Three major EU regulations reshaping market access conditions for MERCOSUR exporters. Understanding their requirements has become essential.
The European Union has adopted three cross-cutting regulations that apply independently of the EU-MERCOSUR agreement but directly impact bilateral trade flows.
Prohibits placing on the EU market products linked to deforestation or forest degradation after 31 December 2020. Operators must prove their products are 'deforestation-free' through a due diligence system.
Imposes a carbon price on imports of certain carbon-intensive products. Aims to prevent 'carbon leakage' and ensure competitive fairness between EU producers (subject to ETS) and importers.
Requires large companies to identify, prevent and mitigate adverse impacts on human rights and the environment throughout their value chain, including at their suppliers in third countries.
Very high — Brazil is the world's largest exporter of soy and beef. Argentina, Paraguay and Uruguay are also major agricultural exporters. MERCOSUR accounts for a significant share of EU imports of deforestation-risk products.
CBAM — Transitional phase (declarations)
CBAM — Definitive phase (mandatory certificates)
EUDR — Application for large/medium enterprises
EUDR — Application for SMEs
CS3D — Companies > 5,000 employees, turnover > €1.5bn
CS3D — Companies > 3,000 employees, turnover > €900m
CS3D — Companies > 1,000 employees, turnover > €450m
The EU-MERCOSUR agreement includes a rebalancing mechanism (Art. X) allowing MERCOSUR to request consultations if CBAM, EUDR or other unilateral EU measures create a disproportionate impact on their exports. This mechanism can lead to compensatory adjustments.
Identify which products, suppliers and trade flows are affected by each regulation. Prioritise by volume and risk.
Collect geolocation data (EUDR), emissions data (CBAM) and impact assessments (CS3D) from your MERCOSUR suppliers.
Train your suppliers on EU requirements. Include compliance clauses in your contracts. Support them in implementing traceability systems.
Monitor developments of the EU-MERCOSUR agreement's rebalancing mechanism that could offset the impact of CBAM and EUDR on MERCOSUR exporters.
We analyse your exposure to EUDR, CBAM and CS3D regulations and develop a compliance roadmap tailored to your business.
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