Bridges Trade BioResVolume 5Number 21 • 25th November 2005

FOREST UPDATE: ITTO, UNFF AND FLEG


FOREST UPDATE: ITTO, UNFF AND FLEG

Pressure building for new timber agreement at ITTO

Concerns were raised by some members of the International Tropical Timber Organization (ITTO) about the decision at the 39th International Tropical Timber Council’s (ITTC-39) meeting in Yokohama, Japan on 7-12 November to include so-called "environmental" elements in the 2006-2007 work programme of the ITTO. These countries feared that including such elements could lead to the broadening of the scope of the International Tropical Timber Agreement, which is currently being renegotiated (see Bridges Trade BioRes, 4 March 2005). Environmental elements included in the work programme are increased monitoring and assessment of the social, economic and environmental costs and benefits of sustainable management of natural forests; field-testing draft Guidelines on the Conservation of Biological Diversity in Tropical Production Forests; as well as assistance to Members to implement the rules of the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) on listed forest species.

Several delegates, including a number of consumer countries, had supported the inclusion of these elements in the work programme, noting that they represent a holistic approach to sustainable forest management (SFM) that is currently in use. They also felt that these elements should be reflected in the new ITTA that will replace the current agreement at the end of 2005. However, most producers of tropical timber — primarily located in the developing world — expressed fears that including these environmental elements in the ITTO work programme could lead to the broadening of the scope of the ITTA, arguing that the ITTA is first and foremost a commodities agreement to promote trade in tropical timber.

The disagreement about the current and future scope of the organisation also arose during talks on proposed ITTO work to promote trade in sustainably produced timber by supporting government procurement. Such support could include assisting major exporters by providing independent audits that could counter allegations of trade in illegal logs by non-governmental organisations (see related resource, this issue, and Bridges Trade BioRes, 28 October 2005). Colombia, the EU, the US and others said that it was the responsibility of national authorities to determine their policies, not the ITTO.

The next set of negotiations on the successor agreement to ITTA-1994 will be held in Geneva, Switzerland on 16-20 January 2006. It is expected to address the possible renaming of the ITTO as well as the role of issues such as illegal logging, sustainability and NTFPs in the scope of the new organisation.

Elements of new international forest "thing" considered

An International Expert Meeting on "Scoping for a future agreement on forests" held in Berlin, Germany, on 16-18 November took up the possibility of creating a new international instrument on SFM, but stopped short of agreeing on what sort of instrument should be created. Given that the most recent session of the UN Forum on Forests (UNFF) failed to agree whether a voluntary or legally-binding instrument should be created (see Bridges Trade BioRes, 10 June 2005), the negotiators, experts and civil society participants in the meeting suggested calling the tool "the thing" for the time being, and considered the possibility of a strong non-binding instrument.

The meeting, which was held outside the UNFF process by the German government, hoped to resolve disagreement within the UNFF on how the forum should address the mandate from the UN Economic and Social Commission (ECOSOC) to "recommend the parameters of a mandate for developing a legal framework on all types of forests". The chair’s non-binding report says that a strong voluntary instrument could allow countries to find a political middle ground while clarifying norms and standards; providing policy rather than technical guidelines; setting clear quantifiable SFM targets; providing linkages with other forest-related instruments; linking the sustainable development agenda and achievement of the Millennium Development Goals; and ensuring effective implementation and compliance. The text also considers the possibility of providing financing for forest projects through a global tax on international trade of forest products and the creation of a establishing a global trust fund for forests. Although the importance of implementation, regionalisation and providing incentives for investment in SFM were all discussed, and despite the fact that most participants said they were very much interested in coming to agreement on what a new instrument might involve, discussions at UNFF-6 on 13-24 February 2006 will determine what, feasibly, can be done to create a new international instrument on SFM.

UK blamed for illegal logging

In a report released on 22 November, the environmental group WWF accused the UK of being the biggest importer of illegally harvested timber in Europe. The report "Failing the Forests: Europe’s Illegal Timber Trade" found that the EU imports approximately 20 million cubic metres of illegal timber from the Amazon Basin, the Congo Basin, East Africa, Indonesia, the Baltic States and Russia every year. The report warns that the trade in illegal timber leads to the loss of 600,000 hectares of forest per year, billions of dollars in lost government revenue and the destruction of the livelihoods of members of local communities. WWF urged the EU to adopt binding, mandatory measures that prohibit EU members from importing illegal timber, adding that current voluntary programmes are insufficient (see Bridges Trade BioRes, 28 October 2005).

EU Ministers will take up this challenge on 22-25 November in St. Petersburg, Russia at a Europe and Northern Asia Forest Law Enforcement and Governance (FLEG) Ministerial meeting, in the hope of mobilising international commitment from producer, consumer and donor govenrments to increase efforts to combat illegal logging as well as the associated trade and corruption in the forest sector in Europe and the North Asia region. They are expected to sign a Ministerial Declaration that will commit them to identifying and developing strategies to address the underlying causes of illegal logging, associated trade and corruption; developing effective partnerships with the private sector; engaging stakeholders including indigenous peoples and local communities; and other actions. The FLEG process is being facilitated by the World Bank and has been notably characterised by extensive involvement of civil society groups (coordinated by IUCN) and industry groups such as the World Business Council on Sustainable Development (WBCSD).

Additional Resources

WWF’s report, "Failing the Forests", can be accessed at http://assets.panda.org/downloads/illegalloggingeu_1.pdf

Guidance on the UK Government’s timber procurement policy and how to purchase legal and sustainable timber is available at http://www.proforest.net/cpet

Further information on the FLEG Meeting is available at http://www.worldbank.org/enafleg

ICTSD Reporting; ENB Vol. 24 No. 64, 14 November 2005; ENB Vol. 119 No.1, 21 November 2005; "Britain leads EU imports of wood logged illegally," INDEPENDENT, 22 November 2005; "EU under fire for its part in illegal trade with wood," EU OBSERVER, 22 November 2005; "ENA FLEG: Questions and Answers," WORLD BANK, 17 November 2005.