U.S. Looks to Reduce Commodity Imports Linked to Deforestation

Two years after seeking input on the possibility of using trade measures to address deforestation, the Biden administration has announced a policy framework to guide potential measures to reduce imports of commodities linked to deforestation and derived products. The European Union is advancing similar efforts.

According to the Department of Agriculture, under this framework the U.S. will work to:

– focus its efforts on (1) illegal deforestation, similar to the focus in the Lacey Act, and (2) areas and businesses associated with a high risk of agricultural commodity-driven deforestation;

– minimize unnecessary compliance costs (e.g., costs stemming from excessive traceability and due diligence requirements in low-risk countries);

– explore appropriate domestic policy options, trade-related engagements, and international agreements and cooperation;

– leverage private-sector investments in supply chain traceability and due diligence systems to inform policy design and implementation;

– leverage Earth-observation data to monitor agricultural commodity-driven deforestation and enhance policy enforcement; and

– engage with national and regional governments, including to identify capacity-building needs related to enforcement of laws and regulations to reduce deforestation.

USDA has also released an interagency report outlining best practices for mitigating deforestation risk.