AF&PA criticises EU decision on EUDR review, warns of trade risks

The American Forest & Paper Association (AF&PA) expressed concern over the European Union’s decision not to introduce practical adjustments to the implementation of the EU Deforestation Regulation (EUDR), warning of potential negative impacts on U.S. forest products manufacturers.

According to the association, the outcome of the review does not provide the necessary flexibility for a workable, risk-based approach, particularly in relation to traceability and due diligence requirements.

“The EU had a clear opportunity in this review to make EUDR workable and to honor its 2025 trade framework commitment to avoid undue harm to U.S. manufacturers. It chose not to,” said Heidi Brock, President and CEO of AF&PA.

AF&PA reiterated its support for the objective of eliminating deforestation from global supply chains but highlighted concerns about the practical implications of the current regulatory framework.

“AF&PA supports the goal of eliminating deforestation from global supply chains, but EUDR’s current requirements – particularly traceability and due diligence obligations that don’t align with U.S. fiber supply chains – risk disrupting over $3.5 billion in lawful trade in sustainable, renewable and recyclable forest products while also imposing significant new costs,” Brock stated.

Concerns over competitiveness and market balance

The association also noted that the compliance framework appears to favour EU-based operators, potentially increasing competitive imbalances for non-EU suppliers serving the European market. “The greatest EUDR compliance and cost reduction relief provided by the Commission is concentrated on EU operators, further expanding the competitive disadvantage for low-risk, non-EU supply chains that serve the EU market,” Brock added.

AF&PA called on U.S. authorities to take action in response to the EU’s position, emphasising the need for fair and balanced trade conditions.

“We urge the U.S. government to respond with urgency and hold the EU accountable to its commitments for reciprocal, fair and balanced trade. By moving toward enforcement without the needed fixes, the EU is creating serious risk of undue harm for U.S. forest products producers and the American workers and communities they support.”