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IMM uses trade flow analysis and market surveys to independently assess market impacts of FLEGT Voluntary Partnership Agreements. IMM is funded by the European Commission and hosted by the International Tropical Timber Organisation.

Please provide name and email address to subscribe to IMM News which is published at least quarterly with the latest FLEGT-related trade and policy news. Your email address will be used only to send IMM News and will not be shared or used for any other purpose. You can unsubscribe at any time by clicking on the link in IMM News.

EU private sector timber procurement – IMM Study identifies attitudes and priorities

Since the early 1990s, private sector actors have been taking steps to ensure that they exclude unsustainable and illegal wood from their supply chains. Private sector procurement policies are now prominent in the global North and among companies with global reach. With time, these purchasing practices are becoming more widely integrated in corporate business practices and contained within a larger sustainability and/or corporate responsibility policy often covering several other aspects. 

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Vietnam’s rising significance as a wood processing hub

Vietnam’s role as a wood processing hub continued to rise during 2017. Vietnam is increasingly recognised as the primary location in South East Asia for supply of mid-range interior furniture and has become a major competitor to China in this sector. Vietnam’s imports of wood products are rising to supply the export-oriented furniture manufacturing sector as well as rising domestic demand. 

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EU imports of FLEGT licensed timber stable while African VPA partners lose ground

In the last 2 years, the level of trade between VPA partners and the EU has varied widely depending on the individual country and product. EU imports from Indonesia, currently the only FLEGT licensing country, have remained level at an annual average of €800 million since the start of 2016. This contrasts with imports from the five VPA implementing countries in Africa which declined continuously from an average annual level of €430 million at the start of 2017 to €330 million in March 2018.

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Lack of awareness = a key challenge for FLEGT-licensing

A workshop reviewing purchase dynamics for companies sourcing from Indonesia identified “lack of awareness” as the key challenge for FLEGT licensing in the marketplace. The workshop formed part of the IMM Trade Consultation in Nantes and participants came from both French and Indonesian private sectors. It produced interesting insights; however given the limited number of participants the results cannot be considered representative.

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IMM EU furniture study - imports are entering a "crowded and fiercely competitive market"

With further support, development and communication FLEGT and FLEGT licensing can play a role in underpinning tropical timber product market share in the highly competitive European furniture sector, according to the latest IMM survey.The core aim of the IMM scoping study of procurement in the EU furniture industry is to gauge the sector’s perceptions of the value, impacts and process of sourcing from FLEGT VPA engaged supplier countries.

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Obstacles and opportunity - support for Vietnam's VPA is growing

The signature by the EU and Vietnam of the latter’s FLEGT Voluntary Partnership Agreement is scheduled for later this year, with ratification in 2019. They are being heralded as critical staging posts, and important moments both practically and psychologically, in the country’s progress towards full VPA implementation and its start of FLEGT licensing of timber and wood product exports to the EU. 

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Indonesia: “Mini Action Plan” under implementation to address FLEGT-license mismatches

The Joint Implementation Committee for the Indonesian VPA met on 1 March 2018 in Jakarta to review experience with the first 15 months of licensing. According to information from the Indonesian SILK database and the Licensing Information Unit (LIU), more than 39,000 FLEGT licenses were issued during 2017. This means that FLEGT-licenses accounted for 18.2% of all V-Legal documents – paperwork accompanying Indonesian exports globally and guaranteeing timber legality – issued during that period.

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