Furniture makers yet to benefit from WTO membership
Furniture makers yet to benefit from WTO membership
Wood processing plants in Laos are still unable to export their products globally even though the country is now a member of the World Trade Organisation (WTO).
“Yes, Laos is a member of the WTO but that does not mean we automatically have access to world markets. There are a number of issues that the sectors concerned must address before we can export manufactured goods to countries outside the region,” Lao Wood Processing Industry President Mr Thongsavanh Soulignamat said yesterday.
Laos became a member of the WTO on February 2 after the global trading body received a letter of ratification from the Lao government.
Mr Thongsavanh, who is Managing Director of the Lao Furniture Industry Company in Vientiane, said one of the major issues the government needs to address is sourcing an adequate supply of timber from managed forests.
“One of the key requirements of European markets is that all timber used in the Lao wood processing industry must come from well managed plantations to ensure the sustainable use of forests in Laos,” he said.
All wooden furniture must be accompanied by certification of the source of the timber ot herwise these products will not be accepted in Europe.
Mr Thongsavanh said the government is aware of the certification requirement and will carry out surveys of forests in some provinces to ensure they are properly managed.
It would be advisable for the government to accelerate the forest management process so that businesses can obtain sufficient quantities of wood from managed forests and export more products to world markets, he added.
At present, most wood processing plants receive their timber from areas that are cleared to make way for development projects. However, some businesses obtain their wood from unlicensed timber traders so they cannot certify the source of this wood.
Mr Thongsavanh said that at present most wood processing plants can export only to the neighbouring countries of Vietnam, Thailand and China, which do not require products to be made of wood that is sourced from sustainably managed forests.
He said businesses must address this issue before they sell their products on the international market and must also modernise their manufacturing processes so that they use wood efficiently with as little waste as possible.
The government has begun certifying wood processing plants that have improved their processing methods to meet national standards. Processing plants that fail to meet industry standards are being forced to close.
Policy makers say one of the main reasons Laos wanted to join the WTO was because the government wants to attract more foreign investment in industries for which t he country has a ready supply of raw materials. By building up these sectors, more manufactured goods can be exported to world markets.
vientiane times
