EU OFFICIAL ADDRESSES SOUTH AMERICAN CONCERNS OVER DEFORESTATION BAN

03/18/2024

The European Union's (EU’s) environment policy chief is embarking on a tour of South America to address concerns raised by countries in the region regarding a new EU law (Reuters). The law, which is set to be implemented from the end of December, will ban imports of goods associated with deforestation, including soy, beef, coffee, and palm oil. Deforestation is a significant contributor to climate change, particularly in Amazon Basin countries, whose forests play a crucial role in absorbing carbon dioxide. 

Nations like Brazil and Malaysia have criticized the law, calling it protectionist and burdensome for their economies (Reuters, New York Times). The policy raises questions about the economic and political trade offs in addressing climate change, particularly regarding the disproportionate burden placed on lower- and middle-income nations. While aimed at protecting forests, the ban poses challenges for small farmers who may not be aware of it or lack the means to comply (New York Times). Tracing products back to their sources proves intricate due to complex supply chains.

EU Environment Commissioner Virginijus Sinkevicius is aiming to reassure South American countries about the law's implications during his visit (Reuters). He sees it as a pivotal moment in the global fight against deforestation. Sinkevicius will particularly engage with Paraguay, Bolivia, and Ecuador, who have expressed concerns about the law's impact on trade (Reuters). 

One major worry for these countries is the potential reputational damage of being labeled as "high risk" under the forthcoming EU system that assesses countries' deforestation risk levels (Reuters, New York Times). However, implementation of this risk-rating system may be delayed until 2025 due to EU elections this year. Nonetheless, the ban on imports linked to deforestation will still come into effect by the end of 2024, initially assigning all countries a "standard" risk level (Reuters).