CUTS Daily Bulletin # 02 | July 08, 2025
Session 1 - Roundtable on "Competition Law and Policy and Global Food Value Chains" and reports of the Informal Working Groups
 
Day 2 began with a roundtable discussion on competition issues in global food value chains. Key takeaways included.
  1. Extreme Market Concentration in Agricultural Inputs: The fertilisers, seeds, and agrochemicals industry is highly concentrated, with a few companies dominating key segments. Potash production is led by Canada and China, with Canada alone accounting for 41.8% of global potassium fertiliser exports. Brazil is the largest importer..
  2. Geographic Vulnerability and Supply Chain Risks: Geographic concentration of supply chains exposes importers to disruptions such as Panama or Suez Canal blockages. From 2020 to 2025, fertilizer prices were highly volatile, peaking with a 400% increase in 2022, significantly affecting food production in import-dependent countries.
  3. Financialization of Food Trading: Food trading has evolved into financial asset trading, accelerated post-2000 by firms like Goldman Sachs. Four companies (ADM, Bunge, Cargill, and Louis Dreyfus) control 70% of global food trade, with limited transparency from the three privately held firms. Shadow banking allows these entities to operate as financial intermediaries, often earning more from financial activities than core operations during crises.
  4. Digital Agriculture and Competition Concerns: Digital agriculture offers significant yield and sustainability benefits but raises competition concerns around data ownership, interoperability, service bundling, and equipment aftermarkets. The Bunge/Viterra merger, spanning 31 countries, highlights how vertically integrated firms leverage digital tools and financial structures to consolidate control across the value chain.
  5. National Competition Authority Responses: The panellists cited South Africa’s price monitoring reports and investigations—such as one on cooking oil—that led to price reductions, and Austria’s sector inquiry, which exposed high prices, monopolisation, and limited transparency.
  6. Investigation Challenges and Methodologies: Effective investigations must be data-driven, accounting for sustained food inflation, market shocks, and government interventions. Given consumer biases toward higher-priced products, a comprehensive approach is essential. Deterrence and enforcement must align, particularly against dominant firms breaching competition rules.
  7. Future Policy Directions: Panellists highlighted the importance of building technical capacity in competition authorities in developing countries and improving international cooperation in concentrated markets.
Mr. Maxim Shaskolsky delivered the Special Address, with Mr. David Anderson moderating the roundtable. Panellists included Mr. Rodrigo Carcamo-Diaz, Ms. Anastasia Nesvetailova, Ms. Doris Tshepe, Mr. Ahmed Rahhou, Ms. Hara Nikolopoulou, Mr. Lukas Cavada, Ms. Eleanor Fox, and Mr. Alexey Ivanov.
 
(Reporting by Mritunjai Kapila, CUTS International, Geneva)
Session 2 - Voluntary Peer Review of Consumer Protection Law and Policy: Angola
 
The second session featured a voluntary peer review of Angola’s consumer protection framework, with insights drawn from successful case studies in Portugal, South Africa, and Brazil.
  1. Constitutional Foundation and Legal Framework: Angola’s Law 1503 of July 22, 2003 marked a pivotal step, with Article 78 of the Constitution establishing consumer protection as a constitutional right. Key milestones include the 2020 establishment of a national authority for food and product safety, and the 2021 parliamentary mandate requiring all regulators to uphold consumer protection.
  2. Key Findings Requiring Modernization: The peer review highlighted six key areas for reform: targeted protection for vulnerable consumers; insufficient e-commerce regulation; undefined digital market frameworks; absence of consumer protection laws for public utilities; an unclear sanctioning regime; and the need for stronger cooperation between government and NGOs.
  3. Vulnerable Consumer Protection Challenges: The peer review noted that low literacy levels hinder many consumers from understanding their rights. In response, Angola plans to establish a dedicated division for vulnerable consumer protection within the national commission, offer assisted services, enforce sanctions against exploitative practices, and engage community leaders for outreach and education.
  4. Alternative Dispute Resolution Development: The peer review also emphasized the need to strengthen alternative dispute resolution (ADR) mechanisms—arbitration, mediation, and conciliation—for timely case resolution. Recommendations include establishing public redressal centers under ministerial oversight to bridge consumer-industry gaps. However, enforcement of binding arbitration remains a challenge due to limited public awareness and a prevailing perception that justice is only served through courts.
  5. Rural Outreach and Consumer Education: Panellists highlighted the use of radio broadcasts in local languages to educate rural and illiterate populations on consumer rights. Key challenges include integrating consumer education into school curricula, engaging NGOs, establishing consumer observatories, and developing comprehensive consumer codes. Priority areas include public services, education, and financial literacy.
  6. International Best Practices Shared: Portugal’s model emphasizes strong civil society involvement through national consumer protection networks, with associations granted legal standing in all courts and EU committees. Its mandatory complaints book system, established in 1960 and expanded in 2020, covers all sectors including e-commerce. Brazil’s Consumer Code includes specific provisions for essential services, establishes supplier liability, and ensures protections for vulnerable groups such as children and persons with disabilities.
  7. Recommendations for Reform: Develop comprehensive legislation covering seven key areas: inspection, consumer education, institutional cooperation, technological innovation, digital market and e-commerce definitions, sanctioning regimes, and modernization of existing laws. Strengthen government-NGO collaboration to align with international best practices and UN consumer protection guidelines.
 
Mr. Wuassamba Neto represented Angola in the peer review discussion, joined by panellists Mr. Hardin Ratshisusu, Ms. Carla Barata, and Prof. Claudia Lima Marques. The UNCTAD report was summarized by Ms. Ana Catarina Fonseca.

(Reporting by Mritunjai Kapila, CUTS International, Geneva)
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