The European Union Regulation on Deforestation-free Products (Regulation EU 2023/1115), commonly known as the EUDR, is designed to prevent European Union (EU) consumer products from contributing to global deforestation and forest degradation.
Part of the broader European Green Deal, it updates the 2010 timber regulation and was officially adopted in May 2023. EUDR covers commodities such as chocolate, coffee, cocoa, soy, palm oil, cattle, timber, and their derivatives, requiring companies to verify the sourcing of these goods and ensure they were not produced on land deforested after 31 December 2020. Companies must collect data on the geographic origin of these products, and non-compliance may result in fines of up to 4% of their EU turnover. From a Brazilian perspective (one of the main markets impacted by deforestation) the new legislation enacted by the European Union to ban the import of goods linked to deforestation will likely complicate negotiations of a trade deal with South America’s Mercosur bloc.