Unfair trading practices under the spotlight at European Council of ministers

Agricultural issues dominated the two-day Agriculture and Fisheries Council meeting in Brussels on Monday and Tuesday this week. Fisheries moved centre stage on Tuesday with the annual quotas down for decision, while the heads of state, including Taoiseach Enda Kenny, begin their final meeting under the Slovakian presidency today (Thursday).

Farmers will be relieved to learn that the campaign to legislate on unfair trading practices is still alive and well. Following the parliament vote and taskforce report, momentum had changed from leaving it to member states or voluntary arrangements to a more proactive approach.

Speaking to the Irish Farmers Journal on Monday evening, Commissioner Hogan was adamant that taking the taskforce report forward was very much part of the Commission work programme for 2017, saying that when 20 member states feel the need to do something separately it is time to look at the issue from an EU angle.

Listen to an interview with Commissioner Hogan in our podcast below:

Listen to "Hogan on unfair trading practices and CAP reform" on Spreaker.

The council agreed that the Commission and member states could “guarantee, among others, that risks are shared more equally along the supply chain, contractualisation is enhanced, and market transparency and risk management improved”.

The conclusions also called on the Commission to undertake an impact assessment with a view to proposing an EU legislative framework or other non-legislative measures to address unfair trading practices. The latter clause provided sufficient wriggle room to allow member states less enthusiastic about legislation to stay on board.

This is no doubt another step forward on the road to legislation, with Commissioner Hogan setting up a “taskforce of experts” almost a year ago and a landslide vote in the European Parliament in June, which recommended that the Commission bring forward legislation. Traditionally, a number of countries including Germany, the UK, the Netherlands, Denmark and Sweden were opposed to legislation and preferred either voluntary arrangements or legislation at a national level. They have been persuaded to keep exploring the options and an impact assessment in the new year will shape the next steps.

Climate change discussion

The council also discussed the agricultural aspects of the Commission’s proposals for an effort-sharing regulation (ESR) and land use, land use change and forestry (LULUCF) regulation. These are intended to frame the contribution that agriculture will deliver to the reduction in greenhouse gas (GHG) emissions agreed at COP 21 in Paris.

Minister for Agriculture Michael Creed highlighted that a third of Ireland’s emissions come from agriculture compared with an EU average of 10%, and that the sector has already achieved a high level of efficiency, meaning that there is limited potential for further cost-effective mitigation. He also said that the current proposals would mean a significant cost for Ireland to reach its 2030 target.

Minister Creed expressed disappointment that the current LULUCF proposal uses a land-based accounting system, which fails to adequately recognise the significant sequestration arising from afforestation.

Listen to an interview with Minister Creed in our podcast below:

Listen to "Minister Creed on unfair trading practices and climate targets" on Spreaker.

Organic standards

The European Commission has had a strengthening of organic standards legislation on the table since 2014 and it had been an ambition to get it over the line during the Slovakian presidency.

However, since the proposals were first mooted, they generated considerable opposition throughout the EU, with the belief that tightening the rules would push organic producers out rather than encourage new participants.

The Commission’s view was that strengthening of the legislation was necessary to maintain credibility.

At the press briefing hosted by Commissioner Hogan and Council President Gabriela Matecná, minister for agriculture and rural development of Slovakia, a brave face was put forward on the failure to get it over the line. Commissioner Hogan focused on the levels of agreement achieved under the Slovakian presidency, highlighting that 40 out of the 45 key issues had been agreed. Both parties expressed confidence that the Maltese presidency would bring the issue to a close early in 2017.

Other issues

Ministers also received an update on plant breeders’ rights, the implementation of a new regulation on protective measures against plant pests and the outcome of the first meeting of the EU platform on food waste and food losses.