Question Period Note: EU Deforestation Regulation and geo-location requirements for certain forest and agricultural products.

Canadian industry concerned with the potential trade impacts of a new EU deforestation regulation requiring importers to provide geo-location information for forest and agricultural products.

• As a country at low risk of deforestation, Canada has emphasized to the EU that while it supports its efforts in regard to deforestation‑free products, Canada has legitimate and serious concerns related to the design and operation of this new Regulation.

The EU intends to adopt a Regulation on deforestation‑free products in 2023, with application coming into effect 18 months later. The regulation imposes due diligence requirements on importers of forest products, soya, cattle, rubber, cocoa, coffee and palm oil, as well as derived products, some of which are produced in Canada and exported to the EU, or are key inputs imported by Canada and in turn used to manufacture/produce other merchandise goods that are exported to the EU. The information required to meet these due diligence requirements would be difficult and in some cases potentially impossible to provide. Canada continues to reiterate the concerns of Canadian exporters, seek clarification from the EU on supply chain interruptions and obtain information on the implementation of the regulation.

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