Clinton's Forest Products Trade Report Blasted
11/3/99
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Title: Environment: CLINTON'S Forest Products Trade Report Blasted
Source: InterPress Service
Status: Copyright 1999, contact source for permission to reprint
Date: November 3, 1999

WASHINGTON, (Nov. 3) IPS - The U.S. government, hoping to ease fears
that liberalizing trade in wood and paper products would increase
logging in endangered forests worldwide, released a new study here
this week that only enhanced the worries of environmentalists.

The study by the Office of the U.S. Trade Representative (USTR) and
the Council on Environmental Quality concluded that a rapid reduction
in import tariffs on forest products would have only a small impact
on the environment.

They based this on the fact that tariffs on forest products already
were close to zero in many nations.

The report concluded that while logging would increase in some
countries -- including Malaysia and Indonesia -- in other countries,
such as Korea and Japan, timber production would decrease.

"This analysis demonstrates that further opening trade in the forest
products sector is consistent with our commitment to environmentally
sustainable economic growth," said Charlene Barshefsky, the U.S.
Trade Representative.

But environmental organizations said the study proved that tariff
reduction would accelerate logging in endangered forest "hot spots,"
such as Indonesia.

They criticized the study for not analyzing the potential impact of
negotiations on non-tariff measures, including forest protection laws
that could be considered barriers to trade under international
trading bodies.

"The Administration's analysis only gives half of the picture," said
Andrea Durbin, international programs director at Friends of the
Earth, "but even that half shows this proposal could harm critically
important forests in key regions."

The government prepared its study in response to widespread criticism
from environmentalists of its aggressive effort to accelerate the
reduction of tariffs which began at the Asia Pacific Economic
Cooperation (APEC) forum in 1997.

According to the report, by 2010 the USTR's plan to reduce tariffs
will increase the aggregate world trade in forest products by a
maximum of two percent and the timber harvest by 0.5 percent.

World production and consumption of forest products would increase by
less than one percent, the report said.

Reflecting the current level of tariffs among individual countries,
Finland and Australia likely would have the largest increase in their
timber harvests in 2010 -- 11 and 9.2 percent respectively - if
tariffs were reduced.

Sweden also was expected to show an increase of 7.6 percent in timber
production, while Malaysia by 2.6 and Indonesia would increase by 4.4
percent.

Meanwhile, Korea and France are likely to have large decreases in
timber harvests of 11.2 and 6.4 percent, respectively, said the
report. Japan would decrease by 5.8 percent, Russia by 4.1 percent
and Mexico by 2.1 percent.

"It appears likely that decreases in timber harvesting will be
concentrated in primary (pristine or old growth) forests and that
increases will be concentrated in secondary forests and plantations,"
said the report.

Contrary to the report's conclusion, environmentalists said the
report bolstered their concern that logging will increase in
countries with threatened biologically diverse tropical rain forests,
like Malaysia, Indonesia and Papua New Guinea -- where over half the
timber production is exported.

"The Administration's analysis confirms some of our concerns about
forest impacts, even though it considers only one tiny slice of the
overall trade liberalization effort," said David Downes, senior
attorney at the Center for International Environmental Law (CIEL).

Environmentalists, deeply concerned at the rapid deforestation taking
place worldwide, denounced the study as incomplete and too narrow in
scope.

According to World Resources Institute (WRI), nearly one-half of the
world's original forest cover has disappeared.

At least 200 million hectares of forest were lost between 1980 and
1995 -- an area larger than Mexico or Indonesia, said the 1997 United
Nations Food and Agriculture's State of the World's Forests report.

Given these statistics, Doug Norlen, a policy analyst for the
California-based Pacific Environment and Resources Center, questioned
the focus on accelerating tariff removal rather than on the overall
impact of tariff elimination on forests.

"It is as if there is a car speeding at 80 miles per hour toward a
brick wall, and at the last moment it speeds to 85 mph, and a
government study looking at this only does an assessment of a 5 mph
crash," he said.

Environmentalists blasted the study for not analyzing the potential
impacts of the elimination of non-tariff measures in forest products,
since the Administration has stated several times that it intended to
introduce the discussion of such measures in future trade
negotiations.

A report by Washington-based WRI and the CIEL also released yesterday
said domestic laws designed to protect forests could be seen as non-
tariff barriers to trade and therefore be eliminated or weakened.

Efforts to label forests products, to control the import of invasive
species that harm trees, and to pass laws restricting local and state
governments from purchasing endangered wood products could all be
seen as non-tariff barriers to trade, said the 26-page report
entitled "Tree Trade."

Such concerns were echoed in a letter sent to fellow lawmakers by
Democratic Senator Barbara Boxer of California, which asked them to
sign a letter urging Pres. Clinton to consiider the impact of
eliminatin non-tariff barriers to trade.

"We oppose the elimination of non-tariff measures that threaten our
own ability -- yours and ours -- to write and enforce the laws most
needed to protect our environment and our communities," a draft of
the letter said.

Tree Trade urged trade liberalization to be put on hold until
mechanisms are put into place to ensure parallel progress on forest
protection.

"To prevent further forest loss, governments need to put the same
effort into forest protection that they put into trade
liberalization," said Nigel Sizer, director of forest policy at WRI
and lead author of the report.

Specifically the report recommended a drastic reduction in public
subsidies that encourage logging. Tree Trade called for strong
support within the WTO for "eco-labeling" efforts that would better
inform consumers about the wood products they purchase.

The report also urged the Administration to support the control of
trade in threatened timber species, such as mahogany, under the
Convention on International Trade in Endangered Species (CITES).

"Mahogany logging is a major catalyst for tropical deforestation,"
said the report. "Loggers expand operations into frontier forests and
road construction facilitates settlement by farmers and conversion of
forests for ranching."

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