# EU proposes law preventing import of goods linked to deforestation

> Reuters reported that the European Commission proposed a law to block imports of commodities linked to deforestation, requiring companies to prove their global supply chains do not contribute to forest destruction. Non-compliant companies could face fines of up to 4% of their EU turnover, and the rules cover soy, beef, palm oil, wood, cocoa and coffee.

- Date: 2021-11-17 · published 2021-11-17T12:00:00.000Z
- Category: policy · region EU · magnitude low
- Page: https://feedsoft.ai/events/44100-eu-proposes-law-preventing-import-of-goods-linked-to-deforestation
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

Mandatory due diligence and possible fines could make importers more cautious about sourcing soy and palm oil from high-risk areas, which may tighten EU supply and shift trade flows. The impact depends on how strictly the rules are enforced.

## Read by commodity

- SOY: bearish ▼
- LCATTLE: neutral
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2022-12-06 | [EU agrees law preventing import of goods linked to deforestation \| Reuters](https://feedsoft.ai/events/38273-eu-agrees-law-preventing-import-of-goods-linked-to-deforestation-reuters.md) | +1.6% | +2.8% |
| SOY | 2023-04-19 | [EU lawmakers back ban on goods linked to deforestation \| Reuters](https://feedsoft.ai/events/36438-eu-lawmakers-back-ban-on-goods-linked-to-deforestation-reuters.md) | -4.9% | -10.2% |
| SOY | 2021-11-18 | [EU imposes rules on six products to halt ‘imported deforestation’ – EUobserver](https://feedsoft.ai/events/44103-eu-imposes-rules-on-six-products-to-halt-imported-deforestation-euobserver.md) | -0.8% | +0.0% |
| SOY | 2022-11-15 | [European Parliament pass bill to ban imports of deforestation-linked commodities \| NGIS](https://feedsoft.ai/events/38692-european-parliament-pass-bill-to-ban-imports-of-deforestation-linked.md) | -0.3% | +2.6% |
| SOY | 2018-12-19 | [Commission: The EU is part of the problem of global deforestation](https://feedsoft.ai/events/61587-commission-the-eu-is-part-of-the-problem-of-global-deforestation.md) | -4.2% | +0.0% |
| PALMOIL | 2022-12-06 | [EU agrees law preventing import of goods linked to deforestation \| Reuters](https://feedsoft.ai/events/38273-eu-agrees-law-preventing-import-of-goods-linked-to-deforestation-reuters.md) | -4.6% | +3.7% |
| PALMOIL | 2023-04-19 | [EU lawmakers back ban on goods linked to deforestation \| Reuters](https://feedsoft.ai/events/36438-eu-lawmakers-back-ban-on-goods-linked-to-deforestation-reuters.md) | -1.0% | -8.4% |
| PALMOIL | 2021-11-18 | [EU imposes rules on six products to halt ‘imported deforestation’ – EUobserver](https://feedsoft.ai/events/44103-eu-imposes-rules-on-six-products-to-halt-imported-deforestation-euobserver.md) | +0.0% | -8.5% |

## Sources

- reuters.com: https://www.reuters.com/business/environment/eu-commission-proposes-imports-curbs-goods-linked-deforestation-2021-11-17/

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