Australia Concerned EU ‘Deforestation’ Rules Could Impact Cattle Trade

Two farmers feed their cattle in western New South Wales, Australia, on Sept. 28, 2018. Peter Parks/AFP via Getty Images

The Senate has called on the European Union (EU) to delay the implementation of new regulations that could drastically reduce Australia’s exports to the trading bloc, saying it has made a fundamental error about the country’s agricultural land.

Under the European Union Deforestation Regulation, due to come into effect in December, the 27 EU member countries will reject a range of agricultural products produced on land subject to “deforestation or forest degradation” from Dec. 31, 2020.

The ban would affect cattle, soya, rubber, and wood, some products such as beef and leather (though not dairy), and items not grown in Australia, such as palm oil and coffee.

Australia’s beef exports to the EU are low in volume but high in value, accounting for 1.3 percent of the total market but worth $143 million ($95.56 million).

Overall, the European Union imported $23.5 billion ($15.17 billion) worth of goods from Australia in 2022.

Other countries, including New Zealand and the United States, have also raised concerns over the legislation, but so far, the EU has not offered an extension.

But of particular concern to Australia is the EU interpretation of “forest.”

Senators Matt Canavan and Raff Ciccione co-sponsored a motion saying 44 percent of land classed as “forest” is, in fact, grazing land for herds.

The consequence is beef produced within that area will not be able to be exported to Europe next year unless the implementation of the new rule is delayed until the issue can be resolved.

EU Intent on Implementing Climate Policies “Across the World”

The EU has justified imposing the rule as being in line with its desire to use “the power of trade partnerships ... for green and just economic growth.”

“The Union is committed to promoting and implementing ambitious environment and climate policies across the world, in accordance with the Charter of Fundamental Rights of the European Union.”

The effect of the legislation would be felt most acutely in Queensland, which grazes 45 percent of Australia’s cattle.

That state does not have a good official record on deforestation: Queensland government data found almost 350,000 hectares (865,000 acres) of woody vegetation was cleared in 2020/21. 

Analysis by the Wilderness Society claimed about 65 percent of that land was cleared for livestock pastures, and, of that, more than half was regrowth vegetation more than 15 years old.

A 2023 Australian Conservation Foundation report found that as few as 205 properties were responsible for half of all land-clearing in Queensland.

The Albanese government has also made a formal request to the EU to delay the implementation of the new regulations, asking that any penalties be delayed by at least two years because it is “unclear in its meaning and application.”