- Indonesia has joined a number of other countries at the WTO in criticism of the EUDR
- Along with the US, Canada and other countries, Indonesia is critical of the lack of information from Brussels
Indonesia has called on the European Union to clarify the numerous questions that remain around EUDR implementation at the World Trade Organization (WTO) this week.
At this week’s Agriculture Committee meeting, the Indonesian government laid out key questions on the EUDR with support from numerous other countries, including the US and India. The key concerns underlined by Indonesia are the lack of information on implementation, potential discrepancies in deforestation data, and the methodology used for the “country benchmarking” process.
Critically, Indonesia has also asked the European Union to step up its support for smallholders and international cooperation efforts as the EUDR deadline approaches.
The full statement reads:
“[…] We continue to address concerns surrounding the European Union Deforestation-Free Regulation (EUDR), especially regarding the implementation of EUDR that will soon be mandatory.
Indeed, Indonesia remains concerned that that EU has not provided enough information for the implementation of this policy, and thus leaving producing countries with very short adaption and preparation period.
Referring to the EU’s response at the previous meeting, it was stated that the commission will develop the country benchmarking system based on the availability of transparent data in the country. How will the EU resolve if there are discrepancies or lack of data availability among importers, manufacturers, and exporters around the sourcing of goods? To ensure compliance, what deforestation standards will be used?
Could the EU provide further information about the progress of the methodology developed by the Multi-Stakeholder Deforestation Platform regarding the main criteria for assessment in country benchmarking?
How can the EU guarantee that the assessment regarding criteria such as information supplied by governments and third parties (NGOs, industry) is valid?
The regulation requires EU businesses placing wood, coffee, cocoa, palm oil, and several other commodities in the EU market to demonstrate that these goods aren’t linked to deforestation. In practice, the burden of supplying data to show compliance will fall largely on suppliers, many from countries where small and medium-sized firms predominate. Although we are currently in the process of registering certain aspects of our small producers related to the EUDR, we would like to proceed at a faster pace since time is short. As such, could the EU provide support and facilitate international cooperation through knowledge, resources, and technological solutions?
Has the EU prepared any solutions and assistance aimed at developing the capacities of our regional and local governments, which will be critical in assisting our small producers and exporters in meeting the required standards?“
In addition, the US, Canada, Australia, New Zealand, Paraguay and Argentina asked another series of questions on a possible delay to implementation. They stated:
We are deeply concerned about the significant impact that the implementation of this regulation will have on global trade, and the high compliance burden it places on countries and producers whose systems are not linked to deforestation.
It is our firm view that this is not the most trade facilitative approach to achieve the objective of protecting global forests.
We are further concerned about the wide range of outstanding questions and issues that need to be addressed before implementation that limit the ability for suppliers and operators to prepare, including legal clarity around definitions, the operation of information systems and competent authorities’ processes. We also note the delay to the release of the next set of FAQs, guidelines and to the country benchmarking assessment process.
Furthermore, we hold a systemic concern about the prescriptive nature of the measure and the disregard for local conditions of production.
In response, the EU Commission representatives have they will not delay and implementation. However, any decision on a delay will likely happen in the next few weeks, following the confirmation hearings of the new Commissioners in November.