Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union

Prasada, Imade Yoga; Nugroho, Agus Dwi; Lakner, Zoltán

doi:10.1016/j.forpol.2022.102848

Cited by 9 publications

(4 citation statements)

References 61 publications

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“…However, since the implementation of Due-diligence requires various costs, price competitiveness is relatively less intense compared to the state before the introduction of the VPA. Indonesia has determined that the competitiveness of its timber industry has decreased after the implementation of the VPA in the EU timber market [43]. Moreover, even if timber is produced and exported legally through the VPA, the market does not provide compensation in the form of a price premium for legally produced wood [44,45].…”

Section: Discussionmentioning

confidence: 99%

Effect of the Timber Legality Requirement System on Lumber Trade: Focusing on EUTR and Lacey Act

Kim,

Shim,

Choi

et al. 2023

Forests

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This study provides novel insights into the policy effects of timber legality verification methods, specifically Due-diligence (under the European Union Timber Regulation (EUTR)) and Due-care (under the Lacey Act), on coniferous and non-coniferous lumber trade, highlighting their significance in the context of global lumber trade. Timber legality verification plays a pivotal role in the global timber trade. We comprehensively assess the impact of verification methods on coniferous and non-coniferous lumber trade, utilizing two decades of trade data (1997–2017) across approximately 160 countries. We employ the difference-in-differences method based on the gravity model of international trade, utilizing robust export–import data and demographic profiles. Our findings demonstrate that the effect of EUTR on coniferous lumber imports ranged between −0.32% and −0.05%, and that on non-coniferous lumber imports ranged between −0.44% and −0.05%, whereas the effect of the Lacey Act on coniferous lumber imports ranged between −0.93% and −0.09%. Non-coniferous lumber imports remained unaffected. The Voluntary Partnership Agreement (VPA) led to decreased exports to the EU and US. Our findings hold two key implications. First, Due-diligence exhibits more consistent policy effects than Due-care. Second, supporting VPA-participating countries is crucial for facilitating timber trade. These insights inform timber trade policies and sustainable practices.

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Section: Discussionmentioning

confidence: 99%

Effect of the Timber Legality Requirement System on Lumber Trade: Focusing on EUTR and Lacey Act

Kim,

Shim,

Choi

et al. 2023

Forests

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“…24 The two sides also forged a deep political friendshipwhich was confirmed in November 2009 with the signing of the EU-Indonesia Partnership and Cooperation Agreement (PCA) which strengthened the relationship that Europe and Indonesia have lived for centuries and the values and principles shared by the European Union and Indonesia. 25 It begins with a policy response to the dynamics of the business world and international economic diplomacy. This is followed by strengthening economic relations between the European Union and Indonesia, which is a logical continuation of the steady stream of deep political, institutional and economic reforms that have been ongoing since the late 1990s.…”

Section: The Indonesia-european Union Comprehensive Economic Partners...mentioning

confidence: 99%

Governing Indonesia’s Plan to Halt Bauxite Ore Exports: is Indonesia Ready to Fight Lawsuit at the WTO?

Aulawi

Gunawan

Alfarizi

et al. 2023

BESTUUR

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Every nation has natural resources that must be regulated by state law and used for community benefit. Indonesia, a major exporter of bauxite ore to Europe, plans to ban exports. Indonesia must prepare for a second EU nickel ore export lawsuit after the first from the nickel export ban. The study aims to determine whether Indonesia is guilty of issuing a policy to stop exports of bauxite ore. This research is a normative legal research uses the rule of law, law principles, and legal doctrines to solve legal issues. Books, journals, and the internet provided data for the research. Articles from previous bilateral agreements are also used. This research examines Monism and Dualism.The results of the study show that Indonesia is not entirely at fault, considering that Indonesia is a country that adheres to a dualism system in international law enforcement. However, Indonesia still needs to renegotiate the percentage of bauxite ore exports with the European Union, considering that Indonesia is already bound by the IEU-CEPA agreement. If Indonesia continues its plan to stop the total export of bauxite ore, then Indonesia can still be considered to have committed acts of default.

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“…The fulfillment of these various requirements could boost the competitiveness of Indonesian natural rubber products in the central destination countries (Bashir, Khwaja, Rashid, Turi, & Waheed, 2020;Ha, 2021;Nekmahmud & Fekete-Farkas, 2020). Indeed, fulfilling these trade conditions has become a strategic step Indonesia take to overcome trade barriers from importing countries (Prasada, Nugroho, & Lakner, 2022).…”

Section: Figure 2 Frequency Index and Coverage Ratio Of Indonesia's T...mentioning

confidence: 99%

Non-Tariff Measures and Competitiveness of Indonesia’s Natural Rubber Export in Destination Countries

Prasada

Dhamira

2022

J AGRIB RURAL DEV RES

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In the last few decades, the implementation of tariff policies between countries has declined. As a result, the enforcement of non-tariff measures (NTMs) experiences an increase. Implementing NTMs raises a new obstacle to trade activities in the global market, including the trade of Indonesia’s natural rubber. Therefore, this study was conducted to determine the effect of enforcing NTMs on the export competitiveness of Indonesia’s natural rubber. This study utilized secondary data from UN COMTRADE on 1995 to 2019. The data was analyzed using frequency index, coverage ratio, comparative advantage, and two-stage least square regression model. The results revealed that India, China, and the USA enforced the most NTMs of Indonesia’s natural rubber. Additionally, the implementation of NTMs in importing countries positively correlated to the export competitiveness of Indonesia’s natural rubber in destination countries.

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Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union

Cited by 9 publications

References 61 publications

Effect of the Timber Legality Requirement System on Lumber Trade: Focusing on EUTR and Lacey Act

Effect of the Timber Legality Requirement System on Lumber Trade: Focusing on EUTR and Lacey Act

Governing Indonesia’s Plan to Halt Bauxite Ore Exports: is Indonesia Ready to Fight Lawsuit at the WTO?

Non-Tariff Measures and Competitiveness of Indonesia’s Natural Rubber Export in Destination Countries

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