KUALA LUMPUR (Sept 18): Italy-based think-tank Competere Policies for Sustainable Development, has recommended at least a two-year transitional period for the gradual implementation of the European Union Deforestation Regulation (EUDR).

This would allow authorities and stakeholders sufficient time to adjust, ensuring that production processes and economic stability are not compromised, the think-tank said in its letter to the EU dated Sept 12.

"This delay will be technical, based on specific factors, whether horizontal or commodity-based," Competere president Pietro Paganini suggested.

He said that the request for a delay stemmed from the EU Commission's lack of clear and precise information, which has created confusion. This uncertainty poses a risk of a short-circuiting system - from imports to processing - potentially leading to severe consequences for the European economy and consumers, he said.

In addition to the delay, Paganini said the think-tank also called for the creation of a permanent committee under Article 15(5) of the regulation - consisting of commodity-based workgroups - that would facilitate technical discussions, exchange information as outlined in Articles 21 and 27 of the EUDR, and provide guidance and clarifications.

Paganini said the committee would actively involve stakeholders, including small producers, to ensure a comprehensive and inclusive approach. It would also oversee the implementation of the EUDR, proposing adjustments when necessary.

The committee would be open to national authorities, producing countries, trade associations, and other relevant stakeholders, he said.

“During this transition phase, we request a temporary suspension of enforcement measures, while maintaining the controls stipulated by the regulation. Our request aims for constructive and pragmatic collaboration with the EU to ensure an effective, fair, and resilient implementation of the EUDR.

“We are aware of the complexity of this request, but we firmly believe it represents the most effective path to enact necessary changes at this critical time,” Paganini added.

The EUDR is a non-tariff barrier targeting commodities, including palm oil, which requires all imports to the EU to provide huge quantities of data, including on geolocation, "polygon" mapping of plantations, due diligence statements and other administrative requirements, from Dec 30, 2024.

Over the weekend, Malaysian Palm Oil Council CEO Belvinder Kaur Sron said that the scheduled implementation date of Dec 30 this year is impractical and discriminatory against small farmers in the developing world. 

Belvinder urged the EU to postpone the implementation, and to provide exemptions to smallholders as well as to publish credible criteria so that commodities such as Malaysian palm oil that meet certain standards can be identified as "low risk".

European countries are also seeking extension. On Sept 12, German Chancellor Olaf Scholz said that he had asked the EU to suspend the EUDR to allow objections raised - over the burden on the print sector - to be addressed. He said that he shares the concerns of publishers about the regulation and its potential impact on print products.

Meanwhile, Italian Minister of Agriculture, Food Sovereignty, and Forestry Francesco Lollobrigida has called for a longer extension of one year "to adjust and ensure effective implementation of the law without adverse effects on the involved economic sectors".
 

https://www.theedgemarkets.com/node/727152