Current Affair 1:

News:

European Commission on October 2 has proposed to extend the implementation of its deforestation regulation by one year.

Major agriculture-exporting countries, including Brazil, India, Indonesia and the U.S., have raised objections on the EU Deforestation Regulation (EUDR).

About regulation:

The EUDR was adopted on May 16, 2023, and seeks to prevent the import of specified goods contributing to deforestation and forest degradation on the EU market. Enforcement has been extended now.

The covered products include coffee, leather, oil cake, wood furniture, paper, and paperboard, with plans to expand the product list further.

How India is impacted by this?

India's exports of products like coffee, leather hides, and paperboard worth USD 1.3 billion annually to the European Union could be impacted due to the regulation.

For India, the EUDR's complex compliance requirements pose a serious challenge. Products such as coffee ($435.4 million), leather hides and skins ($83.5 million), oil cake ($174.5 million), paper and paperboard ($250.2 million), and wood furniture ($334.6 million) are directly impacted by the regulation.

As per the EU regulation:

If a company places a relevant commodity or product on the market or exports them, it is considered an operator under the EUDR.

As a general rule, operators must put in place a due diligence system.

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