Government

Forest policies
Development strategies
Legislation
Tariff/trade barrier

Government's in the forestry sector of Asia Pacific was a central and major theme of the many source documents reviewed. Four sub-issues were identified in this category.

Table 42. Country Focus of Selected References for Asia Pacific Forestry Sector Review

Table 43. Forest Sector Issues by Group and Sub-Topic for Asia Pacific Region

Government

Forest Policies
Development Strategies
Legislation
Tariffs/Trade Barriers

Conservation

Reforestation
Wildlife and Timber Reserves

Stand Management

Biodiversity
Sustainability
Deforestation/Degradation
Agroforestry
Harvest Levels
Forest Protection & Fire
Land Use/Watershed Management

Forest Products/Forest Industry

Forest Products
Now-Wood Forest Products
Forest Processing
Research/Institutions
Large Scale Forest Industry
Small Scale Forest Industry

Trade & Marketing

Certification
Substitution
Barriers (Internal)
Barriers (External)
Demand

Social-Economic & Environmental

Environmental Functions
Rural Energy Development
Enhancement of Research
Planned Economy
Market Economy

Forest policies

Perhaps the most pervasive issue identified relates to the broad role and adequacy of forest policies for the several countries of the Asia Pacific Region. Sub-issues involve the specification of goals and objectives for the forestry sector, the setting of priorities, the examination and selection of strategies for achieving policies, and the measurement and assessment of the effectiveness of policy implementation in achieving the desired goals.

The Asian Development Bank analysis of the forestry situation in the Asia Pacific region summarized the status of National Policies for a number of the individual countries. This summary is shown as Table 44. National policies have generally been examined and updated within the past decade. Yet the ADB review indicates that policy is still very much evolving given the status of political and economic change within the Region. The ADB identified four areas where policy direction is needed (Jaakko Poyry, 1995):

1) Classification of and terms of access to forest resources,
2) Sustainable management and development of forest resources,
3) utilization of forest-based products, and
4) the surrounding institutional framework and linkages with other sectors

While forest policies may be adequate in terms of stating general principles, a primary weakness is in the actual implementation and interpretation of direction in practice. Successful strategies, based on realistic priorities are required to implement policy directives.

Development strategies

The problem of policy implementation leads directly to widespread concern regarding the development of strategies to implement policy and to deal with new and complex problems confronting the forestry sector. A broad series of "Strategic Plans" have been developed within the Asia Pacific Region under either the Master Plan or Tropical Forestry Action Programme (TFAP) processes to carry out a systematic analysis of the forestry sector and to formulate policy strategies and programmes for implementation. Table 45 summarizes the scope of these reviews as of 1995.

Legislation

Policy, to be effective, must be clearly recorded in statutory language consistent with the systems and culture where it is to be made effective. Beyond basic forest policy statements, fundamental 'forestry laws' are frequently enacted detailing the various purposes and means for carrying out policy. Issues of the role and responsibility of government and governmental institutions, rights and privileges of resource use, budgeting and staffing, numerous other aspects of sector policy need to be carefully crafted to clarify intent and means for achieving sector results. In practice, legislation is frequently piecemeal and overlapping, partly formal legislation and partly administrative decree or regulation, and possibly lacking in the specifics needed to adequately judge the relevance and probability of achieving desired goals. Consolidation and codifying of legislation, administrative decrees, and related rules and regulations may reveal shortcomings and problem areas where policy is not effectively implemented or where substantial gains might be anticipated in efficiency and performance of the forestry sector.

Table 44. Countries Analyzed and Year of Issuance of National Forest Policy (ADB)

	Country	Year of the national forest policy
South Asia	Bangladesh	1994
	India	1988
	Nepal	1989
	Pakistan	1991
	Sri Lanka	1995
Temperate Asia	PR of China	1991
Insular Southeast Asia	Indonesia	1992
	Malaysia	19881
	the Philippines	1988
Continental Southeast Asia	Lao PDR	1986
	Thailand	1995
	Viet Nam	1989
Tropical Oceania	Papua New Guinea	1992

¹ Forestry Sector Review

Source: Asian Development Bank. 1995.

Table 45. Master Plans and Tropical Forestry Action Plans in the Analyzed Countries (ADB)

Country		Basic Forestry Sector Development Strategy	Year of Finalisation
South Asia:
	Bangladesh	Forestry Master Plan	1993
	India	National Forestry Action	1993
		Programme	1988
	Nepal	Master Plan for the Forestry Sector	1988
	Pakistan	Forestry Sector Master Plan	1992
	Sri Lanka	Forestry Sector Master Plan	1995
Temperate Asia:
	People's Republic of China	Eight-Five-Year Plan	1991-1995
		Ten-Year Plan	1991-2000
Insular Southeast Asia:
	Indonesia	National Forestry Action Program	1991
	Malaysia	Industrial Master Plan	1992
	the Philippines	Master Plan for Forestry Development	1992
Continental Southeast Asia:
	Lao PDR	Tropical Forestry Action Plan	1990
	Thailand	Forestry Sector Master Plan	1993
	Vietnam	Tropical Forestry Action Programme1	1991
Tropical Oceania:
	Papua New Guinea

¹ Forestry Sector Review

ADB, Status of Forestry and Forest Industries in Asia Pacific Region 1995

Tariff/trade barrier

Another important role of government impacting the forest sector is in the regulation and direction for economic trade between nations. This is no less so than for the forestry sector of the Asia Pacific region. Trade barriers can be economic in the form of tariffs, duties and other surcharges related to transactions (either import or export) or can be non-tariff-barriers in the form of rules and regulations as to how commerce is conducted. In either case, countries have many 'reasons' to impose barriers, primarily to protect perceived components of their economic base. Policies to discourage or restrict imports in favor of domestic activity are commonplace, seeking to preserve self interests at the risk of lower overall economic efficiency and welfare. Likewise, policies designed to prohibit or limit exports are seen as means to reallocate resources, often with a preference for greater processing or utilization for domestic consumption.

Trade barriers in the Asia Pacific region have been well studied by Bourke (1988) and others. While barriers have been generally reduced, a pattern often persists of reduced barriers for lower valued, commodity grade trade while maintaining progressively higher barriers for semi-processed or finished goods. This is particularly likely in the case of import tariffs designed to protect and/or promote secondary processing opportunities.

A summary of trade barriers perceived to operate for major ITTO consumer countries is reproduced in Table 46. As illustrated, a pattern of duties and tariffs, at higher levels for processed products is evident for the Netherlands and Korea, for example. Quotas for imports are also imposed in the European Union for plywood. To the extent that trade barriers exist, trade is restricted and markets distorted. Government policies favoring more open trade is widely promoted as desirable for the Asia Pacific forestry sector. Trading blocs are emerging in many parts of the world, opening trade on a localized basis. Movements towards assuring open market access to and by Asia Pacific nations will remain a long term issue requiring action by governments at all levels. Questions of 'certification' of timber by origin or sustainability is frequently seen as a trade barrier and at best a potential threat to established trade in spite of well-intentioned policies aimed at assuring long term sustained forests.

Table 46. Tropical Timber Trade Barriers in ITTO Consumer Countries, 1994

Country		Product	Description
Australia		Sawnwood	2-7 percent, depending on species and country of origin; some reductions apply as of 1 July 1995
Canada		Logs, sawn, ven.	None
		Plywood	8-9 percent import tariff, depending on species
China		Logs	3 percent import tax, 17 percent value-added tax
		Sawnwood	6 percent import tax, 17 percent value-added tax
		Veneer	20 percent import tax, 17 percent value-added tax
		Plywood	20 percent import tax, 17 percent value-added tax
Egypt		Sawnwood	5 percent customs tariff on lumber imports, plus a 5 percent sales tax and 3 percent customs service fee (tariff reduced in 1994 to promote domestic industry)
EU
	France	Logs and sawn	None
		Plywood	10 percent (except waivers under GSP, Lomé)
	Netherlands	Logs	None
		Sawnwood	0-2.5 percent import tariff, depending on species
		Veneer	4-6 percent import tariff, depending on species
		Plywood	10 percent import tariff, depending on species
	Portugal	All	None
	U.K.	Logs, sawnwood	None
		Plywood	9.4-10 percent, depending on species
Japan		Veneer	Tariff base rate 15 percent (subject to GSP scheme), to be reduced to five percent by 1999
		Plywood	Tariff base rate 17-20 percent (subject to GSP scheme), to be reduced to 8.5-10 percent by 1999
New Zealand		All	None
Norway		All	None
Rep of Korea		Logs	2 percent import tariff
		Sawnwood	5 percent import tariff
		Veneer	5 percent import tariff
		Plywood	8 percent import tariff
U.S.		All	None (GSP scheme)

Source: ITTO. 1995. Annual review and assessment of the world tropical timber situation 1995.