EU-28: EU Adopts New Directive on Unfair Trading Practices
On March 12, 2019, the European Parliament formally adopted the new EU Directive on Unfair Trading Practices in the Food Supply Chain. The motivation for this legislation is to rebalance power among farmers, food processors and retailers. The Directive forbids certain commercial practices such as late payments for perishable food products or last minute order cancellations. Third countries’ businesses are included in the scope of the Directive. U.S. companies exporting food and agricultural products to the EU are eligible to benefit from the Directive’s safeguards; U.S. companies will also have to comply with the same rules as European companies, e.g., the Directive forbids unilateral contract changes for perishable goods.
