EU-Thailand Free Trade Agreement – Talks Restart in September
In March 2023, the EU and Thailand announced the relaunch of negotiations for an FTA. To recap, negotiations for an EU-Thailand Free Trade Agreement (FTA) were launched in March 2013 but were put on hold in 2014 following the military take-over in the country. The first round of trade negotiations was held in September in Brussels, while Thailand will host the next round of negotiations in Bangkok in January 2024. The third round would again return to Brussels in June 2024. Thailand and the EU aim to reach a deal by 2025.
EU Deforestation-free Regulation – The EU’s Attempt to Combat Deforestation in ASEAN Using Non-Tariff Measures
The EU Deforestation-free Regulation (EUDR) entered into force on 29 June 2023, obliging companies to ensure products sold in the EU have not led to deforestation and forest degradation in their production. Companies will only be allowed to sell products in the EU if the supplier of the product has issued a due diligence statement confirming that the product does not come from deforested land or has led to forest degradation. In addition, companies will have to verify that these products comply with relevant legislation of the country of production, including on human rights, and that the rights of affected indigenous people have been respected. While the regulation has entered into force, the main prohibitions and obligations will not apply until 30 December 2024.
CBAM: Consultations for reporting obligations closed in July, reporting obligations start 1 October 2023
The Carbon Border Adjustment Mechanism (CBAM), touted as the EU’s “landmark tool” to combat carbon leakage, underwent another round of public consultations, this time on the reporting obligations that importers will have to adhere to. The consultations closed in July, with a total of 187 submissions of feedback received by the Commission, demonstrating the wide interest from companies and governments across the world in the CBAM’s implementation. The CBAM entered into an 18-month transitional phase from 1 October 2023 until the end of 2025.