European member states could be years away from being fully “EUDR-ready,” that is according to a new report published by the Norwegian government. It comes as Norway—one of the member states most impacted by the timber trade—could opt out of the EUDR over concerns that more than 580,000 cubic metres of timber cleared from Norwegian agricultural lands and sold into EU markets could be reclassified as “deforestation” under the new rules.
Published by the Norwegian Environment Agency and the Norwegian Agriculture Agency, the report reveals that timber accounts for 85% of Norway’s trade into the EU and global markets: “Full implementation of the regulation will not only add additional compliance costs for Norwegian forestry companies, it will also require detailed geolocation data for harvested wood and additional verification processes before export.”
And when it comes to timber imports – which make up more than 75% of raw materials covered by the EUDR – traders also have significant concerns with beefed-up import requirements:
“A critical challenge is the five-year lookback period imposed by the EUDR, which requires timber and wood products placed on the market to be proven deforestation-free since December 31, 2020.”
The concerns come after 18 agricultural commissioners – representing the American South and Midwest – wrote to Marco Rubio – Trump’s new Secretary of State; Brooke Rollins – Secretary of Agriculture; Jeremy Pelter – Acting Secretary of Commerce; and Juan Millian – Acting US trade representative – warning that the EUDR infringed on property rights. The letter said the EUDR’s “one size fits all approach” to deforestation ignores the fact that the United States is amongst the world’s most responsible suppliers of forest fibre:
“Our forest product industry and its supply chain do not contribute to global deforestation, yet the EUDR rule will subject the US to the same burdensome, costly, and unnecessary obligations as countries with high deforestation risk.”
Letter addressed to Marco Rubio – Secretary of State; Brooke Rollins – Secretary of Agriculture; Jeremy Pelter – Acting Secretary of Commerce; and Juan Millian – Acting US trade representative
So far, several government officials from China, Australia, New Zealand, Brazil, Indonesia, and Malaysia have expressed concern with the EUDR. India has warned that the new rules were “akin to a non-tariff barrier” and risked delaying a €124B free trade agreement. Last year, twenty (out of 27) European Agricultural Ministers called for it to be slowed down or watered down amid concerns over global supply chains.
- Click here for Wood Central’s special feature to learn more about the EUDR, including the European Commission’s decision to delay the new regulation for 12 months in December.
