European Union bureaucrats hellbent on turning the bloc into the “world regulator” have incurred the wrath of the United States, a Brussels insider has said.
And Pieter Cleppe said Washington’s stance would come as a bodyblow in the wake of rising dissatisfaction among emerging economies around the world – with Britain already reaping the benefits of a more flexible post-Brexit approach.
The editor of BrusselsReport.eu was speaking after the US called on the EU to delay its deforestation law over concerns that it was imposing tiresome bureaucracy on Stateside exporters to Europe.
The rules, introduced on December 30, will require companies and traders placing soy, beef, coffee, palm oil and other products onto the European Union market to prove their supply chain does not contribute to the destruction of forests.
In a letter to the European Commission which was leaked to the media earlier last month, US Trade Representative Katherine Tai, US Agriculture Secretary Thomas Vilsack and US Commerce Secretary Gina Raimondo said American producers were struggling to prepare to comply.
Mr Cleppe told Express.co.uk: “The importance of this is that the United States is attacking the EU’s politicisation of trade head on.
“No longer content with just imposing tariffs, the EU is now attempting to regulate companies outside of its own jurisdiction.”
He explained: “At the WTO, emerging economies had already complained about this, stating “who appointed you ‘world regulator'”?
“Now, the US is siding with them.”
Malaysia and Indonesia were already on a “collision course” with the EU over its “flat refusal” to recognise Malaysian standards, Mr Cleppe explained.
He continued: “That’s despite the fact that 93 per cent of palm oil exports to Europe already respect these standards, as it also ignores how prominent NGO Global Forest Watch last year recognised that Malaysia had managed to achieve a sharp reduction in deforestation.
“In contrast with the EU’s rigid approach, which also hurts small firms in these emerging economies, the UK does recognise Malaysia’s local standards.
“This was one of the reasons why the UK was provided access to the major trade agreement CPTPP, which comprises as much as 15 per cent of global GDP.”
The letter, first reported by the Financial Times, said challenges for US producers included the fact that, with just six months until the law comes into force, the EU has yet to launch a system for producers to submit their documentation and “has not provided clear implementing guidance” on the policy.
A European Commission spokesperson said: “We keep the situation under constant review and we are working hard to ensure that all the conditions are met for smooth implementation of the law.”
