Rubber smallholders urge EU to review deforestation regulations

KUALA LUMPUR, Malaysia—More than 500 Malaysian smallholders, including natural rubber farmers, have signed a petition calling on the European Union to review its planned deforestation regulation, which they claim will result in them "being sentenced to poverty."

"The regulation's unilateral and unrealistic demands on traceability and geolocation will prevent small farmers from accessing the European market," said the March 15 petition, representing 2.5 million small farmers.

The petition was signed by six representative bodies within the sector, including the Rubber Industry Smallholders Development Authority (RISDA).

They also called on the EU to withdraw clauses of the regulation targeting non-European farmers and to exempt small farmers from the bill's requirements.

The EU's definition of small farmers should align with the "generally accepted defection of a small European farmer that encompasses any farm operating up to 10 hectares of land," the petition said.

Furthermore, the regulation risks labeling Malaysia as a "high-risk country for deforestation," according to the petition, which called for a "guarantee" that the country would not be categorized as such.

For proper engagement with the EU, it "is crucial to recognize the existence of small farmers in the entire supply chain," it added.

The deforestation regulation, it said, places "undue burdens" on the industry, preventing smallholders from accessing the European market.

In December 2022, the EU agreed on a draft deforestation law setting strong mandatory due-diligence requirements for companies placing relevant products on the EU market.

Under the regulation, operators and traders will have to prove that the products were produced on land that was not subject to deforestation after Dec. 31, 2020.

Furthermore, companies will need to prove that their products are legal and compliant with all relevant applicable laws in force in the country of production.

The regulation includes requirements to collect "precise geographical information" on the farmland where commodities have been grown, so that they can be checked for compliance.

Natural rubber was not originally included in the list of EU commodities but was added by the European Parliament in September following intense lobbying by environmental groups.