The Incompatibility of the European Union Deforestation Regulation with Trade Liberalization
Downloads
The European Union Deforestation Regulation (EUDR) is an environmental policy aimed at ensuring that agricultural and forestry commodities entering the European market are free from deforestation practices. While designed to support global sustainability, its implementation poses significant challenges for developing countries, particularly Indonesia, which heavily relies on exports of commodities such as palm oil, rubber, coffee, and cocoa. This study aims to analyze the implications of EUDR on international trade relations and its compatibility with the fundamental principles of the World Trade Organization (WTO), including most-favoured nation, national treatment, and trade liberalization. Using a qualitative normative approach, this research examines relevant legal frameworks, policy documents, and secondary data. The findings indicate that EUDR imposes complex administrative requirements, such as geolocation verification, supply chain traceability, and comprehensive due diligence, which disproportionately burden smallholders and medium-scale enterprises. Furthermore, the regulation potentially reflects elements of green protectionism, creating trade distortions and reducing the competitiveness of Indonesian commodities in the global market. In conclusion, while EUDR promotes environmental sustainability, it may conflict with fair trade principles and hinder market access for developing countries. Therefore, it is recommended that policymakers strengthen domestic readiness, enhance support for smallholders, and pursue diplomatic engagement to ensure fair and balanced trade practices.
Alfarizi, Muhamad Afta. “Dampak dan Tantangan Kebijakan Perdagangan Nontarif dalam Perdagangan Internasional: Analisis Strategi untuk Perdagangan yang Berkelanjutan.” Neraca Manajemen Ekonomi dan Akuntansi 4, no. 6 (2024).
Decinthya Wirawan & Partners. “EU Deforestation-Free Regulation and Palm Oil: Environ-mental Protection or Non-Tariff Barrier?” Jurnal Paradigma Hukum Pembangunan (2024).
Fakhrudin, Umar. “Kebijakan Hambatan Perdagangan atas Produk Ekspor Indonesia di Negara Mitra Dagang.” Buletin Ilmiah Litbang Perdagangan 2, no. 2 (2008).
Fauzi, Ahmad Fadli. “Peran World Trade Organization (WTO) dalam Perlindungan Ling-kungan di Era Liberalisasi Perdagangan.” Jurnal Crepido 5, no. 1 (2023).
Guo, Yajing. “Green Trade Barriers under the Developing Country Perspective.” Future Hu-man Image (2024).
Haykel, Muhammad, and Gunardi Lie. “Hambatan Non Tarif dan Dampaknya terhadap Ekspor Produk UMKM Indonesia.” Journal of Small and Medium Enterprise 2, no. 2 (2025).
Hsieh, Pasha L. “Green Regionalism in World Trade.” World Trade Review 24 (2025).
Indrasto, Haryo Bimo Budi, Hanif Nindya Asyifa, and Trian Gigih Kuncoro. “Evaluation Im-pact of the European Union Anti-Deforestation Regulation (EUDR) Policy: Empirical Study of Indonesian Agricultural Product Exports.” International Summit on Science and Technology and Humanity (2024).
Kami. “Keterlibatan Petani Kecil Indonesia dalam Rantai Pasok Uni Eropa di Bawah Peraturan Deforestasi EU: Tantangan dan Langkah Mitigasi yang Dapat Dijalankan.” European Forest Institute, 2025.
Karem, Nahdya Alfaina, Wafik Azizah, Binar Nan Baik, Muhammad Reza Fahlefi, and Sarpini. “Memahami Liberalisasi Perdagangan: Dampak dan Implikasinya dalam Konteks Ekonomi Global.” Jurnal Akademik Ekonomi dan Manajemen 1, no. 4 (2024).
Mitra, Devashish. “Trade Liberalization and Poverty Reduction.” IZA World of Labor (2016).
Ni, Yuxuan. “Green Trade Barrier in the Context of Globalization: Legal Challenges and Coun-termeasure.” Journal of Education, Humanities, and Social Science 39 (2024).
Paspi Monitor. “European Union Deforestation Regulation on Supply Chain Ciptakan Risiko Ketidakpastian Industri Sawit.” Journal Analysis of Palm Oil Strategic Issues 4, no. 13 (2023).
Powell, Lydia. “Green Protectionism in Global North: Implication for the Global South.” Ob-server Research Foundation (2023).
Purba, Adisty Maharani. “Teori Perdagangan Internasional: Pemahaman Konseptual dan Im-plikasinya dalam Konteks Global.” Madani: Jurnal Ilmiah Multidisiplin 1, no. 5 (2023).
Rohendi. “Prinsip Liberalisasi Perdagangan World Trade Organization (WTO) dalam Pembaha-ruan Hukum Investasi di Indonesia (Undang-Undang Nomor 25 Tahun 2007).” Padjad-jaran Journal of Law (2022).
Setia Negara, Tunggul Ansari. “Normative Legal Research in Indonesia: Conceptual and Doc-trinal Approaches.” Audito Comparative Law Journal 4, no. 1 (2023).
Shi, Yilei. “Challenges Between the Green Trade Barriers and the WTO Treaties: Restrictions Faced by Developing Countries when Promoting Environment-Friendly Products and the Way to Solve It.” Highlights in Business, Economics and Management (2023).
Wang, Qiang, Feng Jiang, Rongrong Li, and Xiaowei Wang. “Does Protectionism Improve Environment of Developing Countries? A Perspective of Environmental Efficiency As-sessment.” Sustainable Production and Consumption 30 (2022).
Xu, Pei, Zehu Jin, and Xiang Hua Wu. “Effect of Green Trade Barriers on Export Enterprise Green Technological Innovation from the Perspective of Low Carbon City Pilot Policy.” Frontiers in Environmental Science (2025).
Lee, Ji Hyun. International Systemic Barrier to Green Development: Green Industrial Policy and Non-Tariff Barrier. Baltimore: Johns Hopkins University Press, 2018.
Sholehudin, M. “Pendekatan Perundang-Undangan dan Pendekatan Konseptual dalam Penelitian Hukum.” Fakultas Syariah dan Hukum, UIN Sunan Kalijaga, 2022.
Widiarty, Wiwik Sri. Buku Ajar Metode Penelitian Hukum. Yogyakarta: Publika Global Media, 2024.
World Trade Organization. Understanding the WTO. Geneva: World Trade Organization In-formation and External Relations Division, 2011.
Peraturan Menteri Pertanian Nomor 38 Tahun 2020 tentang Sertifikasi Perkebunan Kelapa Sawit Berkelanjutan Indonesia.
Undang-Undang Nomor 7 Tahun 1994 tentang Pengesahan Agreement Establishing the World Trade Organization.
International Monetary Fund. “How Lowering Trade Barriers Can Revive Global Productivity and Growth.” IMF Blog, 2016.
S&P Global Sustainable1. “Global Impact of the EU’s Anti-Deforestation Law.” 2023.
United Nations Conference on Trade and Development (UNCTAD). “EUDR Regulation: What It Is and How It Could Impact Vulnerable Economies.” UNCTAD News, 2023.
World Trade Organization. “About the Organization.” https://www.wto.org/english/thewto_e/thewto_e.htm
World Trade Organization. “General Agreement on Tariffs and Trade (GATT 1947).” https://www.wto.org/english/docs_e/legal_e/gatt47_e.htm
Copyright (c) 2026 Anthonio Bimo Raditya, Lewiandy (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with the Ekasakti Journal of law and Justice agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
