BRATISLAVA, July 29, (WEBNOVINY) – The relationship between retail chains and their suppliers will not be regulated by a special law any more. The law on „inappropriate business relations“ approved in the era of Robert Fico. Aimed at preventing retail chains from abusing their positions toward suppliers becomes invalid on August 1, 2011.
The Iveta Radicova Cabinet approved abolishment of the law in January. The ruling coalition was able to push through its abolition in spite of opposition from farmers, parliament and even President Ivan Gasparovic, who did not sign the bill into law even after parliament broke his veto. On the other hand, food producers and retailers welcomed the Cabinet’s move.
The law was also opposed by Agriculture Minister Zsolt Simon as, according to him, it is only valid on Slovak territory and when multinational retail chains signed contracts with suppliers in other countries, they avoided obeying the law, which put Slovak food producers out of the game. Simon said that the law ultimately led to a reduction in the share of Slovak products in grocery stores.
The law’s submitter, the Economy Ministry, however believes that cancellation of the law would eliminate barriers in the business of food supplies, thereby improving the business environment and curbing the regulatory burden on this business.
SITA