What question did this study set out to answer?

The primary aim is to evaluate the effectiveness of the EU's Deforestation Regulation on soy trade trajectories.

Costly regulation, minimal results: The EU’s deforestation regulation effect on global soy trade

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Randomized trial illustrates how EU regulations affect soy trade, suggesting minimal efficacy in reducing deforestation.

The primary aim is to evaluate the effectiveness of the EU's Deforestation Regulation on soy trade trajectories.
Employed a gravity model to analyze trade dynamics.
Assessed EUDR compliance costs as additional trade costs for EU exports.
Examined shifts in soy export patterns and pricing.
Stricter compliance costs shifted soy exports from South America to non-EU markets like China.
EU imports redirected towards North America, leading to price increases for EU soy users.
Without compliance, EU consumers would face larger price hikes, while South America sees minimal terms-of-trade losses.

Sharma et al. (2026) studied this question.

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