommerce’s efforts, the European Parliament moved forward and granted a mandate to begin trilogue negotiations, stressing the importance of rebalancing power within the food supply chain and protecting farmers from abusive trading practices.

Call for Strong Safeguards

EuroCommerce now reiterates that the proposed amendments could harm the integrity of the Single Market and impede businesses' ability to choose the applicable law and jurisdiction for their contracts. The organization calls for strong safeguards to ensure the coherence and unity of EU market rules.