Will the prices of these common items go up?  A warning to the EU echoed from the United States

US paper manufacturers fear that the European Union’s new deforestation regulation (EUDR) will disrupt trade and are warning the union that the prices of diapers, sanitary napkins and other hygiene products could rise as a result of the law. Tells about it news agency Bloomberg.

The goal of the EU deforestation regulation is to minimize the EU’s contribution to global deforestation and the deterioration of the state of forests, and to reduce the EU’s contribution to greenhouse gas emissions and the deterioration of biodiversity.

The regulation was approved last summer and is due to be applied after transition periods at the end of this year.

The Deforestation Regulation prohibits the sale of products that cause deforestation in the EU. The purpose of the regulation is to ensure that products bought and consumed in the EU do not worsen deforestation and do not weaken the condition of forests in the world.

The regulation applies to soy, oil palm, coffee, cocoa, rubber, cattle and wood and products containing them or made from them.

US paper manufacturers state that it is impossible for them to comply with the deforestation regulation’s requirement of the origin of the wood used.

Trustees and authorities worried

According to the regulation, manufacturers must in the future be able to demonstrate the origin of the products and the fact that no forest has been destroyed in the production chain of the products in question after December 2020.

But pulp supply chains are too fragmented to track all the trees, and there is often a two-year delay between cutting them and turning them into fiber, according to the American Forest & Paper Association, a national forest industry organization.

The leader of the benefit organization Mark Pittsin according to the EUDR in its current form significantly increases the costs of US producers, which leads to inflationary pressures in the EU.

“Is this really necessary,” Pitts asks, according to Bloomberg.

Both the American Forest & Paper Association and U.S. government officials are asking for a delay in implementing the law, which is scheduled to take place at the end of the year. According to the authorities, the regulation creates “critical challenges” for domestic producers.

The effects affect all EU countries

The US industry is a major exporter of pulp products made from pulp. Torn pulp is used especially for diapers and other hygiene products.

According to Bloomberg, American suppliers meet about 60 percent of the EU’s needs, so supply disruptions and product price increases would directly affect each of the alliance’s 27 member countries.

Facing new challenges are, for example, the home consumer goods manufacturer known for Pampers diapers and menstrual care products Procter & Gamble and a manufacturer of diapers and sanitary napkins Kimberly-Clark.

According to a spokesperson for Procter & Gamble, the company complies with the applicable laws and regulations, and this is also the case with the EUDR. Kimberly-Clark representatives did not want to comment on the matter to Bloomberg.

Fact

The goal is to combat deforestation

The EU announced the deforestation regulation on June 9, 2023. The regulation prohibits the sale of products that cause deforestation in the EU.

The regulation defines deforestation risk products as coffee, cocoa, soy, palm oil, beef, wood and paper products, and rubber.

The purpose is to minimize the EU’s contribution to global deforestation and the deterioration of the state of forests.

In addition, the regulation aims to reduce the EU’s share of greenhouse gas emissions and the deterioration of biological diversity.

In the future, the implementation of the Deforestation Regulation is planned to be monitored, for example, with spot tests for deforestation risk products.

Source: State Council, WWF

By Editor

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