A considerable number of southern and midwestern US states want the US forest industry to be “fully exempted” from the compliance requirements set out in the European Deforestation Regulation (EUDR).
“The European Union’s Deforestation Regulation infringes private property rights, which are a cornerstone of the US economic, social and legal system,” states a letter (US 18 States letter about EUDR implementation) signed by 18 agriculture commissioners (Commissioners of Agriculture) representing southern and midwestern US states.
The letter, addressed to President Trump’s Secretary of State Marco Rubio, Agriculture Secretary Brooke Rollins, Acting Commerce Secretary Jeremy Pelter and Acting US Trade Representative Juan Millan, was sent a few days after the American Forest and Paper Association urged the Trump administration to press the European Union into adopting a “no-risk” route to EUDR compliance.
According to Florida Agriculture Commissioner Wilton Simpson, if the EUDR is adopted in its current form it will hit the US forest industry hard – the world’s largest producer of pulp, paper and sawn timber: “In the White House we finally have a leader, President Trump, and an administration that cares about farmers and that will take on policies which put America at a disadvantage. Our voices matter, and I believe that with this letter and the personal advocacy of agriculture commissioners in every state we can stop the policy that is coming, one that fails to recognise the good work of our American foresters, who believe in proper management and genuine sustainability.”
The letter states that the “one-size-fits-all approach” to deforestation contained in the EUDR ignores the fact that the United States is one of the world’s most responsible suppliers of timber: “Our forest products industry and its supply chain do not contribute to global deforestation, yet the EUDR rules place on the US the same obligations, just as burdensome, costly and unnecessary, as on countries with a high deforestation risk.”
“In its current form, the EUDR rules will unjustifiably increase our compliance costs while delivering no benefit whatsoever in the area of global deforestation or forest degradation,” the letter emphasises.
The agriculture commissioners point to three main problems with the regulation:
1) infringement of private property rights,
2) the confidentiality and security of geographic traceability,
3) the economic impact on US agriculture.
“By prohibiting wood processing companies from accepting timber from areas that are due to be converted to other agricultural uses, the EUDR rules restrict landowners’ choices and make it harder for them to put their land to its best and most productive use,” the agriculture commissioners emphasise. “Private property rights are a cornerstone of the US economic, legal and social system. They provide the foundation for economic growth, investment and innovation.”
The state agriculture commissioners point out that, should the EUDR not be changed, it can be expected to affect US agricultural exports to the European Union to the tune of 8 billion US dollars a year: “The US forest industry accounts for roughly 5% of the country’s total manufacturing gross domestic product, produces goods worth around 350 billion US dollars a year, employs around 925,000 people and is one of the 10 largest manufacturing sectors, with employers in 43 states across the country.”
Last year it was reported that a group of Democratic and Republican senators had successfully lobbied President Biden’s administration to reject the EUDR’s “impossible standards”, citing concerns about traceability and about definitions of deforestation that “impose costly requirements on exporters” and restrict access to raw materials.
In the current EUDR version, which takes effect on 30 December, countries are divided into high, standard and low risk categories, the European Commission has rejected attempts by legislators to add a “no-risk” category for “stable or increasing forest area development”, which environmental organisations believe would create loopholes.
In September last year, 73 Republicans and Democrats in the House of Representatives, including members from the US north-east, south, midwest and west coast, actively lobbied for President Biden to secure a 24-month delay to the EUDR. The letter was signed by a group led by Michelle Steel (a Republican representative from California), which argued that the US “still lacks clarity on the specific requirements for data submission, data entry systems, formats and basic definitions, which may affect the entire US forestry supply chain”.
Concerns about the EUDR have so far been voiced by government officials from China, Australia, New Zealand, Brazil, Indonesia and Malaysia, while India has warned that the new rules are “akin to a non-tariff barrier” and could delay the conclusion of a 124 billion euro free trade agreement.
EUDR – the European Union Deforestation Regulation requires thorough due diligence from companies placing goods linked to deforestation and forest degradation on the European Union market