The European Union Deforestation Regulation and the rules of the World Trade Organization: a discussion of compatibility

Purpose This paper aims to discuss the potential implications of the European Union Deforestation Regulation (EUDR) for international trade dynamics, focusing especially on developing countries that rely on certain agricultural exports. Moreover, the article aims to propose an interpretation of the potential compatibility of the EUDR with World Trade Organization (WTO) rules, particularly those under the General Agreement on Tariffs and Trade (GATT). Design/methodology/approach Following an economic analysis and drawing on existing literature and WTO case law, the paper examines whether the EUDR satisfies the compatibility criteria under Articles I, III, X, XI, and XX of GATT. Findings The paper demonstrates that, while the EUDR constitutes a significant step forward in global efforts to curtail deforestation and safeguard ecosystems, its legal design raises questions regarding specific aspects of regulatory consistency with WTO law. Originality/value To the best of the author’s knowledge, this is for the first time since its publication in the EU Official Journal, a comprehensive and systematic application of WTO case law and GATT provisions has been applied to the EUDR. This approach goes beyond a purely policy-oriented discussion by rigorously assessing specific legal provisions in the context of the Regulation’s environmental objectives.