The potential trade flashpoint of the European Union’s deforestation regulations does not look like going away.
The view in Brussels is that implementation of the regulations, which obligate importers and European producers to provide evidence that certain products have not caused deforestation, will not be dropped but its implementation could be delayed.
The regulation covers products and their derivatives such as beef, leather, furniture, wood, paper, soy, cereals, chocolate, coffee, palm oil and rubber, including tyres.
Exporters say it is too far reaching, impacting countries such as New Zealand that do not have deforestation.
They claim that meeting the required EU standards will require historic and current satellite imagery or geolocation data of where the product was sourced.
The regulation, strongly promoted by non-government organisations, is designed to prevent deforestation of natural areas for production, such as the Amazon.
The policy applies to imports of related products into the EU and is scheduled to be implemented from January 1.
Such has been the backlash, including from NZ, that some in Brussels believe its implementation could be delayed to allow more consultation and deliberation but is unlikely to be abandoned.
More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank. Read more about his findings here.
In Focus Podcast | Meeting the market in the US and EU
Roving reporter Neal Wallace calls in from Brussels to share insights on the first week of his Meeting the Market tour. He’s been in the United States where some of our biggest customers are, including Mars and McDonald’s. Neal says they love NZ food but there are a couple of things we need to improve if we’re to remain as a supplier of first-choice.
