Mexico Prepares for EU’s Deforestation-Free Trade Rules

The Mexican government will provide technical support to agricultural and livestock producers to ensure compliance with the European Union’s new Regulation on Deforestation-Free Products (EUDR) and avoid any trade disruptions.

In a joint statement, the Ministry of Agriculture and Rural Development (SADER), the Ministry of Environment and Natural Resources (SEMARNAT), the Ministry of Economy (SE), and the Ministry of Foreign Relations (SRE) announced that, under the EUDR framework, Mexico has been classified as a standard-risk country. This means that products exported to the European Union must prove they are deforestation-free through a traceability system.

The list was published on May 22, marking a critical milestone in the regulation’s implementation timeline. The EUDR officially came into force on June 29, 2023. Initially, the regulation had set a deadline of Dec. 30, 2024, for the publication of the first list. However, due to stakeholder concerns, including delays in the development of country benchmarks, the European Parliament and the Council of the European Union adopted an amending regulation in late 2024, extending the deadline by six months to June 30, 2025.

The list categorizes countries into high, standard, and low-risk groups based on their role in the production of seven commodities associated with deforestation: cattle, cocoa, coffee, oil palm, rubber, soy, and wood. These commodities were selected following an impact assessment that identified them as the primary drivers of agricultural expansion linked to forest loss.

Belarus, Myanmar, North Korea, and Russia were the only countries classified as high risk. Meanwhile, forested countries like Brazil and Indonesia were categorized as standard risk, despite their historically high deforestation rates. On the other hand, countries such as the United States, Canada, China, all EU member states, as well as Ukraine and Thailand, were placed in the low-risk category.

This classification determines the level of checks that EU member states must carry out on imports from each country. For low-risk countries, annual inspections must cover at least 1% of relevant operators. This figure increases to 3% for standard-risk countries and 9% for high-risk countries. The regulations will come into effect starting Dec. 30, 2025, for large operators, and on June 30, 2026, for small operators, including MSMEs.

The Mexican government emphasized that this measure does not pose a threat to the export of Mexican goods. However, products will need to meet requirements to verify their origin. In this context, consultations have already begun with national producers and exporters to offer technical guidance, ensure regulatory compliance, and prevent any trade disruptions with the European Union.

SADER has already established agreements with key deforestation-linked value chains to commit to 100% deforestation-free production. These commitments include avoiding any impact on protected natural areas or land-use changes from forest to agriculture. In addition, a traceability system is being put in place to support these efforts.

Since 2000, Mexico and the EU have maintained an Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement), which is currently undergoing modernization. As part of this framework, the Mexican government has initiated a technical dialogue with the European Commission and its country representation, aiming to present Mexico’s progress and build consensus through cooperation to meet the regulation’s requirements.

According to 2024 data from the Ministry of Economy, Mexico’s exports to the European Union include coffee valued at US$140,514, cocoa at US$95,157, palm oil at US$492,000, rubber at US$22,339, and wood at US$3,606.