Brazil considers appeal to World Trade Organization against EU regulation on deforestation-free products
Brazil is contemplating an appeal to the World Trade Organization (WTO) against the European Union (EU) Regulation for Deforestation-Free Products, expected to take effect in December 2024.
The regulation has faced criticism from various Brazilian governmental sectors due to its expected impact on 34% of Brazilian exports to the EU.
They argue the law has an extraterritorial effect and could trigger a global “spiral of retaliation,” disrupting international trade.
The regulation targets commodities such as wood, soy, beef, cocoa, coffee, palm oil, rubber, and their derivatives, which must meet certain criteria before entering Europe, demonstrating they have not contributed to deforestation.
Penalties for non-compliance include import suspension, product seizure or destruction, and fines up to 4% of the operator’s annual turnover.
Critics also argue that the new regulation may harm small and medium-sized producers in Brazil, who may struggle to provide proof of compliance due to a lack of access to high-cost private certifications.
The regulation’s impact extends to all Brazilian biomes, not just high-deforestation areas like the Amazon.
Despite these concerns, the EU ambassador to Brazil maintains that the regulation is environmental legislation rather than trade legislation and that the EU is confident in its position should an appeal be brought to the WTO.
More: Brazil news in English, every day from The Rio Times.
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+0.31%
175,135.41
+0.31%
66,090.98
-0.15%
11,470.79
+0.89%
3,001,209
-0.79%
2,489.80
-0.59%
60,629.82
+0.25%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 175,135.41 | +0.31% | +21.85% | 174,586.26 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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