Is the European Union Deforestation Regulation WTO-Proof? The Context of EU's Green Agenda and an Exercise of WTO Compatibility
Review Article
22/05/2023
Description
In 2019, the European Commission presented the Green Deal, a series of legislative and non-legislative proposals with the aim of the bloc reaching net-zero greenhouse gas emissions by 2050. To reduce the carbon footprint of imported consumption in the EU, the EU Deforestation Regulation proposes to stop the import of products linked to global deforestation, imposing fines and administrative measures on those who do not comply. The European Commission will rank exporting countries of soybeans, beef, coffee, palm oil, timber, cocoa and rubber according to deforestation risks. The study suggests that the EUDR may unilaterally discriminate between countries in different deforestation contexts and use varying criteria, which might not be consistent with the WTO exceptions under Article XX of the GATT. If trade distortions are generated, a potential dispute at the WTO could focus on flexibility, transparency, cooperation and negotiation with exporting countries.