When mentioning products at risk of deforestation, timber is undoubtedly the first product that comes to mind. Thus, wood trading has always been under scrutiny and rigorous control. However, studies have now shown that timber is not the only industry at risk of contributing to deforestation, but also agricultural and cattle products. This paradigm shift led to the new EU regulation on deforestation-free products. The regulation will impose control on timber and agricultural commodities at risk of deforestation, mandating due diligence before selling in or exporting from the EU market. Once the EU announced its plan, parties worldwide came out to channel their opinions; some see it as too restricted, fearing burdens on operators, while others see it as too relaxing. In this article, we sat down with members of the Thai Timber Association and the Timber Processing Industry Group from the Federation of Thai Industries to talk readiness of the Thai timber industry for the regulation on deforestation-free products and possible impacts on other commodities.
Operators are confident of the industry’s readiness
It is believed that the timber industry is more well-equipped than other sectors because forest management, legality, and supply chain control have always been the standard practices of the timber sector. Moreover, the industry is used to controls and regulations by the European Timber Regulation from the EU and other countries.
Mr. Prasert Iamdeengamlert, Sawmill Association: ‘As a timber operator, I do not see that the new regulation is much different from the European Timber Regulation since both are based on Due Diligence, which the timber industry is familiar with.’
Mr. Ekasit Aneksittisin, Thai Timber Association: ‘I am not too worried, but of course, more documents need to be processed.’
Most importantly, Thailand should prepare for a valid land deed system, a vital document to prove deforestation-free
Since the regulation stresses that products must be able to confirm their deforestation-free origin, operators see that Thailand should prepare a valid land deed system to prove that commodities are produced on deforestation-free land; the document should be able to demonstrate the date of allocation to show compliance with the EU cut-off date.
Divergence of legal definitions of “forest” and “forest degradation” between the EU and producing countries is a cause of concern, also the challenge in proving deforestation-free
Mr. Iamdeengamlert: ‘Different interpretation of the term “forest” which depends on the countries’ contexts poses a challenge; also, to verify deforestation or not, I expect further discussions on these.’
Concerns looming over other products outside the timber industry that may not be familiar with Due Diligence
For a long time, timber products have always been strictly regulated. Thus, timber operators are aware of what to do. But concerns are shared over other commodities as this might be the first time they will be subjected to tighter control. Above all, attention is given to smallholders in those products and their capacity to control the supply chain. It is seen that some commodities in Thailand are produced on lands at risk of deforestation.
Mr. Krairawee: ‘Deforestation-free products will affect important Thai exports. I believe that some of them are still produced on land at risk of deforestation. Moreover, many of them are smallholders.’
Thai government should take a lead role, and the timber industry is ready to support
All agreed that the government should take a lead role; all relevant agencies should get involved and promote it with stakeholders.
