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The USA advocates for the repeal of EU regulations restricting deforestation.

Encountered obstacles of substantial magnitude

The law forces companies to check farmers' cultivation areas with the help of satellite images.
The law forces companies to check farmers' cultivation areas with the help of satellite images.

The USA advocates for the repeal of EU regulations restricting deforestation.

Potential upcoming EU law may prohibit coffee purchasing from regions developed via deforestation, causing concerns for US businesses who might face restrictions. Consequently, the US administration is applying influence in Brussels to halt this deforestation law.

Due to potential issues for US corporations, Washington has urged the European Union to postpone the deforestation law. The EU Commission acknowledged receiving a related letter from the US government. Expected to go into effect at year's end, this law bans the trade of products like coffee, cocoa, and palm oil, for which forested areas post-2020 were cleared.

As per reports from "Financial Times," Washington conveyed in a late May letter that the EU should rectify "significant obstacles" prior to implementation. The letter was reportedly signed by US Trade Representative Katherine Tai, Agriculture Secretary Tom Vilsack, and Commerce Secretary Gina Raimondo.

This law mandates companies to guarantee they don't buy coffee sourced from new deforestation areas using satellite-supported location data. However, this regulation has drawn criticism in Germany. For instance, the German Confectionery Industry Association (BDSI) stated there are "systemic flaws," as the EU Commission purportedly lacks an IT system for companies to submit their reports.

In recent months, various EU governments have raised objections to the law's implementation. The EU Commission is yet to complete a risk assessment, which should categorize farmers based on their risk for deforestation. Farmers in EU countries would thus be subject to the same regulations as, for example, in Brazil. German Agriculture Minister, Cem Özdemir (Greens), deemed this a "totally unacceptable burden."

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