Proposed stricter European Union (EU) rules on pesticide residues in agricultural products could affect agricultural exports from North, Central and South America and the Caribbean.
The research findings were announced on Tuesday, October 27, 2026, by IICA. The study was conducted by international consultancy Bryant Christie Inc. (BCI) and focuses on the possible consequences of the European proposal Food and Feed Safety Simplification Package, also known as Omnibus X.
The proposal provides, among other things, for stricter standards for the maximum permitted pesticide residues on agricultural products imported into the European Union. For certain active substances, the permitted amounts would be reduced to the lowest concentration that can be reliably measured.
According to the researchers, this change could affect products that currently comply with existing international food safety standards.
South America faces greatest financial risk
The study shows that South America faces the greatest exposure to possible trade restrictions in absolute terms. The annual value of the agricultural exports involved is estimated at US$29.7 billion for this region.
For North America, the figure is around US$10.8 billion, while Central America is cited at US$4.81 billion and the Caribbean at US$427 million.
Brazil has the highest estimated value of agricultural exports that could be affected by stricter rules, at US$15.4 billion. It is followed by the United States with US$7.68 billion and Argentina with US$4.62 billion.
Peru, Canada, Colombia, Chile, Costa Rica and Ecuador are also among the countries for which significant trade values could come under pressure.
IICA stresses that these amounts do not represent projected economic losses. They concern the value of agricultural products whose access to the European market could be affected by new regulations.
Guyana heavily dependent on European market
Noteworthy is the position of Guyana, which according to the study is the most dependent on the European market among the countries examined. As much as 42.7 percent of Guyana’s agricultural export value examined is destined for the European Union.
Honduras (39 percent), Panama (37.1 percent), Costa Rica (35.6 percent), Belize (31.8 percent) and the Dominican Republic (31.5 percent) also show strong dependence.
Regionally, Central America is the most vulnerable. Of the agricultural export value examined from this region, 28.1 percent goes to the European Union. For South America, this share is 16.9 percent and for North America 6.7 percent.
Although Suriname is not mentioned separately in the released research findings, the study makes clear that stricter European import regulations could affect agricultural exporters in various parts of the American continent.
Coffee, soybeans, bananas and other products potentially affected
The researchers identified several agricultural products that could face stricter approval requirements under the proposed changes.
Soybeans and coffee together account for around half of the export value of the twenty largest agricultural product categories exported from the American continent to the European Union.
Bananas, pineapples, palm oil, groundnuts, cocoa, mangoes, avocados, grapes and asparagus are also mentioned.
For Costa Rica, the pineapple and banana sectors are particularly important. Honduras is dependent, among other things, on coffee and palm oil, while the Dominican Republic could be vulnerable in exports of bananas, cocoa and mangoes.
In total, the researchers examined 151 active substances in pesticides. Of these, 63 substances were identified for which existing European residue limits could be tightened further.
According to the study, such adjustments could force agricultural producers to change their pest-control methods and production processes. This could lead to higher production costs and affect their competitive position.
IICA calls for science-based rules
IICA Director General Muhammad Ibrahim stresses that the study is intended to provide countries with technical information enabling them to better assess the possible economic consequences of the European proposals.
According to Ibrahim, international trade rules must be based on scientific evidence and recognised international standards, while ensuring both food safety and predictable international trade.
The importance of consultations between the European Union and agricultural exporting countries is also highlighted.
The researchers recommend additional studies by country and agricultural product. These should examine, among other things, the actual use of pesticides, the presence of residues on export products, available alternatives and the costs producers must incur to comply with new rules.
Possible impact also on exports to the United Kingdom
The study further points to negotiations between the European Union and the United Kingdom on an agreement concerning sanitary and phytosanitary measures.
Such an agreement could result in European regulations on pesticide residues also applying to the British market.
According to IICA, further technical analyses and international negotiations are necessary to map out the consequences of the proposed rules.
The ultimate economic consequences depend, among other things, on the final European regulations, the pesticides used, the extent to which producers can adapt and the availability of alternative export markets.
