The world’s largest pulp, paper and lumber producer could be classified “deforestation-free,” in a move that would, in effect, reignite debate about a potential “green lane” for producers to meet the requirements of the European Union’s deforestation regulations. It comes amid reports that the European Union, as part of the draft EU–U.S. Agreement Framework currently being thrashed out by officials, is working to “address the concerns of U.S. producers and exporters regarding the EU Deforestation Regulation,” with the aim of “avoiding undue impact on U.S.–EU trade.”
And whilst the United States is currently among the 141 countries classified as “low risk” under the current benchmarking system, Wood Central understands that trade officials are actively lobbying for US-based producers to be reclassified under a proposed “negligible risk” category now before the European Commission—a move that would streamline the due diligence process for all U.S.-origin products.
The push comes after a letter co-signed by 18 agricultural commissioners representing the South and Midwest in February warned that Europe’s deforestation regulations infringe on private property rights – the cornerstone of the United States’ economic, social and legal systems: “As currently conceived, the EUDR will unjustifiably increase our compliance costs while providing essentially no benefit to global deforestation or degradation,” according to the letter, addressed to Marco Rubio, Secretary of State and Brooke Rollins, Secretary of Agriculture. “By prohibiting timber mills from accepting wood from lands that are planned for conversion to another agricultural use, the EUDR rule limits landowners’ options and handicaps their ability to employ the highest and best use of their land,” they wrote. “Private property rights are a cornerstone of the U.S. economic, legal, and social systems. They provide the foundation for economic growth, investment, and innovation.”
The problem with moving the U.S. to ‘negligible risk’ status
Critics of the proposed shift warn that granting the U.S. “negligible risk” status could create loopholes in the regulation’s enforcement. In theory, products linked to illegal deforestation could enter the EU via a country with relaxed oversight. For example, timber or soy from a “standard risk” country such as Mexico could be routed through the U.S. and shipped to Europe with minimal checks.
Trade analysts also caution that the move could trigger diplomatic and legal fallout. According to palm oil media platform Palm Oil Monitor, any preferential treatment for the U.S. would need to be extended to other trading partners, including Indonesia and Malaysia, or risk undermining key relationships. “Either everyone gets simplified compliance or no one does—there’s no middle ground that survives WTO scrutiny,” the platform warned, suggesting that unequal treatment could invite formal challenges under World Trade Organization rules.
- To learn more about the country benchmarking system, click here to read Wood Central’s exclusive interview with Marigold Walkins and Kerstin Canby from Forest Trends last month.
