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Mexico | International trade
European Commission classified Mexico as a "standard risk" under the Deforestation-Free Products Regulation Mexican Government clarifies that this measure does not interrupt the export of products such as coffee, cocoa, palm oil, rubber, and wood, but will require compliance with traceability requirements starting in 2025 and 2026. 5/27/2025
The Government of Mexico, through the Ministries of Agriculture and Rural Development; Economy; Environment and Natural Resources; and Foreign Affairs, reports that, within the framework of the new European Union Regulation on Deforestation-Free Products (EUDR), Mexico has been classified as a "standard risk" country, which means that products exported to the European Union (EU) must demonstrate their deforestation-free origin through a traceability system. In this regard, the Government of Mexico clarifies that this measure does not jeopardize exports of Mexican products, such as coffee, cocoa, palm oil, rubber, and timber, but they will have to comply with requirements aimed at proving their origin. Consultations have begun with national producers and exporters to provide technical support, ensure compliance with the regulation's requirements, and avoid any disruption to trade with the European Union. The regulation establishes seven basic products and their derivatives: cattle, cocoa, coffee, palm oil, rubber, soybeans, and timber. For standard-risk countries like Mexico, European authorities will review a random sample equivalent to 3 percent of exporters. Therefore, the Mexican government has taken early measures to protect these products' access to the European market and mitigate any economic impact, especially for the most vulnerable producers. In this regard, the Ministry of Agriculture and Rural Development has established coordination agreements with the main value chains involved in deforestation to commit to having 100 percent of their production free of deforestation, without affecting Natural Protected Areas or causing land use changes from forestry to agriculture, and to implement a traceability system in this regard. The process will take effect for large operators starting December 30, 2025, and for small operators—micro, small, and medium-sized enterprises—on June 30, 2026. Mexico and the EU have maintained the Economic Partnership, Political Coordination, and Cooperation Agreement (Global Agreement) since 2000, which is currently undergoing modernization. Within this framework, ongoing technical dialogue is maintained with the European Commission to ensure that the implementation of the EUDR takes into account the country's verifiable efforts to combat deforestation. In this context, the Government of Mexico initiated a technical dialogue with the European Commission and its representatives in the country, with the aim of presenting the progress made in this area and building consensus through cooperation to comply with the regulation. Of the commodities and their derivatives established in the measure, according to 2024 figures from the Ministry of Economy, Mexico exported coffee, valued at $140,514; cocoa, $95,157; palm oil, $492,000; rubber, $22,339; and timber, $3,606 to the EU. The Government of Mexico, through the Ministries of Foreign Affairs; Economy; Environment and Natural Resources; and Agriculture and Rural Development, will continue working with representatives of the value chains of these products and exporters to take measures to minimize the impacts, primarily on small and medium-scale exporters.
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