Exploring the Brussels Effect

Abstract

The European Union (EU) wields significant influence over global markets through a phenomenon known as the Brussels Effect. This strategy involves aligning EU standards with regulations, effectively positioning the EU as a key driver of environmental and climate trade standards. Within the realm of trade in forest products, the EU has implemented instruments such as the Timber Regulation (EUTR), which was succeeded by Deforestation Free (EUDR) in 2023, and the EU Forest Law, Governance, and Trade Action Plan (FLEGT). These regulations have exerted considerable pressure on Brazil to embrace best practices for timber extraction, primarily by adhering to the Forest Stewardship Council (FSC) and other private initiatives. The implications of EU influence in this context give rise to both positive and negative consequences, underscoring its significance in shaping global forest policies.