Is there a risk of deforestation in the US?
No. In 2022, of over 260 mha of forests, only 0.0971 mha and 0.0187 mha were permanently lost to urbanization and commodity driven deforestation respectively (Source: Global Forest Watch). Hence many importers ask themselves why bothering with due diligence for the US concerning deforestation.
The European Commission (EC) will categorize countries or parts thereof in three categories - high, standard and low risk - according to the local level of risk of producing commodities that are not deforestation-free. For the US, the risk benchmark will most likely result in a low risk. Based on this category, operators as well as EU Member States (MS) shall adapt their level of due diligence, meaning e.g. the MS authorities auditing activities will place a lower focus on low risk countries (/ a lower sample rate).
Obligation to File a Due Diligence Statement
But this does NOT mean, operators/ importers do not have to apply a due diligence process or file a Due Diligence Statement. As any other relevant goods passing EU borders, imports from the US (or other countries with a presumed low risk status) must be accompanied by a Due Diligence Statement that includes Geodata of the forest or agricultural source.
Reluctance of US Exporters to Provide Geodata
According to trade representatives such as the American Hardwood Export Council (AHEC), US exporters are very reluctant to provide geodata on the forest sources.
Due to the large amount of small forest owners in the US - especially in the hardwood sector - providing such data will be very difficult or rather elaborate for US producers. And therefore EU importers/ operators will likely face a lot of resistance on behalf of their trading partners providing such information.
How SupplyCanvas Can Help
SupplyCanvas aims to simplify the EUDR process for both exporters and importers, automating the provision of Geodata information and facilitating the anonymization of intermediaries. However, it cannot eliminate initial resistance to providing such information.
Note: To date the EC has not published any country benchmarks. As of 29 June 2023, all countries were assigned a standard level of risk until further notice.