German Chancellor Scholz pushes to delay EUDR to avoid supply chain disruptions
German Chancellor Olaf Scholz has requested to suspend the implementation of the European Union Deforestation Regulation (EUDR), which is scheduled to come into effect on December 30, 2024. Scholz has raised these concerns directly with European Commission President Ursula von der Leyen, emphasising the need to resolve outstanding issues. Agriculture ministers, European Parliament members, and international trade partners have expressed concerns about the regulation’s complexity and its potential impact on global trade. Exporting countries like Brazil, Indonesia, and Malaysia have warned that the EUDR could act as a trade barrier, negatively affecting small farmers and disrupting supply chains.
Additionally, the World Trade Organization’s Director General Mrs Ngozi Okonjo-Iweala has urged the EU to reconsider the regulation’s global trade implications, jeopardising a trade value estimated at 110 Bio €.
COPA/COGECA, supported by FEFAC and app 20 other EUDR value chain organisations are currently preparing a follow-up public letter requesting the postponement of EUDR.
In response to these developments, FEFAC has released an initial overview of the EUDR’s potential economic impact on Europe’s livestock sector. This overview was highlighted in Bloomberg’s article titled “EUDR Could Add Billions in Costs for Europe’s Livestock Sector; EUDR May Lead to Supply Chain Disruptions” published on September 12, 2024. On September 13, FEFAC President Pedro Cordero will address additional questions raised by Bloomberg in a video interview. Alexander Döring responded to Feed Navigators’ questions on specific EUDR implementation challenges for the EU feed industry.