Forestry & Development E-News

 www.forestryanddevelopment.com                                                                                                                  May  2007

Forestry & Development E-News is an electronic newsletter which reports and comments on regional and international developments in forestry.  If you do not wish to receive Forestry & Development E-News, please click here.

 

 

 

NGOs keep up unethical campaigns against developing countries

 

 

 

Forestry in developing countries has come under recent attack, once again, from anti-development NGOs on opposite sides of the globe.

 

Australian Conservation Foundation

 

The Australian Conservation Foundation (ACF) launched a second  attack on the ANZ banking group last month, pressuring it to withhold banking services from one of its clients, Rimbunan Hijau (RH), a timber producer in Papua New Guinea.

 

The attacks on the timber industry in PNG, the bank and the timber importer have come just weeks after the PNG forestry industry announced a commitment to a legality verification scheme through Swiss-based firm SGS. 

 

RH has borne the brunt of unsubstantiated claims of illegal activity and corruption by NGOs such as ACF and Greenpeace for many years. RH has worked closely with the PNG Forest Industry Association, ANZ Bank and SGS to implement a legality verification scheme and demonstrate the legality and credibility of the company's activities.

 

ACF made a bogus complaint last year to the Australian Treasury that ANZ were in breach of OECD guidelines about multinationals engaging in corrupt dealings in developing countries because it was banker to RH.  The Treasury ruled there was no substance to the ACF complaint. 

 

The campaign against ANZ  and RH is part of a disturbing trend that has seen NGOs pressuring banks into withholding their services from companies whose activities they find objectionable. Banks such as HSBC and Citibank are finding themselves under increasing pressure to comply with their demands or face smear campaigns. Worse than this is that many banks - like Citibank - are caving into this type of environmental blackmail.

 

Greenpeace

 

On the other side of the globe, Greenpeace has launched an attack on Dutch timber importers such as Hoek Lopik, which purchase timber from RH. The NGO has once again called for bans on imports of timber from developing nations, putting the future of developing economies at risk..

 

It tried this tactic in Australia with the same material, and failed. In addition to recycling previously discredited and unsubstantiated claims, the report also smears EU initiatives such as the Forest Law Enforcement Governance and Trade (FLEGT) program to reduce illegal logging because it does not entail trade bans which would not be permissible under WTO rules.

 

Ironically, the Greenpeace report uses photos featuring logs harvested by RH which bear SGS tracking labels, proving their point of origin and demonstrating their legality.

 

The report was also released at the same time as a Greenpeace report that unfairly criticizes timber operations in the Democratic Republic of Congo, and a WWF report that also criticizes the EU's timber import policies.

 

All this activity is taking place at a time when the EU is assessing whether it needs to take "additional measures" on illegal logging. Caught up in this long and protracted campaign are the developing countries themselves, who depend on forest industries for jobs, raising living standards and economic growth.

 

 

 

 

 

 

In Other News

 

 

 

PNG MERBAU (KWILA) EXPORTS LEGAL, SAYS PNG INDUSTRY

 

7 May 2007: The Papua New Guinea Forest Industry Association (PNGFIA) has released a statement saying that virtually all exports of merbau (also known as kwila and ipil) from PNG are legal. The body released the statement on the eve of the 42nd session of the International Tropical Timber Council.

 

The statement comes in response to an increasing global campaign that calls for merbau to be placed under Appendix II of CITES, meaning it could only be traded under quota.

 

The campaign, initiated by Greenpeace, has targeted merbau from PNG, despite the fact that merbau makes up a very small proportion of timber exports from PNG - just 3 per cent in 2006 according to the PNGFIA.

 

The campaign also states a number of misleading conclusions: it egregiously conflates PNG with neighboring West Papua, an Indonesian province where illegal logging and corruption are rife; it says that merbau is endangered, despite the IUCN saying otherwise; and it fails to mention that merbau grows in a number of areas, including in Africa, South East Asia, Australia and Hawaii, and it is also used in agroforestry.

 

 

UN FORUM OF FORESTS ADOPTS NON-LEGAL BINDING INSTRUMENT

 

28 April 2007: The Seventh Session of the United Nations Forum on Forests announced that it has adopted a Non-Legal Binding Instrument on All Types of Forests (NLBI).

 

The session, which concluded in New York on April 28, had the specific aim of having the instrument adopted. The NLBI is a substitute for a legally-binding instrument, which members agreed last year that they would not consider until at least 2015.

 

Greenpeace and WWF have been campaigning since before the Rio Earth Summit in 1992 for a global convention on forestry.  Developing countries suspect this would be a vehicle to push policies antipathetic to the development interests of poor countries.

 

The NLBI focuses on strengthening political commitment to implement sustainable forestry management for all types of forests; to enhance the contribution of forests to poverty eradication and environmental sustainability; and to provide frameworks for national action and international cooperation.

 

The NLBI also seeks a reversal in the decline of development assistance provided to forestry in developing countries.

 

Although the NLBI reinforces state sovereignty over the exploitation of natural resources, it also calls for the enhancement of bilateral, regional and international cooperation to promote international trade of forest products harvested according to domestic legislation; and the addressing and combating of trafficking of illegal forest products through both the promotion of forest law and governance.

 

The NLBI was welcomed by all member states, scientific bodies, the UN Food and Agriculture Organisation and the World Bank, but was heavily criticised by NGOs at the Session. NGOs argued that the Instrument does not tackle the "underlying causes of deforestation … including the need for the reduction of consumption."

 

The session documents are available here.

 

 

US TIMBER DEBATE BASED ON FALSE STATISTICS

 

14 April 2007: Anti-logging bills have been proposed in the US on the basis of false statistics produced by the World Bank.

 

The proposed Legal Timber Protection Act, introduced in US Congress on March 13, would hold importers and retailers of timber and timber products responsible for the legality of the logs used, effectively making monitoring of the entire supply chain mandatory.  A similar proposal was introduced in the Illinois General Assembly by State Representative, Susana Mendoza in February.

 

According to newspaper reports, Mendoza was motivated by  a Chicago Tribune report about global trade in illegal logging which relied on World Bank estimates of illegal logging. These include claims that most logging in PNG is illegal - which are untrue and which the Bank cannot substantiate.

The PNG Government has asked the Bank to correct the report, but it refuses to do so.  The Bank's anti-development stance on commercial forestry in developing countries has contributed to a decline in provision of aid to forestry in developing countries.

 

 

CONGO CANCELS LOGGING RIGHTS

 

11 April 2007: The government of the Democratic Republic of Congo (DRC) has cancelled 21 logging contracts it deemed to have been granted illegally.  The contracts covered approximately 3 million hectares of forest.

 

The holders of the cancelled rights, mostly small companies, were given two weeks to contest the decisions. Large logging firms, such as Safbois, Sodefor, Siforco and Soforma, account for approximately 70 per cent of the country's production capacity, but were unaffected by the decisions.

 

The DRC government has come under considerable pressure from the EU and from the World Bank regarding its forestry policies. The International Conference on Sustainable Forest Management in the Democratic Republic of Congo was held in February; Belgium pledged an initial annual contribution of 1 million Euro for the Congolese Institute of Nature Conservation.

 

The Belgian Government has also pledged to expand an awareness-raising campaign within the EU that highlights the importance of sustainable forestry in the DRC for economic and social development. Despite this positive Belgian approach, Greenpeace has called for a complete halt to logging in Congo.

 

Information on the International Conference on Sustainable Forest Management in the Democratic Republic of Congo is available here.

 

 

EU SUSPENDS IMPORTS OF RAMIN FROM MALAYSIA

 

2 April 2007: The EU has suspended imports of the timber ramin from all Malaysian territories. The EU Scientific Review Group on Trade in Flora and Fauna made the decision that ramin imports be suspended in mid-Arpil. 

 

The basis for this decision was that trade in the species "is likely to have a harmful effect on the conservation status of the species or the extent of the territory occupied by the species".

 

The report also stated that requested information regarding quota establishment for the species had not been received, nor has a report outlining their non-detriment findings on the previous quota. The EU will urge Malaysia to provide this information.

 

There has been considerable pressure on the trade in ramin for a number of years. It is currently on the CITES (Convention on the International Trade in Endangered Species) in Appendix II, listed as a vulnerable species, meaning trade is permitted.

 

Some of the pressure that has been applied to ramin trading is related to the timber's role in orang-utan and Sumatran tiger habitats.

 

The assessment of the EU Scientific Review Group can be read here.

 

 

 

 

 


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