ABAG: Exports will be little affected and may even become more competitive with new EU certification requirements

ABAG (the Brazilian agribusiness association) was not surprised to learn that the European Union intends to demand certification from its beef, soy, coffee, cocoa, wood, and palm oil importers.

The “seal” is intended to ensure that the products come from land that was not deforested or contributed to soil degradation after January 1, 2021.

“This is nothing new. They were talking about this for a long time”, the president of Abag, Marcello Brito, stated to Valor Econômico. “I don’t see much impact [on Brazilian trade]. The deforestation that occurs in Brazil today is much more linked to land-grabbing and patrimonialism than to the expansion of agribusiness”.

For Brito, both the EU plan and the US initiative – where Democratic party deputies are expected to unveil a bill similar to that of the EU in the coming days – cannot be viewed with amazement by agribusiness entrepreneurs. “All market trends show that the world’s consumers have a subconscious demand for environmental protection and sustainable production,” he said.

Among the commodities selected by the EU, Brito highlights that Brazilian palm oil and coffee may gain a competitive advantage. If the European bloc expands the list in the future, other sectors such as pulp and paper, orange juice, sugar and alcohol, fruit growing, and cotton may also gain.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/brasil/noticia/2021/10/06/exportaes-sero-pouco-afetadas-e-podem-ganhar-competittividade-com-exigncias-da-ue-diz-abag.ghtml

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