The deputy Frédéric Descrozaille blows, in the middle of the afternoon. After a morning of discussions in the Mixed Commission, in the Senate, the designated group of deputies and senators agreed on a common text, which aims to “strengthen the balance in commercial relations between suppliers and distributors.” To listen to Frédéric Descrozaille, the discussions took place in a constructive manner, without setbacks, Sophie Primas, president of the Senate Economic Affairs Committee, having “remarkably directed the exchanges”.
A disputed bill
However, this was not necessarily obvious, given the differences in viewpoints. The bill has also been reformed several times since its first draft by deputies and senators.
Especially the famous article 3, which defines what happens in case of disagreement between distributors and suppliers at the end of the official period of commercial negotiations on March 1st. There, the text stipulates that in case of disagreement, “experimentally”, the provider will have the option between: execute the legal notice, have time to turn around or terminate the contract and stop deliveries. But this scenario “happens very rarely”, considers Fréderic Descrozaille.
The two parties are also free to resort to a mediator to issue a notice of termination, explains the deputy, for whom this new text, resulting from the Mixed Mixed Commission, now satisfies all industrial players, including small and medium-sized companies, they feared being disadvantaged in the balance of power in relation to multinationals.
On the other hand, the Mixed Joint Commission generally endorsed the actions of the senators, within the framework of promotions on non-food products, the non-negotiability of agricultural raw materials in products sold under distributor brands or the shortening from 2026 To 2025 of the extension of the judgment of the supervision of the resale in threshold of losses, which expires in April. Fruits and vegetables are not included in this device.
“An unthinkable and inflationary deal!”
Measures have also been adopted on the supervision of logistical penalties and on purchasing centers abroad, which will be subject to French regulations.
Finally, the fine imposed on distributors who do not conclude commercial negotiations within the stipulated period -on March 1- is set at one million euros and can go up to two million euros, in the event of repeat offences.
As expected, the big retailers take this agreement between deputies and senators very badly. Contacted by BFM Business, Jacques Creyssel, head of the Fédération du Commerce et de la Distribution (FCD), denounces “a completely unthinkable and inflationary agreement (…) very clearly made to increase the margins of large foreign manufacturers, despite the fact that These margins have never been this high in fifteen years.”
He is surprised by the turn that things have taken in the Mixed Mixed Commission, when the Government had given him the impression of wanting to reach “a compromise”. He also wonders about the feasibility, legally speaking, of certain points, in particular with regard to the European purchasing centers.
With this text, which will be put to the vote on March 22, deputies and senators want to rebalance trade negotiations between distributors and suppliers. However, it seems unlikely that they will be more peaceful.
Source: BFM TV
