On Monday, May 27, 2024, at 19:00 WIB, KSU APIKRI actively participated in the “Town Hall Meeting on EU Policies’ Impacts on SMEs” online event organized by the World Fair Trade Organization (WFTO). The event was attended by prominent KSU APIKRI personnel including Chairperson Ely Widayati, General Manager Rahma Dewi Akbari, Secretary Azmi Gading Lazuardi, and Head of Export Market Services Noor Hasanah. This meeting was a significant platform to discuss the implications of new European Union policies on small and medium-sized enterprises (SMEs).

A major focus of the event was the European Union’s Deforestation Regulation (EUDR) and its impact on SMEs. Discussions delved into the EU Directive on Unfair Trading Practices (UTP) in the Agri-food sector, emphasizing its importance for the fair trade movement. This directive aims to protect non-EU smallholders from abusive practices and creates more space for dialogue on power imbalances in international supply chains. Additionally, it explores the risks and opportunities for non-EU producers, aiming to expand the list of UTPs and improve enforcement mechanisms to increase the level of complaints. (agl)

The EUDR's objective is to minimize the marketing of products linked to deforestation within the EU market. The regulation imposes obligations on companies that use, import, or sell certain products on the EU market, with special provisions for SMEs. Non-EU smallholders are not directly obligated but face new traceability requirements from the companies that buy from them. This regulation has important implications for the fair trade movement, as it seeks to balance environmental and socio-economic sustainability.

The event also highlighted the timeline for the EUDR's implementation, with the entry into force in June 2023, and transition periods ending in December 2024 for large and medium-sized operators and traders, and June 2025 for small and micro enterprises. The fair trade movement aims to gather information to map implementation gaps and support the successful and inclusive implementation of the EUDR, using connections to the private sector to advocate for practical and fair application of the regulation.

The discussions identified opportunities for smallholders supplying to the EU market, such as increased attractiveness to EU buyers due to risk assessment and traceability systems. However, the event also underscored significant risks, including the potential exclusion of smallholders who cannot prove compliance with the regulation. The meeting concluded with a call for strategic collaborations and support for smallholders to ensure