EU risks losing US soybean imports under deforestation law

The European Union could lose access to key agricultural imports from the United States if its deforestation law is implemented in its current form, senior officials from the US Department of Agriculture (USDA) told Euractiv.

Without amendments, the law could discourage American producers from supplying the bloc, as the new rules impose heavy administrative and financial burdens on exports, including soybeans.

The EU Deforestation Regulation (EUDR) requires importers of seven commodities — palm oil, soybeans, timber, rubber, coffee, cocoa, and cattle — as well as some derived products, to prove that their supply chains are not linked to deforestation. The regulation is set to take effect on 30 December 2026 for large and medium-sized companies.

US farmers are reluctant to share sensitive data with foreign authorities, and the added traceability and segregation requirements make the EU a less attractive market. European livestock producers rely heavily on imported soybeans due to insufficient domestic protein crop production.

According to US estimates, EUDR could affect around €7.8 billion (US$8.9 billion) per year in exports to the EU. During the law’s review, the European Commission is considering US proposals to create a “negligible risk” category with simplified documentation, though environmental and human rights groups oppose these changes.

Tags: EU, soybean, USA, deforestation