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Thai exporters warned new EU deforestation edict could lead to bans
TUESDAY, DECEMBER 27, 2022
Thai exports in seven categories could be affected by the European Union’s new law on deforestation-free products, the Department of Trade Negotiations (DTN) warns.
Talks between the European Commission, the European Parliament and the EU Council took place on December 6 to finalise details of the deforestation policy, DTN director-general Auramon Supthaweethum said on Monday.
The DTN expects the new regulations to take effect from June next year, when Thai exports in seven categories could be banned if the EU finds they have contributed to deforestation. Thai exports under the deforestation spotlight are beef, paper for printing, palm oil, soy, coffee, cocoa and rubber.
Auramon said the new regulation will be imposed on EU trade partners at different levels depending on their deforestation risk. The European Union is currently revising its definition of deforestation and classifying trade partners according to three risk levels: high, medium and low, she said.
The regulation will also require EU importers to carry out comprehensive, effective and continuous due diligence to prove that their products are not linked to deforestation or forest degradation.
Auramon advised Thai exporters to follow progress of the regulation closely so they can adjust their practices to avoid impacts on their business.
Last year, Thai rubber exports to the EU were worth US$1.69 billion, or 8% of total rubber exports, while Thai wood exports to the EU were worth $22.6 million, or 9% of the total. Thai export volume of other products on the list – beef, soy, cocoa and palm oil, is relatively low at less than 1% of total exports in each category.
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