Billions at Stake Due to EUDR: How U.S. and Canadian Companies Can Protect Their Access to the EU Market

The European Union’s new Deforestation Regulation (EUDR) is more than just a regional policy; it has global repercussions that U.S. and Canadian businesses cannot afford to ignore. With billions of dollars in North American trade on the line, it’s crucial for companies to act now to protect their access to the EU—one of the world’s largest and most lucrative markets.

The EUDR: A Global Standard for Sustainability

The EUDR is a critical component of the European Green Deal, which seeks to ensure that EU consumption does not contribute to global deforestation or forest degradation. Between 1990 and 2020, over 1.4 billion acres of forest—an area larger than India—were lost globally, driving the urgent need for action. 

This regulation mandates that commodities linked to deforestation—including cattle, soy, palm oil, cocoa, coffee, and wood—must be fully traceable from origin to market. Without documented proof of compliance, companies face the risk of being barred from the EU market, subjected to hefty fines, and enduring significant reputational damage. 

Why North American Exporters Should Care

For North American businesses, the stakes couldn’t be higher. In 2020, the EU was the U.S.’s third-largest goods trading partner and Canada’s second largest. The U.S. alone exports over $3.5 billion worth of forest-derived products annually to the EU, with countries like Germany, the Netherlands, and Italy accounting for a substantial portion of those exports. 

If your supply chain involves any material listed in Annex 1 of Regulation (EU) 2023/1115—whether leather, chocolate, or furniture—and you cannot verify that it is deforestation-free, you face severe consequences, including:

• Fines of up to 4% of your EU turnover 
• Confiscation of goods and revenue seizure 
• Temporary exclusion from public procurement and funding 

The Power of the Right Software Solution to Navigate EUDR

Transparency is no longer optional—it is essential. In today’s regulatory landscape, having the right software to navigate the complexities of the EUDR is not just important—it’s essential. These tools enable businesses to efficiently manage compliance while driving operational efficiency. By streamlining processes, simplifying supply chain tracking, and ensuring precise documentation, the right software makes it easier for companies to meet the regulation’s rigorous standards. This not only ensures compliance but also optimizes day-to-day operations, keeping your access to the EU market intact. 

Turning Compliance into a Competitive Advantage

Complying with the EUDR is far more than just a regulatory requirement; it represents a valuable business opportunity. Companies that align with the EUDR’s standards can: 

• Safeguard their market access to the EU 
• Differentiate themselves in a competitive market 
• Respond to increasing consumer demand for sustainable and transparent supply chains 

By embracing EUDR compliance, North American businesses can position themselves as industry leaders in the global shift toward sustainability. 

Simplify Compliance with osapiens HUB

Are you impacted by the EUDR? Our experts and resources are here to help you quickly determine whether compliance is necessary. The osapiens HUB for EUDR offers North American companies a seamless, efficient solution to meet these regulatory requirements. With automated processes, direct integration into EU reporting systems, and streamlined data management, osapiens HUB minimizes manual effort while boosting transparency and trust across your supply chain.

Final Thoughts

The European Union Deforestation Regulation isn’t just a European policy—it’s a global benchmark for sustainable business practices. Compliance is not only essential for maintaining market access but also a strategic move that positions your company as a responsible, forward-thinking leader in global trade. 

Are you ready to future-proof your business? Contact osapiens today to learn how we can simplify your EUDR compliance journey and help you stay ahead of the curve.