European Deforestation-Free Regulation and EU norm diffusion on climate and trade

Forests play a critical role in biodiversity conservation and climate regulation, yet deforestation linked to agricultural commodity production remains a persistent global challenge. Despite a slowdown in global deforestation rates, the expansion of commodities such as palm oil, soy, cacao, timber, and cattle continues to drive the majority of tropical forest loss and contributes significantly to global greenhouse gas emissions through international trade. As major importers of deforestation-risk commodities, the European Union (EU) and China occupy a central position in shaping global supply-chain dynamics. Addressing environmental degradation embedded in global commodity chains has therefore become a key concern within International Political Economy (IPE). Existing governance approaches—ranging from voluntary certification schemes to international agreements—have shown limited effectiveness in curbing deforestation, highlighting the shortcomings of market-based mechanisms. In response, recent years have witnessed a renewed turn toward state-led regulatory authority in the governance of global supply chains. Within this context, the EU has emerged as a pivotal actor through its ambition to align trade policy with environmental objectives under the European Green Deal. This paper examines the EU Regulation on Deforestation-Free Products (EUDR), adopted in 2023, as a central instrument through which the EU within the context of the EU green deal seeks to externalize environmental norms beyond its borders by restricting market access for products linked to deforestation and forest degradation. The regulation represents a significant shift toward mandatory sustainability requirements tied to international trade, with potentially far-reaching implications for global commodity markets and producer countries. Drawing on IPE theories, particularly constructivist approaches, the paper analyzes the EUDR as an expression of the EU’s normative power. It argues that the regulation reflects a consolidation of the EU’s ability to shape global supply-chain practices through norm diffusion rather than coercion, leveraging market size alongside identity-driven environmental commitments. The study further explores how these norms are received and contested by producer countries dependent on agricultural commodity exports. Empirically, the paper employs an exploratory comparative case-study design focusing on palm oil, cacao, and cattle production across three producing countries. By examining international responses to the EUDR, the analysis sheds light on the regulation’s implications for global environmental governance, trade relations, and sustainability standards. In doing so, the paper contributes to emerging debates on state-led climate governance and the evolving role of the EU in regulating deforestation-risk global supply chains