The European Union regulates trade in deforestation: opportunity or threat for Argentina?
Experts discuss the new European regulations and how Argentina can adapt and stand out in the global market.
Communication published in INFOBAE, Section ‘Chacra y campo’: https://www.infobae.com/revista-chacra/2024/08/19/la-union-europea-regula-el-comercio-por-deforestacion-oportunidad-o-amenaza-para-argentina/
Within the framework of the Aapresid Congress, a panel discussion was held entitled ‘Regulations, traceability and qualifications in international markets: threat or opportunity? The central topic was the imminent entry into force, on 1 January 2025, of the European Union regulation that will prohibit the import of raw materials from deforested areas after 2020, directly affecting key products for Argentina such as meat and soybeans.
The impact of EU regulations
During the panel, Laura Villegas, Market Development and Corporate Affairs Manager at RTRS (Round Table on Responsible Soy), explained that this regulation, known as the European Union Deforestation Free Regulation (EUDR), is part of the ambitious European Green Pact. This set of policies aims to combat deforestation, reduce greenhouse gas emissions, protect biodiversity and ensure respect for human rights. Villegas anticipated that the regulation could be extended in the future to products such as maize and its derivatives, and stressed the importance of Argentine producers adapting to these new requirements in order to maintain their competitiveness in the European market.
Furthermore, Villegas stressed that the current regulatory scenario represents a global trend that is being consolidated. To face it, he suggested that Argentina should see these regulations not only as restrictions, but as opportunities to differentiate its products through certification and traceability. ‘It is essential to anticipate and create value-added products that meet market demands,’ he said.
Criticisms and challenges of implementation
Andrés Costamagna, representing the Argentine Rural Society, was more critical in his intervention. He accused the EU of using climate change as a geopolitical strategy to control international trade. He said, ‘You cannot think of a peaceful world if there is hunger’, stressing that wrong decisions on the part of states could increase poverty.
Costamagna also highlighted the resilience of Argentine producers, who, in his opinion, are willing to face these challenges proactively. ‘We are going to reduce the carbon balance and not just measure environmental footprints. We want to have a triple impact: economic, social and environmental,’ he said. He also urged Argentina to prepare to adapt to these regulations, seeing them as management tools that could improve the country’s competitiveness in the global market.
Argentina’s response: technology and collaboration
The panel also discussed the measures that Argentina is already implementing to comply with the new regulations. One of the most outstanding initiatives is the Visec platform (Visión Sectorial del Gran Chaco Argentino), a geo-referenced tool that allows complete traceability of the products of the soy and meat complex, from the field of origin to the port of shipment. Gustavo Idígoras, president of Ciara-CEC, explained that this platform is voluntary and free, and has already trained more than 5,000 producers in the country. ‘It is crucial to keep the Renspa updated to ensure product traceability,’ he recommended.
Alejandro O’Donnell, from Aapresid, regretted that the Argentine production system, which mostly uses no-till farming – a practice that contributes significantly to carbon sequestration – is so little known in the world. O’Donnell emphasised that Argentina is not part of the problem, but part of the solution, but that it is necessary to demonstrate this on the international stage.
Opportunities amidst challenges
The debate at the Aapresid Congress made it clear that European regulations pose significant challenges for Argentina, but also open the door to opportunities if approached strategically. The key, according to experts, lies in adaptation and in the country’s ability to demonstrate that its agricultural production is sustainable and meets the highest standards.
While some see these regulations as a barrier, others see them as an opportunity for Argentina to position itself as a leader in sustainable production. Collaboration between producers, industry and exporters, together with the use of advanced technologies for traceability and certification, will be key to maintaining competitiveness in international markets.
Ultimately, the panel underlined the importance of preparing adequately for these changes, ensuring that the new regulations become a competitive advantage rather than an obstacle for the agro-industry.
