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Propose end-Dec 2026 deferral for large firms

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EU race to seal final changes deal by mid-December

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Critics say delay a blow to EU credibility, harms progress

By Kate Abnett and May Angel

BRUSSELS/LONDON, Nov 11 (Reuters) - European Union

member states are seeking to postpone the implementation of the

bloc's anti-deforestation law by another year, an EU negotiating

draft dated November 10 shows.

The draft document, which was seen by Reuters on Tuesday,

now suggests deferring the law's application to December 30,

2026 for larger firms, and June 30, 2027 for smaller ones.

The European Commission last month proposed adjustments to ease

compliance for smallholders and businesses, but stopped short of

delaying the landmark policy.

For many member states, "the Commission's proposal alone was

not enough," the draft said.

CRITICS WARN OF ENVIRONMENTAL SETBACKS

The ban on imports of cocoa, palm oil and other commodities

linked to forest destruction is a key plank of the EU's green

agenda. This faces pushback from some industries and countries

that say the measures are costly and logistically challenging.

Initially set to take effect from end-2024, the policy has

already been delayed by a year but tensions persist, including

complaints from trading partners such as Brazil and the U.S.

EU countries such as Poland and Austria have said European

producers cannot comply with traceability rules.

Antonie Fountain, head of the VOICE Network which advocates

for cocoa sector reform, said the delay makes it difficult to do

business in the bloc and was a blow to the EU's credibility.

"During the week of COP in Brazil, it couldn't be more

ironic," he added.

Some food majors such as Nestle, Ferrero and Olam

Agri back the law. They warned last month that delaying it

endangers forests worldwide and is contrary to the EU's aim of

simplifying business rules.

Fern campaigner Nicole Polsterer said the delay would stall

the significant progress towards traceability made to date in

some countries.

FINAL NEGOTIATIONS UNDERWAY

Under the law, exporters of commodities such as beef,

coffee, soy and rubber would need to provide due diligence

statements proving their products did not contribute to forest

destruction.

EU nations and the European Parliament are racing to seal a

deal on final changes by mid-December to avoid the law kicking

in as currently planned.

Denmark, which holds the EU's rotating presidency, authored

the negotiating document.

A spokesperson for the Danes said the aim was to secure

swift backing from member states so they could negotiate a final

deal in time.

"Most Member States don't want (the law) in its present form

to enter into force by the end of the year," they said.