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Eight Commandments for Securing Competitive Food Supply Chains in the European Union

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Better Business Regulation in a Risk Society

Abstract

The objective of this chapter is to identify the main legal barriers to the competitiveness of the European food industry and to suggest ways to improve the legal system. Prior studies by Wijnands et al. (2007, 2008) and Poppe et al. 2008) have shown that competitiveness of this industry is under pressure. In the light of the above, we propose a second overhaul of European food law, after the tremendous legal efforts which have been made as a response to food scares at the turn of the century. This reform consists of eight improvements of European food law and aims at empowering stakeholders upstream in food supply chains. These improvements would not only contribute to the competitiveness of the EU food supply chains through alleviation of various forms of administrative burdens, but also restore the power equilibrium between stakeholders within the food chains as well as between businesses and consumers, and reduce the burdens connected to pre-market approval of food and feed and zero-tolerance standards. These focal areas partly overlap, as the improvement of one area may positively or negatively affect another. Within the proposed second overhaul of European food law, the interests of all stakeholders should be considered, while at present consumer concerns seem to eclipse all other existing interests.

Harry Bremmers, Associate professor of Wageningen University, specializing in Law and Economics, where he holds a position at the Law and Governance Group of the Social Sciences Department, the Netherlands

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Notes

  1. 1.

    Article 3(1) of the General Food Law (GFL), Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety. The development of European Food Law has extensively been described in chap. 10 of Chr. Ansell and D. Vogel eds. (2006) by A. Alemanno; also in Van der Meulen and Van der Velde (2008).

  2. 2.

    Global Good Agricultural Practices is a certification scheme which is applied for assessing the “right to deliver” by a significant amount of European retail consortiums.

  3. 3.

    British Retail Consortium Standard.

  4. 4.

    Safe Quality Food Institute Standard.

  5. 5.

    As a representative of a big meat processor argued: “by setting high standards we can cover the requirements of different private and public regulators at one time”. See further Spencer and Humphrey (2009); Stanton and Wolff (Stanton 2009).

  6. 6.

    See Appellate Body Report, European Communities-Measures Concerning Meat and Meat Products, WT/DS26/AB/R, WT/DS48/AB/R (Jan. 16, 1998) [adopted Feb. 13, 1998; Panel Report, European Communities—Measures Concerning Meat and Meat Products, WT/DS26/R/USA (Aug. 18, 1997)]. For a detailed reconstruction and insightful analysis of the dispute, see A. Alemanno (2004); also in: D. Wüger (2002). See also Bremmers et al. (2011) for a legal-economic analysis.

  7. 7.

    Which actually is done in the framework of the WTO, following the adoption of the SPS and TBT Agreements. See Marceau and Trachtman (2002).

  8. 8.

    The Codex Alimentarius Commission is an intergovernmental body jointly sponsored by the World Health Organization and the Food and Agriculture Organization (WHO/FAO, both United Nations bodies) to develop international food standards. Over 160 countries are Members, including all EU Member States and, since 2003, the EU itself.

  9. 9.

    Bánáti and Klaus (2010); also: Alemanno (2010). The WHO operates an equivalent system at global level called INFOSAN.

  10. 10.

    For a complete overview, we refer to Van der Meulen and Van der Velde (2008).

  11. 11.

    Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU); OJ 30.03.2010 C83-13 (as well as the Euratom Treaty).

  12. 12.

    Article 7(1) of the General Food Law: In specific circumstances where, following an assessment of available information, the possibility of harmful effects on health is identified but scientific uncertainty persists, provisional risk management measures necessary to ensure the high level of health protection chosen in the Community may be adopted, pending further scientific information for a more comprehensive risk assessment. See Szajkowska (2012).

  13. 13.

    Proportionality is a condition to precaution: “measures adopted shall be proportionate and no more restrictive of trade than is required …” (Article 7(2) GFL).

  14. 14.

    See for instance Schumpeter, J.A., The Theory of Economic Development. New York, Oxford University Press, 1934, as cited in Aghion and Howitt (1992).

  15. 15.

    Extensively addressed in Bremmers et al. (2008).

  16. 16.

    Ph. Hampton (2005).

  17. 17.

    An exception is Regulation (EC) 178/2002 addressing legislators in a way usually reserved to directives.

  18. 18.

    H.J. Bremmers (2010).

  19. 19.

    The contributors have been involved into two subsequent competitiveness studies under the authorships of Jo Wijnands (Wijnands et al. 2007) and Krijn Poppe (Poppe et al. 2008).

  20. 20.

    Part of the “hygiene package” which consists of Regulations (EC) 852, 853 and 854(2004).

  21. 21.

    Labelling means according to the Labelling Directive 2000/13 Article 1 (3) a: any words, particulars, trademarks, brand name, pictorial matter or symbol relating to a foodstuff and placed on any packaging, document, notice, label, ring or collar accompanying or referring to such foodstuff.

  22. 22.

    COM 2008(40).

  23. 23.

    Some exceptions apply, for instance if a nutrition claim is made or added vitamins and/or minerals are indicated on the package.

  24. 24.

    Which would violate Articles 8 and 16 of the General Food Law.

  25. 25.

    See Article 35 of the proposal COM(2008) 40.

  26. 26.

    See in this respect animal by-products Regulation (EC) 999/2001.

  27. 27.

    The situation is comparable to shadow pricing; in this case, abundant available assets have a shadow price of zero. Only factors limiting output are rewarded. Processors are abundantly available and therefore are not rewarded for their efforts adequately.

  28. 28.

    Council Directive 85/374/EEC, art. 1.

  29. 29.

    See Porter (1985); cited in numerous publications.

  30. 30.

    Cf. “Ecorys” report (2010) on Competitiveness of the European Meat Industry, par. 2.5.

  31. 31.

    Cf. Poppe et al. (2008).

  32. 32.

    See Article 18 of the GFL.

  33. 33.

    See extensively Van der Meulen (2009).

  34. 34.

    http://www.wto.org/english/docs_e/legal_e/15_sps.pdf.

  35. 35.

    SPS Committee.

  36. 36.

    As Burdock and Carabin (2004) express it: “the self-determination of safety and regulatory compliance in an otherwise stringently regulated venue”.

  37. 37.

    See Van der Meulen (2009).

  38. 38.

    Maximum residue limits for veterinary drugs in foodstuffs of animal origin.

  39. 39.

    Pesticides regime, Reg. (EC) No. 396/2005.

  40. 40.

    Lelieveld and Keener (2007) at page S15, citing Paracelsus (1493–1541): “all substances are poisons: there is none which is not a poison. The right dose differentiates a poison and a remedy”.

  41. 41.

    See extensive evidence in: Salverda et al. (2008), also in France, UK/Germany etc. from the same publisher.

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van der Meulen, B., Bremmers, H. (2012). Eight Commandments for Securing Competitive Food Supply Chains in the European Union. In: Alemanno, A., den Butter, F., Nijsen, A., Torriti, J. (eds) Better Business Regulation in a Risk Society. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-4406-0_5

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