An EU delegation today completed a visit to Sarawak as part of Malaysia's efforts to show that timber exported to European markets is sourced legally, a senior minister said.

"They have wrapped up their visit. They were very positive. Both sides are happy," Peter Chin, minister of plantation industries and commodities, told AFP .

The visit is part of Malaysia's efforts to formalise the Voluntary Partnership Agreement (VPA) with the EU to enable its timber products to enter the markets of all EU countries.

The meeting is the first round of negotiations on the implementation of the forest law enforcement, governance and trade agreement with the European Union from November.

The timber certification system is aimed at curbing illegal logging and timber sales and to help Malaysia preserve its endangered natural forests.

Malaysia's exports of timber products to the EU are worth RM2 billion annually and its commitment to consider the pact is aimed at avoiding a ban on its exports.

Chin said two major issues on the agenda of the talks were tracing the source of timber and illegal logging.

"We are very happy to see the process completed to ensure EU buyers that the exported Malaysian timber and timber products are legal and we will put in place the necessary procedures," he said.

Competitive edge

Chin said the EU was an important market for Malaysia's timber besides Japan and the United States.

The European Union market accounts for about 30 percent of Malaysia's annual timber exports. Meranti, merbau and balau are among the most sought after timber species in Europe.

Chin had previously said that the VPA will provide Malaysia a competitive edge over rivals, such as Indonesia, China and Vietnam.

The 11-member EU delegation was led by Soledad Blanco, the international relations director at the European Commission's environmental office. It will return home later Sunday.

Last night, the EU group held talks with the indigenous Penan tribe near Miri in the northwest of Sarawak state, the official Bernama news agency said.

A community leader, Joseph Wan Raja, said several tribal members backed by some non-governmental organisations had set up blockades to prevent loggers from entering certain areas.

The blockade had disrupted diesel delivery to run the generators for a school and a rural clinic, he said.

Chin said Malaysia wanted EU officials to get first hand information of the true situation.

"The majority of the Penans welcome the logging road. The blockade is causing hardships. The government hopes there will be a settlement between the logging company and those who set up the blockades," he said.