I. FOREST POLICY, LEGISLATION AND PLANNING

1.1 National forest policy

The central objective of Mexico's forest policy is to use its forest resources sustainably so that their significant production potential can be fully realized without endangering the social assets and services of forest ecosystems; and so that the sector can play a greater role in the national economy under a model of sustainable use that generates employment in forest areas, a broader supply of wood and non-wood products and full integration in the forest production chain. The forest legislation of 20 May 1997 defines the underlying principles of this policy.

1.2 Strategies and mechanisms for implementation of forest policy

The national strategy for the implementation of forest policy aims at general and regional equilibrium among the respective economic, social and environmental objectives in order to contain the processes of environmental degradation; to promote national land-use planning in which development is compatible with the environmental profile and capacities of each region; to make full and sustainable use of natural resources; and to safeguard the environment and natural resources by redirecting consumption patterns and ensuring compliance with the law.

1.3 National Forest Programme

The Programme for Forestry and Soil 1995-2000 is based on a comprehensive and detailed assessment of the evolution and present state of the forestry sector and of the structural problems related to soil degradation and control of desertification. It establishes objectives and puts forward ten clearly defined proposals for forestry and soil, along with their enabling instruments and respective timeframes, to orient programme actions and activities.

The Programme sets out six lines of action aimed at strengthening the role of forestry in the economy under a model of sustainable use of forest resources:

1. Design and application of direct financial and fiscal support mechanisms to encourage production investment.
2. Promotion and development of commercial forest plantations, guaranteeing environmental viability and equality between resource owner and investor.
3. Enhanced production from resources currently under management, guaranteeing their full use and the incorporation of other areas with potential.
4. Diversification of production and promotion of regional production chains, upgrading market information systems.
5. Promotion of coordination mechanisms for the various players involved in the forest production chain.
6. Valuation of forest ecosystems by the environmental services.

1.4 Forest Programme 2020

An inter-institutional agreement was signed last February between Mexico and Finland for the formulation of the Strategic Plan for Forestry 2000-2020, whose implementation will receive financial support from the Inter-American Development Bank (IDB).

II. NATURAL FORESTS

2.1 Conversion of forests to other forms of land use and rate of deforestation and reforestation

Figures from the Periodic National Forest Inventory (INFP) indicate that temperate forests, rainforests and other areas with natural vegetation cover 141.7 million hectares (72% of the national territory). Of this, 29% or 56.8 million hectares are under natural temperate forest and rainforest (53% temperate forest; 47% rainforest).

The causes of deforestation vary by region and type of vegetation. FAO calculations based on the latest INFP figures suggest an annual deforestation of 508 000 hectares. However, a recent comparative analysis of National Institute of Statistics, Geography and Informatics (INEGI) mapping and INFP forest mapping indicates an average annual deforestation of 371 000 hectares for the period 1974-1990.

The National Programme of Reforestation (PRONARE) accomplished an average annual reforestation of 288 000 hectares in the period 1995-1998, with the overall planting of 1 470 million trees in rural areas, covering some 1.15 million hectares nationally.

2.2 Fire, pests and disease

The critical season for forest fires in Mexico is between March and May. There were 36 698 fires between 1996 and 1999 (9 256 in 1996, 5 161 in 1997, 14 302 in 1998 and 7 979 in 1999) affecting 249 000, 108 000, 584 000 and 231 000 hectares respectively.

Indicators of fire fighting effectiveness reveal a damaged area of 28.96 hectares per fire in 1999 compared to 40.81 in 1998, an improving situation due to their earlier detection.

Pests and disease are among the principal causes of degradation of Mexico's temperate and cold-climate forests. A health inspection of 129 forest nurseries covering 20 million hectares was conducted between 1996 and 1999, and actions were taken for the control and forest sanitation of 55 293 hectares with pest infestation.

2.3 Promoting the sustainable management of natural forests

The agreement on the rules for the granting of direct subsidies by the Forest Development Programme (PRODEFOR) was published in August 1997 to facilitate the transition to sustainability.

PRODEFOR provides direct support for the formulation of forest management programmes; feasibility technical studies for the use of non-wood forest products; studies on production diversification and multiple use; complementary and research studies on forest management; forest enhancement activities; introduction of fire-breaks in areas under forest management; clearing of stumps for reforestation in managed areas with problems of natural regeneration; and the holding of organization, training and technical assistance workshops for producers. The Programme will have an estimated 11 700 beneficiaries for the period 1997-2000.

In 1997 and 1998, through PRODEFOR, a total of 121.2 million pesos was granted to owners of natural forest, of which 90.1 million were budgetary resources from the Federal Government and 41.1 million were subventions from National Governments. In 1999, PRODEFOR granted 124.1 million pesos from budgetary resources in addition to 63.2 million pesos coming from the National Governments, for a total of 187.3 million pesos as contributions to owners of natural forest areas.

2.4 Development of criteria and indicators for sustainable management

Mexico is one of the 12 countries adhering to the Montreal Process. To date, two reports on criteria and indicators have been presented. We believe that the country can report immediately on 17 of the 67 indicators; through development or research on a further 32; and through long-term research on the remaining 18.

An advisory technical panel is being set up within the National Forest Consultative Council (CONAF) to propose actions and mechanisms for the development and monitoring of criteria and indicators of the national and regional process.

2.5 Forest resource inventories or land registers

Some 72% of Mexico's total land area of 196.7 million hectares is made up of woodland.

Compilation of the digitized INFP statistical, map and field sample databases was completed in 1997, together with the 1994 zoning of woodland areas. A programme of operation currently exists to produce the National Forest Inventory 2000 with the following components:

1. Information on current use and types of vegetation - qualitative and quantitative data on species, quantities, growth and damage.
2. Zoning of woodland areas - statistics on types of conservation, restoration and production.
3. Studies of vegetation change - cartographic comparison of 1992 and 2000, multidate analysis of images from 1973 to 1980. This will provide accurate data on deforestation, degradation, recovery, causes and new uses, will help estimate biomass and CO₂ emissions, and will permit comparison of related data.

III. FOREST PLANTATIONS

3.1 Forest plantation programmes and incentives

The Federal Government has decided to promote commercial forest plantations. This was reflected in the amended Forest Law of May 1997 which included important control and guarantee mechanisms for the parties concerned. It is also reflected in the Programme for the Development of Commercial Forest Plantations (PRODEPLAN) which is designed to support the development of 875 000 hectares in the next 25 years, by providing subsidies to cover as much as 65% of start-up costs.

A public competition was held in 1997 for PRODEPLAN subsidies, leading to the selection of 17 projects which are to receive an aggregate 143.7 million pesos for the development of 48 500 hectares: 31 000 for pulp products and 17 500 for wood products. The principal outcomes anticipated from this first stage are:

A further competition is under way to support 35 000 hectares of commercial forest plantation and this year a new invitation to bid will be issued for a total of 135 million pesos for an additional 25 000 hectares. Thus, by the end of the year, 107 000 hectares of commercial forest plantation will have been established in the period 1997-2000 with support from PRODEPLAN.

IV. FOREST INSTITUTIONS

The Secretariat of the Environment, Natural Resources and Fisheries (SEMARNAP) was created in 1994 and its Undersecretariat of Natural Resources was made responsible for matters relating to the protection, promotion, conservation, rehabilitation, regulation and sustainable use of forest resources. The Undersecretariat comprises the General Directorates of Forestry, Soil Restoration and Conservation, the Terrestrial Maritime Federal Zone and the National Programme of Reforestation.

The period 1996 to 2000 was one of successful consolidation and integration as evidenced by the economic indicators of the forest sector.

4.1 Funding of forestry institutions

Most of the operating funds of the Undersecretariat of Natural Resources come from Federal Government fiscal revenue. A total of 1 477 million pesos were disbursed from 1996 to 1999, including 61 million in 1996, 299 million in 1997, 523 million in 1998 and 594 million in 1999. During the same period, 214.2 million were allocated to PRODEFOR coming from the Federal Government and 104.3 million from the National Governments, while PRODEPLAN received 319.0 million from 1997 to 1999.

V. ECONOMIC ASPECTS OF FOREST USE

5.1 Harvest, processing and use of wood and non-wood products

Mexico has a forest area with commercial timber potential of some 22 million hectares, of which only 7.1 million (33%) are currently under management. Incorporation of the entire area with production potential would produce about 30 million m³ of timber, which is 375% more than at present.

A total of 8.3 million m³ of roundwood were produced in 1998. The sawmill industry took 74%, the pulp industry 15%, boards 4% and the remaining 7% were used for poles and fuelwood. In the same year, non-wood forest production, excluding extraction from forestland, amounted to 47 392 tonnes.

National roundwood production increased by an average of 7.3% for each year from 1995 to 1998: 6.3 million m³ in 1995; 6.8 in 1996; 7.1 in 1997; and 8.3 in 1998.

5.2 Forest industries

In 1996 the industry was made up of 1 983 mills with an installed capacity of 13.7 million cubic metres of roundwood (mm³r). The number of mills rose to 2 266 in 1997 with an increase in installed capacity to 16.4 mm³r. There were then 3 497 plants in 1998 with an installed capacity of 16.5 mm³r, making a 76% increase in sawmill numbers and a 20% increase in capacity from 1996.

5.3 Volume and value of national trade in forest products

A total of 8.3 million cubic metres of roundwood were produced in 1998 and, at current prices, the value of raw materials output rose to 3 668 million pesos.

Forest sector GDP increased to 16 760 million pesos in 1998, up 2.7% from 1997 when it stood at 16 315 million. The sector accounted for 1.2% of national GDP which increased to 1 447 946 million pesos.

5.4 Volume and value of international trade in forest products

There was a forest commodity trade deficit of US$ 1 074 million in 1998, 11% higher than the deficit of US$ 967 million in 1997. The deficit was mainly due to pulp products, with imports of US$ 463 million and US$ 404 million in 1997 and 1998 respectively.

5.5 Environmental considerations and certification of forest products

In addition to wood and non-wood products, Mexico's temperate forests and rainforests also provide society with important environmental assets and services, including water for urban areas and agriculture, soil fertility, and regional and global climate stability.

With regard to charging for environmental services, two carbon sequestration projects, sponsored by FIA and SHELL, are currently in operation on 2 800 hectares with an average annual income of US$ 6.5 per hectare. Potential projects covering some 35 000 hectares have been identified and could produce an average annual income of US$ 9.5 per hectare.

With regard to the certification of forest products, Mexico has drawn up legal requirements in its forest legislation for the sustainable management of harvested forest resources.

The official position regarding certification is that this should be a voluntary process to add value to forest products in specific markets. Presently, 125 000 hectares have been certified by a third party and a further 19 000 are in the process.

5.6 Financial and economic valuation of forests and inclusion in the national accounts

Mexico has an estimated 22 million hectares with timber production potential. These have an estimated total volume of timber of 2 800 million m³: 1 800 million from temperate forests which have the greatest production potential; and 1 000 million from rainforests which can produce high-value goods for the international market.

Overall annual growth of temperate forest, which accounts for 95% of industrial timber supply, is calculated at 25 million m³r, which another 13.5 million m³ estimated for rainforest, making a total annual growth of 38.7 million m³. The total value of such production, solely in terms of timber for industrial use, could amount to more than US$ 5 000 million each year, which means that each hectare could generate an average income of US$ 200 to 250.

Temperate forests, rainforests and other areas with natural vegetation are important to society as they provide key environmental assets and services, such as carbon sequestration, watershed conservation, tourism and recreation, potential pharmaceutical and food products, and genetic resources. The value of the services produced by Mexico's forests and woodlands is estimated at US$ 13 677 million a year which means that each hectare generates services with a value of US$ 244. However, this contribution needs to be acknowledged and taken into account.

5.7 Recreation and tourism

Besides their biological riches, Mexico's forest ecosystems offer appropriate environmental conditions for numerous visiting and resident wildlife species; for example, the Monarch butterfly which migrates from the United States and Canada and depends on the Mexican forests of Oyamel to overwinter and complete its life cycle.

The country's better-known ecotourism areas include the Monarch Butterfly area in the state of Michoac�n; El Triunfo, Palenque, Montes Azules and Bonampak in Chiapas; Sian Ka'an in Quintana Roo; La Barranca del Cobre and Lago Arareco in Chihuahua. Recreational tourism needs to be developed in forest areas with such potential.

There are currently 35 ecotourism projects in operation raising significant annual income from 2.3 million visitors.

VI. SOCIAL ASPECTS OF FORESTS

6.1 Mechanisms for consultation and for the planning and implementation of forest programmes, with the inclusion of indigenous cultures

The Forest National Consultative Technical Council presently serves as the SEMARNAP's advisory body and is made up of representatives of all forest-related sectors who participate in a process of open and transparent consultation to advise the Secretariat on policy-making and strategy decisions for the protection, conservation, rehabilitation, use and sustainable development of forest land, and the evaluation and monitoring of implementation of the Programme for Forestry and Soil 1995-2000.

VII. ENVIRONMENTAL ASPECTS

7.1 Establishment and management of protected wildland areas

Mexico has a National System of Protected Areas (SINAP), which aims to conserve and protect the country's diversity of wildlife and ecosystems. It has a network of 116 protected natural areas under various forms of management regime, which together cover 12.7 million hectares or about 6.5% of the national territory.

There is also a Network of Sustainable Wildlife Management Units (UMAS) covering 14 000 hectares.

VIII. INTERNATIONAL AND REGIONAL COOPERATION AND SUPPORT

8.1 Agreements and conventions

Mexico has forest-related technical and scientific links with the following countries: Germany, with five community forest development projects in tropical forests in Quintana Roo; Canada, with three development and community participation projects in Campeche, Chihuahua and Michoac�n; United States, with eight forest and soil development and conservation projects; Japan, with one forest development project in Oaxaca; United Kingdom, with three community forest development projects in Oaxaca, Jalisco and Quintana Roo; Spain, with a fellowship programme; Guatemala, with an agreement to stop the trafficking of forest products; Belize, with a cooperation agreement for the management of protected areas; Cuba, with technical and scientific exchange for sustainable development; and with El Salvador, Honduras, Costa Rica and Panama through the Tuxtla II agreement on cooperation on forests and renewable resources.

It is also involved in forest-related international, intergovernmental and non-governmental initiatives.

Mexico has participated in discussions of the Intergovernmental Panel on Forests and the Intergovernmental Forum on Forests; in meetings convened by the Convention on Biological Diversity to draft the protocol on biodiversity; in meetings of the UN Commission on Sustainable Development; and in meetings of the International Convention to Combat Desertification.

Mexico hosted the meeting of the Costa Rica-Canada Forests Initiative for North and Central America and the Caribbean, which was attended by 40 experts representing governments, companies, producers, indigenous groups and non-governmental organizations. This gave the country invaluable insight into forest issues of high international relevance.

8.3 Technical Cooperation

A Memorandum on the Conservation of Biodiversity was signed in September 1998 between SEMARNAP and the United States Agency for International Development (USAID), which gave rise to the Programme for the Prevention of Fires and the Recovery of Burnt Areas.

In addition, a US/Mexico programme of training, technical assistance and exchange on forest fire protection is being developed with the participation of the Forest Service, the Bureau of Land Management and USAID.