Canada’s ambassador to the European Union is angry at the EU over a plan to introduce trade measures against deforestation. According to Canada, the new rules are cumbersome and potentially harmful to trade with the EU. “The sore spot seems to be how Europe defines deforestation,” says Tristan Kohl, an associate professor of international economics at the University of Groningen.
“Canada is concerned about strict regulations on the use of old forests, which compromise the quality of old forests,” he continues. “The legislation we are talking about does not only look at deforestation, but also at the quality of the forest. So that also says something about biodiversity.’
Hamlet
By itself, according to Kohl, it’s understandable for Canada to stand up for its interests: Europe is the country’s third most important export destination, although the timber trade is only a fraction of it. “But the way the ambassador defends interests is remarkable. Ultimately, less than 0.5% of Canadian exports to Europe could be affected by this legislation.’
Kohl had previously expected a similar reaction from countries that would be much more affected by this legislation, such as China, Brazil or the Ivory Coast. ‘According to the law, companies that want to sell their products on the European market have to prove exactly where the product comes from. If the wood comes from an area where there has been logging in the last two years, you need to compensate for the logging in any way you can. This is less of a problem for Canada, but it is for these countries.’
Higher prices
The new legislation is likely to lead to higher prices for consumers. Businesses will incur higher costs because they have to prove they are doing everything right and will simply pass them on. “But Canada could benefit ultimately, because it may still be able to get its products to market in a more environmentally friendly way,” Kohl says. ‘Countries like Brazil and the Ivory Coast will have a harder time with this. There may be a shift in global offering; polluters move supplies to countries outside the EU and the ‘green countries’ can still sell it to us.’
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
