The EU has a responsibility to act under Treaty Article 115 (Approximation of Laws Affecting the Internal Market), alongside Article 116, which enables the EU to address trade distortions caused by divergent national regulations.

The Fair Trade movement advocates for an EU market where suppliers from developing countries can sell their goods, receive fair financial returns, and benefit from ethical business practices, including stability and certainty. This approach ensures that trade fosters the development of businesses, workers, and farmers in developing countries.

Unfortunately, unfair trading practices (UTPs) are widespread across both food and non-food supply chains. It is encouraging that the EU is addressing this issue. Some Member States have already taken steps to tackle UTPs, and the EU should build on best practices while learning from less effective approaches.

We recommend that the EU adopt a regulation to enforce fair trading practices and prevent UTPs.

Read the full position paper for more information.