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Agro Connection: New European Union law may reduce exports from Brazil

The possibility of the European Union limiting Brazilian exports, based on the new law that obliges exporting countries to prove that the products do not come from illegally deforested areas, did not enthrall the market.

The measure may affect several countries and, in the case of Brazil, products such as soy, beef and coffee should suffer this impact more directly.

Research coordinator at the Getúlio Vargas Agro Foundation (FGV Agro), Daniel Vargas, points out that of the US$ 36 billion in Brazilian exports to Europe in 2021, US$ 17 billion went to the sale of products that now require “proof green”.

According to him, the measure could become an impediment to exports by small and medium-sized producers.

“We know that this process of proving, of demonstrating with the presentation of data, documents, audits, private consultations, is not usually a cheap process. The big producer can and must go through this notarial toll, not without suffering. The small and medium may not be able to overcome this barrier”, evaluated the coordinator.

Source: CNN Brasil

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