Local north Florida news reporter, Jane Sheppard, is here to shed light on the latest global issue that may impact residents of Suwannee County and beyond. The issue at hand: the European Union’s (EU) new law requiring US paper makers to trace timber back to its origins. This law potentially threatens $3.5 billion of trade and could lead to a surge in prices for everyday essentials like diapers and sanitary pads.
The EU Deforestation Regulation
The EU Deforestation Regulation is a pending law that has raised concerns amongst US paper producers. The American Forest and Paper Association argues that the law is practically impossible to comply with, as pulp supply chains are too complex to trace back to their original sources. Moreover, the time lag between when trees are cut down and when they’re turned into fiber is often as long as two years.
The US is a significant exporter of “fluff pulp,” an absorbent material used in personal products by companies such as Procter & Gamble Co. and Kimberly-Clark Corp. With American suppliers meeting about 60% of the EU’s needs, any disruption in supply could send shockwaves throughout the 27-nation bloc.
Potential Impact on the US Industry & EU Market
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Mark Pitts, executive director at the paper association, warns that the new regulation will significantly raise costs for US producers, leading to inflationary pressures in the EU.
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The law’s implementation, set for the end of the year, is being challenged by the American Forest and Paper Association. The group is advocating for the sector to be classified as ‘low risk’ to global deforestation, which would exempt producers from the traceability requirement.
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US government officials have echoed this sentiment, requesting a postponement and highlighting the “critical challenges” the rule presents to domestic producers.
The EU’s Environmental Goals
The EU’s objective with this law is to combat the 10% of global deforestation and associated loss of biodiversity linked to its consumption of commodities such as timber, beef, coffee, and cocoa. Adalbert Jahnz, a spokesman for the European Commission, explained that the EUDR requires all traded commodities to be traced back to their origins, or face hefty penalties.
Response from Key Players
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Companies like Procter & Gamble and Kimberly-Clark, the top suppliers of diapers in Europe, are expected to comply with the EUDR. P&G has stated that it will honor the new regulations and expects its suppliers do the same.
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However, the new law is already causing disruption. Several association members have reported supply agreements being derailed, according to Mark Pitts. He warns that this situation puts supply-chain contracts for the fall at risk.
As this situation unfolds, residents of Suwannee County and beyond are encouraged to stay informed. The implications of this new regulation could have far-reaching impacts, affecting not only global trade but also the cost of everyday household items.
