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new era in Indonesia-EU trade will begin in just a few weeks, as Indonesia becomes the first country in the world to have its timber products — from floorboards to furniture — exempted from the EU’s strict controls against illegal logging.

In forested nations like Indonesia, illegal logging has long deprived the government of tax revenue, caused deforestation, undercut law-abiding businesses and thwarted sustainable timber production.

Global efforts to limit climate change suffer, as do indigenous peoples and other communities that depend on forests for their incomes and way of life.

In its efforts to root out illegal logging through trade measures, the EU introduced its EU Timber Regulation (EUTR), which entered into force in March 2013.

The EUTR prohibits anyone in the EU from placing timber products from illegal sources on the EU market. And it puts the onus on EU companies to verify that the wood products they import are legal.

Until now, doing so has been costly and time-consuming.

From Nov. 15, Indonesia will only export timber products to the EU if they have been verified as legal under the national timber legality assurance system (SLVK) and are accompanied by EU-recognized the Forest Law Enforcement, Governance and Trade (FLEGT) licenses.

This milestone is the result of many years of hard work by Indonesia and the EU.

The scale of this achievement is immense. Indonesia has overturned decades of illegal logging to bring its forest sector under control.

Former adversaries have joined forces to sit side-by-side and design a system all forest players — from business owners to environmentalists — can endorse, and one that will only improve with time.

All Indonesians should be proud of this success. On behalf of the European Timber Trade Federation (ETTF), I congratulate you all.

You have achieved what many thought would be impossible.

And while it is true that some EU timber importers were losing hope of ever seeing a FLEGT license, today they are convinced that this new scheme will be transformative.

The benefits to importers are clear. FLEGT licenses will reduce their legality risk to zero and mean they need to do no further due diligence to meet the requirements of the EUTR.

This will save time and money. It will streamline logistics and reduce corporate risk.

Recent interviews with EU-based importers, specifiers and end users in the new edition of the ETTF’s newsletter show the breadth of support for FLEGT-licensed timber.

Those interviewed anticipate that FLEGT licenses will improve the reputation and competitiveness of Indonesian timber products. They expect Indonesia to attract new business.

Some companies that had doubts about Indonesian products will be compelled to take a fresh look at what is on offer.

FLEGT licensing connects Indonesia’s control over its supply chain to the EU’s prohibition on placing illegally harvested wood on the market.

With this link in place, Indonesia and the EU have created a virtuous trading circle that will benefit responsible producers and consumers.

The impact on the European timber trade will be significant.

Indonesian exports to the EU increased after the SVLK became mandatory in 2013, but those exports still faced the due diligence requirements of the EUTR.

The arrival of FLEGT licenses removes that barrier as is set to boost exports further.

Of course, for Indonesia to get the reward it deserves, the EU must ensure it really has slammed the door closed on illegal timber.

The ETTF therefore urges the EU to enforce the EUTR more vigorously.

The good news is that EU member states are headed in the right direction. Just two years ago, only 11 of the 28 Member States were fully compliant with the EU Timber Regulation.

Today all 28 are all checking on companies and taking action when they find transgressions.

In March, for instance, Sweden and the Netherlands formally notified two companies that they may be subject to sanction for importing wood products from Cameroon and Myanmar without undertaking effective due diligence.

At the end of this year, the EU and Indonesia will mark the arrival of the first FLEGT licensed timber products in the EU. It is about time the tropical timber trade had something to celebrate.  
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The writer is the secretary-general of the European Timber Trade Federation (ETTF).