Eu Deforestation Law Will Discourage Us Producers From Exporting To Eu Us Official Warns

One example of a sector that could be affected is livestock farming, the official said, arguing these farmers depend on soybeans to feed their animals, and Europe does not produce enough protein feed.

"It needs to import from countries that are better at it, like us," he said, warning that the U.S. stopping that export “will drive up their costs, hurt their competitiveness."

The EU's anti-deforestation law requires that companies police their supply chains to ensure that any commodities they use, such as palm oil, beef or coffee, have not contributed to deforestation. After complaints from industry groups and trade partners, EU institutions in December agreed to put off implementation of the law by a year — until Dec. 2026 — and mandated the Commission to present a review of the rules by April.

"It's particularly difficult for us because these [compliance] costs will be borne by our producers," said the official. U.S. farmers also don't want to information on their farms with foreign governments, he said.

Washington's main qualms with the law include the fact that there's no category of "negligible" risk in the EU's ranking of countries by risk of deforestation. The U.S. — like all EU member countries as well as China, Canada, the Democratic Republic of the Congo, Ghana, Kenya, Vietnam and others — has been labeled “low risk” under the EU’s deforestation classification system.

Members of the European Parliament in the center-right European People's Party have also backed the introduction of a "no risk" category, "for countries with stable or expanding forest areas."

The senior official also complained a stipulation in the law that if the level of deforestation in any country exceeds 70,000 hectares annually, that country cannot be considered "low risk." That standard "just doesn't work for us," they said. "It's not fair."

Representatives from the European Commission are meeting with members of the delegation on Friday “at technical level" to the law, a spokesperson for the European Commission confirmed to POLITICO. European Environment Commissioner Jessika Roswall told reporters in January that there would be no new legislative proposal come April, saying businesses need “predictability.”

A 2024 report from the U.S. Congressional Research Service estimated that, in 2023, U.S. exports of the seven commodities under the EUDR accounted for approximately 3 percent of the value of U.S. exports to the EU, "so overall the EUDR may not significantly affect U.S. trade."

Still, the authors wrote, the law could affect U.S. producers of specific commodities covered by the law. In 2023, the highest value of covered commodities exported to the EU from the U.S. were wood and wood products ($4.5 billion), soybeans ($4 billion), rubber ($1.1 billion), and cattle, such as beef and related products ($409 million).

Environmental groups are calling on EU governments and the Commission to stick by the EUDR and keep the rules intact.

“Misleading and self-serving foreign pressure on the EU should not distract policy-makers from staying focused on facts," said Anke Schulmeister-Oldenhove, manager for forests at WWF EU, in an emailed statement. "Every year the EUDR is postponed results in the loss of nearly 50 million trees and the release of 16.8 million tonnes of CO₂ into the atmosphere."