Abstract
On May 22, 2025, the EU designated Thailand as a “low-risk” country regarding deforestation under the EUDR. This regulation, effective later this year, requires that imports like soy, cocoa, and palm oil be sourced without deforestation links. Thailand’s status allows exemptions from complex compliance processes, reducing import costs compared to higher-risk nations, benefiting sectors like rubber and palm oil. However, Thailand must maintain transparency and robust data systems to retain this status, with the EU’s review planned for 2026, emphasizing the regulation’s role in shaping global agricultural trade.
Summary
Thailand’s Low-Risk Status Under EUDR
On May 22, 2025, the European Union (EU) designated Thailand as a "low-risk" country concerning deforestation under the EU Deforestation Regulation (EUDR). Effective later this year, the EUDR requires medium and large EU businesses to ensure imported products like soy, cocoa, palm oil, timber, coffee, rubber, and beef are free from deforestation links. This includes a three-step due diligence process, although Thailand’s low-risk status exempts importers from certain compliance steps, lowering their costs compared to higher-risk countries.
Economic Implications and Export Opportunities
Thailand’s classification is a boon for its agricultural exports, particularly in rubber and palm oil, giving it a competitive edge in the EU market. As Thailand ranked 15th in EUDR-regulated imports in 2024, the low-risk designation allows Thai exporters to benefit from lower compliance costs, positioning them favorably against standard- and high-risk nations.
Long-Term Strategy for Sustainability
To maintain its low-risk status, Thailand must enhance supply chain transparency through robust data collection and traceability systems. Initiatives like the Sri Trang Group’s "Traceable Rubber" project exemplify adapting to EU requirements. The Thai government is also working on compliance preparations, aiming for high-value crops like coffee and cocoa. Sustaining this low-risk standing is crucial, as the EU’s next risk classification review is set for 2026, marking a pivotal moment for Thailand in the evolving global agricultural trade landscape.
