Wedoany.com Report-May 31, The European Commission has released a risk classification for countries under the EU Deforestation Regulation (EUDR), effective for large companies from December 30, 2025, and for small and micro enterprises from June 30, 2026. Countries including Ukraine, all 27 EU nations, the United States, China, Australia, and Canada are designated as “low risk” for importing agricultural products like cocoa, coffee, soybeans, palm oil, and beef.

For low-risk countries, companies face simplified due diligence, requiring only information collection without additional risk assessments or mitigation measures. Countries classified as “high risk” include Belarus, Myanmar, North Korea, and Russia, while others are placed in the standard risk category, which involves stricter due diligence. Regardless of classification, all countries must provide geolocation data to confirm that products do not originate from areas deforested since 2020, ensuring compliance with the regulation’s environmental goals.

The classification has sparked some criticism, particularly from Malaysia, which falls under the standard risk category, requiring more rigorous checks for its palm oil exports. Dato’ Carl Beck-Nielsen, chairman of the Malaysian Palm Oil Council, expressed concern, stating: “The European Commission knows that our experience in this area is better than some European countries, but it has given its members low-risk status.” Malaysia has questioned the fairness of assigning all EU countries low-risk status.

The EUDR aims to promote sustainable trade by ensuring that agricultural imports do not contribute to deforestation. The risk-based approach streamlines compliance for low-risk countries while maintaining oversight to protect global forest ecosystems. By categorizing countries based on their environmental practices, the regulation seeks to balance trade efficiency with environmental responsibility.

This framework supports global efforts to combat deforestation, encouraging countries to adopt sustainable agricultural practices. The inclusion of major economies like China, the U.S., and Canada in the low-risk category reflects their established systems for monitoring deforestation, while the regulation’s requirements ensure accountability across all nations involved in the supply chain.