Green Néo-colonialism or Sustainable Trade: EUDR's Equity Implications for Global South Smallholders

Abstract

The European Union Deforestation Regulation (EUDR), enacted in 2023, aims to curb deforestation linked to imported commodities. However, its implementation has sparked global concern over its equity implications, particularly for smallholders in the Global South who often lack the resources and infrastructure to comply with the regulation’s strict due diligence requirements. This study explores whether the EUDR reinforces green neo-colonial dynamics or offers a pathway toward sustainable trade. The research aims to analyse how the regulation affects smallholder inclusion in global value chains and the broader socio-economic impacts it triggers. This study employs a qualitative literature review approach, synthesising findings from 2015 to 2025 across academic journals, policy reports, and NGO publications. Data collection involved structured literature mapping and thematic categorisation using Mendeley Desktop as the primary reference management tool. Thematic content analysis was applied to identify recurring patterns related to regulatory burden, market exclusion, and institutional asymmetry. The findings indicate that the EUDR disproportionately burdens smallholders with compliance costs ranging from 10–30% of their income, leading to exclusion from EU markets in up to 50% of documented cases. Moreover, the regulation risks perpetuating power imbalances reminiscent of colonial trade structures. While inclusive implementation models show promise, they remain underutilised. In conclusion, the EUDR’s success in promoting sustainable trade depends on its ability to integrate equity considerations. Future research should investigate participatory and context-sensitive compliance models across diverse agricultural sectors.