On 1 May 2004, 10 new members states will join the European Union, which will substantially impact companies in the forestry, forest products and paper industries operating in the enlarged EU market. Our thought leadership paper examines the following:
- The current structure and performance of the industries, focusing especially on those in the acceding countries;
- How the enlargement process has already affected companies in the industries; and
- Key opportunities and challenges facing companies in the industries.
Here is just a sample of some of the key messages from the paper:
- Most of the sectors should grow as a result of general economic growth - for example, increases in paper and board production are anticipated.
- One important challenge will be to add more value to existing forest resources, esp. in Poland and the Baltic states; this will probably necessitate investment in larger, more efficient production facilities.
- Adopting the EU's external trade regime will have potential impacts on the cost of materials, especially from Russia, Ukraine and Belarus.
Additional issues to consider:
- Sustainability: Producers still face substantial challenges to comply with environmental standards; sustainable forest management is an important issue.
- Customs/VAT: Trade barriers were already largely removed in the 1990's, but enlargement may raise technical issues around Customs/VAT.
- Labour laws & social security: Forestry and the forest products industry will continue to be an important employer in some accession countries, again enlargement may raise some technical issues for companies.
