Part 3/16:
This regulation aims to combat global deforestation driven by consumer demand in Europe, the world's second-largest market for commodities associated with forest loss. The EU accounts for roughly 16% of global deforestation linked to traded goods, amounting to over 200,000 hectares per year. Yet, the implementation of such strict rules has sparked fierce resistance from exporting countries, particularly Malaysia and Indonesia, who argue that the regulation is discriminatory and could unfairly penalize their smallholders and their industries.