A level playing field requires smart laws

The conversation often revolves around a level playing field when it comes to how Dutch or European agriculture and horticulture compare to everything beyond our borders. When it comes to sustainability, specifically social components like working conditions, different norms and values ​​often apply in Europe than in the rest of the world. Personally, I'm proud that we, as a society, dare to choose to be a global leader in sustainability and social issues.

In my view, we should definitely not let ourselves be dragged down by the fact that making money has suddenly become more important than everything else in other places. Moreover, we systematically underestimate the strength and power we possess as Europe. We are simply a very large, powerful economy. Countries and large companies are eager to do business with us. With 450 million consumers with purchasing power, we are unique in the world. If we impose higher standards on products that can be sold here, countries and companies will adapt accordingly. We make far too little use of this fact in our international relations.

Mandatory reporting
The EU is, of course, the perfect instrument for creating a more level playing field within Europe. That's also one of the EU's greatest success factors. But we also do a lot of trade outside the EU. Brussels is also trying to work on a more level playing field there. Precisely what all of agriculture and horticulture, including the processing industry, have a vested interest in. That's much more difficult, of course, because you have to make deals with all sorts of countries that want something in return. Let me put it this way: the EU has found a clever way to put more pressure on sustainability and a level playing field, without making itself dependent on deals with other countries. We are going to introduce legislation that obliges companies to report on the sustainability of the products they sell. This reporting obligation doesn't just concern their own actions. It also covers what has already happened to the product before it reaches the final seller. This law is called CSRD.

Cleverly found
We also have a similar law for social issues: CSDDD. With this legislation, the EU compels us to at least clearly disclose how everything we import was produced. This allows us to compare it with how we produce products within the EU. This reporting requirement is obviously quite a hassle, but I think it's a clever idea. And, frankly, I'm happy with it. It provides insight into how sustainably something was produced. Moreover, it takes the first and important step toward a level playing field, precisely what we've been fighting for in Dutch agriculture and horticulture for so long. If we become more sustainable faster than the rest of the world, we might find ourselves at a cost price disadvantage in the short term. When cheaper (but less sustainable) products enter the EU, we'll all be calling for a level playing field again.

First important steps
I see the implementation of both the CSRD and the CSDDD as important first steps toward creating a level playing field when it comes to sustainability and social issues. I'm often surprised, therefore, when we advocate for a level playing field one moment and then just as gleefully rail against legislation like the CSRD and the CSDDD. This legislation is precisely intended to create a more level playing field. From the economic perspective of agriculture and horticulture, I would say we should be pleased with this legislation. It makes it easier to market our commitment to sustainability at reasonable prices. 

If we can also cause other countries and companies to conform a little to our norms and values ​​when it comes to sustainability and working conditions, then I can only be happy about that.

Alex Datema

Alex Datema is Director of Food & Agri at Rabobank and also a dairy farmer in Briltil (Groningen). In his opinion articles he outlines his vision on the agricultural sector and the food system.

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