BRUSSELS

The EU Council and the European Parliament on Wednesday reached a provisional agreement on a regulation introducing new rules to combat cross-border unfair trading practices in the agricultural and food supply chain.

The legislation aims to strengthen cooperation between EU authorities responsible for enforcing rules against unfair trading practices, as part of broader efforts to support farmers' positions in the supply chain, according to a statement.

The agreement introduces a set of rules for business-to-business relationships within the agrifood sector, particularly in cases where suppliers and buyers operate across different member states.

It establishes a mutual assistance mechanism allowing national authorities to request and share information, collaborate on investigations, coordinate enforcement actions, and notify other member states about decisions related to unfair practices.

The regulation also sets provisions on cost coverage for mutual assistance, data protection, and confidentiality to safeguard suppliers from potential retaliation.

For large-scale cross-border unfair trading involving at least three EU countries, the regulation establishes a coordinated response mechanism, with one member state designated to lead the action.

It also includes rules to address unfair practices by buyers outside the EU, providing additional protection for European farmers.

The provisional agreement will now be submitted to both the bodies for formal adoption.

In recent years, farmer protests across Europe have been fueled by environmental regulations, high fuel and fertilizer costs, and competition from cheaper imports, particularly from Ukraine.