EU Risk List Reshapes Coffee and Commodity Trade Worldwide

The EUDR's country risk classification, published on the Green Forum platform on May 22, 2025, introduces a tiered system impacting exporters of coffee and six other regulated commodities. Low-risk countries benefit from simplified due diligence, with EU Member States inspecting only 1% of operations. Standard and high-risk countries face full due diligence, including geolocation, legality verification, and risk mitigation, with inspection rates of 3% and 9%, respectively.

Environmental groups like Earthsight criticize the classification for overlooking major deforestation hotspots, as the designated high-risk countries account for only a small fraction of EU commodity imports. Reuters notes that countries with historically high deforestation rates, such as Brazil and Indonesia, are labeled as 'standard risk.'

In Asia, Laos, India, and Vietnam enjoy low-risk status, accounting for a significant portion of European green coffee imports. Similarly, Rwanda, Kenya, and Burundi in Africa, and Papua New Guinea and Costa Rica in Oceania and Central America, also hold low-risk status.

The EUDR is already reshaping supplier selection, with EU buyers favoring low-risk countries to reduce regulatory costs. Exporters from standard and high-risk countries face increasing pressure to demonstrate deforestation-free practices. This shift necessitates robust traceability systems and collaboration across the supply chain.

*Actionable Takeaway:* Professionals in the coffee and commodity trade should stay informed about the EUDR, build traceability systems, and collaborate to ensure compliance and maintain competitiveness.

The EU Deforestation Regulation (EUDR) is an EU law aimed at preventing deforestation and forest degradation associated with products placed on the EU market.

The EU classifies countries as low, standard, or high risk based on their contribution to deforestation. This classification determines the level of due diligence required for exporting commodities to the EU.

Currently, Belarus, Myanmar, North Korea, and Russia are classified as high risk.

What do you think about the EU's approach to combating deforestation? Will this risk list effectively reduce deforestation, or will it simply shift trade patterns? Share this article with others who need to stay ahead of this trend!