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Jakarta Post

Export decline feared if EU timber trade deal is delayed

  • Nurfika Osman

    The Jakarta Post

Jakarta   /   Sat, January 19 2013   /  09:40 am

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).

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,...