EU Council seeks to delay Anti-Deforestation Act

Members of the European Union Council, the bloc’s main decision-making body, reached a consensus on Wednesday to request a delay in the implementation of the Anti-Deforestation Act, originally scheduled for December 30. The council will now inform the European Parliament about the recommendation so that the body can decide whether to heed the request and postpone the effective start of the new regulations.

The EU Council followed a proposal previously suggested by the European Commission in September after facing intense pressure from several member states and exporters of agricultural products, such as Brazil and Malaysia. Composed of ministerial-level representatives from the 27 countries in the bloc, the Council is a legislative body that shares responsibilities with the European Parliament. At times, both bodies hold equal weight, while in other instances, the Parliament holds supreme authority.

In the case of the Anti-Deforestation Act, any potential delay in its implementation will depend on the decision made by the 720 lawmakers of the European Parliament at their headquarters in Brussels. The Parliament holds deliberative sessions every Thursday, but today’s agenda does not explicitly mention the Anti-Deforestation Act.

So far, these positions have served as elements of political and economic pressure, but they do not guarantee that the Parliament will necessarily agree to the postponement. “The delay will allow third countries, member states, operators, and traders to be fully prepared in their due diligence obligations,” said a statement by the EU Council.

Due diligence involves ensuring that products originating from deforested areas do not enter European territory. Cocoa, coffee, beef, rubber, timber, soy, and palm oil and its derivatives are among the agricultural commodities included in this list.

EU’s anti-deforestation pact is set to severely impact the international trade environment. See below Brazil’s top most exported commodities to Europe in terms of volume, according to DataLiner data.

Top Exported Cargo to Europe | Jan-Aug 2024 | WTMT

Source: DataLiner (click here to request a demo)

If the European Parliament’s lawmakers agree to the proposed delay, the implementation of the new law will begin on December 30, 2025, for large operators and traders, and on June 30, 2026, for micro and small enterprises.

Source: Valor International

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