Brussels, 11th September 2023 - The Argentine Embassy to the European Union, in coordination with 16 like-minded countries, submitted an official note to the European Union on September 7, 2023, expressing deep concern about the distortive effects of the European Union's regulation on deforestation-free products, adopted in June 2023.
The Ministry of Foreign Affairs, led by Minister Santiago Cafiero, instructed the Argentine Ambassador to the EU, Atilio Berardi, to join the note, along with countries from regions representing the "Global South": Brazil, Bolivia, Colombia, Ivory Coast, Ecuador, Guatemala, Indonesia, Malaysia, Mexico, Nigeria, Paraguay, Peru, the Dominican Republic, and Thailand. The intention of the note is to urge the EU to engage in effective cooperation and meaningful dialogue with its partners in the areas of trade and sustainable development to jointly address the impact of this legislation and its enforcement instruments.
The European standard is controversial not only because of its unilateral inclusion of the products it involves (which currently include seven: palm oil, soy, beef, coffee, cocoa, wood, and rubber) but also because the law establishes a "Classification System" by which countries or regions will be categorized according to their level of deforestation risk ("high," "standard," or "low"). The signatories of the note seek to be consulted in the risk assessment process.
During the consideration of this legislation, the EU did not initiate the substantive dialogue requested by the producing countries, while the Commission unilaterally advances in the classification for determining risk levels. These decisions by the EU prompted coordinated action by the producing countries.
This legislation would represent a new barrier to the access of agri-food products from countries that do not subsidize livestock and agricultural production to one of the traditionally most subsidized markets. This policy impacts sustainability and distorts trade.
The submission to the EU expresses the intention of producing countries to meet internationally agreed environmental protection and sustainable development objectives, including the fight against deforestation, while avoiding unnecessary problems in the production and international trade of products covered by the European regulation.
The text of the statement issued by the Argentine Ministry of Foreign Affairs can be accessed at the following link.
Written by Felipe Cossio