Ecuador will not be able to export cocoa, coffee and palm to the European Union if they do not comply with the controversial standard

Published Mar 25, 2024

Tridge summary

The European Commission's Regulation 1115, targeting the import of raw materials from deforested lands, is set to significantly impact Ecuador's exports, particularly in the cocoa and coffee sectors, with a compliance deadline by the end of December 2024. This regulation, which also focuses on labor and indigenous peoples' rights, affects $350 million worth of Ecuadorian exports and poses a challenge for exporters, especially small producers, to meet the stringent requirements for product traceability and proof of non-deforestation. Anecacao, representing the cocoa sector, is seeking an extension from the EU, highlighting the potential reduction in exports to the EU, which accounts for 25% of the sector's exports, due to the risk of non-compliance. The European Commission is in dialogue with Ecuador to ensure trade continuity and is considering the impact on SMEs, with discussions on possibly expanding a sustainable cocoa initiative to include Ecuador.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

From Brussels, Belgium.- Exports of cocoa, coffee and palm (along with their derivatives) from Ecuador are the most exposed to Regulation 1115, recently approved by the European Commission, which prohibits the import of seven raw materials produced on deforested lands. The new demands, which seek to decisively fight global deforestation, also include guarantees that labor rights and indigenous peoples' rights have been respected. This standard must be complied with by all countries, including Ecuador, until the end of December 2024. And for micro and small businesses as of June 30, 2025. Those who do not meet these requirements simply will not be able to continue exporting to the bloc: wood, livestock products, rubber, soybeans, palm, cocoa and coffee. Ecuador exports USD 350 million in three products from the list contained in the new regulations; that is, coffee, cocoa and palm (and their derivatives). In the case of cocoa and coffee, the activity involves small producers, who ...

Source: Primicias