Environmental Supply Chain Regulations in a Changing Market Environment: Exploring the EU's Regulatory Power in the Cocoa Sector in Ghana

Abstract The article explores the European Union's (EU) regulatory power through supply chain initiatives, in the context of shifting market dynamics towards China and Association of Southeast Asian Nations (ASEAN). Focusing on the EU Regulation on Deforestation‐free products (EUDR) and the cocoa sector in Ghana as a most likely case study, the article employs qualitative data from semi‐structured interviews to analyse the presence and potential of a Brussels effect. The findings suggest that whilst the EUDR could serve as a catalyst for ongoing sustainability and transparency efforts, emerging compliance structures contribute to the fragmentation of supply chains, reinforcing market segmentation. Moreover, the article argues that unilateral market access requirements tend to prioritise formal compliance over addressing substantive issues. The article highlights the complexities of externalising EU regulations, critically discussing the lack of normativity in the theoretical framework of the Brussels effect and raising questions about North–South relations in global regulatory power dynamics.