The European Commission has officially adopted Guidelines aimed at assisting operators in the agricultural sector to create sustainability agreements that align with EU competition laws. This initiative is part of the broader reform of the Common Agricultural Policy (CAP) for 2023-2027, which introduced a new exclusion from competition rules for agricultural products.

Under Article 101 of the Treaty on the Functioning of the European Union (TFEU), agreements that restrict competition are generally prohibited. However, the newly introduced Article 210a of Regulation 1308/2013 allows for certain restrictive agreements in agriculture, provided they are essential for achieving sustainability standards that exceed mandatory EU or national regulations.

The Guidelines clarify how agri-food sector operators can design joint sustainability initiatives in accordance with Article 210a. They will come into effect upon publication in the Official Journal of the European Union, and operators with existing sustainability agreements are encouraged to align them with these new Guidelines. Starting December 8, 2023, operators can also seek the Commission's opinion on the compatibility of their agreements with EU competition rules.

This development follows a public consultation initiated by the Commission in February 2022, which sought input from stakeholders regarding sustainability agreements in the agri-food supply chains. The Commission's efforts culminated in the release of a draft of the Guidelines in January 2023, followed by a conference in June 2023 to discuss key issues raised during the consultation.