{"id":50374430,"date":"2023-07-19T16:25:20","date_gmt":"2023-07-19T15:25:20","guid":{"rendered":"https:\/\/dialogochino.net\/?p=374430"},"modified":"2023-09-20T18:05:08","modified_gmt":"2023-09-20T17:05:08","slug":"374430-eu-deforestation-law-major-test-for-south-america-farmers","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/forests\/374430-eu-deforestation-law-major-test-for-south-america-farmers\/","title":{"rendered":"EU deforestation law presents a major test for South American farmers"},"content":{"rendered":"\n

New European legislation to ban the import of commodities associated with deforestation and human rights violations entered into force<\/a> at the end of June, and could significantly impact the agriculture-dependent countries of Mercosur, the trade bloc formed by Argentina, Brazil, Paraguay and Uruguay.<\/p>\n\n\n\n

The regulation targets the production and supply chains of palm oil, soy, cattle, timber, cocoa, coffee and rubber, as well as derivatives such as furniture, chocolate and paper. These commodities account for most of the deforestation implicated in imports by the European Union (EU). Without these rules, the EU itself reports<\/a>, these imports could cause the loss of more than 248,000 hectares of forest each year \u2013 an area almost the size of Luxembourg.<\/p>\n\n\n\n

The European deforestation law applies to all countries with which the bloc has trade relations, but it could have a particular impact on those of Mercosur, which counts the EU as its largest trade and investment partner<\/a> and the second largest in trade in goods, behind only China. In 2021, EU imports from the four Mercosur countries totalled 43 billion euros (US$48 billion), 20% of which were vegetable products such as soybeans and coffee.  <\/p>\n\n\n\n

Experts consulted by Di\u00e1logo Chino believe that these stricter trade regulations will help to clean up the Latin American supply chains that are most permeated by negative socio-environmental impacts. However, they caution that the law could create new problems, such as the migration of damage to biomes not covered by the law. Agribusiness sectors and Mercosur governments, meanwhile, have described the regulation as protectionist.<\/p>\n\n\n\n

\"Map<\/div>
Note: Figures show area of biome within Mercosur countries not covered by EU deforestation law. Data sources: Trase, MapBiomas (Map: Lucas Gomes \/ Di\u00e1logo Chino)<\/div><\/div><\/div><\/div>\n\n\n\n

How the EU deforestation law works: targeting companies<\/h2>\n\n\n\n

Under the new legislation, companies exporting to the EU will need to provide \u201cconclusive and verifiable\u201d information that their commodities are deforestation-free and in compliance with local laws in exporter countries. This will require traceability of all their suppliers, with geolocation of each establishment through which the products have passed.<\/p>\n\n\n\n

The law sends a \u201cstrong signal\u201d that the South American market needs to act, says Andr\u00e9 Vasconcelos, global engagement lead at Trase, a supply chain monitoring platform: \u201cSome companies already have their own verification processes, but this needs to gain scale and be more transparent.\u201d<\/p>\n\n\n\n

A recent analysis<\/a> by Global Canopy, the organisation behind the Trase initiative, showed that the companies driving the most deforestation in tropical areas are unprepared to implement the new legislation, with more than three quarters of them lacking a commitment to traceability.<\/p>\n\n\n\n

<\/div>
Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

\u201cThis is an area where the EU can and should contribute with financial resources, so that there is an equal division of costs along the chains,\u201d says Vasconcelos. Companies will have 18 months to adapt, dated from the law\u2019s entry into force at the end of June, with smaller businesses given up to two years to prepare \u2013 a process in which, according to the law, the EU will provide technical assistance. <\/p>\n\n\n\n

Luciana T\u00e9llez, a researcher with Human Rights Watch who has followed the new law\u2019s development, points out that \u201cits strongest aspect is to prohibit any kind of import linked to deforestation,\u201d regardless of whether it is legal or illegal. This, she says, prevents a country from adjusting its norms to legalise more deforestation, as well as facilitating the law\u2019s implementation.<\/p>\n\n\n\n

The law will also help combat ongoing human rights violations linked to agricultural production in South America, T\u00e9llez says: \u201cIt provides greater support for Indigenous peoples seeking land rights and in holding companies that violate their rights accountable.\u201d However, the researcher adds, there are still doubts about the regulations that will serve as the basis for monitoring these cases.<\/p>\n\n\n\n

This risk level assessment creates an incentive for countries to adopt reforms and clean up their production chains<\/blockquote>Luciana T\u00e9llez, Human Rights Watch<\/cite><\/div><\/div>\n\n\n\n

In parallel, the EU will carry out a risk assessment of exporting countries by 2025, considering data such as deforestation and agricultural expansion rates, production trends and human rights abuses, according to \u201cscientific evidence and globally recognised sources,\u201d the law\u2019s text reads. From there, the bloc must list the degree of risk \u2013 low, standard or high \u2013 of each exporting nation. \u201cThis assessment creates an incentive for countries to adopt reforms and clean up their production chains, because in the future the Commission can revise and lower the risk rating,\u201d T\u00e9llez says.<\/p>\n\n\n\n

The degree of risk will impose more or less rigidity in surveillance, so some countries have already made it clear that they must react if they are considered high-risk. \u201cThe EU Commission will be under a lot of political pressure from its partners to downgrade the risks of the markets,\u201d T\u00e9llez says.<\/p>\n\n\n\n

Brazil: a new direction for livestock?<\/h2>\n\n\n\n

Brazil is one of the countries that would \u201cprobably\u201d begin with a high-risk listing, Christophe Hansen, a member of European parliament (MEP) and rapporteur for the legislation, told press<\/a> in April.<\/p>\n\n\n\n

Agribusiness, spearheaded by soy and beef production, is the driving force<\/a> of Brazilian exports, with the EU being its second largest customer, behind only China. But this same sector also drives environmental destruction: in 2022, agribusiness was the vector for 95.7% of deforestation in the country, and almost all of it was illegal, according to MapBiomas<\/a>.<\/p>\n\n\n\n

225 million<\/p>

The number of cattle in Brazil \u2013 larger than the country’s human\u00a0population of 203 million, and a significant challenge for traceability efforts<\/p><\/div><\/div>\n\n\n\n

Deforestation permeates various supply chains in the country, but cattle ranching is the most problematic, according to specialists. Part of the difficulty comes from this industry\u2019s size \u2013 being comprised of 2.5 million<\/a> different properties \u2013 and the supply chain\u2019s complexity, being split into several stages: some farms specialise in breeding or raising cattle, while others fatten, slaughter and export them. Thus, it is common for an animal to pass through several different properties before reaching the market.<\/p>\n\n\n\n

In supply chain tracking efforts, the biggest bottleneck is tracing the properties of the first stages of animal breeding, explains Pedro Burnier, an agronomist and manager of the cattle breeding programme of Friends of the Earth in Brazil, which monitors the sector. \u201cThe most difficult thing to monitor nowadays is when the guy who fattens cattle buys from the rearing guy, who buys from the calf breeder,\u201d he says. <\/p>\n\n\n\n

Besides its sheer size and spread, the cattle ranching supply chain also lacks transparency<\/a>. Authorities monitor the sector through official documents filled out by rural landowners. The information is self-declaratory and therefore depends on the farmer\u2019s good faith. Slaughterhouses also have their own tracking systems, but do not disclose their data<\/a>.<\/p>\n\n\n\n

\"Graphic<\/div>
Graphic: Lucas Gomes \/ Di\u00e1logo Chino<\/div><\/div><\/div><\/div>\n\n\n\n

These flaws in tracking can result in so-called \u201ccattle laundering<\/a>\u201d \u2013 that is, when a cattle rancher fined for socio-environmental crimes sells their production to another farm, which then carries the load with apparent legality. <\/p>\n\n\n\n

A series of investigations, produced by environmental organisations<\/a> and press outlets<\/a> in recent years, has shown that the cattle sold by large slaughterhouses often come from illegally deforested areas. The companies have already signed commitments to change their conduct with authorities, for example, the Federal Public Ministry<\/a> of the northern state of Par\u00e1. \u201cWe have seen that commitments are established, but they don\u2019t move forward,\u201d says Tha\u00eds Bannwart, spokesperson for Greenpeace Brazil\u2019s Amazon campaign.<\/p>\n\n\n\n

Brazil\u2019s agriculture minister, Carlos F\u00e1varo, recently stated<\/a> that full traceability is an \u201cinevitable path,\u201d because \u201cthose few who commit environmental crimes contaminate the whole system.\u201d Today, around 80% of deforestation<\/a> in the country is associated with large cattle ranchers in the latter stages of the production chain.<\/p>\n\n\n\n

<\/div>
Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

Faced with domestic and international pressures, the sector is slowly showing signs of moving forward. The Brazilian Confederation of Agriculture and Livestock (CNA) recently proposed<\/a> a voluntary system to trace each of Brazil\u2019s 225 million cattle<\/a> \u2013 larger than the country\u2019s human population of 203 million<\/a>. Currently, according to Burnier, individual identification covers only 2% of the herd. Not surprisingly, the CNA estimates that it will take at least eight years to adapt \u2013 five times longer than the deadline set by European legislation. In addition, the data would remain under the control of the organisation and would not be made public.<\/p>\n\n\n\n

Since taking office in January, Brazilian president Luiz In\u00e1cio Lula da Silva has made clear that he wants to put the country on a more positive environmental path. His government has launched a plan<\/a> to reach zero deforestation in the Amazon by 2030, and is working on concluding plans for the country\u2019s other biomes<\/a> this year. In his first six months in office, deforestation fell<\/a> 34% in the Amazon, but grew 21% in the Cerrado, compared to 2022.<\/p>\n\n\n\n

On Brazil and Mercosur\u2019s relations with the EU, Lula has appealed for \u201cmutual trust, not distrust and sanctions.\u201d After meeting with European Commission president Ursula Von Der Leyen in June, the Brazilian president said<\/a> that a law whose effect goes beyond European territory will bring \u201cpotential restrictions on Brazilian agricultural and industrial exports.\u201d<\/p>\n\n\n\n

Argentina: anti-deforestation pilot programme <\/h2>\n\n\n\n

In other Mercosur countries, the challenges to comply with European law are similar. In Argentina, beef and soy production, largely destined for export, were the main culprits<\/a> behind the country\u2019s loss of 7 million hectares of forests in the last two decades.<\/p>\n\n\n\n