Trade and Agriculture Minister Todd McClay today welcomed a move by the European Commission to delay the implementation of the European Union’s Deforestation Regulation (EUDR) by 12 months, describing the proposal as a pragmatic step that will provide much-needed certainty for New Zealand exporters and ensure over $200 million in current exports can continue to enter the market unaffected.
“This move to delay is sensible, and would give New Zealand exporters confidence that shipments on their way to Europe will continue to be accepted, reducing the pressure our primary exporters have been under in recent months,” Mr McClay says.
Mitigating the potential trade consequences of the EUDR, including by advocating for a delay, has been a priority for the Government.
“Earlier this year I wrote to the EU Commissioner asking for an exemption for New Zealand exports and have since engaged and reiterated our request in a number of international forums.”
“Without changes, this regulation risks making it too costly for many of our exporters to continue supplying the EU market, affecting over $200 million in Kiwi exports at a time when we should be growing this trade through the benefits of the NZ-EU Trade Agreement, not facing additional barriers.”
“New Zealand does not have a deforestation issue, and while we share the EU’s goals of promoting deforestation-free products, we already have stringent domestic protections in place. Imposing these compliance costs on our exporters is not justified.”
“This delay is sorely needed and would give us the opportunity to continue engaging with the European Commission to ensure the regulation achieves its objectives without creating unfair trade barriers and imposing unnecessary costs on hard working New Zealand exporters.”
“Kiwi exporters have strong sustainability credentials, and we expect this to be recognised by the EU as they refine this regulation,” Mr McClay says.