EuroCommerce holds successful Wholesale Day 2021

IN THIS ISSUE – Wholesale Day 2021 - Farm to Fork Code - EU recovery strategy -
Single Use Plastics Directive - Position papers on UTPs and VBER - World Food Safety
 Day - Digital Services Act - Digital Markets Act - Upcoming Data Act - Global tax rules,
OECD agreement & EU Country-by-Country reporting directive - Design/energy labelling
      of mobile phones and tablets - Access to Cash - external communication and
          engagement workshop - EuroCommerce in the press - Save the date

EuroCommerce holds successful Wholesale Day 2021

We last week held our Wholesale Day 2021, with the aim of raising awareness of the
role of wholesale in a wide range of ecosystems, of the key challenges they face and the
support that would help the sector in the recovery process. Philippe Delpech, CEO of
Sonepar, a global market leader in electrical equipment, highlight how their business
was investing in digital and sustainability. A panel discussion on circularity illustrated the
sector’s good practice and how the EU can help it make further progress. Discussion of
the role of wholesale in the economy that wholesalers were entrepreneurs operating in
global and local environments. Senior officials of the European Commission participated
in the two panels. Presentation and replays of the event are available.

Contact: Christel Delberghe

Commission and stakeholders close to agreement on Farm to
Fork Code

EuroCommerce has been closely engaged in the Task Force co-creating a Code of
Conduct under the Farm to Fork Strategy with the European Commission and other EU
associations, NGOs and the FAO and WHO ahead of Executive Vice-President
Timmermans’ attendance at a UN conference in the autumn. The Code aims to stimulate
healthy and sustainable consumption, seeks improvement in sustainability of companies’
internal processes and support sustainable practices by all in the food value chain. We
have successfully argued for broad and aspirational commitments and targets in the
code, with flexible monitoring and reporting in line with current business regimes and
capacity of associations. Companies are invited to introduce more ambitious, tangible
and measurable commitments, that contribute to at least one of the aspirational

objectives in this Code. We have negotiated to provide for these to be only those that
suit a company’s size, market and business strategy, with reporting and monitoring on
progress as laid down in the code. They can (another EuroCommerce negotiating
objective) use existing initiatives as part of their commitments. SMEs can provide
simplified reports. The Code will be formally launched for signing by EU associations on
5 July, and for companies to submit commitments thereafter.

Contact: Els Bedert or Neil McMillan

                  EUROCOMMERCE POLICY TALKS
                    with EVP Valdis Dombrovskis

                        FRIDAY 11 JUNE 2021 | 11:00 - 12:00
                      on the EuroCommerce Policy Talks website

International trade was hit hard at the start of the COVID pandemic but has gradually
bounced back. Join us on 11 June for what should be a valuable exchange with
Executive Vice-President Valdis Dombrovskis and hear of his vision of how trade can be
a powerful driver of European and global recovery. He will also touch on how trade fits in
with the European recovery programme, and the EU approach to Open Strategic
Autonomy and keeping Europe globally competitive with e.g., China.

After EVP Dombrovskis' remarks, there will be time for questions, which can be sent
before the event using the registration form.

                                       REGISTER

EuroCommerce workshop hears more detail on EU recovery
strategy

We held a workshop for members on the EU recovery strategy with Céline Gauer, head
of the EU Commission task force on the Recovery and Resilience Facility. Ms Gauer
said that Commission screening of national recovery plans was well underway, with 18
plans received at the end of May. National plans focus on reforming the economy,
sustainability (37% of funds), digitalisation (20%) and social cohesion. Pending
ratification of the EU own resources proposal, first disbursement of funds could be
expected in most member states at the end of the summer. She confirmed that the EU
approach was horizontal and not sector-specific. Members expressed their concern that
very little would directly benefit retail and wholesale, despite it being recognised as an
essential eco-system. An internal working group chaired by VP Jacques Creyssel will
help redefine an agenda and more concrete asks for our sector as part of the EU
industry and recovery strategies.

Contact: Christel Delberghe

European Commission publishes long-awaited guidelines on
Single Use Plastics (SUP) Directive

The European Commission has finally published its long-overdue guidelines defining
single-use plastic products under the SUP Directive. The guidelines, only available in
English at present, provide a set of definitions and examples to help identify the food and
beverage items falling under the scope of the Directive. While this guidance can help in
a more harmonised implementation by member states, the delay makes it extremely
challenging to meet the transposition deadline in the Directive, which had been set for3
July this year. We and a number of organisations have repeatedly warned the
Commission of this issue and member states have equally expressed their concern at
this. Some, like Italy, have announced their intention for a postponement of
transposition.

Contact: Isabelle Maurizi or Nick Dornheim

EuroCommerce publishes position papers on UTPs and VBER

EuroCommerce has published its views in position papers on the implementation of the
Unfair Trading Practices (UTP) directive and the review of the Vertical Agreements Block
Exemption Regulation. In line with the press release we issued in May, the position
paper on UTPs voices concern at the level of over-implementation (gold plating) of the

directive as governments come under pressure from farmers, food processors and
brands organisations to extend the scope and provisions of the legislation. This
interferes, we argue, with freedom of contract between the large supply chain players
and damages the single market with no real benefit to farmers. We have also published
a summary of our response to the European Commission’s survey on the review of the
Vertical Block Exemption Regulation and Guidelines which govern contracts between
companies in the supply chain on how goods and services can be sold. We support a
review of the vertical rules to take account of the new digital market realities but ask the
Commission to be wary of giving further leeway for companies seeking to restrict
competition, e.g. by imposing bans on using third party marketplaces, unjustified
selective distribution regimes, and territorial supply constraints.

Contact: Christel Delberghe or Niccolo Ciulli

Food chain marks World Food Safety Day

EuroCommerce, along with FoodDrinkEurope, food traders’ association CELCAA,
farmers’ organisation COPA--COGECA, and feed manufacturers’ association FEFAC
issued a joint statement to mark World Food Safety Day on 7 June. The Food Safety
Day aims at drawing attention and inspiring action to help prevent, detect and manage
foodborne risks. The statement underlined the food supply chain’s strong commitment to
delivering safe food to consumers in Europe and globally, as the best guarantee of a
healthy future for everyone. This included more sustainable food production and
consumption, reducing food waste and rolling out more sustainable packaging to support
a more circular economy – while ensuring that food safety was not compromised.

Contact: Els Bedert or Neil McMillan

Draft European Parliament Report on Digital Services Act (DSA)
– MEP Schaldemose to speak at EuroCommerce Policy Talk

Last week, Christel Schaldemose (S&D, DK), rapporteur on the DSA for the Parliament’s
IMCO committee, presented her draft report, with a deadline for amendments of 1 July.
This proposes to reduce the scope of the exemption for online marketplaces’ liability,
beef up the obligation for companies to have an EU legal representative, extend the
requirements on terms and conditions. It also makes substantial changes to the know-
your-business-customer provisions and stricter rules regarding use of recommender
system. The EP’s Civil Liberties (LIBE), Legal (JURI) and Industry (ITRE) committees
have, after some wrangling, been given more influence over the final content. So far,
only Patrick Breyer (Greens/DE) of LIBE has published a report. Neither Geoffroy Didier

(EPP/FR) rapporteur for JURI, nor Henna Virkunnen (EPP/FI) for ITRE have yet
published their reports. As part of our series of online Policy Talks, Ms Schaldemose will
be speaking and answering questions on the DSA and her report on 18 June (see
below). We are preparing a detailed analysis of her report for members.

Contact: Ilya Bruggeman or Savvina Papadaki

                  EUROCOMMERCE POLICY TALKS
                   with Christel Schaldemose MEP

                          #DSA - Finding the right balance -
  Creating a level playing field for retail and ensuring products offered online are safe.

                        FRIDAY 18 JUNE 2021 | 9:15 - 10:15
                      on the EuroCommerce Policy Talks website

Christel Schaldemose MEP and EuroCommerce invite you to take part in this live
webinar to hear more about her draft report on the DSA proposal, on the role and
responsibilities of online marketplaces, how to ensure products offered online are safe &
compliant, and what European retail and wholesale businesses need from the DSA.

After MEP Schaldemose’s initial remarks, there will be time for her to respond to
questions which can be sent before the event using the registration form.

                                      REGISTER

Council and Parliament moving ahead on Digital Markets Act

Things are moving fast in relation to the Commission’s proposal on the Digital Markets
Act (DMA). A number of amendments put forward by France on the scope, on a new
reporting mechanism and to increase flexibility. France, Germany and the Netherlands
have also produced a joint document calling for strict enforcement and these powers to
be shared more equally between the Commission and member states. The European
Parliament IMCO Committee held a workshop with academics on 26 May, at which
MEPs supported the proposal but wanted some improvements. Press leaks of IMCO
rapporteur Andreas Schwab’s (EPP, DE) report point to higher turnover and market
capitalisation thresholds in defining gatekeepers, shortening the implementation period
from 6 to 2 months, and establishing a High-Level Group of Digital Regulators, bringing
together national competent authorities to coordinate DMA enforcement with the
Commission. EuroCommerce is continuing its advocacy work on the DMA, and met
twice with DG CNECT officials in the last two weeks. The Supply Chain Committee is
currently working on proposed amendments, reflecting our position paper of 30 March
2021.

Contact: Christel Delberghe or Niccolo Ciulli

Commission issues roadmap and consultation on upcoming
Data Act

The Commission has published a public consultation on the draft Data Act, planned for
end-2021, and aimed at better control over and conditions for data sharing including
B2B. This will be horizontal legislation, complementing the draft Data Governance
regulation. In announcing the consultation, Executive Vice-President Margrethe
Vestager saw the Act as creating a fair and human-centred approach to digitalisation,
while Commissioner Thierry Breton pointed to data needing to be shared, stored and
processed in line with European rules on data protection, respect of intellectual property
and trade secrets. The consultation comes on the heels of a roadmap published
including many of the same points with the consultation. The consultation, to which we
will respond, runs until 3 September.

Contact: Savvina Papadaki

Agreement at G7 on global tax rules, OECD agreement unlikely
before October; EU Country-by- Country reporting directive
agreed

G7 finance ministers meeting in London last week reached a framework agreement on a
minimum corporate tax rate of 15% and on rules allowing countries to tax at least 20% of
profits earned nationally by the largest and most profitable multinational enterprises, but
with a threshold of a 10% profit margin below which such a tax would not apply. These
proposed new international tax rules will be initially discussed with the G20 in July to
feed into the ongoing G20/OECD discussions. The G7 ideas would remove all national
Digital Services Taxes. Before that meeting, Angel Gurria, the outgoing OECD
Secretary-General, mentioned that the OECD/G20 talks may not reach an agreement
until October, rather than the July deadline hitherto being worked towards. The US have
taken a more positive role in the OECD discussion, but faces pressure in Washington
against a tax “targeting US companies”. The European Commission plans to present the
proposal for a EU digital levy on 14 July, likely to be a revenue-based tax with a rate
between 0.3 and 0.5 percent for certain companies with a turnover of more than €250
million. Meanwhile, the Council and Parliament reached a provisional political agreement
on the Country-by-Country Reporting directive. This requires companies with over €750
million revenue, also those headquartered outside the EU, to disclose publicly their
income and the tax paid in each member state, as well as in some third countries,
including non-cooperative jurisdictions. Once formally adopted, member states will have
18 months to implement the directive.

Contact: Harald Past or Jürgen Lang

SMEs feedback sought on design/energy labelling of mobile
phones and tablets

The Commission has released two sets of consultations on measures aimed at making
mobile phones and tablets more energy efficient and making them less prone to damage
and premature obsolescence. The first covers a proposed regulation on eco-design of
mobiles and tablets, while the second focuses on a delegated act on labelling with
information on their environmental impact. The consultations primarily target final users
to find out about their use of phones and tablets. The Commission has underlined that it
would particularly welcome answers from small-and-medium enterprises working on
services or activities related to mobile phones and tablets, such as product assembly,
repair, maintenance or recycling. EuroCommerce will provide responses, and members
are invited to share their views with Isabelle Maurizi or Nick Dornheim.

Contact: Isabelle Maurizi or Nick Dornheim

EuroCommerce responds to questionnaire on Access to Cash

In conjunction with a study currently being conducted by the Euro Retail Payments
Board (ERPB) on consumer access to cash, the ERPB working group drafted a
questionnaire (now closed) seeking merchants’ views. The key elements of our
response was endorsed by the EuroCommerce Payments Committee, and the final
response can be found here. The EPRB working group is attended by colleagues from
the Schwarz Group who coordinated all responses from members.

Contact: Peter Robinson

EuroCommerce workshop reviews our external communication
and engagement

Members’ communications directors and public affairs representatives met to discuss
our external communication and engagement strategy. This followed up a workshop last
year, leading to adoption of a set of key messages for our sector. The May workshop
discussed the methodology and key recommendations of an audit report conducted
among member and non-member organisations and an assessment of our social media
engagement. The Board will review recommendations at their meeting on 15 June and
its conclusions will serve as a basis for a new strategy to be presented in the Autumn.

Contact: Christel Delberghe

                          EuroCommerce in the press

Following the Wholesale Day 2021, a press release was issued which was picked up by
Politico but also in some national papers such as the Greek Skai and various others.

                                   Save the date

Our EuroCommerce & EU meetings calendar is now available.
All Committees are taking place virtually until further notice.

09 JUN       - Supply Chain Committee
10 JUN       - Trade Committee
11 JUN       - EuroCommerce Policy Talks with EVP Dombrovskis
15 JUN       - Board of Directors and General Assembly

16 JUN             - Food Committee
18 JUN             - EuroCommerce Policy Talks with MEP Schaldemose
23 JUN             - Environment Committee
24 JUN             - Non-Food Committee
22 SEP             - Payment Systems Committee
28 SEP             - Supply Chain Committee
29 SEP             - Jobs & Skills Committee

                                                Previous Issues
                                                #212 - 25 MAY 2021
                                                #211 - 11 MAY 2021
                                                #210 - 27 APR 2021
                                                #209 - 13 APR 2021
                                                #208 - 30 MAR 2021

                             Our next InBrief will be issued on 22 June 2021

        Should you have any questions or comments, please contact Vincent Yhuello.

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                                               Editor | Christian Verschueren

                                                  EuroCommerce ©2021

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