# Trade responses to EU Deforestation Regulation - Transparency Pathway

> Researchers from the NewGO programme at EFI interviewed commodity traders in the cocoa, palm oil and soy sectors about how they would respond to the proposed EU deforestation regulation. The key uncertainty is whether traders will apply EU standards across all operations or divert non-compliant volumes to other markets. Market leakage could limit the rule's impact.

- Date: 2022-12-12 · published 2022-12-12T12:00:00.000Z
- Category: policy · region EU · magnitude low
- Page: https://feedsoft.ai/events/38276-trade-responses-to-eu-deforestation-regulation-transparency-pathway
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

If non-compliant soy and palm oil are diverted to less regulated markets, EU prices could diverge from world prices. Feed buyers may see regional price gaps rather than a clear global move.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2024-08-01 | [EU Deforestation Regulation (EUDR)](https://feedsoft.ai/events/29296-eu-deforestation-regulation-eudr.md) | -0.8% | -6.8% |
| SOY | 2026-05-12 | [EU Prunes but Doesn't Delay Deforestation Regulation \| 3E](https://feedsoft.ai/events/19285-eu-prunes-but-doesn-t-delay-deforestation-regulation-3e.md) | +1.1% | -7.2% |
| SOY | 2022-05-10 | [Our Response to the EU Regulation on Deforestation-Free Products \| Rainforest Alliance](https://feedsoft.ai/events/41423-our-response-to-the-eu-regulation-on-deforestation-free-products-rainforest.md) | +2.2% | +6.6% |
| SOY | 2023-05-03 | [EU Regulation on Deforestation-free products](https://feedsoft.ai/events/35974-eu-regulation-on-deforestation-free-products.md) | +0.9% | -9.7% |
| SOY | 2020-07-10 | [EU’s trade deals can put an end to deforestation](https://feedsoft.ai/events/52143-eu-s-trade-deals-can-put-an-end-to-deforestation.md) | -0.5% | -1.9% |
| SBM | 2025-06-13 | [The EU Deforestation Regulation](https://feedsoft.ai/events/24239-the-eu-deforestation-regulation.md) | -3.4% | -9.4% |
| SBM | 2019-03-04 | [EU must embrace transparency to meet deforestation goals - Insights - Trase](https://feedsoft.ai/events/60106-eu-must-embrace-transparency-to-meet-deforestation-goals-insights-trase.md) | -1.4% | +1.1% |
| SBM | 2024-01-15 | [EU Deforestation Regulation: considerations for commodities traders - Lexology](https://feedsoft.ai/events/32131-eu-deforestation-regulation-considerations-for-commodities-traders-lexology.md) | +1.1% | -1.2% |

## Sources

- transparencypathway.org: https://transparencypathway.org/insights/exploring-commodity-trader-strategies-response-proposed-eu-regulation-deforestation-free-products/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.