Skopje, 13 March 2024 (MIA) - The Parliament adopted Wednesday the Law on Unfair Commercial Practices in the supply chain of agriculture and food products. The law regulates the criteria and way of doing trade with agriculture and food products, whereas its implementation is expected to reduce prices of products.

The law regulates 26 unfair commercial practices and is the first such piece of legislation in the country, the Ministry of Economy said in a press release.

It adds that the law is expected to eliminate the unjustified and disproportional transfer of economic risk from one trading partner to another, or imposition of significant disbalance of the rights and obligations of one trading partner to another. Fees that are currently paid in the contractual relationship between the buyer and supplier, which seriously affect the retail price at the expense of consumers, shall be considered a banned unfair commercial practice.

North Macedonia is the only country in the Western Balkans that has transposed the EU Unfair Commercial Practices Directive.

The law is expected to have a positive impact in the business operations of all operators active in the agriculture and food supply chain - processing, marketing, distribution and retail. In addition, the law ensures more efficient controls and supervision by the Commission for Protection of Competition, giving it enlarged jurisdiction.

The law also regulates the maximum rebate that markets can ask from the producers and suppliers, which now exceed 30-40 percent of the price. It includes a list of agriculture and food products, which rebate is to be limited to 10 percent, leading to competitiveness among supermarket chains and lower prices.

The Commission for Protection of Competition can cooperate with the European Commission and member-states in procedures identifying unfair commercial practices, especially in exchanging information and experiences on best practices, new cases and latest unfair commercial practices, as well as enforcement measures and assistance in cross-border unfair commercial practices.

Photo: MIA