{"id":18021,"date":"2024-05-29T06:31:17","date_gmt":"2024-05-28T20:31:17","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=18021"},"modified":"2024-10-21T20:19:21","modified_gmt":"2024-10-21T10:19:21","slug":"nzs-beef-with-eudr-worlds-least-corrupt-nations-red-tape","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/nzs-beef-with-eudr-worlds-least-corrupt-nations-red-tape\/","title":{"rendered":"NZ&#8217;s Beef with EUDR: World&#8217;s Least Corrupt Nation Counts Red Tape"},"content":{"rendered":"\n<p>New Zealand is the latest country to flag concerns with the EUDR, with the wood processing industry grappling with how the new rules will impact its NZ $100 million trade in wood pallets into the European Union.<\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/first-denial-now-panic-australia-takes-stand-against-eudr\/\" rel=\"noreferrer noopener\">It comes after Wood Central exclusively revealed that the Australian Government<\/a>&nbsp;had written to the European Commission expressing concern about the rules and its implications for Australia&#8217;s trade in wood and beef.<\/p>\n\n\n\n<p>Already, Indonesia, Malaysia, and\u00a0the United States \u2013 the world&#8217;s largest producer of forest products \u2013\u00a0<a href=\"https:\/\/woodcentral.com.au\/as-global-opposition-grows-could-the-eudr-collapse\/\" target=\"_blank\" rel=\"noreferrer noopener\">are tightening the screws on EU policymakers<\/a>, claiming that the new legislation will lead to a surge in prices for forest-based products. <\/p>\n\n\n\n<p>As a result,<a href=\"https:\/\/woodcentral.com.au\/key-eudr-rules-delayed-over-global-supply-chain-chaos\/\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0the Financial Times\u00a0reported\u00a0<\/a>that EU policymakers are now debating whether to delay or water down parts of the regulation to allow global supply chains to catch up.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/03\/2BJB7XE-fotor-20240311225557-1024x768.jpg\" alt=\"The EU will stall important parts of the EUDR over concerns from partner countries - with Indonesia and Malaysia, home to 85% of the world's palm oil production, among the most vocal in opposition to the new legislation. (Photo Credit: Cloudyew \/ Alamy Stock Photo)\" class=\"wp-image-16096\"\/><figcaption class=\"wp-element-caption\">In March, the Financial Times reported that the EU would stall important parts of the EUDR over concerns from partner countries &#8211; with Indonesia and Malaysia, home to 85% of the world&#8217;s palm oil production, among the most vocal in opposition to the new legislation. (Photo Credit: Cloudyew \/ Alamy Stock Photo)<\/figcaption><\/figure>\n\n\n\n<p>According to Mark Ross, the CEO of the Wood Processors and Manufacturers Association\u2014New Zealand&#8217;s peak body for wood processing\u2014the local industry is now in&nbsp;a state of&nbsp;flux, with processors now weighing up the compliance costs around the new rules.<\/p>\n\n\n\n<p>&#8220;We support that, but the way they&#8217;re going about it, it&#8217;s going to be hard to meet the criteria they put out there for New Zealand exporters to the European Union countries,&#8221; said\u00a0<a href=\"https:\/\/www.rnz.co.nz\/news\/country\/518011\/nz-wood-processing-sector-grapples-with-new-eu-deforestation-rules\" target=\"_blank\" rel=\"noreferrer noopener\">Mr Ross, who spoke to RNZ today<\/a>.\u00a0<\/p>\n\n\n\n<p>Despite<a target=\"_blank\" href=\"https:\/\/www.transparency.org.nz\/blog\/new-zealand-again-tops-the-corruption-perceptions-index-2021#:~:text=New%20Zealand%20is%20once%20again%20ranked%20least%20corrupt,the%20leading%20global%20indicator%20of%20public%20sector%20corruption.\" rel=\"noreferrer noopener\">&nbsp;topping the corruption perception index<\/a>&nbsp;and having next to nil risk of deforestation, Mr Ross said that processors would need to provide documentation detailing where trees came from before products were processed and information about forests and trees replanted.<\/p>\n\n\n\n<p>&#8220;They&#8217;ll need to have geolocation data that shows where those forests have come from when it comes to wood products,&#8221; he said, adding that &#8220;we will need to have satellite images like GPS coordinates showing where those trees\u00a0were harvested\u00a0before they were processed.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"SqdhBz5elX4\"><iframe loading=\"lazy\" title=\"From EUTR to EUDR: What should companies do to prepare for compliance?\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/SqdhBz5elX4?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>The EUDR, the EU&#8217;s signature green deal regulation, will have a major impact on timber, paper and pulp exporters looking to export products to the EU &#8211; even if the country of origin is not deemed a risk of deforestation. Footage courtesy of <a href=\"https:\/\/www.youtube.com\/@PreferredbyNature\">@preferredbynature.<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p>Last week,&nbsp;<a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/global-commodities-surge-ahead-of-2-5b-eudr-compliance-bomb\/\" rel=\"noreferrer noopener\">Wood Central reported that the compliance cost of the new legislation could blow out beyond US $2.5 billion per year<\/a>, with an expert warning that exporters may need to run two separate supply chains\u2014&#8221;one that is EUDR-ready, and the other which is not.&#8221;&nbsp;<\/p>\n\n\n\n<p>According to Mr Ross, the new rules will be especially challenging for agriculture because the provisions state that export products cannot&nbsp;be linked&nbsp;to the conversion of natural ecosystems: &#8220;If the lands harvested then converted into agriculture, you won&#8217;t be able to export those products. So if it&#8217;s harvested and replanted, you&#8217;ll be fine.&#8221;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">New Zealand&#8217;s new FTA with the EU comes into effect next month.<\/h6>\n\n\n\n<p>The concerns around the new EUDR, enforceable from December, come after New Zealand&#8217;s new free trade agreement kicks off later this week. In a new report produced by Export NZ,&nbsp;<em><a target=\"_blank\" href=\"https:\/\/exportnz.org.nz\/wp-content\/uploads\/2024\/05\/EU-NZ-FTA-Seizing-Opportunities-Through-Compliance-2024-ExportNZ-Minters-Paper.pdf\" rel=\"noreferrer noopener\">Seizing opportunities through compliance<\/a>, the NZ government body recognises that:<\/em><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Whilst New Zealand&#8217;s cattle and forestry sectors are generally well-regulated\u00a0and sustainable, exporters must demonstrate compliance with the EU&#8217;s stringent sustainability criteria to maintain access to the single market.&#8221; Before acknowledging that &#8220;this could involve additional administrative burdens and costs, particularly for small and medium-sized enterprises.&#8221;<\/p>\n<cite>Export NZ&#8217;s Seizing opportunities (in the EU) through compliance, the NZ government&#8217;s latest report. <\/cite><\/blockquote>\n\n\n\n<p>It said compliance with New Zealand&#8217;s incoming legal harvest assurance scheme for forestry &#8220;may ensure compliance with this EU regulation,&#8221; which, if all goes well, will begin in 2026 &#8211; with the Ministry for Primary Industries extending the consultation period for the&nbsp;<a target=\"_blank\" href=\"https:\/\/www.mpi.govt.nz\/forestry\/forest-industry-and-workforce\/legal-harvest-assurance-system-for-timber\/\" rel=\"noreferrer noopener\">system<\/a>&nbsp;to June 4th.<\/p>\n\n\n\n<p>Mr Ross said the wood processing sector would hold workshops with interested parties to help them adjust to the changes before then searching for possible forest tracing software available in the market.<\/p>\n\n\n\n<p>&#8220;But at the moment there, there is a lot of confusion and uncertainty around what needs to\u00a0be done,&#8221; he said, &#8220;some people are calling it significant implications and that trying to get that data would be very difficult in some circumstances.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1024x683.jpg\" alt=\"The EU are in the process of introducing the world's strongest deforestation laws. As the third largest timber market in the world, behind China and the US, it will have major implications for global supply chains for forest products. (Image Credit: Getty Images)\" class=\"wp-image-14966\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1024x683.jpg 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-300x200.jpg 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-768x512.jpg 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1536x1024.jpg 1536w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-2048x1365.jpg 2048w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-696x464.jpg 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1068x712.jpg 1068w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1920x1280.jpg 1920w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-630x420.jpg 630w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1320x880.jpg 1320w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-600x400.jpg 600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The EU are in the process of introducing the world&#8217;s strongest deforestation laws. As the third largest timber market in the world, behind China and the US, it will have major implications for global supply chains for forest products. (Image Credit: Getty Images)<\/figcaption><\/figure>\n\n\n\n<h6 class=\"wp-block-heading\">NZ is in a strong position to carve out a competitive advantage.<\/h6>\n\n\n\n<p>But he said New Zealand was in a good position and believed the sector could gain a competitive advantage here. He added that &#8220;when it comes to forestry and planting trees, we have good systems in place when it comes to knowing where our products come from.&#8221;<\/p>\n\n\n\n<p>In an email to members, the association said it was considering &#8220;the approach and service of FSC&#8221;, the Forest Stewardship Council certification, but said&nbsp;feedback was that the scheme alone would not provide the paperwork expected to be needed by European officials.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">How the EUDR will work.<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The regulation will assign a low, standard, or high-risk level associated with deforestation and forest degradation&nbsp;to regions within countries inside and outside the EU.<\/li>\n\n\n\n<li>This risk classification will guide the obligations of various operators and the authorities in member states to perform inspections and controls. Consequently, this will streamline monitoring for high-risk regions and simplify due diligence processes for low-risk&nbsp;regions.<\/li>\n\n\n\n<li>Authorities responsible for these areas must inspect 9% of operators and traders dealing with products from high-risk regions, 3% from standard-risk areas, and 1% from low-risk regions. This inspection aims to confirm whether they are effectively meeting the obligations stipulated by the regulation.<\/li>\n\n\n\n<li>Further, these competent authorities will inspect 9% of relevant goods and products either placed on their market, made available, or exported by high-risk regions.<\/li>\n\n\n\n<li>Lastly, the EU plans to enhance its cooperation with partner countries, focusing primarily on high-risk areas.<\/li>\n<\/ul>\n\n\n\n<p>For more information,<a href=\"https:\/\/woodcentral.com.au\/worldwide-impact-eu-passes-law-banning-deforestation-products\/\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0visit Wood Central&#8217;s\u00a0special\u00a0feature on EUDR and its implications for the global supply chain of forest products from July 2023.<\/a>\u00a0For changes to the official text of the EUDR,\u00a0<a href=\"https:\/\/eur-lex.europa.eu\/eli\/reg\/2023\/1115\/oj\" target=\"_blank\" rel=\"noreferrer noopener\">visit the EU&#8217;s official website.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Zealand is the latest country to flag concerns with the EUDR, with the wood processing industry grappling with how the new rules will impact its NZ $100 million trade in wood pallets into the European Union. It comes after Wood Central exclusively revealed that the Australian Government&nbsp;had written to the European Commission expressing concern [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":18022,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[37,53,32,46,114,45,44,31],"tags":[],"ppma_author":[70],"class_list":{"0":"post-18021","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-building-and-construction","8":"category-europe","9":"category-global-news","10":"category-industry","11":"category-new-zealand","12":"category-sustainability","13":"category-sustainable-forest-management","14":"category-top-stories"},"authors":[{"term_id":70,"user_id":2,"is_guest":0,"slug":"jason","display_name":"Jason Ross","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/18021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=18021"}],"version-history":[{"count":2,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/18021\/revisions"}],"predecessor-version":[{"id":18030,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/18021\/revisions\/18030"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/18022"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=18021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=18021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=18021"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=18021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}