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A new dispute arises between retailers and large international food companies concerning so-called territorial supply constraints. Large supermarkets say that international food companies are preventing them from buying from other EU countries (e.g. a supermarket in Belgium cannot buy products from a food producer in Germany where prices are lower). If a supermarket attempts to purchase, existing suppliers threaten to disrupt the supply of goods, which is contrary to single market rules. The Commission therefore commissioned a study to clarify the issues at issue. The data should also help to determine if there are unexplained price differences between the same foods in different EU countries. The results of the study should be known by the end of the first quarter of 2020. Food producers and retailers can add their opinion in a survey by the end of January 2020 here.
More information is available here.

The Walloon government (the southern part of Belgium) refused to ratify the European Union's trade agreement with Mercosur last week. Walloon Prime Minister Elio Di Rupo said that Walloon rejects the current draft agreement under which Mercosur should be allowed to import nearly 100,000 tonnes of beef into the EU markets, endangering the beef sector in Belgium. Di Rupo also stated that the second reason for refusing to ratify the agreement was the different level of standards in the field of hygiene and the use of chemicals in the production or treatment of production.

On 14/01/2020, the European Commission published the European Green Deal's Investment Plan. The plan aims to "mobilise EU funding and create an enabling framework to facilitate and stimulate the public and private investments needed for the transition to a climate-neutral, green, competitive and inclusive economy". The Plan is based on three dimensions - financing, favourable investment conditions, and practical support. As regards funding, the Commission states that "it will mobilise at least one trillion euros of sustainable investment over the next decade. Climate and environmental spending will account for more of the EU budget than ever before, attracting private funding". A key instrument should be the Just Transition Mechanism, which provides targeted support to help mobilise at least €100 billion over the period 2021-2027, including EUR 7.5 billion of fresh EU funds. The European Investment Bank will play a key role in funding, but funding will also be provided by the European Regional Development Fund or the loan mechanism.
More information is available here.

During the EP plenary session on 15/01/2020, the European Parliament approved its resolution on the European Green Deal. Parliament underlines that the Green Deal should be at the heart of Europe’s strategy for new sustainable growth; that large public and private investments will be needed; Parliament also asks all Member States to agree on a single seat of the European Parliament. Resolution calls on the Commission to present a proposal for a European climate legislation by March 2020; stress the role of energy in the transition to a zero greenhouse gas economy and welcomes the Commission's objective of continuing to decarbonise the energy system so that the EU could achieve zero net emissions by 2050 at the latest; it calls on the Commission to revise the Renewable Energy Directive in line with these ambitions and to set binding national targets for each Member State. Parliament also insists on an accelerated phased withdrawal from direct and indirect fossil fuel subsidies by 2020 in the EU and in each Member State. Parliament also calls for a new ambitious action plan for the circular economy, aiming at reducing the overall environmental and raw material footprint, with the main priorities being resource efficiency, zero pollution and waste prevention. On the agri-food strategy From Farm to Fork, Parliament stresses the need to strengthen farmers' position in the supply chain, tackle unfair commercial practices, reduce dependence on pesticides, reduce food waste by 50% by 2030, and calls on the Commission to consider better labelling foodstuffs, such as nutrition labelling, country of origin labelling of certain foodstuffs, and environmental and animal welfare labelling, while avoiding fragmentation of the single market. Parliament also calls for introduction of a global ban on single-use plastic.
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Commissioner for Agriculture and Rural Development Janusz Wojciechowski said last week that he would steadily defend a strong budget for the Common Agricultural Policy with a view to reinforcing funding to help European farmers. Wojciechowski refused to cut the CAP budget under the 2018 proposal, supporting the CAP budget at least at its current level. According to Wojciechowski, more mandatory animal welfare standards will have to be introduced under the new CAP, and farmers should receive more support to ensure better animal welfare.
More information is available here.