Today in trade, the EU's new deforestation legislation is set for another delay, the US president may have scored an own goal against the country’s Russian sanction regime and the OECD gives positive projections of global growth.

EUDR delay

Pressure from the US and some European capitals has led the EU to delay the implementation of new legislation designed to ban imports of products reliant on goods grown on deforested land, the FT reports.

Previous regulations only addressed wood and timber products, but under the EU Deforestation Regulation (EUDR), which was set to come into force in December, cocoa, soy, palm oil, cattle and coffee would also be within scope.

Jessika Roswall, the EU's environment commissioner said that technical issues related to registering for the EUDR portal was to blame:

"There’s a lot of information coming from industry in a short period of time... that is why we need this extra time to see how we can solve that". 

The legislation places a reporting responsibility on EU importers to submit geolocation data for the above products proving that they were not harvested from deforested land. A risk categorisation system means that there will be additional evidence asks for goods originating in medium-risk or high-risk countries.

Persistent criticism

The legislation has faced ongoing criticism from within the bloc, with 18 member states calling for a simplification of the rules to account for those countries with a 'neglible risk'. Poland, one of the most vocal EU critics, recently said that a ‘zero-risk’ category must be introduced.

“The current model imposes disproportionate burdens, especially in countries such as Poland, where the risk of deforestation is negligible,” a government-aligned Polish newspaper claimed.

Critics across European capitals and in Washington DC have also argued that small producers should be exempt from reporting and that due diligence obligations should only be placed on the operator placing the goods on the EU market, rather than the entire supply chain.

However, environmental groups have both questioned the reasoning provided by the Commission and expressed disappointment in the lack of "political will" to see the measures implemented.

WWF said that the delay is "unacceptable and a massive embarrassment" to EU Commission President Ursula von der Leyen's administration. European office forest policy manager Anke Schulmeister-Oldenhove noted that:

"If this technical issue is real, this shows not only incompetence, but also a clear lack of political will to invest sufficiently in a timely implementation of the EUDR."

Chartered Institute perspective

Chartered Institute of Export & International Trade customs consultant, and resident sanitary and phytosanitary expert, Joseph Goldsworthy, says controversy surrounding the regulation is unsurprising, as it’s made “a considerable stir” since being announced in 2023.

In addition to pressure from the US and European capitals, he noted “additional reporting requirements have caused consternation among some exporting countries, including Brazil and Indonesia”, which are notable producers of many of the commodities now falling within EUDR’s scope.

Goldsworthy highlights that a recent call for evidence by the EU had already raised the possibility of changes to EUDR in its current form, with “the potential for some amendments” in addition to the postponement.

This, he adds, “could take the form of an Omnibus Package”, similar to the one used to adjust other sustainability legislation introduced by the EU.

US Russian sanctions undermined?

US President Donald Trump’s decision to lift sanctions on a Belarussian airline Belavia could jeopardise sanctions on Russia, Politico reports.

In return for 52 political prisoners, a US-Belarus deal was signed on 11 September, which included a provision enabling the Belarusian-flagged carriers to gain access to spare parts for its 16-strong fleet.

Conditions for this access did include strict prohibitions on the “export and reexport” of “covered aircraft” to locations currently subject to US sanctions, including Russia and the occupied Ukrainian regions of Donetsk, Luhansk and Crimea. These terms were shared in a letter sent by the US Commerce Department to Belavia’s general director, dated 12 September.

However, just days after the missive was sent, the airline announced discounted flights to St. Petersburg.

Commentators believe the risk of sanctioned aircraft parts reaching Russia and bolstering the country’s beleaguered airlines is now much higher.

It raises further questions about the US president’s commitment to implementing harsher measures against Russia, following his criticism of EU sanctions and the bloc’s continued Russian oil purchases.

OECD optimism

The global economy could be set for greater growth than previously expected this year, according to the OECD Economic Outlook Interim Report, launched today. However, US protectionism threatens the strength of many economies worldwide.

The global body predicted growth of 3.2% this year, up from 2.9% in June, with the authors noting that the world economy has been “more resilient than anticipated in the first half of 2025”.

They also wrote that behaviour ahead of US tariff’s coming into effect boosted trade numbers:

“Industrial production and trade were supported by front-loading ahead of higher tariffs.”

However, with an effective US tariff rate of 19.5% in operation across all imports, the report warns that early signs of negative impacts from the hike, including weaker labour markets and stalled disinflation, post-pandemic, in many economies.

Global growth predictions for 2026 remained at 2.9%, while the 3.2% prediction for this year reflects slower growth than was recorded in 2024 (3.3%).

Projections for UK inflation were notably gloomy, with the country expected to post the highest rate in the G7 this year, hitting 3.5%. The OECD did slightly revise up its expectations for UK growth to 1.4%.

You can access the full report here.

Also in the headlines

• The latest S&P Global UK Purchasing Managers' Index warned of slowing growth for the UK's private sector, amid ongoing worries about manufacturing and trade. However, the key figure remained above the crucial 50 threshold for growth. 
• Nvidia continued it's intra-sector investment, as the chipmaker has agreed to pump US$100bn into OpenAI, the Guardian writes

Yesterday in trade

• A look at party conferences, from the Liberal Democrats’ event last weekend, to Labour this weekend
• Major events including the UN General Assembly and the World Climate and Biodiversity Summit

You can read more here.