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Vol. 24 No. 29
Friday, 7 November 2003
ITTC-35 HIGHLIGHTS:
THURSDAY, 6 NOVEMBER 2003
On Thursday, delegates to ITTC-35 convened in the
Committees on Economic Information and Market Intelligence (CEM),
Forest Industry (CFI) and Finance and Administration (CFA). In the
afternoon, delegates met in a council session to consider: the
annual review and assessment of the international timber situation;
listing proposals to the Convention on the International Trade in
Endangered Species (CITES); experiences implementing the ITTA, 1994;
and ITTO Objective 2000.
COMMITTEE ON ECONOMIC INFORMATION AND MARKET
INTELLIGENCE AND COMMITTEE ON FOREST INDUSTRY
POLICY WORK : The US proposed the addition of two
projects in the Draft Biennial Work Programme for 2004-2005: a
regional capacity building workshop in Peru for major mahogany
exporters; and a review and audit of existing tracking systems of
producer countries. PERU and AUSTRALIA supported the establishment
of the workshop. SWITZERLAND said that regular sessional activities
should be given priority in the Draft Work Programme. The US recommended that the market study in China and
Japan, the tracking system audit proposal and subsidies work should
proceed through the project cycle. AUSTRALIA emphasized that regular sessional work, the market study on plantations and the mahogany
workshop should be given priority. BRAZIL noted the need to
prioritize work relating to regional offices. MALAYSIA expressed
concern about the delays that occur when activities are subject to
expert panel review. PERU highlighted the need for guidelines and
criteria to determine which activities should undergo expert review.
The CEM/CFI decided to recommend to the Council
that: ongoing activities be pursued; priority be given to new
activities on the promotion of private investment in natural forests
and the promotion of the establishment of efficient and socially
sound community-based forest industries; priority be given to the
tracking audit proposal; and the study on timber and timber product
subsidies be deferred until its terms of reference (ToR) are fully
defined.
The CEM/CFI briefly reviewed progress in the areas
of: market access; forest and timber certification; life cycle
analysis of timber products; proposed listing of timber species in
CITES appendices; trade in secondary processed wood products;
sustainable forest management (SFM) as addressed by the United
Nations Forum on Forests; and the ITTO Work Programme for 2003.
OTHER BUSINESS : Announcing its intent to amend
its import regulations of solid wood packing material, the US said
that the proposed amendment would likely have an effect on
international timber trade. He noted that Canada, the Republic of
Korea and New Zealand would adopt similar standards.
COMMITTEE ON FINANCE AND ADMINISTRATION
The CFA considered a proposal to increase programme
support by two percent for projects and pre-projects to cover the
cost of two regional offices. INDONESIA asked if this increase would
be applied to all projects and also to previous projects. The
Secretariat said the increase is for all projects but does not apply
to prior projects. BRAZIL noted that ITTO project costs are higher
than those of other organizations and this may reflect ITTO's
project implementation difficulties. The Secretariat and NORWAY
explained that the two percent increase was a reasonable figure.
BRAZIL, supported by GABON, requested that the role and tasks of
regional offices be defined before looking at how they should be
funded. INDONESIA questioned the equity of projects that are not
supervised by regional offices. JAPAN expressed concern regarding
the increase in programme support and said regional offices should
not be included in project costs. BRAZIL, on behalf of the Producer
Group, said it is ready to share information put together by the
caucus group on the responsibilities of regional offices, and that
the offices should assume a more institutional function.
SWITZERLAND, supported by NEW ZEALAND and INDONESIA, suggested that
the CFA revisit the role and funding of regional offices in the next
eighteen months, and discuss options at ITTC-39. SWITZERLAND noted
that the ITTO has not made a comparison of how other international
organizations deal with arrangements for regional offices. Chair
Chris Ellis (US) said he would reflect the discussion in the report
to the Council, and will provide the ToR for officers in regional
offices at the next CFA meeting.
COUNCIL SESSION
ANNUAL REVIEW AND ASSESSMENT OF THE INTERNATIONAL
TIMBER SITUATION : The Secretariat presented a report on elements
for the annual review and assessment of the world timber situation (ITTC(XXXV)/4),
noting that international timber trade data is increasingly
important since it informs policy discussions. The Secretariat noted
that due to the low amount of country responses it received on
timber data, it might consider paying countries for such information
in the future. The Secretariat highlighted its cooperation within an
inter-secretariat group to improve responses from developed
countries. In response to the Secretariat's point that the EU does
not have reliable trade data, the EU said it studies timber market
data on a global level, so it is difficult to obtain actual data
from member countries. The US suggested that the TAG could play a
role in promoting timely data reporting. NEW ZEALAND noted that
trade data is essential if member states are to create policies on
curbing illegal logging and trade. The Secretariat said it would
update its data based on forthcoming data submissions from the
Republic of Korea, Malaysia and Brazil. Vice-Chair Jan McAlpine (US)
said ITTO is recognized as being among the more substantive sources
of timber trade data, and that data is the basis for policy
decisions in ITTO, as well as on a national level. Executive
Director Sobral explained the ITTO's actions to address data
collection and reporting problems. He said that, although data
improvement is not included in the Draft Biennial Work Programme for
2004-2005, work could be done in the biennium if additional funds
are received from member states.
CITES LISTING PROPOSALS : The Secretariat
reported that it had not received any proposals to list new species
in CITES appendices since ITTC-34. It noted that as of 15 November
2003, mahogany will be listed under CITES Appendix II, implying that
each mahogany import will need a CITES permit. The Secretariat also
noted that the CITES and ITTO Secretariats convened a second meeting
of the Mahogany Working Group in Belém, Brazil in October 2003 to
discuss: administrative and scientific requirements for Appendix II
listing; the role of mahogany plantations and methods to distinguish
between natural forest and plantation imports; and statistical
assistance from ITTO to member countries and organizations.
EXPERIENCE IN THE IMPLEMENTATION OF THE ITTA, 1994 :
Shaharuddin Mohamad Ismail presented a background paper on
experiences with the implementation of the ITTA, 1994 (ITTC(XXXV)/5),
elaborating on: the ITTA's organization and administration; ITTC
procedures; finance; operational activities; ITTO's relationship
with the Common Fund for Commodities; and different categories of
project objectives. Ismail concluded that there have been notable
achievements under ITTA, 1994, despite its poor implementation. He
said that areas for potential future review under the successor
agreement include: the integration of policy and project
implementation; balancing project distribution among committees and
among geographic regions; and improving the project cycle. He
highlighted several remaining technical questions, including whether
the ITTA's special vote provisions can be deleted.
ITTO OBJECTIVE 2000 : David Cassells, World Bank,
presented findings of a diagnostic mission to the Philippines, and
recommended that the Philippino Government, inter alia:
develop a comprehensive legislative framework for SFM; examine trade
policy impacts; improve environmental impact assessments; create
regional SFM committees; and provide improved market information.
PAPUA NEW GUINEA suggested that ITTO diagnostic missions focus on
project-level implementation instead of national-level policies. The
PHILIPPINES supported ITTO analyses carried out at both levels.
ITTC Chair Bin Che Yeom Freezailah (Malaysia) said
ITTO also dispatched a similar mission to Suriname, but discussion
on this will be postponed until ITTC-36.
The Chair also noted that a number of ITTO-funded
national workshops for training on ITTO criteria and indicators for
SFM were successfully completed, and upcoming workshops will be
conducted in Panama, Ecuador and Peru.
CHAIRPERSON'S OPEN-ENDED DRAFTING GROUP
The open-ended drafting group made minor revisions
to draft decisions on the Executing Agencies Account and the
management of the administrative budget. The group considered the
Draft Biennial Work Programme for 2004-2005, and debated paragraphs
listing several activities to be implemented by the Executive
Director.
A major producing country representative declined to
endorse the proposed activities and requested time for further
consideration. Another questioned why the list groups together
diverse proposals on projects, activities and routine work. The
group debated decision-making procedures, with some members noting
that the Council, not the drafting group, should approve proposed
activities, while others suggested that proposed activities should
not only be considered by committees. ITTO Executive Director Manoel
Sobral Filho clarified that all the proposed activities have been
accepted by the committees and have already been funded.
Although a producer country did not support one of
the projects as currently written, it was pointed out that the
project would be discussed by the caucuses after the CEM drafts the
project's ToR. A consumer country indicated that the budget figures
should be bracketed. The Chair said that the amounts indicated in
the proposed work programme are only estimates and will be finalized
by Council decisions. It was also said that the group should discuss
whether or not these projects could be met by sufficient funding. A
producing country resisted proposing project dates and suggested
addressing this at council sessions. The consumer caucus objected
and the group assigned approximate dates both in early 2004 and
2005. It was also noted that, as suggested in recent ITTO studies,
the Secretariat should have greater control over project decisions.
IN THE CORRIDORS
Insiders at ITTC-35 are saying that, while the
session has had the outward appearance of bordering on the mundane,
it has actually been substantively very significant. Accordingly,
some have said that for the first time since the issue of forest law
enforcement and governance (FLEG) emerged on the forest policy
scene, ITTO is beginning to see results in its effort to improve
market transparency. Nonetheless, some delegates are concerned that,
with so much emphasis being placed on FLEG, other issues, such as
environmental services and indigenous peoples' rights, are being
overlooked.
THINGS TO LOOK FOR TODAY
COMMITTEE SESSIONS : The CRF and the CEM/CFI will
convene from 10:00-11:00 am in the Plenary Hall and Committee Room,
respectively. The CFA will meet from 11:00 am - 12:00 pm in the
Committee Room.
CHAIRPERSON'S OPEN-ENDED DRAFTING GROUP : The
Chairperson's Open-Ended Drafting Group will meet from 12:00-1:00 pm
in the Informal Meeting Room.
COUNCIL SESSIONS : The Council is scheduled to
convene from 2:30-4:30 pm in the Plenary Hall to consider the report
of the Credentials Committee; dates and venues of future Council
sessions; committee reports; and other business.
SIDE EVENT : From 12:00–1:00 pm, the United
Nations Industrial Development Organization – Tokyo will host a side
event on "Innovative Wood Drying: Technology to Improve Wood
Quality." |
