Trade Regulations

EU Negotiators Reach Provisional Agreement to Delay Anti-Deforestation Law Implementation

Dec, 04, 2024 Posted by Gabriel Malheiros

Week 202446

Negotiators from the European Parliament and the European Council reached a provisional political agreement on Tuesday (December 3) to postpone the implementation of the European Union Deforestation Regulation (EUDR) until the end of 2025.

However, other proposed changes to the legislation, such as the creation of a “no-risk” category for countries deemed free of deforestation risks—approved by European lawmakers in November—were excluded from the agreement. This development could be seen as a temporary relief for Brazil, as the issue will be reassessed by the European Commission at a later stage.

Brazilian traders fear that the EU’s recent ban on purchases of goods from deforested areas may impact the country’s economic standing. The chart below shows which products were the most exported in containers from Brazil to European ports in 2024. The data is derived from DataLiner, a Datamar product.

Top Most Exported Goods to Europe | 2024 | TEUs

Source: DataLiner (click here to request a demo)

The “informal agreement” reached by representatives from the EU trilogue (Parliament, Commission, and Council) is scheduled to be voted on during the Parliament’s next plenary session, set for December 16–19. For the postponement to take effect, the agreed text must be approved by Parliament and the European Council before being published in the EU’s Official Journal by the end of the year.

Under the agreement, large operators and traders will need to comply with environmental obligations starting December 30, 2025. Micro and small businesses will have until June 30, 2026, to adhere to the rules. Previously, the legislation had set the implementation deadlines as December 30, 2024, and June 30, 2025, respectively.

“This additional time aims to help companies worldwide implement the rules with no mishaps from the start, without compromising the law’s objectives,” stated the European Parliament in a press release.

Proposals to introduce a new category of countries classified as posing “no risk” of deforestation remain under review. The European Commission has pledged to evaluate simplified requirements for nations demonstrating effective and sustainable forest management practices in the future.

Another provision under consideration is an “emergency pause” mechanism, allowing for further delays to the EUDR if the online platform for companies is not fully operational by December 30, 2025, or if country risk classifications are not published at least six months in advance.

The European People’s Party (EPP), which championed the “no-risk” category proposal, expressed support for the agreement.

We made a promise and delivered the results: the one-year postponement has been agreed upon, giving companies, foresters, farmers, and authorities an additional year to prepare. Moreover, we are making sure the Commission will finalize implementing the online platform and risk classification in due time, providing greater predictability for all supply chain stakeholders,” said MEP Christine Schneider in a statement.

Schneider added that while she would have preferred these improvements to be adopted immediately, the Council rejected the measures in what she described as a “disappointing” move.

“Now it’s up to the Commission to fulfill its commitments. As Parliament members, we will closely monitor this process, as reducing bureaucracy is urgently needed,” she concluded.

Brazilian producers and exporters had criticized the proposed “no-risk” category, arguing that it would make the anti-deforestation law even more discriminatory. According to them, the new text would grant privileges and leniencies to developed nations while imposing stricter regulations and greater bureaucracy on countries like Brazil, which still has significant potential for growth.

Source: Globo Rural

Original news report available at: https://globorural.globo.com/politica/noticia/2024/12/europa-decide-adiar-lei-antidesmatamento-e-discutir-melhor-o-no-risk.ghtml

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