On August 19, 2026, amendments to the Law on Prohibition of Unfair Trading Practices (NTPAL) took effect, establishing clearer rules for the cooperation between buyers and suppliers in the agriculture and food sectors. The amendments require suppliers to notify buyers in writing at least 30 days in advance before removing products from the assortment, introduce clearer rules for supply forecasts, and limit the imposition of penalties for non-fulfillment of forecasted volumes.

The aim of these amendments is to promote fair trading practices and reduce the potential for market participants to exploit their superior position over suppliers. The changes address several areas that have previously caused disputes or ambiguities, including unilateral changes to product assortments, supply forecasts, penalty applications, and payment terms for fresh vegetables and fruits.

The amendments align with the European Parliament and Council Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain. Latvia has opted to establish a higher level of protection in certain aspects than the minimum set out in the directive.

One significant change is the prohibition of unilateral changes to product assortments. Buyers can no longer remove supplier products from their assortment without prior written notice. This change is a logical continuation of the principle that buyers cannot unilaterally alter the terms of contract execution after cooperation has begun.

Additionally, the amendments introduce a clear definition of supply forecasts, establishing more precise rules for their use in cooperation between parties. This aims to prevent situations where suppliers are encouraged or forced to produce goods without sufficient order coverage.

Another important change relates to penalties for non-fulfillment of forecasted delivery volumes. The amendments prohibit the imposition of unilateral penalties and specify situations where penalties are not applicable, such as when deviations from forecasted delivery volumes are minor.

Furthermore, the amendments stipulate that payment for regular deliveries of fresh vegetables and fruits must be made within 20 days, eliminating the possibility for suppliers to be forced into longer payment terms. This is particularly significant for local producers and cooperatives, as their operations are seasonal and heavily reliant on timely cash flow.

Both suppliers and buyers are advised to review their cooperation agreements to ensure compliance with the new NTPAL requirements and to clarify any ambiguous terms regarding penalties and payment timelines.