The cocoa sector is characterised by significant power imbalances and still faces numerous social and environmental challenges, including exploitative trade agreements and controversial labour practices. The European Union (EU) plays a crucial role as both the largest importer of cocoa and a global policy setter. Recognizing the need to address unfair trading practices (UTPs) in the agri-food supply chain, the EU adopted Directive 2019/633 to provide a minimum level of protection for agri-food suppliers, including those outside the EU.

However, after two years of full implementation of the Directive by member countries, there have not been significant changes in business practices. Following a webinar to explain the unfair trade practices to exporters in Ecuador, researchers conducted a series of interviews with exporters and producers' organisations in Ecuador, as well as with European authorities responsible for receiving such claims to determine to which extent this Directive has protected cocoa exporters and producers to the EU against unfair trading practices.

Participants from the webinar and interviews were unaware of the UTPs Directive. This leaves the exporter in a weak position vis-à-vis the importer. This lack of knowledge is not limited to exporters outside the EU. According to the annual reports of the enforcement authorities of countries such as Germany, Belgium or the Netherlands, only a few complaints are received each year. The results of a survey (2024) carried out by the Joint Research Centre and the Directorate-General for Agriculture and Rural Development of the European Commission, covering all Member States and target suppliers, showed that only 38% of respondents were aware of the UTPs Directive, while 57% of respondents were unaware of national enforcement authorities. This underlines the need for more effective enforcement of the Directive and for the Commission to invest resources in awareness-raising across Europe and beyond its borders.

While the EU's Directive on UTPs is a positive step, its benefits are not fully realised by non-EU suppliers due to a lack of awareness and support. The study recommends targeted efforts to improve awareness, legal support, and comprehensive enforcement to ensure fair trading.