Today’s highly globalised and complex supply chains are dominated by retailers and large traders with immense buying power, leaving small suppliers with very little leverage. This imbalance forces producers into difficult choices: to accept poor and unpredictable terms or risk losing their livelihoods. For many communities without financial safety nets, this often results in having to accept exploitative working conditions without other viable alternatives.

The Fair Trade Movement, civil society and allies advocated for the need for specific legislation to address these imbalances. These efforts culminated in February 2019 with the adoption of the EU Directive on unfair trading practices in the agricultural and food supply chain, which aims to reduce inequalities in global supply chains by ensuring a minimum level of protection for agricultural and food suppliers. The European Commission’s evaluation of the Directive in 2025 confirmed that the legislation remains relevant and that progress has been made. Nevertheless, the assessment also highlights persistent shortcomings, including ongoing sales below the cost of production, uneven enforcement across the EU, and limited empowerment of suppliers. As the EU prepares to revise the Directive in 2026, this evaluation represents a key opportunity to address these remaining gaps.