EU anti-deforestation bill disappoints Brazilian exporters

The European Commission’s new proposal to weaken anti-deforestation legislation has disappointed Brazilian agrifood exporters who have invested in compliance, according to a report by Rabobank analysts seen by Reuters.

Brazilian soy, beef, and coffee exporters invested to secure an immediate compliance bonus by 2025, but the report notes that these changes could delay the expected results and impact their competitiveness.

Under the anti-deforestation legislation, sellers of beef, cocoa, coffee, palm oil, soy, and timber on the EU market will be required to provide a due diligence statement certifying that their products do not cause deforestation.

The European Commission’s proposal stipulates that inspections and enforcement measures for large companies will apply from June 30, 2026. Small companies with fewer than 50 employees will only be required to file declarations starting December 30, 2026.

“This is a significant issue, as investors were seeking better access to the European market. The absence of penalties partially disincentivizes the market premium,” said Rabobank specialist Marcela Marini.

The European Parliament is expected to vote on this proposal in the coming weeks. If approved, the law would enter into force in 2025, but with more lenient requirements.

Tags: EU, soybean, Brazil