City, Country Date, 2013awsassets.panda.org/downloads/timber_trade_flows...Source : Country trade data. Based on discrepancies between reported exports of sawn timber by Indonesia

City, Country Date, 2013

Overview

Today’s Plan Introduc)on and Opening Remarks

Timber Trade Flows from Producers and Processing Countries to Major Markets

Interna)onal Policies and Conven)ons Impac)ng the Timber Trade

The Lacey Act

Australia Illegal Logging Prohibi)on Act

Lunch

Due Care / Due Diligence in Establishing Legality

Q & A, Further Needs and Gap Assessment Discussion

Introduc)on to the Global Forest Trade Network Supply Chain Management

Further Informa)on

TRAFFIC works to ensure that trade in wild plants and animals is not a threat to the conservation of nature.

TRAFFIC

This course was prepared by TRAFFIC, the wildlife trade

monitoring network

To encourage changes in behaviour (policy and practice) of

specific target groups who are in a position to reduce that threat

and, ensure that wildlife trade contributes to meeting human

needs.

Policy Practice

Solutions linked to trade in wild animals

and plants

To Encourage Change

TRAFFIC

TRAFFIC North America

TRAFFIC South America

TRAFFIC International TRAFFIC Europe

TRAFFIC South Asia

TRAFFIC East Asia

TRAFFIC Southeast

Asia

TRAFFIC Global marine program

TRAFFIC East and Southern Africa

TRAFFIC Central Africa

TRAFFIC

Timber Trade Flows from Producers and

Processing Countries to Major Markets

Indonesia’s Role in the International Timber Trade

  Sources wood from some countries with big

legality issues

  Imported wood is a risk

Indonesia is one of the world’s biggest global exporter and

consumer of timber and timber products

International Trade in Forest Products

  The demand for legal timber is increasing in recent years due to environmental sustainability concerns arise by importing countries.

  The International efforts in achieving environmental sustainability are existed and have been implemented by some countries thru Policies and Conventions such as :-‐

  CITES   FLEGT   EUTR & VPA   LACEY   AUSTRALIAN ACT

  Indonesia covers about 181.2 million ha, spread over 17,000 islands, about the same area as France, Spain, Germany and the UK together.

  In the last 5 years the value of Indonesian export from timber and timber products grew from US$ 8.3 billion to US$ 9.7 billion per annum.

  Indonesia exports a wide variety of forest products, ranging from plywood, pulp and a variety of paper products to furniture and handicrafts.

  The main export markets for Indonesian timber products are the EU. Within the EU the main market destinations for Indonesian timber are: Germany, UK, the Netherlands, Belgium, French, Spain and Italy.

Indonesia is one of the world’s biggest global exporter, consumer and importer of timber and timber products

Indonesia’s International Trade in Forest Products


Estimated Indonesia’s Timber Product Exports in 2005-‐2010

Func1on Areas (Mill.Ha)

Conserva1on Forest 26,8 Protec1on Forest 28,8 Produc1on Forest 32,6 Limited Produc1on Forest 24,4 Conver1ble Produc1on Forest 17,9

Total 130,68

as of April 2011 designation

More than 17,000 islands

181.157 million ha land area

130.68 million ha forestland

The Indonesian Forest Area

Leading Commodity Source


Estimated Indonesia’s Timber Product Exports in 2005-‐2010 (By Product Group)

Certified sustainable and verified legal natural production forest in producer countries,2006 and 2009

Lawson, S. & MacFaul, L. 2010. Illegal Logging and Related Trade. Chatham House


Total U.S. Imports of Tropical Lumber ($000’s)

Country YTD 2012

Brazil 29%

Ecuador 9%

Malaysia 10%

Cameroon 8%

Congo 4%

Ghana 5%

Indonesia 5% YTD… 2012 Imports: +12% value, +8% volume

Top Exporter’s Market Share of U.S. imports

(YTD)

Indonesia Forest Product Exports to EU Countries

Country YTD 2012

China 62%

Indonesia 11%

Russia 9%

Canada 5%

Malaysia 5%

Ecuador 2%

Brazil 1%

YTD… 2012 Imports: +23% value, +2% volume

Total U.S. Imports of Hardwood Plywood ($000’s) Top Exporter’s Market Share of U.S. imports

(YTD)

Indonesia Forest Product Exports to US

Sources of Australian merchandise imports

Forestry : $4.2 Billion

Timber Import from Indonesia to Australia is 8% of total imports

Other 38%

New Zealand 15%

Finland 3%

Germany 4% Malaysia 6%

Germany 4%

China 19%

Estimated percentage Indonesia forest product exports to Australia in 2011-‐12

Indonesia Forest Product Exports to Australia

Value ($ million )

Estimated Value Indonesia forest product exports to Australia in 2006-‐2012

Indonesia Forest Product Exports to Australia

Relationship between illegal logging and corruption in Indonesia


Indonesia, Illegal Timber Imports and Corruption


Indonesia and Illegal Timber Exports

Discrepancies in trade data for logs shipped from Indonesia to China, 2006-‐08

Source : Comparison of official trade statistics Note: Trade volumes reported at both export and import for China and Hong Kong are combined to eliminate discrepancies resulting from transit trade

Estimates of illegal exports of Indonesian sawn timber to China, 2004-‐08 based on trade data discrepancies



Note: Trade volumes reported at both export and import for China and Hong Kong are combined to eliminate discrepancies resulting from transit trade

Source : Official trade statistics

The European Union is the prime destination of Illegal wood

Global Illegal Timber Exports


WORLD BANK 2006; Data source: SENECA CREEK 2004

Indonesia has progressed since

this chart was prepared in 2004

Tra

din

g P

art

ner’

s C

on

cern

Where is illegal timber coming from?


Estimated illegal wood product consumption per capita in consumer countries


Consumers Countries and Illegal Timber Imports

Estimated illegal wood imports by consumer and processing countries studied from all producer countries, by product group, 2000-‐08


Consumers Countries and Illegal Timber Imports


Estimated percentage of illegal timber exports from producer countries

Estimated proportion of illegal timber exports from countries in 2007


Estimated volumes of illegally exported sawn timber from Indonesia destined for consumer countries,2004-‐08 based on trade data discrepancies


Source : Country trade data. Based on discrepancies between reported exports of sawn timber by Indonesia (where exports of almost all forms are banned) and reported imports of sawn timber from Indonesia by consuming countries.


Estimated illegal wood imports by consumer and processing countries studied from all producer countries, by source country, 2000-‐08



Estimated imports of illegally sourced wood products by the UK,2000-‐2008



Estimated imports of illegally sourced wood products by the Netherlands,2000-‐08



Estimated imports of illegally sourced wood products by France,2000-‐08



Estimated imports of illegally sourced wood products by the US, 2000-‐08



The potential volume of illegally sourced forest

and wood product

  The major problem areas for Australia appear to be South East Asia, particularly Indonesia , Malaysia and possibly China.

9% of Total Import Bill

/AUD400 million


Estimated percentage Of Illegal Timber Import in Australia


Per

cent

age

%

Estimated percentage Illegal forest production from China into Australia

Protest against destruction of the forest

How Indonesia Tackle the Illegal Logging Problem

  To Combat illegal logging, the Government of Indonesia , through the Ministry of Forestry (MOF) has established eight policy priorities for the forestry Sector in order to achieve sustainable forest management ( SFM ).

  Indonesia has signed MOUs with UK, China, Etc to collaborate on combating illegal logging and associated timber trade.

  In 2011, Indonesia has entered into a Voluntary Partnership Agreement (VPA) with the EU to ensure only legal timber is exported to EU.

  The government developed and implemented a Timber Legality Verification system ( SLVK ).

  Indonesia booked a 114 percent increase in sales of timber product exports to the European Union during the first quarter of the year, following the introduction of a self-‐made certification system to help the country comply with international regulations.

  The country’s exports of timber products, especially furniture, to the European Union reached $416 million from January through March, up from $193.9 million in the same period of last year (Ministry of Trade)

Introduction of certification system

Documents

City, Country Date, 2013awsassets.panda.org/downloads/timber_trade_flows...Source : Country trade data. Based on discrepancies between reported exports of sawn timber by Indonesia