THE NEW ITTA ENTERS INTO FORCE

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         THE NEW INTERNATIONAL TROPICAL TIMBER AGREEMENT ITTA-94
                 ENTERS INTO FORCE WITH 22 RATIFICATIONS
The International Tropical Timber Organization comes onto a new stage with the entry into force of the new International Tropical Timber Agreement-1994.

The new agreement incorporates the YEAR 2000 OBJECTIVE, according to which tropical timber in international trade must come from well managed forests, by the year 2000. The concept of "well managed forests" refers to forests managed according to ITTO's GUIDELINES FOR THE SUSTAINABLE MANAGEMENT OF NATURAL TROPICAL FORESTS, and the ITTO'S GUIDELINES FOR THE ESTABLISHMENT AND SUSTAINABLE MANAGEMENT OF PLANTED TROPICAL FORESTS. National standards are expected to be developed, in compliance with these generic guidelines.

The original ITTA was signed in 1983, with a life span of 10 years, and the specific mandate to foster the expansion and diversification of the international trade of tropical timber, based on sustainably managed forest resources. The achievement of such a mandate would take into account the projected increase in demand, the need for continuity of supplies, fair and remunerative prices, further processing in producing countries, and improvements in the access to international markets.

SUSTAINABLE FOREST MANAGEMENT

According to one of ITTO's own studies, less than one per cent [1%] of forests under industrial production in ITTO member countries were considered well managed by 1989 [1]. Although the findings of this report have been seriously disputed, the achievement of one of the fundamental objectives of the organization, to base the trade on sustainably managed forests, seems to have so far fallen considerably short from success.

ACCESS TO MARKETS

Tropical timber seems to face today more obstacles in international markets, both in number and effectiveness, than when the organization was created. The call for bans and boycotts against tropical timbers have become normal and widespread, as well as discriminatory conditionalities to the trade and use of tropical wood products in the main international markets.

Legislation demanding that tropical timbers be certified as coming from well managed sources is spreading throughout industrial nations. There are regulations in place in dozens of counties and cities of several European countries, such as Germany, the Netherlands, Austria and Switzerland, limiting the use of tropical timber in public works. Proposals to extend these bans to all the European Community have been brought to the consideration of the European Parliament. Such regulations have been so far applied discriminatorily against tropical timbers only.

Four different ministries of the government of the Netherlands endorsed a Framework Agreement on Tropical Timber [2]. Starting in January of 1996, all imports of tropical timber would be exclusively limited to supplies guaranteed to be sustainably produced, according to a credible and reliable certificate. This regulation had the force of law, and applied only to tropical timber, not to timber products coming form industrial countries, which form the bulk of all imports of wood products into the Netherlands. The regulation was not only openly discriminatory against tropical timber. It was also in violation of existing international trade agreements, and contrary to the international commitments subscribed by the government of the Netherlands in ITTO. The government decided to withdraw its policy at the end of 1994.

Similar regulations exist in the North-American states of New York and Arizona. A bill was introduced in 1993 to the US Congress by Kostmeyer [HR-2854] to prohibit all imports of tropical timber to the USA, except products proven to come from well managed forests, according to an independent and reliable certification. The proposal applied discriminatorily only to tropical timber.

FURTHER PROCESSING

No significant increase in the level of processing has occurred in tropical countries, and therefore added value and the creation of jobs continue to be transferred to industrial countries, in a similar proportion as 12 years ago. The countries who have increased processing significantly during this time, such as Indonesia, have done so under national efforts largely disassociated of ITTO.

FAIR PRICES

Another ITTO study concluded that 90 per cent of the revenues from the trade of tropical timber was retained by traders and importers. Only 10 per cent found its way to the country of origin [3].

When measured with the same yardstick, in 1990 the value of the tropical timber exports to industrial countries was lower than in 1984, when the ITTA came into effect. During this period, the roundwood equivalent of exports to industrial countries increased from 30 to 38 million cubic meters per year. But when measured in constant terms (1984 dollars), the value of each cubic meter of tropical timber exported to industrial countries actually decreased during this period, despite rhetorical commitments to better value the resource.

Japan is the largest importer of tropical timbers. Between 1984 and 1990, Japan's imports increased from 14.5 to 20.1 M3 of roundwood equivalents, But the price, in 1984 dollars, dropped from 2.4 to 2.2 billion dollars a year. In 1990 the value per roundwood equivalent was 33% lower than in 1984 in constant terms. A similar situation, although with a less pronounced decrease in value, was found for exports to both the USA and the European Community during the same period.

RESOURCES REQUIRED TO ACHIEVE THE YEAR 2000 OBJECTIVE

ITTO has made several attempts at estimating the resources needed by tropical countries to achieve the Year 2000 Objective. In September of 1995 an expert panel was convened to such an effect, providing an estimate of about two billion dollars per year. The budget of the organization is only a fraction of this figure, although not all actions necessary to achieve the target need to be carried out within ITTO's framework. Nevertheless, it seems evident that cooperation must be significantly strengthened between producing and consuming countries, industry, trade and NGOs, is such a target is to be achieved. Actions need to be priorized, and a clear strategy implemented to ensure progress in this direction. The ratification of the agreement by all member countries would provide an indication of the commitment to achieve this fundamental and strategic goal. Cooperation from industry and NGOs also needs to be significantly improved.

RATIFICATIONS

The original ITTA was renegotiated between 1992 and 1994, the outcome being the new ITTA-1994. In a simple ceremony held at the Palais des Nations in Geneva on September 13, 1996, during the last session of the Intergovernmental Panel on Forests, the entry into force of the new ITTA was announced.

Many member countries have so far failed to ratify the agreement, including the USA, Germany, the United Kingdom, France, the Netherlands and all other members of the European Community, Finland, Russia, Brazil, Colombia, Venezuela, Cameroon, Cote D'Ivoire and the Philippines. Only 22 of the 53 members have done so.

COUNTRIES WHO HAD RATIFIED THE AGREEMENT BY SEPTEMBER 13, 1996

  INDUSTRIAL COUNTRIES
     AUSTRALIA
     CANADA
     DENMARK
     JAPAN
     NEW ZEALAND
     NORWAY
     SWEDEN
     SWITZERLAND

  DEVELOPING COUNTRIES

  ASIA CAMBODIA
     CHINA
     INDONESIA
     MALAYSIA
     MYANMAR
     KOREA [S]
     THAILAND

  AFRICA
     GHANA
     LIBERIA
     TOGO

  LATIN AMERICA
     ECUADOR
     BOLIVIA
     PANAMA
     PERU
AMONG THE MEMBER COUNTRIES WHO HAD NOT RATIFIED THE AGREEMENT AS OF SEPTEMBER 13, 1996 ARE:

AUSTRIA BELGIUM/LUXEMBOURG EUROPEAN COMMUNITY FINLAND FRANCE GERMANY GREECE IRELAND ITALY NETHERLANDS PORTUGAL SPAIN UNITED KINGDOM UNITED STATES RUSSIA BRAZIL COLOMBIA VENEZUELA HONDURAS CAMEROON CONGO COTE D'IVOIRE GABON EGYPT FIJI PAPUA NEW GUINEA PHILIPPINES References. Poore, D: No Timber Without Trees. A study for ITTO. 1989.

2. Ministry for Foreign Trade, the State Secretary for Agriculture, Nature Management and Fisheries, the Ministry for Development Cooperation, The Ministry of Housing, Physical Planning and Environment, The Netherlands Timber Trade Association, The Netherlands Trade Union Confederation, IUCN and WWF-NL:

Netherlands Framework Agreement on Tropical Timber. The Hague, 1993.

3. ITTO: Incentives in producer and consumer countries to promote sustainable development in tropical forests. Report by the Oxford Forestry Institute and TRADA for ITTO. 1991.

	JULIO CESAR CENTENO
	PO BOX 750
	MERIDA - VENEZUELA
	Tel:	Int+58-74-714576
	Fax:	Int+58-74-714576
	Email:	JCenteno@ciens.ula.ve
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