On 17 November 2021, the European Commission announced a Proposal for a new Regulation to reduce global deforestation and forest degradation driven by EU consumption of certain commodities. If enacted the law would have a profound effect on EU trade in the regulated wood and agricultural commodities. It would represent a very significant extension of state intervention in European commodities trade even compared to the existing controls imposed through the EUTR.
After reaching the highest level for nearly a decade in the first half of this year, the US$ value of EU27 imports of wood and wood furniture products from tropical countries declined sharply in July and August. However, import value during the summer months was still higher than is usual at that time of year (Chart 1).