The Government fears that the new environmental regulations of the European Union will reduce Brazilian exports – 06/26/2023 – Economy

2023-06-26 13:49:00

The new one European Union (EU) rule to prohibit the purchase of goods produced in deforested areas enters into force next Thursday, June 29. Although there is a transition period of 18 months, the measure is viewed with concern by the Lula government and by productive sectors, which fear a reduction in exports.

Without clarity on how some conditions will be implemented, the Brazilian representatives anticipate that a possible increase in costs will become a potential obstacle for the sale of national products to the bloc of nations.

“It is not enough that you comply with European legislation, there is a cost to demonstrate that you comply with the legislation, and that is an aspect that must be taken into account”, emphasizes Tatiana Prazeres, Secretary of Foreign Trade of the Ministry of Development, Industry, Business and services.

The rule obliges importing companies from EU countries to implement prior diligence systems to monitor supply chains and mitigate any negative impact of the foreign products they buy. The products affected by the new legislation are cattle, cocoa, coffee, palm oil, soybeans, rubber, wood and its derivatives.

Translated by José Alberto Gutiérrez

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