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Export decline feared if EU timber trade deal is delayed

The Association of Indonesian Forest Businessmen (APHI) has said that Indonesia may see decreasing exports of timber and its by products to the European Union (EU) if the country continues to delay the signing of the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (FLEGT-VPA)

Nurfika Osman (The Jakarta Post)
Jakarta
Sat, January 19, 2013

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Export decline feared if EU timber trade deal is delayed

T

he Association of Indonesian Forest Businessmen (APHI) has said that Indonesia may see decreasing exports of timber and its by products to the European Union (EU) if the country continues to delay the signing of the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (FLEGT-VPA).

APHI chairman Purwadi Soeprihanto said decreasing exports may become a reality because only FLEGT-VPA licensed timber would be recognized as legal timber under the EU Timber Regulation (EUTR) that is slated to take effect in March, with everything else having to go through a system of due diligence.

“The due diligence system will screen the products in a number of steps and is likely to add more costs for importers. I’m sure they [the importers] don’t want to spend more money on due diligence costs
alone, thus our producers have to share the cost burden. This, I believe, will decrease our timber exports to the EU,” Purwadi said in Jakarta on Friday.

According to the EUTR, he said, proof of due diligence was compulsory on all timber products, including bamboo and rattan, if unwoven, flooring, work tops, pulp, paper, wooden furniture and prefabricated buildings imported into the EU. Recycled timber is excluded from the regulation, yet documentation should be in place to support this.

“If we can sign the FLEGT-VPA immediately, our products will not have to undergo due diligence. We hope Indonesia doesn’t see more delays this year because it will come into effect shortly,” he said.

He added that the signing of the FLEGT-VPA between Indonesia and the EU had been delayed twice last year, even though both parties had signed the memorandum of understanding (MoU) on timber trade in mid-2011.

The agreement was aimed at eradicating illegal logging, log laundering and its related international activities.

Before issues of FLEGT-VPA arose, the government introduced the Timber Legality Verification System (SLVK) certification as part of measures to curb illegal logging in Indonesia. The certification has been mandatory since 2010 and has been applied in industrial forest concessions (HTI), production forest concessions (HPH) and community plantation forests (HTR).

The SVLK provides Indonesian producers greater access to the global market as it offers guarantees to buyers that the timber and its byproducts are from legal practices sourced in an environmentally friendly manner.

“Unfortunately, the SVLK is not enough to help promote our products in the EU, though we have a good system that guarantees the legality of our products. But we keep encouraging more producers to obtain the certification,” he said.

He said that 40 percent of 388 active producers had yet to gain the SVLK certification, with a few of them small to medium level producers. The association hopes to get the certification by June this year.

Industry Ministry agro-industry director general Benny Wahyudi said that the FLEGT-VPA between Indonesia and the EU was expected to be signed in April.

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