In 2025, the European Union (EU) will introduce a new regulation that bans the import of chocolate that has contributed to deforestation or has been produced with child labor. This measure is expected to increase the price of chocolate products like Easter bunnies, according to economist Birgit Meyer from the Economic Research Institute (Wifo).
The regulation applies not only to cocoa and Easter bunnies but also to other raw materials such as wood, rubber, soy, coffee, palm oil, and beef. Companies will have to conduct due diligence on their supply chains to ensure compliance with the new standards. Failure to comply could result in penalties and product bans. The aim is to protect forests and human rights globally.
Although the EU is not a significant producer of products that contribute to deforestation, it is a major consumer. The regulation may lead to changes in growing regions, particularly in countries like Brazil and Indonesia, where there may be a decrease in deforestation. Additionally, it could impact international trade flows for products like chocolate, coffee, and palm oil.
The regulation may increase costs for companies due to upgrading their supply chains to meet new standards. However, the overall economic impact is expected to be minor. While there may be some welfare losses in the EU and partner countries, the regulation does not predict a significant negative effect on economic prosperity.
Ultimately, this regulation aims
