25/8/23 00:00

Insights on the EU Deforestation-free Regulation (EUDR)

The XXXI Aapresid Congress was the setting for the 25° International Oilseed Producers Dialogue (IOPD), where a session was held to analyze the new EUDR’s challenges and consequences.

During  the first day of  the Aapresid Congress “C, a life element”,  the 25° International Oilseed Producers Dialogue (IOPD) took place. This side event, which was supported by Aapresid, Acsoja and ASAGIR  together with other organization representatives and producers from countries all around the world, held discussions related to market trends and technologies connected with oilseeds, as well as insights on the new EU Deforestation-free Regulation (EUDR).

María Beatríz “Pilu” Giraudo, honorary president of Aapresid, was in charge to moderate the panel “Insights on the European Union Deforestation-free Regulation”, which included the presence of Viktoria Lovenberg, Head of the Economy and Trade Section of the Delegation of the European Union in Argentina; Sabine Papendieck, managing partner of the international market consulting company ESTRATECO; Sonia Tomassone, International Trade consultant of the Paraguayan Grains and Oilseed Traders Association (CAPECO in Spanish); and Gustavo Idigoras, Chairman of the Argentine Edible Oil Association (CIARA in Spanish).

To get to know first-hand the details concerning deforestation regulation, Viktoria Lovenberg (EU Delegation), explained that the aim is to reduce deforestation and degradation contribution in forests all around the world. Thus, this measure seeks to attenuate the risk of supply chain products related to deforestation from being introduced into the EU market or exported from it. Moreover, it is intended to increase EU demand and market on raw material and legally certificated products and “deforestation-free”. 

Regarding the challenges that this regulation implies to producers in developing countries, such as Argentina, Sabine Papendieck (ESTRATECO) granted her viewpoint. In spite of the fact that South America recorded a forest net loss of 2.6 million hectares between 2010-2020, net loss rate decreased substantially as compared with 2000-2010. “This is important information since it forecasts positive values,” Sabine pointed out.

Thereon, she emphasized the importance of balancing conservation and development, by encouraging producers to employ sustainable methods. “To make this effective, we should consider equilibrium, bearing in mind every impact category, different development level and funding,” she said.  

The need to take into account national and regional regulations was a turning point during the panel. “Although this regulation claims that it will respect domestic regulation, due-diligence is not clearly defined,” said Sonia Tomassone (CAPECO).

“My competent national authority has the legal power in my country where there are actual systems, that is why it is important that the EU regulation acknowledges it,” Sonia stated, and added: “We can adapt it and create equal systems, as long as they comply with competent national authority and domestic regulations.”

In the same direction, Gustavo Idigoras (CIARA), warned about the economic and social impact this regulation could have in exporting countries. As he suggested, this regulation does not take into account countries' pre-existing situations. “The recognition of every country's system is important, so we do not have to create something new within 18 months,” he said.  

Gustavo also mentioned the impossibility to proceed with a physical segregation related to commodities. “Commodities are produced in large quantities and they are cheap. If we have to segregate, there would be less and overpriced production, which could end in a worldwide food security crisis,” Gustavo concluded.