CSVN – No goods or commodities will be allowed into the European Union (EU) if they are produced on land that has been deforested or degraded.
Coffee, along with other agricultural exports, is expected to be among the most affected products under this regulation.
EU’s New Regulation on Deforestation-Free Supply Chains
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The United Nations Development Programme (UNDP), the EU Delegation to Vietnam, and the Vietnam Administration of Forestry (VNFOREST) under the Ministry of Agriculture and Rural Development recently co-hosted a technical workshop on sustainable agricultural production and trade that does not contribute to deforestation.
According to Mr. Patrick Haverman, Deputy Resident Representative of UNDP in Vietnam:
“Deforestation and forest degradation are major drivers of climate change and biodiversity loss worldwide. The EU regulation aims to minimize the risk of products linked to deforestation or forest degradation being imported into or exported from the EU.”
In November 2022, the European Commission (EC) proposed a Regulation on Deforestation-Free Supply Chains. A political agreement between the European Parliament and the Council of the EU was reached in December 2022. Once implemented, this regulation will significantly impact exporting countries and businesses, including Vietnam.
“Given the recent global movement toward sustainable production and deforestation-free supply chains, UNDP stands ready to work with both government and private-sector partners to create an enabling environment for sustainable agricultural supply chains,” Mr. Haverman emphasized.
Implementation Timeline and Key Requirements
Mr. Jesus Lavina, Deputy Head of Development Cooperation of the EU Delegation to Vietnam, noted that:
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The EU Deforestation Regulation (EUDR) is expected to take effect in June 2023.
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Compliance obligations will apply from December 2024, and for small and medium enterprises (SMEs) from June 2025.
Once in force, only deforestation-free and legal products will be allowed to enter or exit the EU. Obligations apply primarily to operators and non-SME traders.
A strict traceability system will link each product to its specific plot of land where it was produced. Products must comply with the laws of the country of origin, including human rights, labor rights, and the principle of free, prior, and informed consent (FPIC).
Commodities Covered by the Regulation
The EUDR initially applies to seven key commodities and their derived products:
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Palm oil
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Soy
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Wood
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Cattle
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Cocoa
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Coffee
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Rubber
Derived products include chocolate, furniture, tires, and printed materials.
The regulation applies equally to domestic production within the EU and to imports, and the list will be regularly updated.
Impact on Vietnam’s Agricultural Exports
Mr. Trần Quang Bảo, Deputy Director-General of VNFOREST, noted that Vietnam’s agricultural exports—especially coffee—will face significant challenges.
“Coffee is Vietnam’s largest agricultural export to the EU. The Central Highlands, a vital region in Vietnam’s agricultural development strategy, not only leads in coffee production but also in rubber, pepper, and fruit crops,” he said.
The implementation of the EUDR will therefore require Vietnamese exporters and producers to adopt deforestation-free verification systems, improve traceability, and strengthen sustainable land-use practices to maintain access to the EU market.