The limited reach of EU unfair trading practice legislation in Global Value Chains

Simela Papatheophilou, Bernhard Tröster, Robert Blöschl, Christina Weber, Carola Schafhausen and Christian Herzig

No 26/2026, Research Reports from Austrian Foundation for Development Research (ÖFSE)

Abstract: Power imbalances in EU agri-food value chains have prompted legislators to prohibit 'Unfair Trading Practices' (UTPs). The European UTP framework extends to global value chains (GVCs) such as cocoa and banana chains, where the EU is a major consumer and which are known for the application of UTPs. However, European UTP legislations have proven ineffective in addressing UTPs globally. Through comparative legal analysis, review of academic literature and Member States' UTP reports, and semi-structured interviews, we investigate factors contributing to the minimal uptake of UTP regulations in GVCs. Our findings identify key barriers: diverging regulatory and enforcement approaches across EU Member States, limited awareness and the fear factor among GVC actors, and the absence of pricerelated provisions. Targeted reforms to harmonize selected provisions and enforcement approaches provide options to strengthen the regulatory framework's capacity to mitigate power imbalances in agri-food GVCs.

Keywords: Unfair Trading Practices; global value chains; cocoa; bananas; enforcement mechanisms (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:oefser:342442

DOI: 10.60637/2026-rr26

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