No Turning Back : ESG, Fight Against Deforestation, and Brazilian Exports of Commodities Under the New EU Regulation

On May 17, 2023, the European Parliament published the regulation5 which aims to curb deforestation and forest degradation related to the production and supply chains of certain commodities and associated products such as cattle, cocoa, coffee, palm oil, soya, wood and rubber, as well as derived products such as beef, charcoal, printed paper, leather, chocolate, or wooden furniture. It is estimated that around 50% of Brazilian exports to Europe may be impacted by this new regulation.6 But how can Brazilian companies, as exporters of these commodities to the European Union, be affected upon the entry into force of the new regulation?