EU publishes deforestation rules as Mercosur trade deal tests enforcement
Updated
Updated · The Wall Street Journal · May 6
EU publishes deforestation rules as Mercosur trade deal tests enforcement
10 articles · Updated · The Wall Street Journal · May 6
The simplified EUDR, due from December 2026 after a two-year delay, covers palm oil, cocoa, coffee, soy, cattle and timber, while leather was dropped this week.
Critics say the Mercosur agreement could boost soy and beef imports, increasing pressure on South American ecosystems and exposing gaps in tracing cattle and in protections for savannas and wetlands.
The 2023 law has already pushed supply-chain changes, with Global Canopy saying 313 of 500 key importers took steps, even as global forest loss still equals 11 soccer fields a minute.
As a new trade deal boosts beef imports, can the EU's landmark deforestation law actually save the Amazon?
If past certifications failed to stop forest loss, how can the EU's new satellite-based law succeed?
Navigating the 2026 Deadline: How the EU-Mercosur Agreement Threatens to Undermine Deforestation Rules
Overview
The EU-Mercosur trade agreement began provisional application in May 2026, increasing import quotas for commodities like beef and soy that are linked to deforestation. This expansion coincides with the EU Deforestation Regulation (EUDR) becoming enforceable in December 2026, creating a tight timeline for businesses to comply. A key challenge is the trade deal's rebalancing mechanism, which allows Mercosur countries to challenge EU environmental rules, threatening effective EUDR enforcement and risking nearly 69,000 hectares of annual deforestation with significant CO2 emissions. While the EU Commission aims to ease compliance costs through a simplification review, political opposition and enforcement difficulties persist. The December 2026 summit is critical for negotiating solutions like joint certification schemes and reforming the rebalancing mechanism to balance trade growth with environmental protection.