In this article, I explain how the EU Anti-Deforestation Law impacts the Global South, particularly Brazilian exports to the European Union (EU) and the Mercosur-EU Free Trade Agreement. Brazilian ministers have protested, calling this law unilateral and punitive and denouncing its extraterritorial aspects.

What exactly is the EU Anti-Deforestation Law?

The EU legislation targets seven commodities: cocoa, coffee, soy, palm oil, wood, rubber, and cattle (and their derivatives, such as meat and leather). These products will be subject to strict checks to ensure their production has not caused harm to forests.

Context of the Law

Historically, EU imports have been a significant driver of global deforestation. According to a KPMG Belgium study, between 1990 and 2008, around 36% of global deforestation linked to agricultural products and over 25% related to livestock production were attributed to EU imports. The law, according to the EU, is designed to tackle these impacts by regulating the European supply chain more sustainably and ensuring product traceability through technologies like satellite imagery and geolocation.

The aforementioned products and their derivatives (such as cosmetics, furniture, chocolate, etc.) will need to undergo a strict due diligence process and comply with new traceability requirements and environmental standards, in which companies must prove that their products were not produced in deforested areas after 31 December 2020.

This legislation affects products from countries such as Brazil (beef and soy), Argentina and Paraguay (soy and beef), Indonesia and Malaysia (palm oil), Peru (cocoa), West African countries (cocoa), Congo Basin countries (wood), among others.

Impact on Brazilian Exports

According to a study by the Brazilian Institute of Applied Economic Research (IPEA), the EU Anti-Deforestation Law (EUDR – European Union Deforestation........

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