Farm exports urged to prepare for UK anti-deforestation rules

Farm exports urged to prepare for UK anti-deforestation rules

Changes in anti-deforestation rules are important for Việt Nam whose timber, coffee and rubber supply chains are closely integrated with international markets.

A coffee farm in Sơn La Province. Agricultural exporters are urged to prepare early for new anti-deforestation requirements being developed by the United Kingdom. — VNA/VNS Photo Quang Quyết

Agricultural exporters have been urged to prepare early for new anti-deforestation requirements being developed by the United Kingdom (UK), with better supply-chain data, transparent production origins and traceability systems increasingly important to maintaining market access.

Alongside the European Union’s Deforestation Regulation (EUDR), the UK is developing a mandatory due-diligence regime for imported agricultural and forestry products considered at risk of being linked to deforestation.

Changes in anti-deforestation rules are important for Việt Nam whose timber, coffee and rubber supply chains are closely integrated with international markets, according to Tô Xuân Phúc, director of the Forest Policy, Trade and Finance and Programme at Forest Trends.

Speaking at an online seminar on September 11, Phúc said the UK market was equivalent to about half of Việt Nam’s timber exports to the EU and about 1.6-1.7 per cent of the total annual timber export revenue of about US$17 billion.

The UK accounted for about 10 per cent of Việt Nam’s coffee export turnover, while direct rubber exports to the UK represented about 1 per cent of the rubber industry’s total exports.

However, Phúc noted that direct trade figures did not fully capture the links between Việt Nam and the UK market.

Vietnamese rubber, for example, is also exported to intermediary markets, particularly China, before being processed and incorporated into products that may subsequently be shipped to the UK, according to Phúc.

The impact of the new regulations will not be limited to shipments exported directly from Việt Nam to the UK. Requirements on origin, legality and traceability can also extend to earlier stages of the supply chain.

Businesses should therefore develop the necessary data and traceability systems now rather than wait for the new rules to take effect, Phúc said.

Thái Như Hiệp, vice chairman of the Việt Nam Coffee and Cocoa Association (Vicofa), said traceability and the green transition were becoming increasingly important requirements for exporters.

Businesses needed to invest in data systems, conduct field surveys, update information on growing areas and work with local authorities to verify production data, he said.

“What matters is that data must be connected, cross-checked and verified, so that when necessary, businesses can clearly demonstrate where a product was produced, on what area of land and how it meets legal requirements,” Hiệp said.

A key challenge was connecting and cross-checking information on raw-material production areas held by different programmes and businesses, he pointed out, calling for stronger coordination between businesses and local authorities in managing, sharing and verifying production-area data.

UK’s proposed regime

A coffee farm in Sơn La Province. Agricultural exporters are urged to prepare early for new anti-deforestation requirements being developed by the United Kingdom. — VNA/VNS Photo Quang Quyết

Phúc said the development of the UK regime would provide an opportunity for Việt Nam to contribute to policymaking by providing feedback on production and export conditions, particularly requirements related to data and traceability.

The UK Government is expected to launch a public consultation on the proposed regime this autumn, focusing on commodities, due-diligence requirements, traceability, geolocation data and the ability to connect and share information across supply chains.

Phúc said Việt Nam should combine data collected by businesses and producers with the State's foundational data infrastructure to prepare for both the EUDR and the proposed UK regime.

According to Tom Alpe, trade policy adviser at the UK's International Forestry Unit, international markets were placing increasing emphasis on the origin, legality and sustainability of agricultural and forestry products.

Under an announcement by the UK Government on June 23, the deforestation regulations will apply in Northern Ireland from December 30, 2026.

Great Britain, comprising England, Scotland and Wales, is instead developing a separate due-diligence regime, with the aim of maintaining a high degree of compatibility with the EUDR.

The Great Britain regime is proposed to cover seven commodity groups, including cattle, cocoa, coffee, palm oil, rubber, soy and wood, as well as related processed products.

Businesses with annual revenue of more than £1 million are expected to fall within the scope of the regime and would have to ensure that commodities were produced in accordance with the laws of the country of origin, while carrying out due diligence and submitting periodic reports.

One important difference from the EUDR is that the Great Britain regime is not initially expected to apply a specific deforestation-free cut-off date. Instead, its initial focus would be on demonstrating the legality of production and land-use conversion.

Under the proposed regime, a commodity would not be considered non-compliant if a change in land use had been authorised by the competent authorities of the producing country and was permitted under domestic law.

Over the longer term, however, the UK Government plans to strengthen the requirements, including by introducing stronger criteria related to deforestation.

Unlike the EUDR, the proposed Great Britain regime is not expected to introduce a country-based risk classification system. It would also not add new customs controls for imports or require businesses to submit a due-diligence statement at the time of import.

Businesses covered by the regime would be expected to establish origin due-diligence systems, collect and retain geolocation data for production areas and submit annual reports.

The UK Government plans to hold a public consultation this autumn, finalise legislation and technical guidance in 2027, and potentially begin implementing the policy from around 2028.

Alpe cautioned that compliance with the EUDR would not automatically mean that a business fully complied with the Great Britain regime.

However, because the two systems are intended to be compatible in areas such as data and traceability, systems already developed by businesses to meet EUDR requirements could provide a foundation for meeting the UK's requirements.

Early preparation of geolocation data, documentation proving the legality of production areas and traceability systems would allow businesses to respond more effectively to new requirements, limit additional compliance costs and maintain market access, experts said.

In addition, the new rules could encourage Việt Nam's agricultural and forestry industries to improve transparency, traceability and international competitiveness as global markets impose increasingly stringent sustainability requirements. 

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