Paraguayan and Argentine farm groups criticize EU restrictions on soybean use in biofuels

Agricultural unions in Paraguay and Argentina have expressed concerns over proposed European Commission restrictions on the use of soybeans in biofuel production. The proposal relates to amendments to the ILUC Delegated Act under the EU Renewable Energy Directive, which maintains soybeans as a high-risk feedstock for indirect land-use change and foresees a gradual reduction in their use by 2030.

In a joint statement, the organizations said the measures could negatively affect the competitiveness of soybean and biodiesel production, as well as exports to the European market. They argue that the EU methodology does not reflect national production realities and is based on aggregate expansion data without distinguishing between countries with growing or stable planted areas.

Industry representatives stress that soybean production in Argentina and Paraguay has developed mainly through yield improvements rather than land expansion, reflecting a more efficient and sustainable production model.

The associations called for a bi-regional technical dialogue between the EU and South American countries to establish more balanced trade rules. They also noted that the EU is a key market for biodiesel from both countries, and the proposed restrictions could disrupt established trade flows.

Tags: EU, soybean, Argentina, Paraguay, biofuel