Representatives of the Unión de Gremios de la Producción (UGP), the Cámara Paraguaya de Exportadores y Comercializadores de Cereales y Oleaginosas (Capeco), and the Federación de Cooperativas de Producción (Fecoprod) met this Wednesday with Foreign Minister Rubén Ramírez Lezcano to express concern over new restrictions imposed by the European Union (EU). The meeting at the Ministry of Foreign Affairs focused on the potential impacts of a regulatory proposal that classifies soybean oil as an unsustainable biofuel.
The production sector's unease stems from the so-called ILUC (Indirect Land Use Change) regulation, a proposal presented by the European Commission on April 13. The measure aims to categorize commodities associated with high risks of land-use change, which could harm the reputation and market access of Paraguay's entire soy complex internationally, extending beyond effects on industrial by-products.
Héctor Cristaldo, president of the UGP, warned that the European initiative ignores local realities by treating Paraguay as a high-risk region without solid scientific basis. "They are labeling Paraguay as a high-risk country that does things wrong without knowing our reality," Cristaldo stated. According to him, this could lead to an arbitrary disqualification of national production.
The leader further highlighted that such unilateral regulations distort the spirit of the free trade agreement signed between Mercosur and the EU last January, which created one of the world's largest markets with over 700 million consumers. In response, the sector formalized its position by sending a technical complaint note directly to European authorities, while coordinating with the Foreign Ministry's technical team to ensure legal security in foreign trade operations.
The proposal now moves to final review by the European Parliament and the EU Council, bodies empowered to reject the text. The draft faces criticism even within the European bloc, with countries such as Austria recommending its rejection while scrutiny continues.