MERCOSUR FOREST SECTOR SIA PETER NELSON LAND USE CONSULTANTS

Transcription

1 MERCOSUR FOREST SECTOR SIA PETER NELSON LAND USE CONSULTANTS

2 STUDY TEAM LAND USE CONSULTANTS (UK) ECOSTRAT CONSULTANTS (BRAZIL) IARC, Institute for Development Policy and Management (IDPM), University of Manchester (UK)

3 STAGES OF THE SIA SCREENING SCOPING DETAILED ASSESSMENT RESULTS

4 KEY STAKEHOLDERS INTERNATIONAL NGO s FOREST INDUSTRY REPRESENTATIVES RESEARCHERS COMMUNITY INTERESTS DEVELOPMENT COOPERATION AGENCIES

5 CONSULTEES EU (DG Trade and Development Civil Society Organisations DFID Forestry Advisors Commonwealth Secretariat International Centre for Trade and Sustainable Development Forestry Departments (in respective Governments) OECD UNEP FAO

6 METHODOLOGICAL DEVELOPMENT Non tariff standards and regulations are potential barriers to trade. But: Environmental protection measures have economic role in promoting more sustainable forestry. Study will therefore explore carbon storage, watershed protection and Non timber forest products.

7 SCREENING FOUR KEY QUESTIONS Are there current economic, social and environmental stresses in the Region? Are trade measures likely to have significant economic, social or environmental impacts? Are significant cumulative effects likely to occur? Is the existing regulatory framework sufficient to implement appropriate mitigating/enhancement measures?

8 Are there current economic, social and environmental stresses in the Region? Competition between forestry and other land use. Deforestation global warming, reduced capacity to assimilate carbon Land Conflicts social / cultural inequalities.

9 Are trade measures likely to have significant economic, social or environmental impacts? Clear need for action but does trade liberalisation affect the issues? Yes Within region, Externally, investment decisions thought to play key role, Role of NTFPs,, carbon trading, watershed management, gene pools, Non tariff based impacts.

10 Are significant cumulative effects Potentially, Yes, Land use, Micro climate, climate, Rates of run off, likely to occur? Changes in soil type

11 Is the existing regulatory framework sufficient to implement appropriate mitigating/enhancement measures? Clear evidence that existing regulatory framework fails to protect natural capital or ensure efficient conversion to economic / social capital.

12 STUDY FOCUS MARKET ACCESS Tariff measures Non tariff measures (Sanitary and Phytosanitary measures) SUBSIDIES Management, transport, equipment OTHER ISSUES Eco labelling, certification

13 WTO FORESTRY SIA FINDINGS World trade liberalisation has limited impact on timber production / consumption, Adverse effects most noticeable in countries with poor forest governance, Forest rich rich export oriented countries stand to benefit,

14 WTO FORESTRY SIA FINDINGS Critical balances between forestry / agriculture trading standards affecting land use, Ideal model: : efficient wood pricing; effective domestic resource taxes and incentives for sustainable management, Options: : voluntary certification, import licensing, legal compliance schemes, standards harmonisation, help to SMEs.

15 Forest Area in Millions of Hectares Million Ha Brazil Argentina Paraguay Uruguay

16 %age Forest Cover % Brazil Argentina Paraguay Uruguay

17 Annual Exports / Imports $US Million Brazil Argentina Paraguay Uruguay

18 Rates of Deforestation %age Forest Cover Brazil 2004 Brazil 2020 Argentina 2004 Argentina 2020 Paraguay 2004 Paraguay 2020 Uruguay 2004 Uruguay 2020

19 FORESTS IN BRAZIL Equatorial and Tropical forests of very high biodiversity and cultural value, World s largest producer and consumer of tropical timber, 103 million m3 of industrial timber + paper and pulp, Sao Paulo State consumes more than France, UK and Spain annually, 5 million ha of plantations.

20 Forests in Paraguay 1:20 th size of Brazil. Between 46 60% 60% of land area under forest, 5 10% deforestation per year, Privately owned (laws permit 75% conversion). Exceptional biodiversity is threatened.

21 FORESTS IN URUGUAY 1:50 th size of Brazil, Only 7% forestry land cover, BUT, 50% is managed pine and eucalyptus plantation and expanding rapidly, Very supportive government policies, Major international investment (Finland, Holland, Spain, Chile, Canada), New pulp mill under construction.

22 FORESTS IN ARGENTINA SA second largest country (1/3 rd size of Brazil), Temperate climate ideally suited for plantation forestry, but historically poor management, tax evasion and inefficient industrial base (SMEs( SMEs), I million Ha mixed plantations 20 million suitable for expansion, New Zealand, Chile main investors.

23 TRADE AGREEMENTS Mercosur has to be considered in the light of intra and other inter regional regional Agreements: Customs Union of Andean Community (CAN), Central American Common Market, Free Trade Area of the Americas (FTAA).

24 MERCOSUR EU TRADE BALANCE IN FOREST PRODUCTS Between forestry products trade expanded from US$ 23 billion to 36 billion: Mercosur exports to EU US$ billion EU exports to Mercosur US$ + 11 billion

25 EXISTING TRADE BARRIERS Mercosur has no tariffs/ duty on wood but does on timber products (pulp, newsprint) and machinery for timber processing, Tariff barriers less significant than regulatory controls (eco labelling and certification).

26 FOREST DIRECT INVESTMENT Significant growth potential, esp Argentina and Brazil, But constraints include poor forestry and land use governance, unsettled land tenure disputes, unrealistic valuations of forest resources.

27 INDICATORS Economic Quality and value of production and trade in timber and NTFPs, Government revenues Changes in levels of income and employment, Size and number of timber processing plants (saw mills, pulp mills).

28 INDICATORS Social Number of forest dependent people, livelihoods and development, Land tenure and user rights, Community relations and workers rights, Health and safety, Employment and income distribution.

29 INDICATORS Environment Total area of forest cover, (natural and plantation) and rates of change, Percentage of certified forest, Areas under sustainable management, Extent of forest reserves protecting against logging, biodiversity and species loss.

30 INDICATORS Process: Domestic policies (forest licences), Government capacity and commitment (forest policy, enforcement, use of revenues) Forest sector management capacity.