Aligning Transnational due Diligence: The EU Deforestation Regulation and Brazil's Fragmented Beef Governance

ABSTRACT Transnational due diligence regulations, such as the European Union Regulation on Deforestation‐Free Products (EUDR), are reshaping sustainability governance by transforming voluntary norms into binding global rules. Yet, their effectiveness depends on how well they align with domestic governance systems and on the power asymmetries that structure global value chains (GVCs). Focusing on Brazil's beef sector, a major driver of deforestation, this study develops an analytical framework that integrates GVC governance theory with the emerging literature on due diligence regulation. It conceptualizes alignment as a multidimensional condition encompassing rule compatibility, operational fit, and incentive fit across public, hybrid, and private governance mechanisms. Using qualitative evidence from laws, monitoring systems, and hybrid initiatives, the study evaluates alignment with the EUDR's six obligations. Findings reveal persistent misalignments: Externally, divergent forest definitions exclude much of the Cerrado; internally, fragmented institutions and uneven capacities constrain full‐chain traceability; and geopolitically, Brazil is the largest beef exporter, and its trade orientation toward China limits the EU's leverage. Theoretically, the paper reframes due diligence as a form of transnational governance power, where regulatory authority, market influence, and epistemic legitimacy are negotiated across scales, advancing understanding of how directive rules depend on facilitative domestic architectures to achieve sustainable transformation.