What Australia and the U.K.’s grocery codes can teach us about Canada’s food fight

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Progress on a Canadian grocery code of conduct has stalled as two major retailers refuse to sign it, claiming it will raise prices. The code is intended to set rules for fair dealing in negotiations between retailers and suppliers. Politicians and others have pushed back on claims the code could raise prices, saying similar codes in the United Kingdom and Australia had a stabilizing effect. The U.K. has had a mandatory grocery code since 2010, which applies to the country's 14 biggest retailers. Australia's grocery code, introduced in 2015, is voluntary but becomes legally binding once signed. Comparing food inflation data from Canada, the U.K., and Australia before and after the implementation of grocery codes shows mixed results. Canada's proposed code differs from the Australian and U.K. counterparts as it aims to cover both suppliers and retailers. The voluntary Canadian code may become mandatory if major players like Loblaw and Walmart refuse to sign it. Australia's code may also become mandatory based on a government-commissioned report. Both the U.K. and Australian codes have led to improvements in treatment by retailers and have had some impact on stabilizing food inflation.

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https://www.theglobeandmail.com/business/article-what-australia-and-the-uks-grocery-codes-can-teach-us-about-canadas/

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