Australia's Neighbors Say Lacey-Like Bill Will Devastate Trade

Australia is facing backlash over its recently passed bill intended to prevent importation of illegally logged wood, according to Radio Australia.

Indonesia wants Australia to recognize the "SVLK" timber verification system, which Indonesia established in order to comply with the European Union's (EU) Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan. Now, Indonesia is threatening to complain to the World Trade Organization (WTO) about Australia's Illegal Logging Prohibition Bill.

A member of PNG's Forest Industries Association told Radio Australia that the bill will hurt PNG's small-market timber exporters due to the cost of implementing "very complex and very expensive schemes to prove legal compliance."

The bill enjoys the support of Australia's major political parties, as well as unions and timber sellers. If the bill next passes Australia's Senate, a two-year transition period will commence.

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