US urges Europe to delay implementation of EU Deforestation Regulation

U.S. trade officials, along with members of the International Coffee Partnership (ICP), have urged the European Union (EU) to delay the implementation of the European Deforestation Regulation (EUDR), which is scheduled to come into effect on January 1, 2025. The regulation requires agricultural products such as livestock, cocoa, coffee, palm oil, soybeans, rubber, and timber to be imported into Europe only from countries that have not harvested these commodities on deforested land by December 31, 2020. 

These recommendations stem from concerns about the enforceability of the EUDR requirements , technical barriers, as well as a lack of support and information for manufacturers on the conditions required to satisfy the conditions set out in a short period of time. 

In addition, the economic burden of meeting EUDR standards will also affect farmers and small-scale producers, who currently lack the resources to quickly adapt to the regulation.

In addition, this regulation may lead to unfair competition between small producers and larger, financially strong producers. In addition, this regulation may cause unfair competition for raw or raw coffee by allowing instant coffee to be exempted from compliance or import restrictions into Europe.

According to the International Coffee Organization (ICO), in May 2024, green coffee exports reached 10.8 million bags, up 12% over the same period in 2023, accounting for 91.3% of the total global coffee export value. In the 8 months of the 2023/2024 crop year (October 2023 to May 2024), green coffee exports reached 84 million bags, up 11.6% over the previous crop year.

Regarding instant coffee, in May 2024, the volume of instant coffee exported reached 0.95 million bags, down 11.3% over the same period last year. In the first 8 months of the 2023/2024 crop year, instant coffee exports reached 8.24 million USD, up 5.1% over the same period in the 2022/2023 crop year.

Regarding roasted coffee, the volume of roasted coffee exported in May 2024 reached 68.17 thousand bags, an increase of 29.8% compared to May 2023. In the 8 months of the 2023/2024 crop year, roasted coffee exports reached 0.48 million bags, equivalent to the export volume of the previous crop year.