Malaysia, EU Negotiating “Sustainable” Logging Pact

Malaysia is working to become the first country in Asia to sign a voluntary agreement with the European Union guaranteeing that all timber exports to the area have been harvested legally.

Malaysia is working to become the first country in Asia to sign a voluntary agreement with the European Union guaranteeing that all timber exports to the area have been harvested legally.

Malaysia is working to become the first country in Asia to sign a voluntary agreement with the European Union guaranteeing that all timber exports to the area have been harvested legally.

Malaysia is working to become the first country in Asia to sign a voluntary agreement with the European Union guaranteeing that all timber exports to the area have been harvested legally.

The European Union says the agreement is likely to give Malaysia and other countries that sign similar pacts a competitive advantage as the bloc pushes for tighter regulation of timber imports because of environmental concerns.

Companies importing from countries that have signed a voluntary partnership agreement, like the one being negotiated with Malaysia, would be given a “green lane” for entry into European markets and would be exempt from further checks. [br]

“There’s no doubt that this will create an advantage for the timber traders on the E.U. market,” said Vincent Piket, head of the European Union’s delegation to Malaysia.

Europe is Malaysia’s second-largest timber export market after Japan, with 2.67 billion ringgit ($834 million) in sales of timber and timber products in 2009, according to this article in the New York Times.

Furniture, sawn timber, moldings, plywood, doors and flooring materials are among the main exports. Meranti is an important hardwood that grows in the tropical forests of Asia and is used in light construction and veneers.

Malaysia’s timber industry already has several voluntary programs for certifying that timber is legally and sustainably harvested, with sawmills and other businesses participating to make their products more appealing to buyers concerned about environmental issues.

Once the pact with the European Union is signed, all timber companies will be compelled to comply with the criteria.

Last year, countries in the 27-member union imported wood, wood charcoal and cork worth 8.5 billion euros ($11.3 billion) — 4.6 percent of it from Malaysia.

Uncontrolled logging can destroy animal habitats, cause erosion and increase the risk of natural disasters like floods and landslides, contribute to deforestation and climate change, and deprive governments of tax revenue. [br]

A report by the World Wide Fund for Nature estimated that illegally harvested timber accounted for as much as 19 percent of the European Union’s wood imports in 2006, with Russia and Indonesia the main culprits.

The European Union has no regionwide law preventing the importation of illegally logged wood products, although in response to consumer demand, some companies voluntarily buy timber from sources certified by various groups as sustainable.

The union is considering legislation that would require all importers in the bloc — from furniture makers to those buying raw materials like boards — to conduct due diligence to show that the timber had been legally harvested.

Under its Forest Law Enforcement, Governance and Trade action plan, the European Union has already signed agreements with Ghana, the Republic of Congo and Cameroon.

In addition to Malaysia, negotiations are under way with Indonesia, the Central African Republic, the Democratic Republic of Congo, Gabon and Liberia.

The union has not begun negotiations on an agreement with China — the biggest exporter of timber to Europe —

but the two sides signed a cooperation pact last year that was intended to reduce unlawful logging and trade in illegal timber.

Under the voluntary partnership deals, source countries are responsible for determining that the timber has been harvested according to their national laws and the criteria in the European agreements.

While the agreements may vary among countries, requirements typically include that trees not be cut from protected forests, that endangered species of trees not be logged and that companies comply with trade and customs regulations.

A third-party monitor, like an independent auditing company, would conduct spot checks to ensure compliance.

Whether such agreements will significantly decrease illegal logging, however, remains to be seen.

“It’s a very positive step, the idea of introducing these structural changes by requiring companies to use control systems, but we believe that it’s not enough,” Sébastien Risso, Greenpeace’s European Union forest policy director, said by telephone from Brussels.

E.U. companies should be compelled to show a product’s complete chain of custody, he said, documenting its journey from the forest to its final destination.

Rupert Oliver, director of Forest Industries Intelligence, a British consulting firm, said the proposed legislation could result in the sale of illegal timber to other countries that lack strict rules on timber imports, like China and India.

“It doesn’t really get to the root cause of the problem,” he said. “It shifts the problem elsewhere.”

Mr. Oliver added that the proposed legislation was not as tough as the United States law known as the Lacey Act, under which companies can be criminally prosecuted for importing illegal timber.

The draft European Union law does not stipulate the level of penalties to be imposed on those involved in importing illegal timber, leaving it to the member states to determine the penalties.