The EU Deforestation Regulation- the Agreed Text
On 17 November 2021, the European Commission (“Commission”) published a Proposal for a Regulation on placing on the EU market and exporting from the European Union wood, cattle (beef), cocoa, coffee, palm oil and soy and derived products associated with deforestation and forest degradation (“Proposed Regulation”). According to the Proposed Regulation, those products - irrespective of their origin - can no longer be placed or made available on the EU market or exported from the EU market, unless they are deforestation-free.
An agreement on a compromise text (“Agreed Text”) was reached on December 2022. The Agreed Text must now be formally approved by respectively the Parliament and the Council, expectedly during the first quarter of 2023. The Regulation will then be published in the Official Journal of the European Union.
This Client Alert sets out the key elements of the Agreed Text that are of interest to producers, traders, importers and exporters of the relevant products.