June Arnold
Head of Policy
The Grain and Feed Trade Association (GAFTA)
The EU has delayed the Deforestation Regulation (EUDR) to 30 December 2026, opening a window to simplify rules and address implementation challenges. Alongside moves to ease CSRD/CSDDD burdens and a welcome NGT compromise recognising NGT-1 plants as equivalent to conventional plants, GAFTA calls for practical, science-based policies that protect sustainability without disrupting trade.
The Danish Presidency under the slogan ‘A strong Europe in a changing world’, concluded its term with a very busy December with many policy decisions impacting the agri commodity trade culminating in the extension of the application date of the EU Deforestation Regulation (EUDR) by one year until 30th December 2026 and a simplification report and review to be presented by 30 April 2026.
CUTTING DEFORESTATION WITHOUT DISRUPTING TRADE
The agricultural trade, like the EU and its trading partners are all very supportive of the goal to reduce deforestation globally. Although many third country trading partners remain deeply concerned about the trade impact of EUDR fearing costly and onerous due diligence, traceability and geolocation requirements which have been raised in many WTO committees and its potential to disrupt key important global supply chains. Representing the international grain and feed trade, we encourage the EU to take full advantage of the postponement of the EUDRs entry into force to engage in deeper dialogue not only to consider aspects of implementation but more importantly, to consider necessary adjustments to the legislation and continue constructive dialogue to reach our common goals.
PROVISIONAL DEALS ON CSRD AND CSDDD
In addition, the EU reached provisional agreements to simplify sustainability reporting and due diligence requirements under directives on corporate sustainability reporting (CSRD) reducing those companies under scope by increasing employee threshold numbers, net turnover increases to alleviate further reporting burdens and removing SMEs from scope altogether and in addition for the corporate sustainable due diligence directive (CSDDD) reducing penalties and liability.
The long awaited EU-Mercosur trade deal was not signed and uncertainty remains with delay on signing pushed to mid-January.
PESTICIDE POLICY IN FOCUS
The EU’s Food and Feed Safety Omnibus is high on the agenda for 2026 and its pesticide policy will bring major changes. Border controls will be stepped up by 50% on imports from third countries. Many exporters rely on import tolerances where EU and third-country good agricultural practices and MRLs differ, often reflecting different crop conditions and pest and disease pressures—especially in tropical and sub-tropical climates. Some pesticides not registered in the EU may be necessary in non-EU countries for crops or pests that do not exist in the EU.
The intention to ban imports with even trace residues of pesticides no longer approved in the EU will eliminate several import tolerances and likely impact trade flows. The first three substances are already under discussion and residues could shortly be at zero if bans are approved. Alternative products need to be available as others are phased out, and concerns remain about the impact on EU trade flows.
A POSITIVE STEP ON NGTS
On a positive note, EU member states reached a compromise for an EU policy on plants and products obtained from New Genome Techniques (NGTs). We must now wait the final step which is the formal adoption by European Parliament expected early in 2026. As the EU is a key importer and exporter of agri commodities, this development is very much welcomed by the trade.
Plant Breeding Innovation or NGT plants have the potential to contribute to the innovation and sustainability goals considering possibilities to improve tolerance or resistance to plant diseases and pests, plants with improved tolerance or resistance to climate change effects, plants with higher yields and resilience, improved nutrient and water efficiency, and quality characteristics to name a few.
New plant breeding tools are vital to improving productivity and sustainability and the international agricultural commodity trade encourages that regulations are consistent, science-based, and facilitate trade across the globe. Safety comes first but regulatory alignment also plays an important role for the international trade transporting agricultural commodities to ensure compliance in all jurisdictions and avoid a patchwork of approaches on NGT policy.
The compromise supports two categories of plants NGT1 and NGT2. We see many positives on category NGT-1 maintaining the principle that NGT-1 plants are equivalent to conventional plants with no traceability or labelling requirements (except for seeds) keeping in mind the principle of equivalence and mirroring a similar approach taken by many other trading partners and on a practical level avoiding trade disruption, a verification process will take place and also for third country plants to achieve NGT-1 status.
Category 2 plants with more complex or less “natural-equivalent” genomic modifications will continue to be subject to existing GMO legislation requirements, including mandatory labelling of products. EU member states can also opt out from the cultivation of NGT-2 plants on their territory and can have optional coexistence measures to avoid the unintended presence of NGT-2 plants in other products, if they wish to do so. A patenting expert group will also be formed and a study on the impact to come later.
The focus will now turn to implementation of all these policies and clarification of measures but the grain trade remains committed to contributing to these discussions and keeping member companies informed.