the National Assembly adopts the bill to advance commercial negotiations between manufacturers and supermarkets

by time news

2023-10-09 21:41:47

The national assembly adopted at first reading, Monday October 9, the bill advancing commercial negotiations between large manufacturers and supermarkets, in order to lower prices on the shelves. The text, without guarantee of result and judged “unambitious” by the oppositions, was described as “emergency solution” facing a ” emergency situation ” by the Minister for Small and Medium Enterprises and Trade, Olivia Grégoire, at the start of the session.

Pour “protect the purchasing power of the French”this six-week advance of the negotiation deadline to January 15 rather than March 1 aims to anticipate “price reductions” linked to “reduction in the cost of raw materials”, she assured. The minister pleads for broader reflection. “We are going to launch a transpartisan government mission to consider reforming the global framework for trade negotiations”, did she say. The bill passed with a vote of 69 to 51.

The deputies adopted an amendment from MoDem MP Anne-Laure Babault which requires, against the advice of the government, that negotiations end fifteen days before, on December 31, for companies whose annual turnover is less than 350 millions of euros. Nothing says, however, that the addition will remain after the examination of the bill in the Senate, which will begin on October 26 in the hemicycle of the upper house.

The deputies of La France insoumise defended in vain a motion to reject. It’s a “useless and dangerous text”, accused Aurélie Trouvé. The right and extreme right did not support this motion, but judge “unambitious” the government text.

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Revolving around the rat race every year, commercial negotiations make it possible to set the conditions (purchase price, shelf space, promotional calendar, etc.) under which E. Leclerc, Carrefour, Intermarché or Système U will source their supplies for throughout the year from their suppliers. A majority of products sold in supermarkets are affected by these annual negotiations: products from so-called national brands, such as Danone, Nutella, Nescafé or Cochonou.

Food inflation, particularly since Russia’s invasion of Ukraine, remains high, even if the indicator shows signs of deceleration. The drop in a certain number of wholesale prices in 2023 did not result, however, in significant price reductions on the shelves. Hence the desire to bring forward the 2024 calendar by a month and a half, in the hope of seeing price reductions appear more quickly for consumers – both manufacturers and distributors consider, in any case, very improbable a return to 2019 prices.

The World with AFP

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