Substantial progress has been made in negotiations between the European Union (EU) and Malaysia on the Voluntary Partnership Agreement (VPA), which will promote the sale of legally produced timber in the EU market.

The advisor to the Ministry of Plantation, Industries and Commodities, Freezailah Che Yeom said there was strong commitment from Malaysia to conclude the agreement.

"There is a need for a consultation process among different stakeholders in Malaysia, including the industries, civil societies and non-governmental organisations," Freezailah told reporters after the launch of EU's Forest Law Enforcement, Governance and Trade Asia Regional Programme in Malaysia.

Freezailah said the VPA involved user rights and did not involve land ownership.

Meanwhile, the ambassador and EU head of delegation to Malaysia Vincent Piket, when met after the launch, said there were several technical matters pertaining to the VPA that needed to be resolved.

"We hope to conclude the VPA in June or July," he said.

He explained if the VPA was concluded, it would benefit Malaysia in terms of the timber trade, making it the first country in Asia to conclude the agreement.

The VPA, Piket noted, would also provide Malaysia a 'green lane' for Malaysia's timber products to ensure the legality of products without further paper evidence.

Under the EU FLEGT Action Plan, the grouping embarked on bilateral negotiations on the VPA with timber producing countries to ensure the legality of forest operations and encourage sustainable forest management.

Negotiations on the VPA with Malaysia and Indonesia have been on-going since 2007.

Both countries, accounted for about seven per cent of the timber trade of the EU.

FLEGT Asia Programme Coordinator Vincent van den Berk said the EU programme would help the regional timber industry meet pending EU market legislation on the legality of timber sold in EU, to be enforced by end 2011.

"The new EU legislation involves a set of procedures aimed at avoiding trade in illegally harvested timber," van den Berk said.

Van den Berk said the FLEGT Asia Regional Programme was funded by the European Union and co-funded by the United Kingdom, Finland and Germany.

"The EU granted RM30 million for the programme and activities related to the promotion of good forest governance and facilitation of trade in guaranteed legal timber in the region over the next three years," he added.

Such activities, he said, would include communication and awareness-raising through briefings, support for VPA negotiations, technical work, conduct of analysis, co-organising FLEGT relevant events and consultations, and customs cooperation.

Piket said support programmes in Malaysia would be worth about four million euros.

- Bernama