
The European Parliament voted on two resolutions on the Shein/Temu imports and on the Deforestation Regulation imposing obligations on EU operators. These are two separate and yet similar cases where EU actions in the past are coming back to haunt us – putting burdens on our SMEs to the unfair benefit of third country businesses.
On the Shein and Temu imports
MEP Peter Agius said that over the past years he has been contacted by several SMEs in Malta describing how direct consumer online sales are bypassing all applicable rules for local retail. These online sales pay no Duty, no customs duties and have no environmental compliance obligations neither. On closer investigation it seems these claims are largely correct. MEP Agius said he cannot accept that our SMEs are put at a disadvantage on our own market. For this reason he pushed for decisive action in the EPP and in the Internal Market Committee. In the resolution adopted, proposed by EPP, it is being proposed for a customs fee on every package received as well as the application of Duty to these imports thus far exempted for lower costs purchases.
On EU producer obligations from deforestation rules
The deforestation regulation adopted in 2023 has imposed strict due diligence and certification requirements which are now wreaking havoc in a good number of industries in Europe. All products coming from forestry in Asia, Africa and South America including timber, soy, palm oil, cocoa, and rubber would be subject to a strict certification system as from December this year. A majority vote in Parliament supported the EPP position to postpone the application of the deforestation regulation for a year. This is not enough. In fact in my vote today I have also supported amendments calling for exemptions for SMEs and further simplification of rules.