EU Deforestation Law Could Cost Brazil $15 Billion in Exports
Published: 03:09 PM,Sep 12,2024 | EDITED : 07:09 PM,Sep 12,2024
A drone view shows deforested land ready for agriculture in Amazonas state, Brazil— Reuters
BRASILIA: Brazil has asked the European Union to delay the implementation of its deforestation law, set to take effect at the end of 2024, and to revise the regulations to avoid negative impacts on Brazilian exports.
In a letter to the European Commission, the Brazilian government expressed concerns that the law, which bans imports of products linked to deforestation, could affect nearly one-third of Brazil’s exports to the EU. The legislation, passed by the European Parliament in 2022 and adopted in June last year, allows 18 months for companies to comply. It targets commodities such as soy, beef, palm oil, coffee, cocoa, rubber, wood, and derivatives, including leather and furniture.
The letter, signed by the ministers of agriculture and foreign affairs, noted that Brazil supplies a significant portion of these products to the EU, amounting to over USD 46 billion in exports in 2023. The law could potentially impact about USD 15 billion of these exports.
Brazil criticized the EUDR as a unilateral and punitive measure that disregards national laws aimed at combating deforestation. The government argues that the law unfairly discriminates against countries with substantial forest resources and increases costs for producers and exporters.
The EUDR has been a contentious issue in trade discussions between the EU and Brazil, as well as with the South American Mercosur trade bloc. Despite progress in negotiations on the EU-Mercosur agreement, Brazilian officials remain concerned that the law might affect their agricultural export quotas to the EU and are seeking compensation if the regulations are enforced.— Reuters
In a letter to the European Commission, the Brazilian government expressed concerns that the law, which bans imports of products linked to deforestation, could affect nearly one-third of Brazil’s exports to the EU. The legislation, passed by the European Parliament in 2022 and adopted in June last year, allows 18 months for companies to comply. It targets commodities such as soy, beef, palm oil, coffee, cocoa, rubber, wood, and derivatives, including leather and furniture.
The letter, signed by the ministers of agriculture and foreign affairs, noted that Brazil supplies a significant portion of these products to the EU, amounting to over USD 46 billion in exports in 2023. The law could potentially impact about USD 15 billion of these exports.
Brazil criticized the EUDR as a unilateral and punitive measure that disregards national laws aimed at combating deforestation. The government argues that the law unfairly discriminates against countries with substantial forest resources and increases costs for producers and exporters.
The EUDR has been a contentious issue in trade discussions between the EU and Brazil, as well as with the South American Mercosur trade bloc. Despite progress in negotiations on the EU-Mercosur agreement, Brazilian officials remain concerned that the law might affect their agricultural export quotas to the EU and are seeking compensation if the regulations are enforced.— Reuters