Stock Markets

EU delays effectivity date of deforestation regulation

DANIEL LINCOLN-UNSPLASH

THE European Commission has postponed the effectivity date of the European Union Deforestation Regulation (EUDR) to December 2026, the Department of Trade and Industry’s Export Marketing Bureau (EMB) said.

The target date for the EUDR enforcement is two years after the original 2024 target.

“The postponement is due to ongoing technical challenges with the EU’s due diligence information technology system,” EMB said in a Facebook post.

“The information technology system is not yet equipped to manage the volume of compliance declarations required under the new law,” it added.

Under the law, all exporters of cattle, cocoa, coffee, oil palm, rubber, soy, and wood, and related products such as chocolate, leather, furniture, and tires, are required to prove that their goods are deforestation-free and legally produced.

According to the EMB, exporters should use the deferment as an opportunity to audit their supply chains for deforestation risk, implement traceability systems, and engage with cooperatives, certifiers, and government agencies.

Bianca Pearl R. Sykimte, EMB director, said the deferment “will give more time for exporters to comply.”

Foreign Buyers Association of the Philippines President Robert M. Young said that the postponement is beneficial to exporters.

“We can still prepare for the requirements and the regulations that will be imposed by the EU,” he said via telephone.

He said exporters and the government are not ready for such a regulation.

“You have to have that kind of permit accompanying your tables or your chairs that will prove that the wood you used is compliant with the regulations,” he added.

He said that similar regulations are already in place in other countries, pushing Philippine exporters to import wood from Indonesia and Malaysia, among others, to continue exporting to these markets.

“These guys that are selling to us these imported goods have the certification,” he added.

He said that he hopes that exporters and the government will use the deferment to “put things in order.” — Justine Irish D. Tabile

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