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Begin New Search Topic Deforestation Political Geography Europe

1. Is the European Union Deforestation Regulation WTO-Proof?

Author:
Bruno Capuzzi
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The European Union Deforestation Regulation (EUDR) is set to take effect on 30th December 2024. While it aligns with EU’s climate goals under the European Green Deal, it has sparked concerns with EU partners regarding its compatibility with World Trade Organization (WTO) principles. Internally, some member-States and productive sectors fear that the lack of clarity in its rules could disrupt European supply chains. Products like coffee, chocolate, and leather are some examples where costs and price are expected to rise due to compliance requirements, documentation, and shipment segregation. Critics argue that the EUDR’s unilateral imposition of EU standards on third countries could be viewed as extraterritorial and more restrictive than necessary towards its objectives. This paper analyses lessons from WTO reports on US Shrimp/Turtle and US Tuna/Dolphin, which are relevant to discussions on non-product-related processes and production methods (PPMs). Key findings suggest that the EUDR could be justified under GATT exceptions clause (Article XX). However, for this to be successful, the Policy Brief proposes more flexibility in considering local realities of exporting countries. This would include shifting the EUDR approach to cooperating towards an outcome-based equivalence systems instead of rigid procedural requirements.
Topic:
Agriculture, European Union, Trade, WTO, Deforestation, and Mercosur
Political Geography:
Europe and Latin America

2. Extra time for deforestation: lessons for future EU environmental legislation

Author:
Heather Grabbe and Luca Léry Moffat
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Forests are essential to regulating the climate, absorbing greenhouse gases and providing fresh water and habitats for biodiversity and indigenous peoples. If deforestation continues at current rates, large parts of the planet will become uninhabitable. The European Union has only 5.5 percent of the world’s population, but its demand drives 15 percent of the global forest destruction linked to trade. Therefore, the EU has introduced a law – the regulation on deforestation-free products, or deforestation regulation – to outlaw from its market products linked to deforestation. The regulation has triggered protest about its impact on trade partners, leading the European Commission to propose at short notice a delay in its implementation. However, the objectives of the regulation remain valid and important. Moreover, a large majority of EU consumers want to avoid buying products that result from deforestation and find it frustratingly difficult to find information on whether products are deforestation-free. Economic actors in most of the affected sectors support the objectives of the regulation, even though they criticise the way it has been implemented. To avoid this delay having a chilling effect on other green measures in future, the EU should learn lessons from this experience. The European Commission needs to develop a consistent and effective strategy for managing the external impact of the EU’s green policy agenda, with better diplomacy towards trade partners and specific financial assistance to help the poorer countries with compliance and the transition to more sustainable production. This Policy Brief sets out why the deforestation regulation has the right objectives but needed better design and preparation for implementation. In particular, the EU needs to provide more flanking support for developing countries to ease their transitions and improve forest protection. Economic actors along the whole of supply chains need more consultation during the design stage, and the Commission needs to provide clearer guidance by sector and a well-functioning system for compliance.
Topic:
Environment, Governance, European Union, Deforestation, Implementation, and Forests
Political Geography:
Europe

3. The European Union Deforestation Regulation: The Impact on Argentina

Author:
Pablo de la Vega
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
We analyze the potential economic impacts in Argentina of the European Union Deforestation Regulation (EUDR), which as of January 2025 will prohibit the export to the European Union of certain raw materials and related products if they involve the use of deforested land. A dynamic computable general equilibrium model is used to simulate the impact of such regulation on the Argentine economy. The results suggest that the potential macroeconomic impacts are limited. As a consequence of the EUDR, between 2025 and 2030, GDP would be reduced by an average of 0.46% with respect to the baseline scenario. However, of greater magnitude is the potential environmental impact. Deforested hectares would be reduced by 6.64% and polluting gas emissions by 0.39%.
Topic:
European Union, Regulation, Exports, Trade, and Deforestation
Political Geography:
Europe, Argentina, South America, and Latin America

4. Forests, foreign policy and trade

Author:
Johannes Weberling
Publication Date:
11-2023
Content Type:
Commentary and Analysis
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The EU’s Regulation for Deforestation-free Products (EUDR) marks an important milestone in addressing demand-side deforestation governance, being the first regulation targeting deforestation driven by agriculture. Yet it must be understood as more than an effort to protect the world’s forests – it showcases the European Commission unilaterally acting to promote values and policy ideas abroad. It displays issues of transnational social justice and power discrepancies, shedding light on shifting market power dynamics in global structures. And it questions the EU’s standing as a trustworthy partner on the international stage as well as its relationships with important producer countries. Analysing the EUDR from these angles offers valuable insights that can be transferred to other due diligence instruments that are currently being drafted or negotiated, such as the Corporate Sustainability Due Diligence Directive (CSDDD). Unilateral action may provide a semblance of control but is by nature limited in the depth of scope. As its market influence wanes, the need for the EU to position itself as a reliable partner becomes increasingly important. To prevent leakage, demand-side measures such as the EUDR must be paired with supply-side measures. The EUDR’s success will hinge on careful and efficient implementation, accompanied by meaningful consultations and engagements with producer countries. Overall, prioritising the external dimensions of such legislation must first and foremost uphold trust and strengthen collaborative relationships with partner countries.
Topic:
Foreign Policy, Regulation, Trade, Forest, and Deforestation
Political Geography:
Europe