(Bloomberg) -- Major cocoa traders have asked the European Union to delay new environmental rules aimed at tackling deforestation amid mounting criticism.
The absence of clarity of key elements in the deforestation regulation, known as EUDR, has made compliance efforts highly uncertain, the European Cocoa Association said in a letter to European Commission President Ursula von der Leyen.
The trade group, which represents top chocolate companies including Barry Callebaut AG and Cargill Inc., called for an extension of the transition period for at least six months after several milestones including the publication of formal guidance have been reached.
The letter comes barely a week after German Chancellor Olaf Scholz pushed back against the regulation, adding to objections voiced by some nations, including Brazil, Indonesia and Malaysia, which argue it will have a negative impact across global commodities markets. The biggest political group in the European Parliament also renewed criticism of the regulation.
“Given these shortcomings, the implementation of the EUDR is respectfully, heading towards critical failure with serious consequences for the cocoa supply chain,” said ECA President Paul Davis.
The ECA cited operational difficulties in a crucial information system, including its ability to process millions of farm data adequately, and uncertainty around how member states will interpret the legislation. The regulation is due to begin on Dec. 30.
The European People’s Party voiced fresh criticism of the regulation, weeks before making a decision on the next commission. It said in a statement that the “bureaucratic monster threatens the supply of animal feed and the trade of many consumer goods.”
(Adds EPP statement. An earlier version corrected the third paragraph to show when ECA is calling for the six-month extension to begin)
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