{"id":86860,"date":"2023-10-05T07:45:39","date_gmt":"2023-10-05T07:45:39","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/early-insights-into-potential-trade-impacts-of-eudr\/"},"modified":"2025-09-19T09:00:50","modified_gmt":"2025-09-19T09:00:50","slug":"early-insights-into-potential-trade-impacts-of-eudr","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/early-insights-into-potential-trade-impacts-of-eudr\/","title":{"rendered":"Early insights into potential trade impacts of EUDR"},"content":{"rendered":"

The comments of policy makers and trade analysts in recent media articles imply that there will be winners and losers from the EUDR when enforcement begins on 1 January 2025.<\/span><\/p>\n

A revealing insight into where the balance of advantage, and disadvantage, might lie in trade terms is provided by a presentation by Matthew Spencer, of the IDH Sustainable Trade Initiative, delivered to a meeting of the Amsterdam Declarations Partnership (ADP) held in London in May this year.<\/p>\n

Spencer\u2019s central message is that there may be \u201cwider wins from EUDR\u201d including stronger enforcement of national forest laws, acceleration of land titling programmes and widespread implementation of \u201cnew accessible and cheap traceability solutions\u201d.<\/p>\n

However, these \u201cwins\u201d will only materialise if \u201cproduction countries feel respected and supported to be partners in implementation\u201d. Without adequate dialogue and support, negative outcomes are possible, particularly resulting from market exclusion of smallholders, according to Spencer. Spencer argued that in practice, whether the balance of EUDR trade impact is negative or positive will vary between supply countries and sectors and will depend to a large extent on where producers stand in relation to two key factors:<\/p>\n

-The share of volume exported to the EU; and<\/p>\n

-The share of smallholder farmers compared to large scale farmers and plantations.<\/p>\n

Spencer observed that the \u201cbiggest opportunities\u201d for \u201cwins\u201d from the legislation will occur in those sectors where small farmers dominate supply and the EU is the biggest buyer.<\/p>\n

This situation prevails, for example in the cocoa and coffee sectors in Africa.<\/p>\n

In these circumstances, large intermediary companies should have a strong incentive to stay engaged even with the smallest producers and to invest in longer term efforts to build farm mapping and traceability mechanisms.<\/p>\n

In contrast, the \u201cbiggest risks\u201d from the legislation occur where smallholders dominate but the EU is not a large buyer, a situation typical of most agricultural commodity supply chains in South-east Asia. Here, segregation of supply chains becomes more likely, with smallholders diverting supply away from the EU, while buyers in the EU focus their attention on supplies that can be derived from the big state and industrial plantations.<\/p>\n

Significant investment to build capacity for traceability in the smallholder sector will only occur if plantation supplies prove inadequate and this investment will focus only on the simplest and lowest risk supply chains.<\/p>\n

In sectors and supply chains where larger plantations or forest operations already predominate, the regulation will likely have less significant impact, either positive or negative. While still creating technical challenges and tending to marginalise those smallholders that have been supplying the EU market in the past, compliance with the geolocation and traceability and other requirements is more straightforward for the bulk of the industry. Examples include the Brazilian soy and coffee sectors.<\/p>\n

Spencer\u2019s presentation focused on agricultural commodities and makes no mention of forest products. But it is easy to identify where various forest products lie in relation to the Spencer\u2019s two key factors and, therefore, which are most likely to be winners and losers. For example, tropical logs, lumber, and veneer from Africa, for which supplies into the EU mainly derive from large concessions, many of which are already FSC certified, will face few obstacles in meeting the legislation.<\/p>\n

However, wood furniture and other composite products manufactured in Southeast Asia, where a significant proportion of wood derives from smallholders or is imported from other countries, will face more significant challenges in delivering the geolocation data. Without significant intervention to develop the necessary tracking procedures, imports of these products into the EU \u2013 which only accounts for a relatively small proportion of total exports from Southeast Asia - may decline with more product diverted to other markets in Asia and in North America.<\/p>\n

In these circumstances, continuing far-reaching support by the EU and other donors to help develop the land registration and tracking systems required for EUDR conformance \u2013 either through the existing FLEGT VPAs or the new \u201cForest Partnerships\u201d which are mandated through the EUDR \u2013 will be necessary to avoid negative outcomes, particularly for smallholders.<\/p>","protected":false},"excerpt":{"rendered":"

The comments of policy makers and trade analysts in recent media articles imply that there will be winners and losers from the EUDR when enforcement begins on 1 January 2025. A revealing insight into where the balance of advantage, and … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":86747,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-86860","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nEarly insights into potential trade impacts of EUDR - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/early-insights-into-potential-trade-impacts-of-eudr\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Early insights into potential trade impacts of EUDR - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The comments of policy makers and trade analysts in recent media articles imply that there will be winners and losers from the EUDR when enforcement begins on 1 January 2025. 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