The EU will delay a regulation that threatened the US forestry industry

On Wednesday, the European Commission proposed a 12-month postponement of the ban on the import of goods that contribute to deforestation. Although the law came into force in June 2023, companies were not expected to comply until December this year.

A bipartisan member of Congress sharply criticized the ban last month, saying many U.S. manufacturers are unclear about the rules and haven’t had enough time to comply, threatening a “billion-dollar trade.”

Lawmakers have warned that if the United States is unable to export certain products to the EU, the economy will suffer, including as a result of job losses in industry and inflationary pressure on the EU.

The EU said the ban aims to reduce the number of products consumed in Europe that are the result of deforestation, while reducing greenhouse gas emissions and tackling deforestation worldwide.

It is expected to affect commodities such as coffee, soybeans, palm oil, cocoa, cattle, timber and rubber, as well as products made from these commodities such as chocolate, makeup, soaps, leather, tires and more.

The regulations state that imports cannot come from recently cleared forest land and must not contribute to forest degradation. Otherwise, importing countries would face high penalties.

According to the European Commission’s new proposal, large companies would now have until December 30, 2025 to adapt to the regulations. Smaller and “micro” companies would have until June 30, 2026.

The European Parliament and all 27 EU member states must agree to the proposal for the delay to take effect.

The postponement is expected to be supported by most EU member states, as agriculture ministers from at least 20 countries backed efforts to restrict and suspend the rules earlier this year, it says Reuters.

In mid-September, top German officials also asked the European Commission to extend the mandatory deadline by six months.

The deforestation import ban has drawn criticism from non-bloc leaders around the world, including the World Trade Organization, Brazil and the U.S.

Just a few weeks ago, a bipartisan group of House members led by Rep. Michelle Steel (R-PA) asked President Joe Biden to put further pressure on the EU, saying it puts the U.S. forestry industry at risk.

“Without more time to implement, billions of dollars of trade are at risk. U.S. forest product exports to the EU are estimated at more than $3.5 billion,” lawmakers said in a letter to the White House, first obtained by Washington Examiner. “Without legal certainty that US manufacturers can place products on the EU market in compliance with EUDR compliance requirements, there will be significant trade disruptions.”

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

The European Commission clarified on Wednesday that the proposed delayed timetable had not yet been approved. However, the bloc’s executive branch acknowledged that many global partners had expressed concerns about whether producers would be prepared before the December deadline.

“The state of preparation among stakeholders in Europe is also uneven,” the commission said Bloomberg.