The European Union has recently seen a flurry of trade and regulatory activity, impacting businesses and industries worldwide. Key developments include the postponement of the EU Deforestation Regulation (EUDR), updates to the Rules of Origin (ROO) under the EU-UK Free Trade Agreement (FTA), and ongoing negotiations between the EU and China over electric vehicle (EV) market access. These changes reflect the EU’s evolving approach to balancing sustainability, trade compliance, and economic competitiveness. We summarize the latest updates and their potential implications for global trade stakeholders.
European Union Deforestation Regulations (EUDR) Postponed
Due to adverse feedback from various stakeholders, the European Parliament voted on November 14, 2024, to delay the implementation of the EUDR. EUDR enforcement will begin late in 2025 for larger businesses and mid-2026 for smaller ones. The European Parliament also voted for some critical changes to the regulation by introducing a “no-risk” category and reducing the level of due diligence required of individual companies within a supply chain.
For more information regarding EUDR, please visit the European Commission (EC) website for future updates: CLICK HERE
EU-UK Free Trade Agreement (FTA) Rule of Origin (ROO)Update
On November 5th, 2024, the Partnership Council established by the EU and UK Trade and Cooperation Agreement (TCA) published decision No. 1/2024, modifying the Product Specific Rules of Origin to amend Annex 3. Due to the Harmonized System (HS) updates made in January 2022 to include products from additional headings (ex. 24.03, 24.04, 38.27, 84.79, and 85.24), this modification was necessary. The modifications do not constitute a substantive change to the fundamental rules of the agreement. Please note these changes will be in effect beginning January 4, 2025. For updates, please visit: CLICK HERE
EU-CN BEV Market Negotiations
Following the EU’s decision in October 2024 to impose definitive duties on electric vehicles made in China, representatives of the EU and China met in Beijing to discuss a potential agreement to address the trade concerns between the two nations. The EU has imposed countervailing duties (CVD) of up to 35.3%on EV imports from China due to what the EU perceives as unfair trade practices. These CVDs continue the temporary trade remedy measures introduced at the beginning of 2024. The two sides agreed to additional technical meetings that could lead to a resolution. From an EU perspective, that would be establishing a minimum import price and enforcing the price undertaking. For more information, please visit: CLICK HERE
