Canada seeks deforestation law carveouts as EU ties deepen

Brussels — Canada's representative in Brussels is seeking to amend the EU's new anti-deforestation law to accommodate Canadian businesses, as the two nations aim to strengthen their relationship. Commission President Ursula von der Leyen has proposed to make Canada the EU's first "associate member," and Ottawa seeks to address "long-standing irritants" between the two parties, according to Jonathan Wilkinson, Canada's ambassador to the EU.

The primary issue is the EU's Deforestation Regulation, set to commence on December 30, which necessitates companies importing goods like palm oil, coffee, and wood to prove they were not sourced from deforested land. This regulation has faced criticism from EU countries and trading partners due to the potential high compliance costs and lack of exemptions for countries with low deforestation risk.

Wilkinson stated that while Canada shares the EU's goal of combating deforestation, the law does not include carveouts for such countries, allowing them to avoid strict requirements. He expressed that Canada does not expect Brussels to create a unique exemption specifically for Canada but hopes to engage in a dialogue on potential solutions.

Canada has been striving to bolster ties with Europe to lessen its reliance on the U.S. amid a trade dispute, as the EU seeks to diversify its sources of critical raw materials and strengthen its relationship with the U.S. amid growing tensions. In 2025, Canada's exports to the EU reached $34.5 billion, including $242 million in wood and wood products and $174 million in paper and pulp.