European Commission 12 April 2018, COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Initiative to improve the food supply chain (unfair trading practices) Accompanying the document Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on unfair trading practices in business-to-business relationships in the food supply chain

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This European Commission Staff Working Document constitutes an impact assessment accompanying a proposed Directive on unfair trading practices (UTPs) in business-to-business relationships in the food supply chain, grounded in Article 43 TFEU and the objectives of the Common Agricultural Policy. The document identifies significant imbalances of bargaining power between agricultural producers and downstream operators, heterogeneous and inadequate UTP protection across Member States, and the insufficiency of voluntary self-regulatory mechanisms such as the Supply Chain Initiative as the principal problem drivers warranting EU legislative intervention. The preferred policy option (Package 3) recommends a legally binding Directive introducing partial harmonisation through a specific list of prohibited UTPs, covering all food products, protecting SME operators across the chain, and requiring Member States to designate competent enforcement authorities with minimum powers including own-initiative investigations, confidential complaints, fines, and coordination through a network of national authorities.AI