Lessons for fashion: How the agricultural sector is tackling commercial compliance through the EU Directive on unfair trading practices

In a new chapter of the updated Apparel Suppliers Guide 2.0 published on 31 July 2024, adelphi has provided technical support on purchasing practices on behalf of the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH. The guide provides suppliers in textile and apparel supply chains in the Global South with an overview of key sustainability legislation in the EU, US and UK.

The EU Directive (2019/633) on Unfair Trading Practices in B2B relationships in the agricultural and food supply chains offers valuable lessons for the textile sector:

Broad protection: The EU Directive shields smaller suppliers in agriculture and food from unfair practices by stronger buyers, ensuring a uniform standard across the EU.

Clear Rules: It bans harmful practices outright (like late payments or short-notice cancellations) and sets strict guidelines for others, promoting transparency in business transactions.

Enforcement gaps: while enforcement is in place, fear of retaliation and low reporting rates highlight the need for stronger compliance measures