EU Adds Palm Oil Products to Deforestation Law, Removes Leather

The European Union has included some palm oil products in its new regulation aimed at preventing deforestation, while removing leather products from the list. According to Reuters, these changes are part of the EU's efforts to reduce deforestation in supply chains. The new regulation covers commodities such as palm oil and its derivatives, as well as beef, soy, coffee, and rubber. However, the removal of leather products was welcomed by industry representatives. The EU aims to reduce deforestation risk and promote sustainable trade with this step. The regulation requires importers to prove that their products did not cause deforestation. Palm oil producers, particularly in countries like Indonesia and Malaysia, have expressed concerns that these rules could create trade barriers. The EU argues that the rules are fair and enforceable. Experts note that these changes could lead to short-term price volatility in global commodity markets. Especially in the palm oil sector, companies exporting to the EU are expected to face higher compliance costs. The leather sector, meanwhile, views its removal from the list as a positive development. This is not investment advice.