EGN NEWS DESK
The message behind the introduction of the rebalancing mechanism is that “environmental safety has a value for society, however enterprise will not be required to pay for it,” the NGO mentioned in its evaluation.
It warned that it dangers undermining by a backdoor a flagship ingredient of the European Green Deal and set a harmful precedent. Other nations with which the EU is in commerce talks, reminiscent of Indonesia, have slammed the anti-deforestation guidelines for years, claiming it’s inexperienced protectionism.
By agreeing to this mechanism, “the Commission has shot itself and member states within the foot relating to implementing the EUDR,” mentioned Michael Rice, a worth chain and commerce lawyer with the environmental authorized charity ClientEarth. “The Commission has doubtlessly made each member state susceptible to commerce disputes from Mercosur nations after they adjust to their obligations to use the EUDR to merchandise from Mercosur nations,” he added.
Who’s proper?
The query of who’s proper of their interpretations of the impacts of the Mercosur deal on the EUDR is about to provide commerce wonks a headache.
“The doc was drafted in such a method that each side can declare victory,” mentioned Geraldo Vidigal, a Brazilian professor in worldwide commerce regulation on the University of Amsterdam.
But it’s not solely the rebalancing mechanism that dangers weakening the EU Deforestation Regulation, in accordance with ClientEarth’s Rice. It’s additionally the annex to the Mercosur settlement’s commerce and sustainability chapter.
Some of the clauses, particularly articles 55 and 56, on this annex “would pressure EU Member States and the Commission to behave inconsistently with their obligations below the EUDR” and “permit Mercosur nations to affect how the EUDR is carried out and enforced,” Rice mentioned.
This may improve the “political and diplomatic stress from Mercosur nations” and “dangers jeopardising the cautious and truthful utility of the EUDR,” he warned.
