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Executive Summary

• This paper aims to clarify how trade-related instruments that influence the supply chain of commercialised Non Wood Forest Products (NWFPs), are impacting on sustainable forest management (SFM) and rural livelihoods in Bolivia. This impact is analysed for two Bolivian NWFPs with an international market, namely Brazil nuts and Caimans. This study forms part of a global programme of FAO, intended to promote the use of NWFPs as a means to reduce poverty.

• The first NWFP analysed is Brazil nut (Bertholletia excelsa). This is the most important NWFP in Bolivia for its share in the exports for the past ten years; comprising 2% of the total national exports and giving the country a first place in the world ranking of producers and exporters of Brazil nuts.

• The second NWFP analysed is caiman (Caiman yacare), a recently commercialised NWFP, joining the Bolivian Biodiversity business only 4 years ago.

• Brazil nut is a prosperous sector with over 15.000 persons directly employed along its supply chain, which brought forth an export value of US$ 54 mln in the year 2004.

• The recognition in 1996 of indigenous communities and local farmers as social groups with the right to utilise natural resources, accredited with documentations granted by the Bolivian government, has strengthened the position of these forest dependant communities. They have been enabled to sell the accredited Brazil nuts for better prices, realising a more equal distribution of benefits along the Brazil nut supply chain. However, those people in the beginning of the supply chain which are not organised in social groups, eg local farmers and migrants, receive the smallest share of the profit while having the toughest working and living conditions.

• One of the major difficulties for the Brazil nut sector is to meet the strict EU regulation regarding aflatoxins (a toxic fungal compound). The Bolivian Government is trying to enforce a certification process to guarantee the production for export to meet the requirements set by the EU regulations.

• For the moment, only the largest companies are able to meet international standards, such as those set by certification bodies as ISO 9000 or HACCP, enabling them to sell their organically certified products on international markets. However, a good experience of certification for products coming from local communities was obtained by a co-operative that reached a fair trade market in Italy, with a 33% premium price over the regular international price.

• Caiman is a species traditionally used by local communities. However from 1990 to 1998 a total ban stopped its utilisation. After several studies on the caiman population dynamics, the possibility of the rational utilization of caiman was determined and gradual authorisations for harvesting of skins and later also for meet for export was approved.

• Since caiman was a new product, no specific regulations were defined for its use in neirther the international environmental treaties nor the local cattle raising service SENSAG. This made it difficult to local communities to get benefits from the trade in caiman skins, even when legally approved.

• Being one of the CITES (Appendix II) species, caiman requires special permits for hunting and commercialisation. So far, quotas for this product have not been exceeded, thus reaching the expected equilibrium between preservation of the species and gaining economical benefits from its sustainable use.

• Forest regime systems have changed forest users’ mind set towards sustainable development. Al the mandatory steps i.e. planning and management, make possible a good traceability of the use of NWFP. Certificates of origin are required for local and international commercialisation. This is an important step if companies or local communities want to have international environmental certifications.

• The current export acreditations granted by the bolivian government, even though complex and some times difficult to fulfil by local communities, assist the producers to fullfill all the local and international requirements, such as environmental compliance of the Bolivian Forest Law or international agreements such as CITES, guaranteeing that Bolivian exports took all the necessary steps.

• Certification of product or process quality or environmental management can form a barrier to small companies or local communities. However, if they are reached, new market niches, some times with higher prices are accessed. With specific support this barrier can become in to a benefit for local communities.

• Some multilateral environmental agreements, such as CITES, are enabling the rational use of some species, such as caiman, of which hunting before was banned. This enables local communities to receive benefits from natural resources without over-exploiting them.

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