EU’s Deforestation-Free Products Regulation (EU-DR)

EU’s Deforestation-Free Products Regulation (EU-DR)

Subject : Environment

Section: Int Conventions

Context: India has raised concerns about the EU’s Deforestation-Free Products Regulation (EU-DR), which will be implemented in December 2024, possibly leading to discrimination against some countries and acting as a disguised restriction on international trade. However, the bloc has said the proposed rules were based on objective, scientific, non-discriminatory and proportionate criteria.

EU’s Deforestation-Free Products Regulation (EU-DR)

• It is a European Union regulation that aims to counter deforestation by requiring companies registered in the EU that import or export specific items (list of 479 for India) have not been produced on land that was deforested after December 31, 2020.
• The EU-DR covers seven primary commodities and a variety of products derived from these. While the main commodities are cattle, cocoa, coffee, oil palm, rubber, soya, and wood, the derived commodities are several such as meat products, leather, chocolate, coffee, palm nuts, palm oil derivatives, glycerol, natural rubber products, soybeans, soy-bean flour and oil, fuel wood, wood products, pulp and paper and printed books.

Why India opposing EU-DR?

• There is criticism that this is just a form of non-tariff barrier to trade, as EU itself has reduced its primary forest cover to increase agricultural output before the said date, and now is not allowing other countries to do the same as they struggle with population pressure on resources.
• India’s stand is that it violates Most Favored Nation (MFN)and National Treatment principles. This is the second such measure by the EU after its Cross Border Adjustment Mechanism. It is estimated that both together are likely to adversely affect exports from India to EU worth $9.5 billion.
• In its reply to India’s queries, the EU said that no commodities or countries will be subject to discrimination, and the regulation will apply equally to commodities and products produced inside and outside the EU.