Deforestation: Farm Europe welcomes a simplification for EU farmers, keeping the level of ambition untouched

The European Parliament made a positive step forward in its vote on imported deforestation (EUDR-2023/1115). This position will remove unnecessary red tapes for EU farmers, while securing the level of ambition in the fight against deforestation. 

The perimeter of the regulation covering operators and traders is unchanged. The delay is  limited to one year, necessary to finalise the implementing acts of this regulation which is cornerstone for trade reciprocity, sustainability, and fair value chains for agriculture and food products.

MEPs approved the amendments introducing a new “no risk” category for countries, which comes in addition to the existing “low,” “standard,” and “high” risk categories for deforestation. Countries designated as “no risk”— defined as those with stable or growing forested areas—would face notably reduced compliance requirements. 

The current version of the text was agreed upon by the Parliament with 371 votes in favour, 240 votes against  and 30 abstentions. It is now crucial for the Council of the European Union to join the Parliament’s approach as soon as possible, and for the Commission to fully complete the implementation of the regulation, including the platform providing an “early warning system” to assist the competent authorities, operators, traders and other relevant stakeholders, as established by Recital 31. 

The Commission is also expected to complete a country benchmarking framework by June 30, 2025.

Regulation on imported deforestation (EUDR): reducing red tape on EU farmers while keeping the overall ambition is possible!

The regulation on deforestation (2023/1115) is a cornerstone for trade reciprocity, sustainability, and fair value chains for agriculture and food products. A postponement of one year is now unavoidable considering the late presentation of the implementing rules, but any further delay should be avoided.

In order to comply with WTO requirements and guarantee a fair treatment for all operators worldwide, the regulation on deforestation has been designed to cover the entire planet, regardless of the level of deforestation risk in the countries covered. 

A simplified due diligence procedure has been set up to avoid placing a disproportionate burden on operators producing and marketing raw materials from countries with a low risk of deforestation. 

However, as highlighted in previous analysis by Farm Europe, this simplified due diligence procedure only allows a partial derogation from the administrative requirements and data collection, placing unreasonable burdens on operators for low or zero deforestation risks. 

Simplification yes, dismantling no.

Therefore, the amendments proposals seeking to create a “no risk” category goes in the right direction. But any further modifications would change the nature and be a blow to the level of ambition of the regulation. In particular, to secure a robust regulation, the responsibility of important global operators should not be diluted. 

Corrections should be limited to the parts of the text that threaten its own credibility, namely the ultimate risk of having a new standard that would weigh more heavily on EU farmers and food producers, faced with a fussy and disproportionate implementation of the regulation, than on global actors. 

These changes should be made quickly, taking into account the need to limit as much as possible the delay in the implementation of this important regulation, to avoid destabilizing European value chains and threatening their fragile economic equilibrium.  

A full implementation from the European Commission needed. 

In the meantime, the implementation of Recital 31 of the regulation which calls upon the European Commission to build a platform providing an “early warning system” to assist the competent authorities, operators, traders and other relevant stakeholders must be fully put into practice, which is not the case until now. 

This plateform has been added by the co-legislator to the Commission’s initial proposal to provide “continuous monitoring and early notification of possible deforestation or forest degradation activities”, and to be operational as soon as possible. It is be a building block for an easy, uniformed and simplified implementation of the regulation by third countries, and in particular for developing countries that should be set up. 

EU/Mercosur: the agriculture section, incompatible with EU political coherence

While the pressure on EU negotiators to close the Mercosur deal is increasing due to the perfect storm affecting EU carmakers flooded by Chinese producers, this agreement remains antagonistic to EU agriculture interests and would offset most — if not all — EU producers’ efforts on the difficult path of climate transition.
It would not only undermine major EU agricultural value chains, but also, as it stands, the policy coherence and the alignment of EU policies, as requested in different recent reports. A dedicated fund would be far from enough to compensate for its economic impacts considering the firepower of the Mercosur agribusiness sector, not mentioning the detrimental effects on the Amazon, the planet’s lungs.
Therefore, Farm Europe regrets yesterday’s renewed commitment of Commissioner Šefčovič to move forward in the talks with Mercosur and considers that the conditions are not met for including agriculture in this deal. Free trade agreements can offer important opportunities for the EU economy, but only if and when the principles of reciprocity are duly taken into account, in particular for EU agriculture. Those conditions are not meet and far from being achieved in the Mercosur negotiations.

Deforestation

  • The European Union has seen a reduction of more than 10 million hectares in its agricultural area over the last three decades (equivalent to two-thirds of Poland’s agricultural area). Forests in the EU have increased by 12 million hectares.
  • Meanwhile, Brazil lost 90Mha of forests. And the EU has become the second-largest importer of tropical deforestation and associated emissions (16% of tropical deforestation linked to international trade). Over the last 30 years, EU imports are estimated to have caused more than 11 million hectares of deforestation.

Pesticides

  • The use of hazardous pesticides has declined by more than 25% in the EU in less than 10 years.
  • In the Mercosur area, the increase in areas cultivated with soy, maize, and cane has led to a significant increase in the use of pesticides. In Brazil alone, the volume of pesticides sold quadrupled from 2000 to 2020. But it is not just about quantity: 27% of the products used in Brazil in 2020 were banned in the EU. Chlorothalonil, a fungicide, was banned in the EU since 2019, and an insecticide like Novaluron was banned in 2012. These are just some examples.

Hormones

  • Since the 1980s, the European Union established a ban on using growth-hormones in cattle ; this ban has been reinforced several times in the ‘90s and in 2006 with the exclusion of antibiotics used a growth promoters. 
  • In a recently published audit report on controls on residues of active substances, pesticides and contaminants in animal and animal products, the European Commission recognized the need to suspend imports of bovines from Brazil due to the lack of guarantees on hormone use. Keeping in mind that even if the imports from the Mercosur area of meat where production involves growth hormones for cattle are forbidden, this constraint is partly overcome through the use of certain antibiotics as growth promoters.

Therefore, rather than opening wide the doors of the European Union to the agricultural giants of Latin America, at a time of difficult challenges for EU producers, it is a matter of urgency:

  • To be credible in the fight against deforestation with a simple and solid implementation of the EU regulation on deforestation for standards and high-risk countries, while avoiding administrative burdens for low or zero-risk countries, particularly for EU producers ;
  • To protect our agriculture against unfair competition, not only when it comes to consumer safety, but also in terms of EU environmental standards, with full reciprocity on production norms ;
  • And, of course, to shape a new vision for EU agriculture and food, matching a real ambition for the “Made in Europe”.