Only a few months remain until the EU's new Deforestation Regulation comes into force. This is causing serious concern not only here in Latvia, but also in Sweden's timber and forestry sector. The chief executive of the Swedish Federation of Wood and Furniture Industry (TMF), Erik Haara (Erik Haara), and the chief executive of the Swedish Forest Industries Federation, Viveka Beckeman (Viveka Beckeman), are urging the Swedish government to secure a postponement of the law's implementation. In an article in Dagens Industri, the industry leaders warn that the regulation in its current form could seriously affect Swedish businesses. This could be avoided if changes were made to the regulation.

The Deforestation Regulation, which takes effect at the end of the year, is intended to prevent trade in goods that drive deforestation. As is well known, these are timber, soya, rubber and livestock. Swedish companies will face new traceability requirements and will be required to produce extensive reports, which will sharply increase the administrative burden. The legal framework of the EU Deforestation Regulation is still incomplete, creating considerable uncertainty. Companies that fail to meet the requirements in time face possible sanctions or even exclusion from the market.

Despite the deadline set for December, companies still lack practical guidance on how to achieve the required compliance with the regulation. The new requirements are expected to affect more than 60,000 Swedish companies. The precise nature of these obligations remains unclear. Swedish authorities have expressed concern that the new rules will have a disproportionate impact on businesses in a country where deforestation, as the regulation defines it, does not exist (just as in Latvia).

One of the main objections is that the law does not distinguish between high- and low-risk deforestation countries. This means that countries such as Sweden (along with the other Nordic countries and the Baltics), where deforestation problems are minimal or non-existent, are treated in exactly the same way as high-risk regions such as Brazil, Congo, Indonesia and so on. The Swedish Forest Agency has repeatedly pointed out that deforestation is not a significant problem in the country, or in the European Union as a whole.

The law has also drawn international criticism. Major trading partners, including the United States and China, have questioned its usefulness. European Union ambassadors and several member states have called for more time to implement the Deforestation Regulation, while agricultural sectors across the continent have voiced alarm at the regulation's broad scope.

Erik Haara and Viveka Beckeman argue that, while the regulation's aims of combating deforestation are welcome, its current form could do substantial harm to industry companies that have led Sweden's "green transition". Haara and Beckeman urge the Swedish government to take the initiative and demand that Brussels postpone the adoption of the regulation, allowing more time to develop clearer guidelines and more practical enforcement mechanisms. The industry leaders warn that without adjustments the regulation could threaten the competitiveness of Sweden's forestry and timber industry, which plays a vital role in employment and economic growth in the country's regions.