Trade Negotiations For 2020

Author:Kramer Levin Naftalis & Frankel LLP
Profession:Kramer Levin Naftalis & Frankel LLP

In April 2019, Ordinance no. 2019-359 amended Title IV of Book IV of the French Commercial Code, and in particular the rules of negotiation and formalization of commercial relations by inserting a new Article L.441-4, which establishes specific requirements for annual commercial agreements (conventions uniques) between suppliers and distributors (except for wholesalers) relating to fast-moving consumer goods (FMCG).

However, the scope of this article remained uncertain, despite a definition of FMCG as single-use, fast-moving and widely consumed goods.

Adopted on Dec. 19, 2019, Decree no. 2019-1413 now sets out the detailed list of FMCG, which includes food products, alcoholic and nonalcoholic beverages, electric batteries, washing and maintenance products, cleaning articles, paper articles, animal feed, personal hygiene articles and beauty products, etc.

For annual commercial agreements concerning FMCG, suppliers must comply with the three-month period before the deadline of March 1 each year to communicate their general terms and conditions to distributors.

These specific annual commercial agreements must indicate the scale of unit...

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