Government fears that new EU environmental rules may reduce Brazilian exports

Norm prohibits the importing of goods linked to deforestation and comes into force on Thursday (29), with a transition period


The new European Union (EU) rule to bar the purchase of goods produced in deforested areas comes into force next Thursday (29). Although there is an 18-month transition period, the measure is seen with concern by the Lula government and by productive sectors, who fear a decline in exports.

The lack of clarity regarding how some conditions will be implemented has caused Brazilian representatives to project a possible increase in costs as a potential obstacle to the sale of Brazilian products to the bloc.

Burned areas on the edges of the Trans-Amazon Highway (BR-230) in the municipality of Lábrea, Amazonas - Lalo de Almeida/Folhapress

"It's not enough that you comply with European legislation, there is a cost to prove that you comply with legislation, and this is an aspect that needs to be taken into account", emphasizes Tatiana Prazeres, foreign trade secretary at the Ministry of Development, Industry, Commerce and Services.

The norm makes it mandatory for importing companies headquartered in the bloc to implement due diligence systems to monitor supply chains and mitigate any negative impacts of the foreign goods they buy. The products affected by the new legislation are cattle, cocoa, coffee, palm oil, soy, rubber, wood, and derivatives.

Translated by Cassy Dias

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