How the EU Deforestation Rule Will Affect Agriculture in Brazil

Agricultural producers with goals of continuing exports to the European Union (EU) have six months to comply with new rules set by the EU to curb deforestation. The new legislation takes effect on Dec. 31 and is part of a larger package of regulations within the Green Deal, an agreement approved by the European Parliament in 2019 and designed to achieve the goals of the Paris Agreement on climate change. Companies and traders planning on selling soybeans, beef, coffee, palm oil, cocoa, wood, and rubber to the EU market will have to be able to prove that their supply chains have not contributed to deforestation any time after Dec. 31, 2020. No product covered by the EU Deforestation Regulation (EUDR) produced in a deforested area after that date will be permitted to enter the EU market.