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Significance
The breakthrough agreement with the EU, signed on September 15, came after environmental and consumer lobbied for Indonesia to staunch the world's highest rate of deforestation.
Impacts
Indonesia should reap an economic dividend as the preferred EU source of hardwood timbers.
Other markets will likely seek similar pacts, pressuring Cambodia, Laos, Malaysia, Thailand and Vietnam also to comply.
The agreement will test the credibility of Indonesian legal and regulatory institutions.
Keywords:
South-east Asia,
AP,
Cambodia,
China,
EU,
Laos,
Malaysia,
Myanmar,
Thailand,
Vietnam,
industry,
corruption,
environment,
fiscal,
foreign trade,
regulation,
technology,
timber,
international relations,
politics,
social
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2016
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