On 31 January 2013, the European Commission (DG Internal Market) published a Green Paper on unfair trading practices in the business-to-business food and non-food supply chain in Europe. RBB Economics has produced a report for the European Brands Association (AIM), commenting on the discussion in the Green Paper of territorial supply constraints and cross-border price differentials. The RBB report concludes that, contrary to what the Green Paper implies, cross-border price differentials often reflect the efficient functioning of markets and that blanket measures aimed at reducing such differentials are likely to have a number of adverse long-term consequences that are likely to harm consumers.The RBB report can be accessed here.
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