1. Theme 1: Extra-sectoral influences
1.1 Key questions
a) Which extra-sectoral influences affect trade in forest products and services?
b) How do these influences affect SFM? What are positive and negative impacts?
c) What is the direct impact of key extra-sectoral influences on international trade in forest products (e.g. prices, quality, type of products, flows)?
1.2 Documentation of issues discussed (based on key questions a) and b))
Positive impacts |
Influences |
Negative impacts |
AGRICULTURE | ||
Support to agriculture • Credit • Research • Foot & mouth control |
Increased agriculture profitability leased to reduced SFM competitiveness | |
Agricultural reform |
Land distribution Laws (Agrarian reform) | |
Land tenure, colonization, "frontier issues |
||
Agricultural commodities policy, increasing commodity crops for foreign exchange gains |
reduce forest land through conversion | |
Reduction of agricultural and expansion of forest land |
Agricultural subsidies in the North (US + EU) and effects on Soya bean prices |
Expansion of agricultural lands (e.g. Brazil) |
Social-environmental dumping | ||
Decreased commercial agriculture and increased forest cover in the South |
Agricultural policies in the North |
Expand commercial agriculture and reduced forest cover in the North |
Increased forest cover |
Trade leads to macroeconomic growth and development |
|
Agricultural intensification and increased forest cover |
The sum of general subsidies and tax policies etc generally favour capital over labour |
Shift labour to the frontier and decreases forest cover |
Protection of natural resources for food security |
||
Agricultural EU subsidies for planting trees |
Positive impacts |
Influences |
Negative impacts |
FINANCE AND INVESTMENT | ||
Fiscal policies • balance of payment |
Greater exploitation of forest resources | |
Increase support for trade in forest products to generate funds |
International finance |
Limited international finance support to SFM |
World Bank new policies |
Finance policies (Banking) |
|
TECHNOLOGY | ||
Higher growth rate/yield |
R&D on GMO (tree spp.) |
Reluctance of consumer to buy |
Integrated models of SFM - Forest industry and environmental services |
New technologies and global economic scale |
Limitation to access of new technologies for small producers |
DEMAND IN FOREST PRODUCTS | ||
Consumer demand for certified products |
||
Increase in demand = more trade potential |
Sectors using forest products e.g. housing, newsprints, etc |
Increase in demand may put pressure on sustainability of existing forest resources |
Less pressure on forests |
Sectors producing substitutes to forest products (e.g. steel, plastics) |
Potential for more energy consumption and GHG emissions |
• greater concentration of consumers, higher purchasing power movement of forest products manufacturers closer to markets - greater efficiency |
Urbanization policies, movement of rural populations to urban areas (increase service provision) |
Reduce forest land due to conversion of forests |
Consumer is educated and choose in better way |
Communications on conservation of nature and consume |
Effect prices and demand |
INTERNATIONAL TRADE AGREEMENTS |
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POLITICAL INSTABILITY |
||
PROPERTY RIGHTS UNCERTAINTY |
Reduced investment in SFM | |
LEGAL ISSUES: EASING PROCEDURES FOR SFM VS OBTAINING TIMBER AS RESULTS OF DEFORESTATION |
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POVERTY ALLEVIATION POLICIES | ||
Investment in capacitation and asociation |
Social policy to solve problems of poverty |
Less funds for direct conservation / protected areas |
Increasing value of forests vs increasing conflict on forest resources |
||
INFRASTRUCTURE | ||
Potential to improve timber processing (add value) |
New infrastructure (road, energy) |
Increased agriculture profitability, decreased SFM competitiveness |
Higher potential for investment in forest sector |
Infrastructure (roads, ports) |
Less funds available for SFM |
ENERGY |
||
Use of wood for energy - firewood |
Note: Statements in ITALIC have been included by the moderator based on group discussions, other statement have been formulated by group members.
1.3 Promising initiatives identified during discussion (related to agriculture)
• Shape public policies
• Zoning of national forests
• Increase value of land/forest/timber and parallel measures (e.g. property rights, community forestry)
• Long term planning
• Good balance of productive/protective forests
• Property rights
• Emerging markets?
• Certification
1.4 Other comments
• Does forest matter?
• Forest not good competitor
1.5 Identification of issues related to key question c)
a) Agriculture
• Increase of timber supply (short term)
• Reduction of price (short term)
• Better infrastructure
• New market chain
• Agriculture subsidies for planting trees (North)
• Decrease of timber supply (long term)
• Higher local demand (?)
b) Infrastructure
• Reduced costs of production
• Shift of production centers
• Shift of products traded
• Better trade opportunities (transport)
• Increased opportunities for improved quality (infrastructure + public services, "industrial zones")
c) Technology
• C1) Biotechnology
¬ Good quality (hybrids)
¬ Improved yields
¬ Reduced prices
¬ Improved competitiveness
¬ New market chain
• C2) Industrial Technology
¬ Consolidation of certain sectors (e.g. veneers, plywood)
d) Finance and Investment
• Less opportunities for trade in tropical countries
• Better opportunities for selected sectors (e.g. pulp and paper)
e) Demand in forest products
• Consumer sensitivity translated into the market chain
2. Theme 2: Environmental forest services
2.1 Key questions
a) Which environmental forest services can contribute to SFM through international trade?
b) How does/could trade in these services affect SFM?
2.2 Documentation of issues discussed (based on key questions)
Positive impacts |
Influences |
Negative impacts |
Inputs for conservation and management |
RECREATION/TOURISM |
If not well managed may destroy forests |
Negative cultural impact | ||
Forest cover maintained for water production |
WATERSHED PROTECTION |
Reduce areas for wood production |
Reforestation of highlands |
Water - its importance over wood production |
|
Promotion of secondary forests, agroforestry systems, plantations |
Carbon sequestration |
reduce forest land through conversion |
Reduction of agricultural and expansion of forest land |
Replace "sequestration" with "storage" (natural forests) |
Expansion of agricultural lands (e.g. Brazil) |
GEF projects |
BIODIVERSITY |
Might paralyze investment in SFM |
Market for conservation |
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• income sharing to local communities • sharing/documentation of indigenous knowledge |
Genetic resources |
|
Private investors buying forests |
||
• income • indigenous knowledge documentation |
HEALTH SERVICE |
|
• employment and income generation - , local guides, lodging, equipment • fees • sustainability |
HUNTING (controlled game hunting) • income + foreign exchange gain |
Environmental groups objection |
FISHERIES supported by forest ecosystems (floodplains, mangroves, etc.) |
Examples for watershed protection:
• Malaysia selling water to Singapore
• Electricity (e.g. Honduras - El Salvador, Venezuela-Mexico, Lao-Thailand)