Rep. Michelle Steel, District 45 | Official Website
Rep. Michelle Steel, District 45 | Official Website
Reps. Michelle Steel (R-CA) and Terri Sewell (D-AL) have spearheaded a bipartisan effort involving 71 of their colleagues, urging President Biden to challenge the European Union's impending deforestation regulations. These new rules are expected to impose significant costs on U.S. businesses exporting goods to EU countries. The lawmakers are advocating for a twenty-four-month delay in the enforcement of these regulations.
“America’s trading partners in the European Union will soon require our nation’s businesses to comply with costly new climate mandates that will reduce market access and crush jobs,” said Rep. Steel. “The export of products as wide-ranging as timber and diapers will be greatly impacted, harming American jobs as well as global supply chains. President Biden must stand up for American workers, consumers, and businesses by requesting a delay of this unnecessary mandate.”
Rep. Terri Sewell emphasized the need for adequate preparation time: “It is imperative that the U.S. forestry industry has adequate time to prepare for new EU deforestation requirements,” she said. “Delaying their implementation by twenty-four months would help protect American jobs, minimize disruptions to supply chains, and ensure that U.S. stakeholders get the clarity they need to fully comply.”
In their letter, the members stated: “Without more time for implementation, billions of dollars of trade are at stake. We strongly urge you to request a twenty-four-month delay of implementation and subsequent penalties to ensure that transatlantic trade disruptions are minimized, and sustainable forestry practices are recognized and encouraged.”
They also expressed concerns about undermining U.S. investments in sustainability: “The United States is a global leader in modern sustainable forest management, and we are deeply concerned that well-intentioned regulations from Europe will disincentivize the huge investments U.S. Forest owners have made in the long-term health and sustainability of our forest resources.”
The full letter can be read here.
Background information reveals that the European Union's Deforestation-free Regulation (EUDR), effective since June 29, 2023, requires compliance from companies importing into the EU by December 31, 2024. The U.S paper and packaging industry fears these rules may place them at a competitive disadvantage due to increased costs.
During the pandemic, the U.S paper and pulp industry was deemed essential for producing necessary items like baby diapers and hygiene products using sustainable materials such as trees and wood fiber. This sector boasts an output of approximately $350 billion annually, ranks among the top ten manufacturing employers across 43 states, employs over 925,000 people directly while supporting more than two million indirect jobs nationwide.
The industry prides itself on leading global efforts in sustainable forest management.