Trade Agreements, Import Bans, and the Leverage of the E.U. on Reducing Deforestation in Brazil

Deforestation in Brazil affects its trade relationship with the European Union (EU), delaying ratification of the EU-MERCOSUR agreement due to concerns about increased land clearing. The EU's new deforestation regulation (EUDR) will impose restrictions on tropical products associated with deforestation, relying on private supply chain actors to enforce it. Making trade agreements conditional on deforestation reduction commitments and applying trade restrictions to products linked to recent deforestation represents an innovative approach to achieving environmental goals. The success of these policies will depend on various market conditions and legal changes. This article examines the potential effectiveness of using EU trade policy to reduce deforestation in Brazil.