More work needed to complete its drafting.Ottawa—A working group is reporting significant progress on a proposed code of conduct for the grocery industry to deal with complaints about the retail chains that control 80 per cent of the business.The report to Agriculture Minister Marie-Claude Bibeau and her provincial counterparts said that since its previous message in December, the committee, composed of the head of major agrifood organizations, has found an emerging consensus on some issues “and in others understanding where we do not yet have agreement.“In addition, we have launched a broader industry process to work through some of the unresolved issues and, where possible, help develop specific language for a draft Code. There are, of course, many challenges ahead, and much work to be done to refine the broad direction we now have into a specific set of proposals and an overall design of a Code.“However, we feel confident that the work we have done to date represents a major step forward, and that – even if we haven't found agreement on all issues yet – the pieces are in place for a robust and intensive consideration of the issues that will yield a Grocery Industry Code of Practice proposal,” the committee said.It will keep working on various issues and expand its consultation to make sure it covers the concerns of everyone in the food sector while delivering value to Canadian consumers, the committee said.The Code has to be enforceable and mandatory for all companies in the business, based on principles that are not overly prescriptive, and implemented through industry leadership and participation. “It is too early to say definitively that a regulatory or non-regulatory route is required.”The Code has to be workable under Canada's federal-provincial system and will involve legal and regulatory design considerations that go well beyond grocery industry expertise.A group of industry experts is helping the committee review ideas on the table and understand “how the industry works at a detailed level.”A series of working group meetings, guided by a neutral competition lawyer, will tackle some of the pressing issues such as ensuring the Code works fairly and through mutual consent rather than blanket prohibitions. It will also work on keeping the Code simple so it doesn't become highly rules-bound and promotes “for parties of all sizes in the Canadian marketplace.”The Code must complement and not disrupt existing trading systems, for example the Dispute Resolution Corporation. It will also prohibit acts of retaliation for practices permitted by the Code.“Finally, we can anticipate a further phase of bringing a draft Code to a broader audience for feedback and comment. It will be crucial to seek input from many stakeholders and ensure a representative process of different interests having a voice in Code development.”The committee says slowed down the Code design process “to ensure that as many stakeholder voices as possible have an opportunity to be heard. Because of the complexity and wide-ranging nature of a Code, there are many affected parties and perspectives with an important bearing on how the Code is designed and implemented.“Already we know that things may look good on paper but may be very different on the ground. Making sure that Canada's Code reflects the on-the-ground reality will be critical for designing a system that works in the real world.”