Starting December 30, the European Regulation on Deforestation-Free Products (EUDR) will be in effect, a mechanism for controlling exports based on various environmental indicators. Various controls and procedures will depend on these indicators.
To implement these requirements, the European Union has created various parameters based on the impact on production. According to the ranking published this week, Costa Rica has achieved a “low risk” status, which will maintain market agility.
“Countries in the low-risk category will be subject to a simplified due diligence process, which will result in lower administrative burdens for producers and exporters, compared to countries classified in the standard and high risk categories,” the Ministry of Foreign Trade celebrated. The deforestation rating is particularly important and impact the production of:
Coffee, palm oil, rubber, cocoa, wood, cattle, soy and its derivatives
More controls to join the European Union
Recently, the European Union has been developing the Green Deal, a series of initiatives to control the environmental footprint of production. The international bloc sets a goal of achieving climate neutrality by 2050 and, to this end, has launched some parameters that affect not only its member countries but also the nations that do business with them.
The proposed plans will become more intense in the coming years, impacting not only the continent but also imports from there. Regarding Costa Rica, the focus is on three factors: deforestation, packaging, agrochemicals.
A respite for the country’s shipments
Europe is one of the main markets for Costa Rican exports, Costa Rica receives nearly a fifth of national shipments. These range from medical devices to agricultural products directly impacted by the new policies, including bananas, pineapple, palm oil, pineapple juice, cassava, and coffee.
The declaration of low deforestation impact was welcomed by authorities, highlighting the protection policies Costa Rica has developed for decades. “We have been closely monitoring with European authorities to try to minimize the impact of this regulation on our exports,” explained the Minister of Foreign Trade, Manuel Tovar.
“This distinction not only strengthens the reputation of our products in international markets, but will also reduce the impact of European legislation on access to one of our main export destinations,” added the Minister of Agriculture and Livestock, Víctor Julio Carvajal.
