U.S. administration urges halting of EU legislation aimed at combating forest degradation.
Facing obstacles for American corporations, the U.S. administration has urged the European Union to enact legislation that halts deforestation. The EU Commission acknowledged receiving such a letter from the U.S. government on Thursday. This law, set to kick off by year-end, prohibits the purchase and sale of goods like coffee, cocoa, and palm oil, where the land was deforested post-2020.
As per the "Financial Times" newspaper, the U.S. requested in a late-May letter to delay the initiation of the new EU regulations until "major hurdles" for American businesses were resolved. Reportedly, this letter was signed by US Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo, and Agriculture Secretary Tom Vilsack.
Businesses are anticipated to maintain compliance with the fresh guidelines, in part, by using satellite-monitored location data. Criticism of these new responsibilities also surfaced from Germany: The German Confectionery Industry Association (BDSI) pointed out "fatal flaws" in the law and expressed disappointment that the EU Commission's IT system, through which companies are supposed to submit their reports, isn't accessible yet.
In the past few months, governments of several EU countries have criticized the implementation of this law. The EU Commission is still waiting for a risk assessment, which should categorize farmers based on their risk for deforestation. Forest owners in EU countries would thus have to abide by the same rules as, say, those in Brazil. German Agriculture Minister Cem Özdemir (Greens) stated that this creates an "entirely unacceptable burden."
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- Despite the EU law's potential hurdles for US companies, such as the prohibition of deforested goods, American businesses may need to adapt by utilizing satellite-monitored location data to ensure compliance.
- The US government's concern about EU legislation aimed at combating forest degradation stems from its potential to create an "entirely unacceptable burden" for US companies operating in rainforests, as noted by German Agriculture Minister Cem Özdemir.
- The US administration's letter to the EU Commission, requesting a delay in the implementation of the law until major hurdles for American businesses are resolved, was signed by US Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo, and Agriculture Secretary Tom Vilsack, citing deforestation concerns from US companies.
