World: The EU could lose more than 10 billion euros worth of soybeans per year

Soybean

Paraguay

Benin

Published Dec 5, 2023

Tridge summary

The European Union could lose over 10.55 billion euros in soybean imports annually due to new legislation that prohibits the import of products linked to deforestation. Data from the European Statistics Service and the World Bank shows that the EU imported 7.91 billion euros worth of soybeans, flour, oil, and cake from countries experiencing declines in forest volumes. Brazil is the largest supplier, accounting for 78% of these imports. Redistributing trade flows to replace Brazil as a supplier would be complex and time-consuming.

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Original content

The European Union could lose more than 10.55 billion euros in soybean imports annually after the introduction of new legislation on forest protection, RIA Novosti calculated based on data from the European Statistics Service and the World Bank. The Anti-Deforestation Law, agreed by EU lawmakers in December 2022, prohibits the export and import of products whose production and marketing could lead to deforestation. This applies to products such as palm oil, beef, coffee, cocoa, soy, as well as derivative products such as chocolate, furniture, printed paper products, unless they are certified as coming from sustainably managed lands. At the same time, according to the law, “deforestation-free” goods are those that were made from products grown on land that was not subject to deforestation after December 31, 2020. NEW LAW COULD COVER TWO-THIRD OF SOYBEAN IMPORTS INTO THE EU Based on World Bank data, RIA Novosti selected countries in which there was a decline in forest volumes ...

Source: Oilworld