The EU will introduce rules by the end of next year that require companies to verify that their products are not linked to recently deforested land, reported the Financial Times. Processors and importers still do not know exactly which areas and countries are involved. The regulations are expected to mainly affect raw materials such as palm oil, coffee, cocoa, beef, soy, and rubber.
The food industry says it has not had enough time to prepare for the new rules. EU authorities in Brussels have yet to establish a definitive list of countries considered "high risk." South American countries, in particular, protested against the new EU import rules at diplomatic and political levels in Brussels until the last moment.
Food companies operating in the EU will be required to precisely locate the plots where their raw materials come from and provide the coordinates to the EU authorities for inspection. Only then will Brussels provide a deforestation risk assessment of the producing country. This increases uncertainty among companies about how strict the EU will be.
The food industry is already facing problems during contract negotiations. However, Gert van der Bijl, senior EU policy advisor for the non-profit organization Solidaridad, told the Financial Times that the food industry has had sufficient time to prepare for the new EU rules, as the legislation has been in development since 2015.