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Croatia Introduces 'Unfair Commercial Practice' Laws

Published on Jan 25 2017 9:00 AM in Supply Chain tagged: Trending Posts / Croatia / Bosnia and Herzegovina / local produce

Croatia Introduces 'Unfair Commercial Practice' Laws

Croatia has adopted a new law on the prohibition of unfair commercial practices in the food supply chain, reports local daily Poslovni Dnevnik.

Food producers have generally welcomed the new law, while retailers warn that it is incomplete and will create significant problems in their day-to-day business.

According to the Croatian Chamber of Economy (HGK), some food products imported from the EU arrive in Croatia at 50% lower prices than local products and minimal profit margins of 10-20%. In addition, there is a disproportion of prices of domestic branded products and private-label brands that may reach 60%. Due to unfair trade practices, Croatian brands end up losing out to the detriment of national food production.

The HGK is also in favour of introducing food-import quotas, which should not be higher than 30% of the total product offer in supermarkets.

For its part, the Association of Retailers has warned that if the bill is adopted in the existing form, it would put retailers on uneven footing in relation to producers, suppliers and distributors. In addition, it would encourage further agricultural and food imports, adversely affecting local producers and the Croatian economy.

In neighbouring Bosnia and Herzegovina, a new draft law on amendments to the law on internal trade states that retailers will no longer have to offer at least 40% in local products. Federal Trade Minister Zlatan Vujanović told the Fena news agency that such provisions are unacceptable according to EU standards, adding that local products are already well represented on the shelves of local supermarkets.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up for ESM: The European Supermarket Magazine.

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