A bipartisan group of lawmakers is urging President Joe Biden to seek a delay in the implementation of the European Union's deforestation regulation, warning that the law could severely disrupt the U.S. forestry industry and transatlantic trade. The EU Deforestation-free Regulation (EUDR), which is set to take effect in December, requires companies to prove that their supply chains are free from deforestation, a mandate that U.S. producers argue they are not yet prepared to meet.
In a letter led by Representative Michelle Steel (R-CA) and supported by over 40 members of Congress, the group requests that Biden seek a two-year delay for the regulation, citing incomplete guidance from EU officials and concerns over the potential economic fallout. Lawmakers expressed that while they share the goal of addressing global deforestation, U.S. stakeholders still lack critical clarity on data requirements and compliance measures essential to meeting the regulation’s standards. The letter was signed by 73 Republican and Democratic members of the House, including Reps. Terri Sewell (D-AL), Paul Tonko (D-NY), Bruce Westerman (R-AR), Cathy McMorris Rodgers (R-WA), Elise Stefanik (R-NY), and James Clyburn (D-SC).
"Without more time for implementation, billions of dollars of trade are at stake," the letter states. U.S. exports of forest products to the EU are valued at over $3.5 billion, and failure to comply with the new rules could result in significant disruptions. The letter warns that such disruptions could lead to devaluation of U.S. timberlands, job losses, and reduced economic activity across multiple sectors, as well as inflationary pressures in the EU.
The lawmakers further noted that the U.S. forestry industry plays a crucial role in supplying Europe with key materials, particularly in sectors like construction and paper goods. According to the letter, the U.S. provides 85% of global fluff pulp production, with over 1 million tons exported annually to the EU, a material critical for products like diapers and hygiene products.
The group emphasizes the U.S.'s leadership in sustainable forest management, pointing to a recent USDA assessment that shows U.S. forest area has been stable over the past decade, contrary to concerns about domestic deforestation. They warn that rushed implementation of the EUDR could undermine U.S. investments in sustainable forestry and harm long-established trade relationships with the EU.
The EU Deforestation-free Regulation (EUDR) has come under fire from governments and industry groups. This week, Swedish wood industry leaders called for a delay in the law to protect local businesses. Erik Haara, CEO of the Swedish Federation of Wood and Furniture Industry (TMF), and Viveka Beckeman, CEO of the Swedish Forest Industries Federation, urged the government to push for a delay in implementing the law. In a Dagens industri article, they warned that the regulation, in its current form, could severely impact Swedish businesses unless changes are made.
Earlier this month, Brazil asked the European Union not to implement the regulations as scheduled and requested revisions to avoid harming Brazilian exports. In a letter to the European Commission seen by Reuters, the Brazilian government noted that the law banning the import of products linked to deforestation could affect almost one-third of Brazil's exports to the EU.
In March, The German Saw and Wood Industry Association, the Austrian Wood Industry Association, and the Swiss Wood Industry Association called for urgent adjustments to the EUDR, stating that the law's implementation "hangs over the industry like the sword of Damocles." Following a test phase that revealed significant issues, the associations demanded a change in course.
Meanwhile, environmental organizations are urging the EU not to delay. Earthsight is calling on the EU to stand firm on implementing the regulation. The group warns that any delay could lead to the weakening of critical provisions, such as traceability requirements, potentially allowing deforestation-linked products to enter the European market and undermining the regulation’s effectiveness.
