European Union Deforestation Regulations Pose Challenges for New Zealand's Forestry Sector

Strategic Insights -

The European Union (EU) has taken a significant step in regulating deforestation-free products, as stated in the European Union Deforestation Regulations (EUDR). This regulation aims to mitigate deforestation and forest degradation in the EU by tracing products associated with cattle, oil palm, rubber, soya, and wood. The EU's trade relationship with New Zealand (NZ) is crucial, as NZ exports a significant portion of its forestry products to the EU. However, the EUDR poses challenges for NZ's forestry sector, which is NZ's third-largest export and a significant contributor to its economic revenue. Researchers at the University of Waikato are studying the potential challenges and opportunities of the EUDR for NZ's forestry sector.

Key Takeaways:

  • The European Union Deforestation Regulations (EUDR) aim to mitigate deforestation and forest degradation by regulating products associated with cattle, oil palm, rubber, soya, and wood.
  • The EUDR mandates rigorous traceability of related products throughout the supply chain and comprehensive compliance checks at the EU border.
  • New Zealand's forestry sector, which exports a significant portion of its products to the EU, may face challenges under the EUDR, despite being NZ's third-largest export and a significant contributor to its economic revenue.
  • Researchers at the University of Waikato are analyzing the potential challenges and opportunities of the EUDR for NZ's forestry sector.
  • The EUDR highlights the importance of examining the impact of international regulations on NZ's forestry sector in maintaining continuous and steady economic growth.
  • The EU is one of NZ's most significant trading partners, and the two parties have a Free Trade Agreement to boost bilateral trade further.
  • The University of Waikato is a research institution that has contributed to the study of the EUDR's impact on NZ's forestry sector.
  • Zero deforestation targets have been set for 2020 and 2024 in the European Union's current climate and biodiversity strategy, and a global green deal is also discussed.
  • The Australian and New Zealand Journal of European Studies published a paper on this topic in 2025.

Statistics:

  • The European Union announced its first-ever regulation on deforestation-free products in 2023.
  • The EU-NZ Free Trade Agreement aims to boost bilateral trade further.
  • Forestry products make up a small portion (24.6%) of trade between the EU and NZ, but are NZ's third-largest export, contributing significantly to NZ's economic revenue.
  • The EUDR mandates rigorous traceability of related products throughout the supply chain, including cattle, oil palm, rubber, soya, and wood.

Sources:

  • Potential challenges and opportunities of the European Union Deforestation Regulation for New Zealand's forestry sector. Australian and New Zealand Journal of European Studies, 2025,17(1).
  • European Studies Association of Australia and New Zealand (ESAANZ)
  • https://doi-org.sdpl.idm.oclc.org/10.30722/anzjes.vol17.iss1.20675 (Free version of the journal article)
  • Xiwen Wang, University of Waikato
  • NewsRx. Data on European Studies Described by Researchers at University of Waikato (Potential challenges and opportunities of the European Union Deforestation Regulation for New Zealand's forestry sector). Global Warming Focus. September 8, 2025; p 49.