Trade Regulations

EU lawmakers back ban on goods linked to deforestation

Apr, 20, 2023 Posted by Gabriel Malheiros

Week 202319

On April 19th, the European Parliament approved legislation that will prevent products originating from areas deforested after January 1st, 2021, from being sold in the 27 countries that make up the European Union.

The new rule will apply to imported livestock, coffee, cocoa, soybeans, timber, rubber, palm oil, and derivatives such as leather, wooden furniture, coal, and printed paper. Experts say the measure could have a significant impact on Brazilian exports.

Products derived from cerrado areas, which concentrate a significant part of Brazilian agricultural production, were excluded from European restrictions.

The topic has been under debate in Europe since 2021, when a law project was proposed by the European Commission. A report by the WWF NGO released that year showed that EU imports contributed to 16% of global trade-related deforestation in 2017, second only to China.

Since then, MEPs have expanded the list of originally implicated products. Last December, the 27 members of the European Union and the European Parliament reached a consensus on the issue, which was approved as law on Wednesday with 552 votes in favor, 44 against, and 43 abstentions.

The European Commission will classify exporting countries as high-risk, low-risk, or standard risk for monitoring purposes. European law does not differentiate between illegal and legal deforestation, which is one of the points that tend to generate problems for Brazilians.

“The EU proposes to block the purchase of any product linked to deforestation, whether legal or illegal, and this will generate a great deal of turmoil from the moment countries begin to be classified,” says Paula Mello, a partner at Pinheiro Neto, a law firm specialized in Environmental legislation.

Countries considered “high risk” for deforestation will have a stricter certification process applied throughout the production chain.

The EU member countries still have to ratify the approved text. After that, the 18-month period will begin for companies to adapt to the new rule.

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