Revised due diligence law adds farmers’ protection in food chain
In a fresh nod to EU farmers who have been protesting across the bloc for weeks, the Belgian Presidency of the EU Council included a political message in support of farmers in its draft compromise on the controversial EU corporate due diligence law, seen by Euractiv.
“Given [that] companies (…) [from] a third country are equally subject to this directive,” says the draft, dated 5 March and sent to member states, “this would protect agricultural producers in the Union against unfair competition and against harmful practices by operators established not only inside but also outside the Union”.
The Corporate Sustainability Due Diligence Directive (CSDDD) aims to hold companies accountable for labour- and environment-related abuses throughout their entire supply chain.
The Belgian Council Presidency is trying to find a compromise text that can be supported by a qualified majority of member states and approved at the April plenary session of the European Parliament – the last one before the European elections in June.
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According to a source close to the negotiations, mentioning the extraterritorial effects of the law and its potential benefits for EU farmers in the text was an important step.
“The message here is that foreign [producers] won’t be able to undercut European farmers,” the source, who spoke on condition of anonymity, told Euractiv.
Accusations of “unfair competition” from third countries have been at the forefront of farmers’ protests, with many complaining that food producers in third countries benefit from lower standards than their EU counterparts.
A political message
Asked about the reasons for the Belgian presidency’s move, the source said the addition of the agricultural clause “comes from farmers’ protests bulldozing through to legislators”.
Since the start of 2024, farmers have been demonstrating in almost every European country, winning concessions from national governments and opening the debate on what action to take at the EU level.
The situation is evolving and more demonstrations are expected in the coming weeks, at least until mid-March.
“The [agricultural] sector is under pressure now,” the source added, “so it would be useful to communicate to them that [the CSDDD] is a good idea for the sector”.
According to the source, the Belgian presidency is trying to assess all possible pushbacks to the legislation – after it failed to garner enough support from the bloc’s 27 member states in a provisional vote last week – and is therefore targeting strategic sectors and constituencies, including farmers.
The move follows calls from farmers and EU leaders to review the balance of market power in the supply chain, arguing that food producers are in most cases the economically weaker players.
The draft acknowledges “power imbalances in the agricultural sector”, and says the directive would benefit agricultural producers with less bargaining power by “applying only to the business conduct of the largest operators”.
Read more with Euractiv
