The United States has appealed to the European Union (EU) for a delay in the implementation of its upcoming law banning imports of commodities linked to deforestation, including soy, wood, and other products. The US Trade Representative, Agriculture Secretary, and Commerce Secretary have expressed concerns that US exporters are not prepared for the December 30 deadline, which mandates proof that supply chains do not contribute to forest destruction. The EU has been criticized for the policy by major commodity producers such as Indonesia, Malaysia, and Brazil, and by EU farmers, who face potential export bans.

The United States has asked the European Union to delay its upcoming ban on imports of soy, wood and other commodities linked to deforestation, a letter seen by Reuters shows, as US exporters struggle to be ready in time.

The EU's deforestation law will, from Dec. 30, require companies and traders placing soy, beef, coffee, palm oil and other products onto the European Union market to provide proof their supply chain does not contribute to the destruction of forests.

In a letter to the European Commission, US Trade Representative Katherine Tai, US Agriculture Secretary Thomas Vilsack and US Commerce Secretary Gina Raimondo said US producers were struggling to prepare to comply with the rules.

"We therefore urge the European Commission to delay the implementation of this regulation and subsequent enforcement penalties until these substantial challenges have been addressed," said the letter, dated May 30.

The letter said the challenges for US producers include that, with only six months until the law takes effect, the EU has yet to launch a system for producers to submit their documentation and "has not provided clear implementing guidance" on the policy.

The letter was first reported by the Financial Times.

Source:  news.bloomberglaw.com