A short analysis on the stricter European regulations on tropical hardwood imports and their side effects

This paper analyses the side effects of the stricter regulation on tropical hardwood or timber imports. It considers the place of Europe within the global timber market, where Europe accounts only for a very limited share. It also explains the high selectivity of European markets, with its consequences. While tropical wooden furniture and other secondary processed products are not considered as timber here, their question is also discussed. The number of empirical studies specifically dealing with the side effects of EU regulations is limited, but the results are converging, showing that these regulations have a general adverse effect, contrary to the initial aim of promoting the sustainability of tropical timbers. These side effects are essentially to divert the trade towards countries with lower standards, and to add a burden on most of the producing countries which have already a set of comparative disadvantages for the production of legal or sustainable timber. The effects are positive on a limited number of companies which markets are very dependent of Europe. The question is then analysed from a broader perspective, replacing the effects of the EU regulations as an incidental factor compared to the increasing consumption of tropical timber by the three developing giants: Brazil, India and China.timber trade; trade regulation; environmental regulation, Europe; tropical timber; tropical hardwwod; side effect; adverse effect

Production, use and trade of gaharu in Peninsular Malaysia

Gaharu, known as agarwood, aloeswood, eaglewood, oudh (Arabic), chen-xiang (Chinese) and jinkoh (Japanese), is the resin-impregnated deposits formed in some trees of the family Thymelaeaceae. The fragrant gaharu products are used by Muslims, Christians, Buddhists and Hindus. They are highly demanded in international market. The best grade of gaharu wood is sold as high as RM16,000 in Kuala Lumpur in October 2007. On the production side, there are about 4,100 gaharu harvesters in Peninsular Malaysia in 2007. Local harvesters, comprising Orang Asli, Malay and Thai descendants, practise responsible harvesting. However, since 1980s, with the encroachment of foreign harvesters (especially the Thai), the resources are depleting in our natural forests. Gaharu wood produced is sold to local traders. These local traders then sell the high grade gaharu to other middlemen or export them to Singapore and Middle East. The low grade wood is processed into oil in Kelantan and Terengganu before it is marketed. In some cases, the Arab traders come personally to purchase the wood and oil directly from the local middlemen. There is practically little use of gaharu by the Malaysian population. Processed oil of 12-ml is packed in small bottle and sold at about RM300, which is regarded expensive by many Malaysians. The use of gaharu products lies in the international market. While production of gaharu provides income to local harvesters and traders, it may not be a long term source of income as resources are depleting. There is international demand for gaharu products. It is recommended that the planting of gaharu-producing trees and the processing of gaharu products be encouraged and supported by government research and development. The industry is a potential income-generating activity for the country

A short analysis on the stricter European regulations on tropical hardwood imports and their side effects

This paper analyses the side effects of the stricter regulation on tropical hardwood or timber imports. It considers the place of Europe within the global timber market, where Europe accounts only for a very limited share. It also explains the high selectivity of European markets, with its consequences. While tropical wooden furniture and other secondary processed products are not considered as timber here, their question is also discussed. The number of empirical studies specifically dealing with the side effects of EU regulations is limited, but the results are converging, showing that these regulations have a general adverse effect, contrary to the initial aim of promoting the sustainability of tropical timbers. These side effects are essentially to divert the trade towards countries with lower standards, and to add a burden on most of the producing countries which have already a set of comparative disadvantages for the production of legal or sustainable timber. The effects are positive on a limited number of companies which markets are very dependent of Europe. The question is then analysed from a broader perspective, replacing the effects of the EU regulations as an incidental factor compared to the increasing consumption of tropical timber by the three developing giants: Brazil, India and China.timber trade, trade regulation, environmental regulation, Europe, tropical timber, tropical hardwwod, side effect, adverse effect

A short analysis on the stricter European regulations on tropical hardwood imports and their side effects

11 p Working paperThis paper analyses the side effects of the stricter regulation on tropical hardwood or timber imports. It considers the place of Europe within the global timber market, where Europe accounts only for a very limited share. It also explains the high selectivity of European markets, with its consequences. While tropical wooden furniture and other secondary processed products are not considered as timber here, their question is also discussed. The number of empirical studies specifically dealing with the side effects of EU regulations is limited, but the results are converging, showing that these regulations have a general adverse effect, contrary to the initial aim of promoting the sustainability of tropical timbers. These side effects are essentially to divert the trade towards countries with lower standards, and to add a burden on most of the producing countries which have already a set of comparative disadvantages for the production of legal or sustainable timber. The effects are positive on a limited number of companies which markets are very dependent of Europe. The question is then analysed from a broader perspective, replacing the effects of the EU regulations as an incidental factor compared to the increasing consumption of tropical timber by the three developing giants: Brazil, India and China

Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia

The establishment of Aquilaria plantation for agarwood production has been regarded by the planters as a green ‘gold mine’ of the future. This study examines the costs and benefits of planting Aquilaria spp. for agarwood production. The analysis shows that whether planting Aquilaria spp. integration with banana (Musa spp.) or planting Aqualaria spp. as a single crop for agarwood production, both options are viable. An investment return for planting Aquilaria spp. integrated with banana (Musa spp.) on 1,000 hectares of land is higher with an internal rate of return (IRR) of 54.85% compared with 38.49% for a single crop Aquilaria plantation. The Net present value (NPV) of investment at a 10% discount for 1,000 hectares integrated planting is RM185.6 million (1 RM=USD0.32 in 2008) while the option involving single crop Aquilaria plantation for agarwood production is RM153.6 million