EuroCommerce is deeply concerned by the weakening of the Single Market after today’s European Parliament’s plenary vote that accepted opening negotiations based on the Agriculture Committee’s report on cross-border enforcement of rules on unfair trading practices (UTPs).
Christel Delberghe, EuroCommerce Director General, said: “Today’s adoption means the European Parliament will open negotiations on the cross-border enforcement of unfair trading practices rules with the Single Market having a knife at its chest. The proposal makes it more difficult to source from another Member State within the Single Market, leaving consumers worse off.”
The European Parliament negotiating mandate enables Member States to enforce their own national rules on UTPs outside of national borders. This makes using the Single Market to source food more difficult and riskier for buyers, restricting market access for farmers and processors and increasing prices for consumers.
The vote is a blow to the Single Market and the benefits it brings to consumers, but – happening so shortly after the anniversary of the Draghi Report – it is also a blow to companies’ competitiveness and resilience. The Single Market was something President Von der Leyen hailed in April as ‘our anchor of stability and resilience’, in response to the tariff-war as waged by US president Trump. She also mentioned a new Single Market Roadmap to 2028 in her State of the European Union speech yesterday.
Allowing extraterritorial application of national rules not harmonised at EU level is a serious risk for legal certainty and the Single Market. Businesses could see the contracts they enter perfectly legally under national and EU law being investigated by other authorities in other countries. This risk could push all agri-food chain operators like retailers and wholesalers to only buy nationally, removing the benefits of economies of scale, strengthening the impact of territorial supply constraints and fueling higher prices for consumers – making everybody lose out on the benefits of the EU Single Market.
Christel Delberghe concluded: “It is time to stand up and fight for the Single Market. The Single Market benefits farmers, suppliers and consumers, as well as retailers and wholesalers, and this must be remembered as negotiations begin.”
