The American Loggers Council criticises the European Union's Deforestation Regulation (EUDR) as unworkable, while Washington pushes for the creation of a so-called green lane in transatlantic trade talks.

The European Union's deforestation legislation is "beginning to collapse" and should be repealed, says the American Loggers Council (ALC), which recently criticised Brussels for "misguided action" that could put timber trade at risk. In a strongly worded statement, the ALC stresses that the European Union's Deforestation Regulation (EUDR) has been beset from the drafting stage onwards by "delays, changes, resistance, confusion and legal uncertainty".

"The European Union continues to try to 'rescue' the Deforestation Regulation, which is on the brink of collapse," ALC representatives stressed. "The 'two-step' (one step forward, two back) dance being performed by the European Union makes it clear that there is both internal and external opposition, as well as confusion about the process as a whole. If the EU keeps stepping backwards, it will eventually end up where it ought to be and stop tilting at windmills."

As things stand, the EUDR, which could enter into force at the end of this year, requires companies to prove that their products are not linked to deforestation before they reach the European market. The American Loggers Council considers such a system to be deeply flawed. "The moment of reckoning has arrived, the music has stopped, the dancing is over. It is time to learn a new dance," the statement says.

Trade talks and a potential "green lane"

The comments come at a time when the EUDR is under repeated scrutiny on both sides of the Atlantic — for example, one of the world's largest producers of pulp, paper and sawn timber could be classified as "exempt from EUDR requirements". Such a move would revive talks on introducing a potential "green lane" for certain suppliers, enabling them to meet the regulation's requirements. European and US officials are working on a draft framework for a European Union–US agreement to "resolve the concerns of US producers and exporters about the European Union's Deforestation Regulation", with the aim of "avoiding excessive impact on trade relations between the US and the European Union".

At present, the US is one of 141 countries classified as "low risk" under the European Union's benchmarking system. However, available information suggests that US trade officials are lobbying for the creation of a new "negligible risk" category, which would simplify checks on all products of US origin.

In concluding the new trade agreement with the European Union, the US government is seeking a "green corridor" for its pulp, paper and timber products. Opponents of the proposed changes argue that granting the US "negligible risk" status could weaken enforcement of the regulation. In theory, products linked to illegal deforestation could be shipped through the US from "standard risk" countries such as Mexico and then sent on to Europe subject to minimal controls.

Trade analysts warn of possible diplomatic and legal consequences. The specialist industry platform Palm Oil Monitor has warned that special treatment for the US would most likely have to be extended to other major exporters as well, including Indonesia and Malaysia, so as not to damage mutual relations or trigger breaches of World Trade Organization (WTO) rules. "Either simplified compliance applies to everyone or to no one — there is no middle ground that would survive WTO scrutiny," Palm Oil Monitor stressed, warning that unequal treatment could cause serious problems.