CMA’s call for input on competition law and reducing the UK’s carbon dioxide emissions

The Competition and Markets Authority (CMA) put out a call for submissions on how competition law can best support the path to net zero. Traidcraft Exchange’s submission advocates that the UK’s focus on net zero is too narrow and fails to include the carbon emissions generated overseas as products are made and shipped for consumption in the UK. For the UK government to play its globally responsible and proportionate role in reducing UK-linked generation of carbon emissions, it will need to adopt a target to reduce off-shored emissions to complement the existing net zero target.

This response focuses on the following recommendations, from Traidcraft Exchange’s experience.

A) The CMA needs to intervene either to stop excessive levels of buyer power, or otherwise to issue orders to regulate behaviour. We propose CMA uses its market investigation powers more frequently to enable markets to operate fairly.

B) The CMA considers what it can do in relation to international competition policy (for example when UK consumers are consuming products supplied by cartels in other countries). Both Recommendations A & B are set out more fully below from point 2 onwards.

C) The CMA needs to set guidance to enable conversations to occur amongst businesses operating across the same markets to improve lives of farmers and workers. When sharing lessons learnt from the Adapting Commercial Practices Enhancing Lives of Smallholders report, Traidcraft Exchange found that the staff of retailers were nervous about being in the same room together to share findings and learning. When seeking authorisation to attend learning meetings related to the report, retail staff were advised by their legal teams not to attend, or to be very cautious when discussing issues in the same room as their competitors. Reassurance that retailers can be in the same room to hear, and discuss practices which are common across the sector, with their competitors would be welcome.

We recommend strongly that competition law and CMA guidance should be reviewed to consider how it can best support retailers, brands and traders collaborating on pre-competitive farm-gate.