Natural resources preservation effort of gov’t backed

The Export Development Council (EDC) is supporting the government’s effort to protect and preserve the country’s forests and other natural resources provided that such move does not harm the export industry.

Trade and Industry Secretary and EDC chairman Juan B. Santos said, "the council supports the total log ban in protected forests and selective logging in production forests and tree plantations."

However, Santos said the EDC believes that the suspension of logging or cutting permits of legitimate enterprises should be immediately lifted to avoid further disruption in the supply chain for furniture manufacturing.

Santos noted that the most affected sectors in the export community are the furniture and furnishings industry, which are among the country’s top export revenue sources.

Santos said pallet manufacturers who service the locators of export processing zones as well as the plywood industry are also affected by the ban.

Santos pointed out that exports of furniture and furnishings, of which 82.2 percent are forest-based products, amounted to $278 million in 2003 and $294 million in 2004.

The industry employs about 1.84 million that involves around 2,500 exporters and 10,000 manufacturers catering to the domestic market.

Santos also warned against the potential negative impact of a total log ban, citing a possible "decline in export revenues since the competitiveness of the local furniture industry will erode due to lack of raw materials, weakening the country’s international reputation of being innovative and creative in the use of indigenous materials in furniture and furnishings."

Santos said the EDC is proposing that minor forest products such as rattan, vines, bark and fibers be excluded from the coverage of the log ban as the harvesting of such materials do not imperil the forest cover.

The EDC also proposes to lower the tariff on imported wood as a means of helping furniture manufacturers-exporters cope with the loss of local sources of raw materials if a total log ban is implemented.

The EDC is likewise pushing for more incentives from the government for industrial tree farming.