Speed up deforestation efforts ahead of EU law change, urge retailers in Northern Ireland

Retailers are asking the government to provide more clarity and support for businesses in Northern Ireland ahead of the rollout of the EU’s flagship deforestation law.

In a letter sent to nature minister Mary Creagh earlier this month, seen by The Grocer, the British Retail Consortium highlighted an “urgent need for support in meeting the upcoming EU Deforestation Regulation (EUDR) requirements in Northern Ireland”.

The EUDR, which will require businesses to provide robust evidence to prove there is no illegal deforestation happening in their supply chains, is set to be implemented in December after being postponed for a year.

The law will also apply to businesses in Northern Ireland, which currently abides by much of the EU’s food and trade regulations under the Windsor Framework deal between London and Brussels. Failure to comply with its requirements can result in major fines or even having products entirely removed from EU markets.

But the BRC warned there was a “lack of UK government guidance” on the EUDR’s application in Northern Ireland, and that retailers in the country still faced “considerable challenges” in preparation for the law.

With only six months to go for the all-important deadline, retailers were still to hear from UK ministers on how exactly the EUDR will operate in Northern Ireland, including who the competent authority – the body overseeing the implementation of the regulations in each country – will be.

The trade body also urged Creagh to clarify how due diligence statements (DDS) will be processed by customs, and which products will fall in scope.

Read more: The deforestation regulation clock is ticking for food and drink

Despite the lack of guidance, BRC members “in Northern Ireland and Europe are accelerating their efforts to comply with EUDR”, the letter read, which “includes investing in traceability platforms, increasing internal capacity, working with the BRC to develop an industry-backed supplier readiness questionnaire and attending our monthly working group”.

The BRC also asked government to offer financial relief for businesses sending goods to Northern Ireland to help mitigate the impacts of the costly new processes.

Industry representatives are yet to hear back from government, but The Grocer understands the issue of deforestation and regulatory divergence between NI and the rest of the UK will be brought up in a forthcoming meeting with the minister.

A UK version of the bloc’s deforestation laws was in the works when the previous Conservative government was in power. It was designed to cover so-called ‘forest risk’ commodities such as cocoa, palm oil and soy.

But progress stalled ahead of the general election last year, and The Grocer understands no developments have been made by the Labour government since – despite retailers and other fmcg businesses repeatedly urging ministers to implement the legislation swiftly. This would mean they would not need to abide by different sets of rules in the UK and the EU, which adds efforts and costs, by the time the EUDR rolls out.

Read more: UK contributing to global deforestation as imports stay unregulated

The BRC’s letter added: “Our members strongly support DDS requirements as a tool to end the use of forest risk commodities, and welcome Europe’s leadership in tackling deforestation.

“However, we believe a UK-wide approach to deforestation due diligence is essential to the regulations’ efficacy and to avoid negatively impacting consumers and suppliers.

“We urge the UK government to deliver its own version of the EUDR, through the proposed UK Forest Risk Commodities regulation, and take a co-operative regulatory approach with EU regulations, aligning with as much of the EUDR requirements and scope possible.

“Any significant deviation between regulations could cause additional burden on businesses and their suppliers.”

It is widely understood that the recently-agreed UK-EU ‘Brexit reset’ deal will align both parties’ food standards and sanitary and phytosanitary (SPS) rules to make trade easier for businesses, but key areas like deforestation controls are yet to be addressed by negotiators.