Légal Challenges and Opportunities in Promoting Sustainable Palm Oil Trade in Europe: A Review from a Social Economy Perspective

Abstract

The sustainable palm oil trade between producer countries and the European Union faces escalating legal scrutiny amid shifting environmental standards and regulatory frameworks such as the EU Deforestation-Free Regulation (EUDR). While these measures aim to strengthen global sustainability, they often overlook the diverse social and economic realities of producing regions, particularly those involving smallholder farmers and local communities. This article presents a qualitative literature review examining the legal challenges and strategic opportunities in aligning sustainable palm oil trade with social economy principles. Drawing insights from legal texts, policy documents, and interdisciplinary scholarship, the study identifies critical barriers including regulatory asymmetry, limited legal harmonization, and exclusionary certification schemes. At the same time, the review highlights potential avenues for inclusive trade, such as cooperative compliance models, mutual recognition frameworks, and multi-stakeholder partnerships that promote equity and shared responsibility. The findings underscore the need for legally robust yet socially sensitive trade mechanisms that balance environmental commitments with inclusive development goals. This paper contributes to ongoing discourse by offering a socio-legal lens to evaluate palm oil trade governance in the European context.