Brazil urges EU to delay deforestation law implementation

On September 11, Brazil formally requested the European Union to postpone the implementation of its deforestation law, which is set to take effect at the end of 2024. The Brazilian government expressed concerns that the law, which bans imports of products linked to deforestation, could significantly impact nearly one-third of its exports to the EU. This law, passed by the European Parliament in 2022, covers key Brazilian exports such as soy, beef, and palm oil, among others. Brazil's exports of these commodities reached $46.3 billion in 2023, and the government estimates that the EUDR could affect around $15 billion in trade. In a letter to the European Commission, Brazilian ministers argued that the regulation is a unilateral measure that disregards national efforts to combat deforestation and could lead to increased costs for producers and exporters. The EUDR has been a contentious issue in trade negotiations between the EU and Brazil, particularly within the context of the South American Mercosur trade bloc. Brazilian officials are worried that the law may limit their agricultural product quotas to the EU and are seeking compensation if the law is enforced. Despite these tensions, recent talks between EU and South American negotiators in Brasilia indicated significant progress on other trade issues. However, the Brazilian government remains focused on addressing the potential negative impacts of the EUDR on its economy and trade relations with the EU.