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Supply chain divergence challenges a ‘Brussels effect’ from Europe's human rights and environmental due diligence laws

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  • Mairon G. Bastos Lima
  • Almut Schilling‐Vacaflor

Abstract

Human rights violations and pressing environmental issues have tainted agricultural trade. The role of international market demand for commodities such as soy in causing those problems is clear, yet they remain mostly unaddressed. Therefore, European countries have led a new global trend on mandatory human rights and environmental due diligence (HREDD), advancing the EU's growing global regulatory ambitions. Here, we analyse the prospects for successful externalisation of Europe's sustainability standards – a ‘Brussels Effect’ – using Brazilian soy as a case. Our analysis exposes how the practice of supply chain divergence (i.e., the segmentation of exports tailored to different consumer requirements) can easily evade policy impacts and negate their additionality where Europe commands a minor market share. To avoid becoming just a niche market in these cases, the EU would need to expand on its actions, (i) engaging with other major consumer countries to export its standards, (ii) doubling down on HREDD's coverage to include financial actors and companies trading with other markets, or (iii) moving beyond ‘do no harm’ policies to adopt more strategically targeted ‘do good’ instruments to counter drivers of deforestation on the landscape level.

Suggested Citation

  • Mairon G. Bastos Lima & Almut Schilling‐Vacaflor, 2024. "Supply chain divergence challenges a ‘Brussels effect’ from Europe's human rights and environmental due diligence laws," Global Policy, London School of Economics and Political Science, vol. 15(2), pages 260-275, May.
    • Handle: RePEc:bla:glopol:v:15:y:2024:i:2:p:260-275
    DOI: 10.1111/1758-5899.13326
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    Cited by:

    1. Barbosa de Andrade Aragão, Rafaela & Bastos Lima, Mairon G. & Burns, Georgette Leah & Ross, Helen & Biggs, Duan, 2024. "‘Greenlash’ and reactionary stakeholders in environmental governance: An analysis of soy farmers against zero deforestation in Brazil," Forest Policy and Economics, Elsevier, vol. 166(C).
    2. Laila Berning & Rachael D. Garrett & Metodi Sotirov, 2026. "How Does the European Union's Pluralistic Institutional System Influence Policy Change? The Case of the European Union Regulation on Deforestation‐Free Products," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(S1), pages 1362-1378, January.
    3. Thomas Addoah & Joss Lyons‐White & Federico Cammelli & Keessy Maria‐Prisca Kouakou & Sophia Carodenuto & William J. Thompson & Cécile Renier & Rachael D. Garrett, 2025. "Is the Implementation of Cocoa Companies' Forest Policies on Track to Effectively and Equitably Address Deforestation in West Africa?," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(4), pages 5197-5213, August.
    4. Jimena Solar & Yovita Ivanova & Christoph Oberlack, 2025. "Human Rights and Environmental Due Diligence Regulations for Deforestation‐Free Value Chains? Exploring the Implementation of the EU Regulation on Deforestation‐Free Products in the Cocoa and Coffee Sectors of Peru," Global Policy, London School of Economics and Political Science, vol. 16(4), pages 602-614, September.
    5. Valentin Guye & Patrick Meyfroidt & Erasmus Zu Ermgassen, 2026. "The Need for Improved Public Transparency in the Era of Due Diligence Regulations," Post-Print hal-05562655, HAL.
    6. Axel Marx & Charline Depoorter & Santiago Fernandez de Cordoba & Rupal Verma & Mercedes Araoz & Graeme Auld & Janne Bemelmans & Elizabeth A. Bennett & Eva Boonaert & Clara Brandi & Thomas Dietz & Eve , 2024. "Global governance through voluntary sustainability standards: Developments, trends and challenges," Global Policy, London School of Economics and Political Science, vol. 15(4), pages 708-728, September.

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