EUTR impact grows

These are among the conclusions of the International Tropical Timber Organisation (ITTO) in its latest Market Report.

Suppliers which sign a Voluntary Partnership Agreement (VPA) under the EU's Forest Law Enforcement, Governance and Trade (FLEGT) initiative will gain exemption for VPA-licensed material from EUTR due diligence illegality risk assessment. But no VPAs are likely to be signed before the Regulation is introduced on March 3. So in the interim, countries negotiating a VPA are tightening existing legality controls to at least help exports through the due diligence process.

The ITTO reports that Ghanaian authorities have acknowledged the country won't be supplying VPA-licensed timber for "some time". So currently they are raising awareness of the progress being made towards an agreement and "putting in place interim arrangements to assure overseas buyers of the legality of materials used by manufacturers". They have also introduced a public procurement policy to promote use of legally assured wood in the domestic market.

Following trial timber shipments to the EU from Indonesia under its SVLK legality assurance programme, local media reports wrongly stated that it now satisfies the terms of the EUTR. It has since been stressed that only when Indonesia signs its VPA will its licensed timber be exempt from EUTR controls. However, the trial EU cargoes, backed by SVLK 'V-legal' documentation, were deemed a success and are expected to help Indonesia's timber negotiate EUTR controls and contribute to its progress towards its VPA. The latter is now expected to be signed in April.

In Europe, meanwhile, the ITTO says the EUTR is set to reinforce the existing trends for smaller businesses to pull out of direct importing and buy from larger importers to avoid the risk of prosecution under the EUTR and the due diligence work involved.