The research aims at elaborating the notion of environmental protectionism in trade practices as exemplified in the case of Indonesia-US timber trade relations. Under the Lacey Act amendment (promulgated in April 2010), entry to US timber market requires environmentally friendly certification making a barrier to Indonesia’s timber and wooden product. The US maintains that the measure is in concordance with its environmental conservation interest and standardization. Indonesia’s timber and wooden producers, on the other hand, argue that the regulation is an instrument justifying new protectionism measures which eventually benefitting its domestic timber and wooden producers. In spite of that, the government of Indonesia has been showing efforts to make its timber and wood products in compliance with can the US standards.
One of its major efforts is by the implementation of efficient permit regulation in standardization and the establishment of supporting institutions. In addition to these conventional efforts, the research recommends that Indonesia need to explore and develop strategies and business plans based on both timber, wooden commodities and non-timber, wooden-related products’ added values by employing a global value chain (GVC) analysis. Product, commodity upgrading and enhanced governance relations in timber, wooden and non-timber, wooden-related industry is therefore of the crucial step need to be taken earnestly in order to go beyond the two countries’new protectionism controversies.
Authors: Riza Noer Arfani, Dedy Permadi, Syista Rahmania, Michelle Ayu Cinta Kristi
Collation: xi + 45 p