The European Union Deforestation Regulation (EUDR) is fast approaching its December 2025 deadline, originally set to come into force in December 2024. This regulation poses a significant challenge not only for European companies, but also for their suppliers in key regions such as Latin America, Africa and Asia. As Tatiana Londoño, an expert at CMS, points out in an interview with Lexology, Preparing for the EUDR requires extensive engagement and changes in supply chains.

Key challenges for non-EU suppliers

• Lack of clear guidance: One of the most significant obstacles is the lack of clear guidance from European regulators and buyers. The essential guidance was issued just a few weeks before the original deadline, leaving suppliers with limited time to adapt.
• Informality in agriculture: In many regions of the world, a lack of agricultural formalization is prevalent. This includes the absence of written employment contracts and poor traceability of payments, with over 90% of the agricultural sector in some countries being informal. Meeting the EUDR requirements often requires teaching smallholder farmers how to create written employment contracts in countries with very low literacy levels.
• Demonstrating compliance with local laws: While proving compliance with local laws is not overly difficult for large corporations with robust legal teams and access to international law firms, it is a huge challenge for most suppliers in Latin America, Africa or Southeast Asia. These suppliers often depend on smaller suppliers who are landowners and are expected to provide evidence of compliance with local laws.
  • Missing documentation: Common documentation gaps include areas beyond basic legal requirements, such as human rights and indigenous rights. Furthermore, even basic documents such as written employment contracts and land ownership documentation can be difficult to access because enforcement varies by country.
• Cultural shift: Meeting the EUDR requirements requires a profound cultural shift for smallholder farmers and producers, especially when it comes to legal formalization, which is time-consuming and complex.
• Lack of government support: Local authorities or governments should play a significant role in preparing their suppliers for EUDR, but this is not common practice, especially in Latin America.

Supplier readiness and necessary support

Supplier readiness varies significantly. Large corporations and multinational subsidiaries from regions with robust legal systems are generally better prepared. Membership in manufacturer associations also plays a key role in obtaining information from European suppliers. Conversely, suppliers from regions with weaker legislative and government regulations face greater challenges, particularly due to the EUDR’s strict requirements for comprehensive reporting on compliance with local laws.

Suppliers currently need the most legal supportto understand EUDR requirements and ensure compliance with local laws, including assistance in obtaining documentation on national regulations. If suppliers still do not have the technical requirements for geolocation, they need support in this area as well.

The role of European companies and advisors

European companies must start direct communication with your suppliers, provide them with comprehensive guidance on the necessary documentation and help them determine whether local laws or documents comply with EU legal requirements. It is essential not to leave the burden of interpreting both European and local law solely on suppliers.

Firms like CMS are already helping non-EU suppliers understand their national jurisdictions in line with the EUDR, working with local legal teams and assisting with identifying supporting documentation and interpreting EU guidelines.

Impact and opportunities

Lack of compliance with local laws and difficulties in helping some suppliers meet deadlines have led to suppliers prefer small and other compliant suppliersWithout clear guidance and sufficient time to prepare, there is a risk of SMEs being excluded from European supply chains.

Despite the challenges, if clear and timely guidance is available, the EUDR represents an opportunity for growth and formalization of hundreds of small and medium-sized farmers. Despite its challenges, Latin America has relatively robust legislative protections and institutional frameworks, which can help companies comply with regulations and increase their competitiveness in global markets. Furthermore, simplifying the burden of proof regarding compliance with local laws would make the EUDR more practical and allow it to focus on its primary objective – combating deforestation. Spring