Possible New EU Market Access Strategies Amidst Regulatory Growing Pains
Corey L. Norton
International Trade Partner | Guides Global Companies on Securing Market Access, Improving Returns and Supply Chain ESG Laws
Sharing updates on new company risks and what’s being done about them
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Legal Developments
Experts believe that EUDR compliance will not only elevate export standards but also provide an opportunity to transform Vi?t Nam’s agriculture, making it more sustainable and transparent, and aligning it with the country’s international commitments to green growth.? Viet Nam News, 10/2/24.
*Although the bigger story right now is the year delay global pushback against the upcoming EU deforestation import prohibition might have achieved, it’s worth noting some industries continue to present themselves as ready, seemingly believing new regulations will make it more difficult for less prepared industries to get to market.? These anecdotes often involve substantial changes industries have had to endure, but, assuming the EUDR is delayed for a year, exporters that already perform better on deforestation might also use that time to consider strategies the EUDR provides to stand out among other competition for the EU market. ??
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The European Commission announced that it has issued formal letters to 17 EU member states, including Greece, initiating infringement procedures with the states over their failure to communicate that they have fully transposed the new Corporate Sustainability Reporting Directive (CSRD) into their national laws.? Page News, 10/2/24.
*The absence of EU Member State legislation implementing the CSRD could exacerbate the global patchwork of climate disclosure regulations that makes some companies have to disclose before their competition.? This likely makes companies assess whether it is better to disclose conservatively for now and adjust later should competitors disclose more robustly or to try get positive attention by being seen as an industry leader now.? Many factors come into play, including what customers and investors want as well how prepared a company is to disclose and avoid unintended consequences like greenwashing allegations.
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On Monday, September 30th, the European Commission (EC) announced plans to explore expanding the scope of CBAM to downstream products. Which kicks off the first, expected, evolution of the EU CBAM … To drive this shift, the EC launched a survey, inviting stakeholders to share their input on this expansion.? Dan Maleski via LinkedIn, 10/2/24.
*Import duties that are determined via complex calculations, like the Carbon Border Adjustment Mechanism, present an opportunity to gain an advantage over the competition by understanding the process better.? The possible expansion of CBAM to additional products increases the opportunity for companies that can best anticipate what those products will be to get a lead on developing processes that will minimize their import duties.
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The [Malaysian] Export-Import (EXIM) Bank has been recognised for its efforts in building the net-zero ecosystem through a series of financing and advisory programmes, aligning the country’s export sector with global expectation. On 24 September, the bank officially launched the Green Global Initiative, or Green Global Campaign, to commit RM1.5 billion to finance sustainability measures undertaken by the export sector.? Business Today, 9/28/04.
*Most likely one of the motivations behind Malaysia’s investment in competing globally on ESG supply chain performance is that it has been among the countries whose major export industries have been challenged the most in recent years by ESG import restrictions in major markets. International trade regulatory enforcement, however, can go through cycles where the focus shifts to new countries and industries. It is worth competitors understanding the impact a country's heightened investment in ESG supply chain performance might have on them and how to respond.
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