#eu-trade-policy

#eu-trade-policy

The biggest shake-up of green trade rules for decades comes into force today, as companies selling steel, cement and other high-carbon goods into the EU will have to prove they comply with low-carbon regulations or face fines. But a lack of clarity on how the rules will be applied, and the failure of the UK government to strike a deal with Brussels over the issue, could lead to confusion in the early stages, experts warned.

European Union finance ministers have agreed to impose customs duties on low-value parcels entering the bloc at some point next year, scrapping the long-standing "de minimis" exemption for goods under €150 (or $175). The move is seen as a way to slow the flood of cheap Chinese imports from platforms such as Shein and Temu. These goods now account for the bulk of the EU's 4.6 billion small parcels a year, more than 90% of which came from China.

The landmark law, known as the EUDR and adopted in 2023, had banned imports of products driving deforestation and was hailed by environmentalists. The law has faced opposition from major trading partners such as Brazil and the United States, who argue that businesses will suffer due to increased paperwork and higher costs. The proposed changes to the law still require the approval of member states and the European Parliament.

Donald Trump threatened to impose 17% tariffs on food and farm produce exports from Europe, impacting products like chocolate, butter, and olive oil.