Policy options to regulate timber and agricultural supply-chains for legality and sustainability: The case of the EU and Brazil

The need for further ambitious global action to reverse the trend of tropical deforestation and forest degradation and associated human rights concerns is evident. A range of transnational and European Union (EU) regulatory trade policy instruments and market governance mechanisms have been established to achieve these goals. However, illegal timber and forest-risk agricultural commodities continue to be traded internationally. Both the EU and Brazil are part of the problem but can also offer solutions to mitigate the risks of trading illegal timber and forest-risk agricultural commodities. In this paper, we review the main transnational issues at stake and assess under which conditions EU forest-related trade instruments coupled with domestic actions in Brazil can effectively curb illegal and unsustainable commodity production and associated international trade. Shortcomings in the mechanisms for identifying illegality in production, trade, and consumption are identified and possible solutions suggested. Heated political disputes, insufficient political will for transformative changes to tackle negative socio-environmental externalities associated with global commodity trade, and the still non-effective use of available regulatory policies and market mechanisms contribute to international trade practices still far from achieving desired and internationally recognized legality and sustainability standards. Following the assumption that international governance mechanisms of commodity trade between the EU and Brazil may play a relevant role in stimulating positive shifts, we conclude how the existing and emerging possible policy options can be combined through a mix of policy instruments to ensure legal and sustainable production and trade practices that could effectively support the protection and sustainable management of tropical rainforests.