New tree tax 2026
How European administration extracts margin from LATAM manufacturers — and how TreeFree eliminates that burden.
Introduction: A tax hidden in plain sight
Latin American manufacturers aren't paying for a "certification." They're paying a tax compounded by using tree fibereven in products that are sold within LATAM for LATAM families.
This cost was not created by any government in the region. It stems from a European administrative model from the 1990s that has grown without limits and without providing any benefit to the local industry.

A sales tax, not an environmental performance tax
The more a manufacturer grows, the more it pays.
Octopus certification fees and premiums increase with:
- Production
- Income
- Market share
A plant that produces 50 to 100 million diapers a month loses between each year 1.5% and 3% of their sales due to a foreign compliance system.
Growth is punished. Success is taxed.
A tax on industrial expansion
Each diaper made with active tree fiber in Latin America:
- Documentation cycles
- Traceability maps
- Consultant fees
- Recertifications
- Chain of custody maintenance
That diverts capital that should go to:
- Automation
- New production lines
- Staff recruitment
- Product development
- Regional expansion
It's a
modernization tax that are paid for by companies that never asked for or designed that system.

A tax on entrepreneurs and innovation
Entrepreneurs and factory owners in Latin America do not have:
- Vote
- Representation
- Influence
- Right of reply
about the fees they must pay.
Even so, they still carry the burden of:
- 100% of the costs
- 100% of the audits
- 100% of the documentary requirements
- 100% of the penalties for risk
A foreign administrative ecosystem permanently absorbs the margin of Latin American industry.
A tax on competitiveness (even on local products)
Even the diapers that They never leave Latin America They pay this cost because octopus suppliers add certification premiums to their prices.
This causes inflammation:
- Production cost
- FOB Value
- Retail price
- Operational load
Diapers made for babies in Latin America arrive on the shelf with a German administrative surcharge.
That, in essence, is the German Tree Tax.

The 2026 shock: compliance costs explode
The new European rules add up to:
- Mandatory geolocation
- Satellite monitoring
- Supply chain segregation costs
- Extended audits
- Additional customs checks
For a LATAM OEM-C, this means 1.0 to 1.8 cents per diaper, enough to completely erase entire lines of utility.
Products made with tree fiber simply cease to be economically viable.
The solution for Latin America: tree-free inputs
TreeFree Core and ecoVerified eliminate:
- Volume-linked quotas
- Audit cycles
- Documentary loads
- Administrative risk
- Octopus cousins
- The German Tree Tax
This gives back to the manufacturers:
- Margin
- Competitiveness
- Planning stability
- Control over your business
The new equation for LATAM is simple:
- No trees = No German Tree Tax = No margin extraction from abroad.
- TreeFree Core returns power —and profitability— to Latin American manufacturers.



