Tropical Timbers Not Doing Well in World Markets

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

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Forest Networking a Project of Ecological Enterprises

http://forests.org/ -- Forest Conservation Archives

http://forests.org/web/ -- Discuss Forest Conservation

6/18/99

OVERVIEW & COMMENTARY by EE

The stigmatizing of old growth timbers, particularly from rainforests,

appears to be having consequences on efforts of multi-national

corporations to market rainforest timber. The International Tropical

Timber Organisation is studying ways to remedy the situation.

Countries such as Malaysia, with a heavy stake in continued industrial

extraction of timbers from ancient rainforests, are misrepresenting

municipalities' and other's refusal to buy rainforest timbers as

restricting free trade--rather than as the expression of concern for

the Earth's ecological systems that it is. This article is a bit

dated, but I thought it quite interesting and still timely,

particularly as the World Trade Organization is set to discuss the

forcing open of forest product markets on largely the same basis.

g.b.

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RELAYED TEXT STARTS HERE:

Title: ITTO Studies Tropical Timber Market

Source: Business Times

Date: April 08, 1999

THE International Tropical Timber Organisation (Itto) has begun two

studies that it hopes will shed light on why tropical timber is not

doing well in world markets.

Unlike palm oil and cocoa, which have seen huge price increases on the

strength of the US dollar against regional currencies over the last

two years, the prices of tropical timber are not following the same

path.

Apart from weak prices, tropical timber is also suffering from bad

press. Tropical timber products are tainted with the stigma of causing

the deterioration of rainforests.

Itto had commissioned a consultant to study market access and the

depreciating market for tropical timber products following requests

from producer members led by Malaysia.

A Malaysian official to Itto told Business Times the findings of the

two studies are expected to be tabled at the coming Itto council

meeting in Chiengmai, Thailand, this May.

The week-long meeting is expected to start on May 28. Itto usually has

two council meetings in one year, where the second one is always held

at its headquarters in Yokohama, Japan.

The study on market access was initiated in 1997, following Malaysia's

proposal at the Itto meeting in Bolivia. The second study on market

downturn was proposed by the producer members a year after that.

Itto producer members claimed that consumer members, particularly the

European Union (EU), are not providing the desired access for timber

products to penetrate their respective markets.

They accused many municipalities in the EU of restricting their

respective markets, and portraying tropical timber products as the

cause of world rainforest deforestation.

This restriction has to a certain extent diverted the market for

tropical timber products to consumer countries in the region such as

Japan and South Korea.

However, the regional economic downturn has reduced demand for

tropical timber products from such countries. The tropical timber

producers need to expand its market to other countries like the US and

the EU.

The Malaysian officials said the studies' findings are important,

particularly to the tropical timber producer nations, because Itto

members are expected to draw up resolutions from them.

Malaysia generates export earnings of about US$6 billion (RM23

billion) a year through forest and timber products.

Itto members are Malaysia, Ghana, Indonesia, Australia, Austria,

Belgium, Luxembourg, Bolivia, Brazil, Cambodia, Cameroon, Canada,

Central African Republic, China, Colombia, Cote d'Ivoire, Democratic

Republic of Congo Denmark, Ecuador, Egypt, European Union as a group,

Fiji, Finland, France, Gabon, Germany, Greece, Guyana, Honduras,

India, Italy, Japan, Liberia, Myanmar, Nepal Netherlands, New Zealand,

Norway, Panama, Papua New Guinea, Peru, the Philippines, Congo, South

Korea, Spain, Suriname, Sweden, Switzerland, Thailand, Togo, the UK,

the US and Venezuela.

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