Due diligence in the timber trade

The EU wants to minimise the risk of illegally harvested timber or timber products being placed on its internal market. A draft regulation laying down the obligations of professional traders was discussed by agriculture ministers at the Council meeting of 19 January.

© European Communities

The new legislation covers both imported and EU-produced timber. The operators who are the first to put timber and timber products on the single European market will have to establish the legality of their merchandise by using the "due diligence" system. They will not have to prove that each individual piece of timber is legal, but they will be required to ensure legality to the best of their ability, based on information about the goods, such as species, origin, volume and value. Traders can either develop a system of their own or use one recognised by their member state. Some big companies already have such systems to carry out checks which will now be generalised.

As there is no universal definition of illegal logging, legality will be determined in accordance with the legislation of the country of harvest.

The instrument will complement the EU's current policy, in particular the Forest Law Enforcement, Governance and Trade (FLEGT) licensing scheme. Products complying with the FLEGT Regulation, as well as the EU Wildlife Trade Regulation, will be considered to have been legally harvested.

The act will be adopted under the codecision procedure. This means that, in addition to the Council, the proposal will be discussed and voted on at the European Parliament.

More information:
Council press release (pdf)
Council webcast of press conference

EU loan to support Latvia

The Baltic state has been granted a loan of EUR 3.1 billion to help the country weather its current financial crisis.

The decision to grant financial support to Latvia was made by EU finance ministers at their meeting in Brussels on 20 January. The loan is part of a EUR 7.5 billion assistance package to support Latvia's balance of payments. The package also includes EUR 1.7 billion from the International Monetary Fund. The Nordic countries (Denmark, Finland, Norway and Sweden) will jointly contribute EUR 1.8 billion, the World Bank EUR 400 million, and the European Bank for Reconstruction and Development, the Czech Republic, Estonia and Poland will together provide a further EUR 500 million.

This financial assistance is aimed at enabling Latvia to cope with the severe stress on its capital and financial markets. On their part, the Latvian authorities will take measures to stem immediate liquidity pressures, restore long-term stability by strengthening the banking sector and correct fiscal imbalances.

The EU loan is based on a support facility for medium-term assistance to non-euro member states in financial difficulties and it will be made available over a three-year period. The Council granted a similar loan to Hungary in November 2008.

More information:

Council press release(pdf)

Council webcast of press conference

Upcoming events:

General Affairs and External Relations Council, 26 and 27 January 2009