Big retailers clamor for an “inflation scandal” but the Descrozaille bill goes on its legislative path. Approved by deputies of the presidential majority, despite the reluctance of the Government, this bill aims to change the balance of power in the annual commercial negotiations between distributors and agri-food manufacturers, giving more weight to the latter, a bill that caught fire to dust in the midst of an inflationary period.
The text was adopted in first reading by the National Assembly in mid-January and then also by the Senate a month later. Deputies and senators will try to agree on a common version of the text as of this Wednesday, March 8, in a mixed commission. Because each chamber has successively revised the bill, adjusting certain measures and adding others, and the two versions of the text are no longer very similar. In particular, the much maligned Article 3.
• What does the Descrozaille bill propose?
Every year, at the beginning of the year, the prices of food products are negotiated hard before reaching the shelves: the main objective of the bill is to rebalance these commercial negotiations between manufacturers and distributors. It is the third article that provoked the clamor of the great distribution: in case of not reaching an agreement at the end of the discussions, it would be the rates demanded by the manufacturers that would be applied by default and the distributors would thus be forced to accept the price increases demanded by its suppliers.
The bill includes other provisions, such as the extension of the experiment on the supervision of promotions and the resale-at-loss threshold (which obliges distributors to sell food products with a minimum margin), measures provided for by the expiring Egalim law on April 15, leaving it to parliamentarians to define the expiration date for this experiment. The bill also proposes to apply French law to large buying groups that distributors have established outside of France.
• What has changed the National Assembly
As expected, Article 3 crystallized the debate in the National Assembly. In the Committee on Economic Affairs, MEPs added a one-month transition period, under the aegis of a mediator, to find common ground. New unexpected turn during the examination in session: the deputy Frédéric Descrozaille himself transformed his measure, now tested for two years: in case of failure of the negotiations after three months, despite the mediation that would include the Ministry of Economy, relations commercials would be terminated with no delivery obligation.
Other measures, absent in the initial version of the text, were also added by the deputies, in particular the limitation of the logistical sanctions imposed by a distributor on its supplier to 2% of the value of the products. MEPs also set 2026 as the end of the experiment on monitoring promotions and the threshold for reselling at a loss.
• What changed the Senate
A first symbolic measure taken by the Senate: the senators changed the official name of the bill, now called “Proposal to strengthen the balance in commercial relations between suppliers and distributors.” As for article 3, it was also redrafted by the senators after the previous modifications made during their time in the National Assembly. In case of disagreement, prior mediation would now be mandatory before going to court, in order to limit casualties and deliveries at a loss.
The experiment with the framework of promotions and the resale threshold at a loss has also been extended until 2026, confirming the date set by the deputies, but the senators have modified the text to exclude fresh fruits and vegetables from these devices. In addition, the text approved by the Senate proposes to sacralize agricultural raw materials in the negotiations on products sold under a private label (MDD), and no longer only for those sold under a national brand. Logistical penalties have also been beefed up a bit more.
• What text will finally be put to the vote?
The text reaches the Mixed Mixed Commission (CMP) this Wednesday, March 8. This legislative procedure consists of bringing together seven deputies and seven senators to establish a common version of a bill, after two readings of the text by each assembly -or a single reading if the government has previously initiated the accelerated procedure, such as the case of the Descrozaille bill. If they manage to agree on a common version, the text will be voted on by both chambers; otherwise, the National Assembly will have the last word.
Despite some adjustments, deputies and senators find themselves more or less with the measures related to logistical sanctions or purchasing centers abroad. The supervision of promotions, the resale threshold at a loss or the sanctification of agricultural raw materials should not tear the two chambers apart either. The real focus of the discussions will be Article 3, as it has been since the beginning of the legislative process, especially since there will be strong pressure to review this measure. Without forgetting the official name of the law, not having the two assemblies proposed the same.
Source: BFM TV
