How the EU deforestation law aggravates the commercial dispute with the United States

Good morning. European capitals call for a break on all decisions that could irritate Donald Trump before the summit of NATO leaders in June, officials say to the Financial Times, arguing that Keep him happy in The Hague is essential for the continent in the midst of a deep uncertainty as to what NATO's long -term skeptic will say or will do it.

Today, our climate and trade correspondents report one of these questions: how EU deforestation laws affect American journalization companies. And our financial and kyiv correspondents preview the debate of the Ukrainian parliament today on controversial minerals with the United States.

Wood for trees

Donald Trump plans to announce A new commercial pact with the United Kingdom Today. Meanwhile, the EU has made little progress and an attempt to appease the United States by delaying controversial import controls fell flat.

The American forest industry accused the EU of drawing up commercial obstacles by promoting its own industry under the modified rules of deforestation, to write Alice Hancock And Andy Bounds.

Context: the EU deforestation law, which will prohibit the importation of sectors' products, including rubber, cocoa, wood and paper if they come from deforests, should have come into force last year. Under pressure from the trade partners of the block He was delayed Until the end of the year.

Despite this respite, the nine largest organizations of American forest products from a letter accused the EU of taking up “serious” conformity challenges, opening a new front in growth Transatlantic commercial conflict.

The EU ranked the United States – and all its own members – as “low risk” according to a list shared with the Member States last week, which means that there will be fewer controls on American products. But American producers said that bureaucratic obstacles were still too high.

Heidi Brock, head of the American Forest & Paper Association, said in a separate press release that the law was equivalent to a “non -commercial price barrier” for American paper and wood products.

“The main barrier of conformity, the traceability of geolocation, continues to represent unrealizable technical obstacles given the nature of the supply chains in paste and paper,” said Brock.

American products were made from wooden fillings collected in Saw Mills, which makes it impossible to trace where the original tree was cut, she said.

The letter, sent yesterday, said that the latest advice updated so that companies comply with the rules “benefit in a disproportionate (s) the EU supply chains, further expanding the gap”.

The agriculture commissioners of 18 US states have put pressure on the Trump administration, while the presidents of six congresses have asked the European Commission to exempt American companies largely, according to the letters seen by the FT.

Chart of the day: Unpredictable

Many women disengaged before the next presidential election in Poland, feeling disappointed by the current government so as not to cancel the country Almost total abortion prohibition.

The terms and conditions apply

The Ukrainian parliament should approve a case of minerals with the United States today, giving Washington access to Ukraine natural resources in exchange for a potential contribution to the reconstruction of the country torn by war, to write Paola Tamma And Christopher Miller.

Context: agreement, Signed in Washington last weekEstablish an “reconstruction investment fund” for Kyiv. President Donald Trump had insisted as a reimbursement for billions of dollars in aid provided to Ukraine since Russia's large -scale invasion started in February 2022.

The fund will invest in the extraction of critical minerals, oil and gas. The profits of the fund will be reinvested in Ukraine during the first decade, after, they will be divided halfway between kyiv and Washington.

The European allies of kyiv are concerned that the agreement could undermine the obligations of Ukraine as a member of the EU candidate. “Compatibility with the membership process is not clear,” said an EU diplomat.

They pointed out that a clause on the settlement of disputes by the “mutual consultation” is particularly worrying because it leaves Ukraine open to blackmail and the exchange of horses. “There is no third impartial body but” my word against yours “,” they added.

President Volodymyr Zelenskyy and his office worked behind the scenes of kyiv to ensure that the agreement goes well. While his power party has a majority, his deputies do not always vote together.

Oleksandr Merezhko, head of the Parliament’s foreign affairs committee, said he was expecting him to pass comfortably and even hoped that he would receive a constitutional majority of 300 vote to send a “strong signal” of approval.

What to look at today

1. The president of the European Commission, Von der Leyen, receives the Irish Taoiseach Micheál Martin.

2. The informal meeting of the EU foreign ministers in Warsaw continues.

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