Prime Minister Prayut Chan-o-cha has ordered government agencies to study a proposed European Union (EU) import ban on products that drive up deforestation.
The proposed legislation, published on Dec 6, would require traders who export products to the EU to provide production chain verification to ensure no deforestation occurred along the way, according to deputy government spokeswoman Traisuree Taisaranakul.
"Traders would have about 18 to 24 months after the law is passed to send the verification to the EU," said Ms Traisuree.
The government is concerned that the move may initially impact some Thai exports, including palm oil, cattle, soy, coffee, cocoa, timber and rubber.
"With that in mind, the prime minister has ordered authorities, such as the Foreign Affairs Ministry, the Agriculture Ministry, and the Commerce Ministry, to study and follow up on the law's details," said Ms Traisuree.
The study would cover the application and impact that the law might have on the country if it is passed.
The government plans to inform traders about the ban so that they can adjust their practices in the future, she said.
Eco-friendly trading, such as sustainable production and reducing carbon emissions, is now a trend in global trading, according to Ms Traisuree.
Thailand is pushing many economic models that follow this global trend, including the bio-circular-green (BCG) economic development model that the government proposed at the Apec 2022 summit last month.
The EU is the second-biggest market for the consumption of products that drive deforestation after China.