This policy brief by Institut Veblen and Canopée analyzes the potential impacts of the EU-Mercosur trade agreement on deforestation and its implications for European regulations aimed at combating deforestation. It highlights that the agreement, designed to eliminate tariffs and increase trade between the EU and Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay), could exacerbate deforestation due to increased exports of beef and soy, primary drivers of forest loss in the Mercosur region. The report also raises concerns about clauses within the revised agreement that may weaken the EU’s anti-deforestation regulations (EUDR) by limiting controls and potentially neutralizing its effectiveness through a “rebalancing mechanism.” The authors argue that the agreement poses a significant threat to global forest conservation efforts.
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