Canada's ambassador to the EU, Jonathan Wilkinson, is seeking dialogue with Brussels to ease the application of the EU's new deforestation law for Canadian businesses. Ottawa believes the law's requirements are burdensome for low-risk countries and hopes for a more streamlined approach as the EU and Canada explore a deeper partnership.
The EU's new deforestation law could impose significant compliance costs on Canadian exporters, impacting trade relations as both sides seek to deepen economic ties. Canada's efforts to secure carveouts highlight the challenges of implementing global environmental regulations across diverse economies.
Canada is seeking modifications to the European Union's upcoming anti-deforestation law, arguing that its requirements are overly burdensome for Canadian businesses, particularly those in low-risk categories. Jonathan Wilkinson, Canada's ambassador to the EU, expressed this sentiment during a POLITICO event in Brussels, highlighting that while Canada supports the EU's goal of halting deforestation, the current regulations do not offer sufficient exemptions for countries with minimal deforestation risk.
Wilkinson indicated that Ottawa is not anticipating a unique exemption specifically for Canada but is keen to engage in a dialogue with Brussels to find practical solutions for applying the rules. This push comes as Canada and the EU explore ways to deepen their relationship, with proposals for Canada to become an "associate member" of the EU. Canada's exports to the EU reached $34.5 billion in 2025, with significant contributions from wood, wood products, paper, and pulp.
The EU's Deforestation Regulation, set to take effect on December 30, mandates that companies importing commodities like palm oil, coffee, and wood must provide proof that these products were not sourced from deforested land. The law has already faced criticism from several EU member states and international trading partners, who cite concerns over high compliance costs and a lack of adequate exemptions for low-risk regions.
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