Bridges Trade BioRes • Volume 2 • Number 18 • 21st November 2002
Tropical Timber Organisation Narrows Gap on Timber Certification
TROPICAL TIMBER ORGANISATION NARROWS GAP ON TIMBER CERTIFICATION
The conciliatory tone during discussions on the controversial issue of certification as a means to promote sustainable forest management was widely seen as one of the substantive successes of the thirty-third session of the International Tropical Timber Council (ITTC-33), held from 4 to 9 November in Yokohama, Japan. Also of interest in the trade context were debates on the relationship of the International Tropical Timber Organisation (ITTO) with other international organisations such as the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) and the WTO.
Moving closer on certification issues
During ITTC-33, countries appeared to have moved closer in their positions on the notoriously divisive issue of timber certification. Especially producer countries showed far more interest in learning about certification than had been the case in previous ITTC sessions. Countries are broadly divided into two camps (see BRIDGES Trade BioRes, 4 April 2002). On the one side, the majority of developing countries as the main producers of forests products are generally opposed to certification, arguing that they often lack the resources to implement such schemes and that certification might be used as a disguised barrier to trade if their non-certified products are discriminated against. In contrast, those countries supporting certification — mainly from the developed world — argue that it would be beneficial for consumers, forests and producers. Also, they point out that certification schemes are usually voluntary and that countries are not forced to comply with them.
During the discussions in Yokohama, the Secretariat introduced a new study on phased certification for sustainable forest management as a possible compromise for both sides. [A phased approached involves dividing full compliance with the certification standard into a series of interim targets or milestones, thereby allowing limited resources to be focused on one or two tasks at a time.] Indonesia supported phased certification in both producer and consumer countries and so did Switzerland and Ghana. Other countries, however, such as the US and China, reminded delegates of the ITTO’s commitment not to support any particular scheme or endorse any particular standard. They also expressed concern that certification might act as a non-tariff trade barrier. Despite these differences in opinion, observers noted that the idea of using certification to combat illegal logging was increasingly gaining support at the multilateral level, and that certification was no longer encountering the same level of suspicion as before. Delegates agreed to further investigate the possibilities of phased certification schemes at ITTC-34.
Certification, however, continues to be a controversial issue amongst civil society groups. The Rainforest Foundation recently released a report accusing one of the major forest certification organisations, the Forest Stewardship Council (FSC), of allowing the certification of timber companies that have been implicated in human rights abuses and logging in tropical rainforests that contain endangered species, as well as companies that have falsely claimed to comply with FSC’s audit requirements. The FSC rejected the claim and stated that its certification system was in order and functioning well. The report from the Rainforest Foundation will be discussed at the next annual council meeting of the FSC.
ITTO’s Relationship with CITES and the WTO
In the context of the ITTO’s international role, delegates discussed CITES proposals related to forestry. Particular attention was drawn to a proposal by Nicaragua and Guatemala to list big-leafed mahogany in CITES Appendix II (limited trade under strict controls). The Council Chair highlighted that members were required to inform the ITTO on proposals for CITES listing although the ITTO was already part of the CITES working group on mahogany. In an effort to increase the cooperation with CITES, delegates discussed the need for providing CITES with specific forestry expertise, when such proposals are filed. The proposal on moving big-leafed mahogany to Appendix II was approved by the CITES Conference of Parties (see related story, this issue).
Regarding the relationship between the WTO and the ITTO, some experts noted that the ITTO was the perfect forum for discussing trade in timber commodities as it was committed to not endorsing particular certification schemes. The ITTO has applied for observer status at the WTO Committee on Trade and Environment (CTE), which is still pending.
Forestry and trade
Another interesting link to the WTO — aside from certification and labelling discussions — could be the WTO mandate to negotiate on the elimination of tariff and non-tariff barriers to environmental services under para. 31 (iii) of the WTO Ministerial Declaration adopted in November last year. In this context, the EC has submitted a communication in 1999 on classification issues in the environmental sector, which includes protection of forests and promoting sustainable forestry in the list of environmental services. However, the proposal has so far not received major backing from other countries and discussions at the WTO on how to define environmental services continue. In the context of the ITTO, emerging markets for forest services include: water services (i.e. forests play an important role in maintaining water quality); ecotourism especially in rainforests; carbon sequestration; as well as protection of biodiversity.
Additional Resources
Daily coverage: IISD Linkages
Communication From The European Communities And Their Member States: “Classification Issues in the Environmental Sector,” S/CSC/W/25
ENB Vo.24 No.14, 11 November 2002; “Certification scheming,” TROPICAL FOREST UPDATE.