EU Deforestation Regulation Provokes Global Trade Concerns

The European Commission has proposed extending the implementation date of its deforestation regulation by a year, following backlash from major exporters like India and Brazil. The regulation aims to prevent imports contributing to deforestation, affecting products like coffee and leather, with significant compliance challenges anticipated.

The European Commission announced on October 2 a proposal to extend the enactment of its deforestation regulation by one year to alleviate concerns from exporters of specific products.

According to a statement by the Global Trade Research Initiative (GTRI) on Thursday, large enterprises must comply by December 30, 2025, while small and micro-enterprises have a deadline of June 30, 2026. Countries such as Brazil, India, Indonesia, and the United States have voiced objections to the EU Deforestation Regulation (EUDR).

The regulation, which covers items like coffee, leather, and wood furniture, aims to halt imports that contribute to deforestation. The compliance process includes establishing costly traceability systems, a significant challenge for Indian exporters, according to GTRI founder Ajay Srivastava.