Large and medium-sized enterprises must comply by December 30, 2025, with smaller firms phased in by June 30, 2026, expanding coverage from the EU Timber Regulation to new commodities.

The European Union will enforce a deforestation-free product rule (EUDR) by December 2025, requiring verification that key commodities such as coffee, cocoa, beef, soy, palm oil, and related products are not linked to deforestation after 2020 to enter the EU market.

Trade tensions and debates at platforms like the World Trade Organization suggest concerns that the regulation could be viewed as discriminatory or misaligned with international trade norms.

Industry impact includes disruptions on retail shelves—thinner chocolate sections and reduced beef availability—as retailers and distributors reconfigure contracts, vet suppliers, and adjust logistics to meet new due-diligence requirements.

The rule places most risk at the base of the supply chain, potentially affecting smallholder farmers in West Africa, Southeast Asia, and South America who lack formal land titles or digital traceability and could be cut off from European markets.

The Regulation mandates full supply-chain traceability, geolocation data, due-diligence statements, and proof of deforestation-free origin for both raw materials and processed goods, with penalties including blocked shipments, fines, or market exclusion for non-compliance.

Europe currently leads in deforestation-linked import restrictions, while peers like the United States, China, and India have not adopted similar policies, which could create global trade frictions and price premiums for compliant European imports.

The EU has launched the Team Europe Initiative on Deforestation-Free Value Chains with €70 million to help producers transition to sustainable practices, streamline reporting, and implement risk-based assessments, though capacity and fairness concerns persist in Global South exporters.