Appeal by wood processors: Ban export of raw materials from BiH and declare forests a strategic resource

Bosnia and Herzegovina possesses one of the most important resources in the country, which are forests covering about 60% of its surface. To utilize this natural resource and create new opportunities for the wood industry, and to help processors, a stable supply of raw materials must be ensured. However, this same raw material is being exported, creating a big problem for manufacturers, and then we are forced to import it, writes the Patria agency.

A press conference was held today at the FBiH Chamber of Commerce, highlighting the need to ban the export of logs and firewood from BiH. The lack of a Forest Law at the FBiH level is also a complicating factor, and there has been no legal regulation in this area since 2009.

Šemsa Alimanović from the FBiH Chamber of Commerce stated that the wood sector is a bright spot for the development of Bosnia and Herzegovina.

- BiH products are recognized worldwide and have received numerous design awards. However, criteria for raw material distribution have not yet been established, which is the biggest problem for wood processors, and the formal education system also needs to be changed and adapted to the demands of the economy. We appeal to our authorities at all levels to declare this sector a strategic sector for the development of BiH - said Alimanović.

The Vice-President of the FBiH Chamber of Commerce, Mirsad Jašarspahić, stated that the Government has all the mechanisms to make decisions such as protecting the final producer and introducing export duties on raw materials.

- The process of adopting the Forest Law in FBiH is underway, but this should not be linked at all to the adoption of criteria for raw material distribution, as this can be done now with a simple decision, without waiting.

The lack of security in raw material supply is also a major problem for furniture manufacturers.

Muhamed Pilav from the Wood Processing Group and owner of the company „MS&WOOD“, whose furniture has won awards worldwide, stated that expert estimates suggest only 50 percent of hardwood is purchased legally through invoices.

- The solution is either to ban the export of these semi-finished products or to introduce export duties. Every country has the right to declare a branch of its economy and resources strategic, and then no international agreement is valid. There are many such examples in Europe and the world, and it is clear that BiH is the only country in the world that does not protect its resources from excessive imports or exports. The ban on wood exports from Ukraine and Croatia will very soon affect BiH. Most companies where oak is the dominant input raw material, and there are about ten such companies in BiH, will be closed. These are large and serious companies, and at least 1,000 workers will be left jobless in a short period.

In mid-June, the Federal Government determined and sent to the BiH Parliament for consideration and adoption the Draft Strategy for the Development of the Wood Industry of FBiH for the period 2016-2025.