Vietnam finalises agreement to trade legal timber with EU

11-May-2019 Intellasia | VNS | 7:53 AM Print This Post

Starting from June 1, Vietnam could export only verified legal timber products to the European Union (EU) markets as the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLECT) would officially enter into force.

The Delegation of the EU to Vietnam and Vietnam Ministry of Agriculture and Rural Development yesterday announced the completion of the process of approval and ratification of VPA/FLECT.

According to Nguyen Quoc Tri, director of the Vietnam Administration of Forestry, the implementation of the VPA/FLECT marked the beginning of a joint commitment of the EU and Vietnam to work together to address illegal logging and associated trade.

To carry out the VPA/ FLEGT, Vietnam would develop a timber legality assurance system (VNTLAS) to ensure that its exports of timber and timber products come from legal sources, including systems to verify that Vietnamese businesses were only importing timber that had been legally harvested and traded in accordance with the relevant legislation in the country of harvest.

This meant that illegally harvested timber, as well as those businesses trading with it, would not be a part of supply chains regulated by the timber legality assurance system that Vietnam was putting in place.

To carry out the agreement, Vietnam was to continue to adopt new legislation in order to harmonise the agreements commitments, including the preparation of a decree on the VNTLAS which was expected to be promulgated by the end of 2019.

The two sides also agreed to establish a joint implementation committee (JIC) to oversee how the provisions of the agreement were put into practice. JIC would also facilitate dialogue and exchange of information between the both sides.

The agreement was fully implemented when the FLEGT licensing scheme started.

At that time, each shipment of timber and timber products from Vietnam exported to the EU would be accompanied by a FLEGT license. FLEGT licensing would provide certainty of meeting the requirements of the EU Timber Regulation, which prohibited the placing of illegal timber on the EU market.

Ha Cong Tuan, deputy minister of Agriculture and Rural Development, in addition to the variety of social, economic and environmental benefits associated with better management of the forestry sector in Vietnam, FLEGT licensing would contribute to increase the credibility of Vietnams timber processing industry not only in the EU but also in other export markets, which were increasingly in demand for legal timber.

“The VPA/FLECT sends a strong signal on Vietnam’s and the EU’s commitment towards front loading the implementation of the ‘Trade and Sustainable Development’ Chapter of the EVFTA, which includes provisions on sustainable forest management and trade in forest products,” Tuan said.

According to head of the EU Delegation to Vietnam Ambassador Bruno Angelet, Vietnam was the second country in Asia signed VPA/FLECT with the EU, after Indonesia.

He said that Vietnams export of timber products to the EU was expected to see strong growth when the agreement entered into force, adding that the EU would continue to provide supports to Vietnam in developing VNTLAS and FLECT licensing.

The both sides launched the VPA/FLEGT negotiation in October 2010 and started the negotiation process from November 2011. Over more than six years, on 19 October 2018, in Brussels, the agreement was signed.

Vietnam was exporting timber products to 120 countries and territories, including major markets such as the EU, the US, Japan, China, South Korea and Australia.

In 2018, Vietnams export of wood and timber products reached a record value of $9.3 billion, $900 million of which was to the EU markets.


Category: Economy, Vietnam

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