Impact of Forest Resources - Research Paper Example

4001 Words ТRАDЕ IN FОRЕST АND SЕRVIСЕS Research Paper Submitted By: NAME: INSTITUTION: COURSE: INSTRUCTOR: DATE: © 2015 EXECUTIVE SUMMARY Forest resources occupy an important part in the existence of life on earth. Available information abound indicate that close to two billion people rely on forests for their livelihoods. Similarly, billions of other forms of fauna in the world are priceless without the availability of forest resources – as they form habitats to a myriad of terrestrial organisms like ‘animals, plants and insects’ as well as offering ‘shelter, jobs and security’ to human populations whose livelihoods depend on forests. Despite the underlying significance of forests, it is with regret to note that the human race is destroying these very forests that are so critical to their existence at an alarming rate. Extant literature for instance demonstrate that global deforestation has reached an all time high rate of destroying huge chunks of forested land annually. But all hope is not lost in transforming human activities to restore forests back to their lost glory of ensuring sustainable development and green economies in the world. INTRODUCTION Forests form an important resource in the world and are estimated to cover about thirty percent of the earth’s surface. According to observations made by1, the survival of close to two billion people in the world is supported by forests. In addition to this, forests are reported to play a fundamental role in combating climate change, which has become the concern of everyone the world over2. Moreover, it is demonstrated through extant literature that forests contribute to a larger scale towards the source of water found in the major rivers of the world. This water incidentally plays a pivotal role to human beings, both at home and in industries. Further, forests are reported to shelter a myriad of organisms found both on land and in water, and also provide a lifeline to numerous human populations of the world. In spite of the foregoing significances of forests enumerated above, extant literature illustrates that the human race is destroying these very critical forests at a very alarming rate. This destruction is compounded by the ever-increasing demand for trade in forest and services, which at times is calling for “unfair practices” amongst the players. This realization on one hand calls for certain steps that are necessary in reversing this serious trend. The current research paper presents a detailed literature search in the area of trade in forest and services, and then identifies ways of safeguarding forest resources and ecosystems, before concluding and suggesting areas that need further research. LITERATURE SEARCH OVERVIEW Considering the current trends surrounding trade in forest products and their services, proponents suggest that development of “clear guidelines and enhanced governance as well as building partnerships amongst teams” is very crucial in managing our forest resources in order to develop sustainable green economies in the world. According to views presented by3, free trade has worked tremendously against the conservation of natural resources, especially global flora. In order to ensure that global free trade and the development of sustainable forest management are supportive of each other, then it is important to institute clear guidelines and cooperation between states. Moreover, the realization that global forest cover is decreasing at an alarming rate has seriously increased the pressure on all industry players to tackle this predicament swiftly and amicably. In an effort to fast-track the guidelines governing the operations of international trade in forest products and their services, the monetary value of most of these products is being compromised by numerous unfair practices being conducted by unscrupulous players. Take for instance the amount of money which is being lost through illegal logging across the globe. Similarly, illegal sale and dealing of common wood products such as “roundwood, sawnwood, pulp and paper” is doing the world economy a lot of disservice. Since most of these unfair practices are perpetrated by the first-world nations, the ‘third-worlds’ are left out of the equation. The current trend has been to introduce substantial volumes of forests in planted plantations, especially in third-world countries which have expansive tracks of idle land. These initiatives, in addition to many others found in the governance of international trade are seen as fundamental in regulating trade in natural resources. TRADE IN FOREST PRODUCTS AND SERVICES It has been noted that there are a number of issues found resident in dealing with international trade and conservation of natural resources. Of greater concern are the practices that are seen to promote trade in forest products and services, either legally or otherwise. Following the background information provided in the foregoing paragraphs of this research paper concerning issues in forestry, certain areas of management concerns stand out clearly. A lot need to be done in order minimize or fully mitigate the woes bedeviling trade and environment. From the outset, it has been observed that global unauthorized harvesting of timber and its products has been on the increase despite conceited efforts to curb it. According to the definition proffered by4, unauthorized logging refers to “the harvesting of timber in contravention of the laws and regulations of the country of harvest”. In essence, this practice of unauthorized harvesting of timber and products has become a global concern since it affects negatively the economic, environmental and social aspects of life as noted by5. On the perspective of world trade for example, 6 maintain that the illegal harnessing of timber and its products leads to the loss of revenues and other opportunity costs. Similarly, the environment suffers most from illegal cutting of timber because it generally leads to deforestation, which is seen to impact largely on ‘climate change and the destruction biodiversity’. Finally, the society bears the larger brunt of unauthorized harvesting, dealing and selling of timber and products. Underscore this fact by revealing that conflicts usually arise from land issues and resources in communities where the inhabitants depend entirely on forests for their livelihoods7. To them, unauthorized dealing in timber and products is like depriving them of their power and lifeline and hence the reason why most of them resort to corruption and armed conflicts. In general terms, unauthorized practices in forestry are seen as retrogressive in that they work against all efforts of conserving forest ecosystems and other natural resources, because these same practices provide cheaper sources of timber and products in the market, hence fueling illegal dealing in forest and services. The second issue that is seen to promote trade in forest products and services resides in the fact that international environmental law requires countries to recycle and recover waste paper in an effort to conserve existing forest resources and ecosystems. The challenge posed by this requirement occurs when countries with small and struggling economies have to recycle and move the ever-increasing volumes of waste paper. As observed by8, “the collection, sorting and recycling of waste paper comes with enormous cost implications that eat much into the proceeds of the venture”. As a result, this requirement has not been very attractive to many industry players and as such, a bigger percentage has opted to continue dealing with new forest resources and products. The impact of this is that the environment continues to choke under the heavy load of ‘solid waste accumulation’ while forest resources continue to dwindle. Thirdly, the introduction of legislation requiring that countries abide by the recommended packaging and packing materials as well as reutilization requirements has put many in awkward positions. In fact many European countries and Japan for instance have taken up legislations on trade and environment and are currently using recyclable packaging materials9. But just like it is the case with recycling of waste paper, most countries consider regulations concerning packaging materials to impact negatively on their competitive edge, and are thus unwilling to abide10. Instead, they continue using conventional materials that degrade the environment, arguing that these legislations are equivalent to trade barriers. Since a lot of awareness has been created globally concerning trade and the environment, forest industries in a number of countries have risen up to recognize their responsibility and are therefore responding positively and proactively. To the surprise of many, these countries are spontaneously developing and adopting ‘codes of good practices’ that do not even require any legislation towards the protection of the environment11. Many of these codes of good practices strive to “reduce water, air and land pollution” coming from pulp and paper plants as noted by12. Incidentally, the concerned countries bear the full costs of this initiative and consider it unfair because there are many other countries that don’t incur such costs due to a lack of similar standards and regulations. The result is that many countries opt to engage in unfair practices involving trade in forest and services. The fact that legislation requiring certification of forest products is in effect globally, many producers fear that they will entirely bear the costs involved in ensuring sustainable management13. Additionally, another school of thought holds that certification will indeed become a trade barrier where those producers not ready to comply with the required forest management standards will be discriminated against14. Coupled with these concerns, certification of forest products is driving majority of dealers to engage in unfair practices especially those from third-world nations. TRENDS IN INTERNATIONAL TRADE A number of issues that concern trade and conservation of natural resources especially fauna and flora of world species have emerged in recent times. Of greater concern is the source of forest products that need to be traded in now and in the future. Statistical data illustrate that a big portion of timber and products traded internationally come from natural and semi-natural forests15. But unfortunately, these sources are increasingly becoming smaller as time goes by and an alternative needs to be identified soon. According to information provided by16, forest plantations have recently become alternative sources of high-quality varieties of timber in the international market. In fact, 17report that over thirty percent of the global industrial roundwood used in 2000 came from planted forests. It is further projected that by 2020, the supply is expected exceed the forty-five percent mark. In view of this, 18insists that size of forested plantations should be increased in order to supply the world market adequately19. Secondly, 20observes that imports tariffs at the moment are generally low for logs and do not limit their trade. In fact, tariff escalations are seen to be higher in the third-world nations where they are used to “support domestic industrialization rather than to support sustainable forest management”21. Export tariffs on the other hand, especially affecting the sale of logs from third-world nations include direct charges such as export taxes or export levies as noted by22. These countries use the export tariffs to raise revenue and support their domestic wood processing industries. However, policies are generally shifting away from export tariffs towards investment incentives supported by export restrictions. On the use of non-tariff measures to regulate trade in forest products and services, most governments are introducing export restrictions such as “total export bans, export quotas and selective bans based on species” among others especially in poor economies23. The end results of these restrictions include enhanced industrial development in the involved countries, effective protection of forest resources, and improved living standards of the local people. Unfortunately, the same restrictions can be found to contribute towards forest destruction through wasteful use due to continued artificial low domestic prices. On the international arena, discussions and negotiations on introducing restrictions of imports of illegally harvested and traded timber are at advanced stages. This is being worked at higher levels under the umbrella of “forest law enforcement and governance (FLEG) initiatives” covering mostly the third-world nations24. With certification of forest products underway, dealing in illegal activities in trade can and will be easily combated. 25Studies indicate that close to five-percent of the global forest area is currently certified, and that consumers are increasingly gaining awareness about accepting only certified tropical timber. In fact26, the International Tropical Timber Organization (ITTO) is working tirelessly to promote certification of more forest area in developing countries and sensitize people on the need to trade in certified forest products only. Although international trade has grown in fame so much in the recent decades, it is observed that most of the forest products are consumed domestically in markets within the producing countries27. This observation is made in developing countries and current efforts require that the international community should try and influence sustainable forest management world-wide to increase the scope of production and also trading. To succeed in this, the international community should look for ways to encourage the various developing countries to ‘see beyond’ trading in forest products only “for economic development and the livelihoods of rural communities” but see it as a way of contributing towards the international market28. Moreover, it is suggested that developing nations should embrace trade in “non-wood forest products” (NWFPs) internationally in order to improve their economic welfare. Finally, governance of trade involving forest products and services has taken centre stage as demonstrated in extant literature. In reality, policies and institutions are known to influence the trend in which trade will take, while the scale and dynamics of trade can influence the nature and quality of forest governance and thus sustainable forest management. This counter relationship is shown to have quantifiable impacts on the quality and sustainability of forest management as espoused by29. Thus where there is good governance at the national level, the interactions between ‘trade liberalization, market development and forest governance’ is very positive. In this connection, it is advocated that good governance of trade in forest and services must entail in order to achieve sustainable forest management. In the views of30, the said governance system must be coherent enough to reduce conflicts while at the same time ensuring that it fosters national development efforts and priorities. This will be facilitated by the enhanced communication system that comes with coherent governance. In addition, coherent policies need to consider the “macro-economic reforms of the producer country in regards forestry production at the community level and future demands, including those of countries to which they wish to export”. Unfortunately, this initiative is not fully supported at the international level and thus sustainable forest management will continue suffering. SAFEGUARDING TRADE IN FOREST AND SERVICES There are a number of strategies that have been in application to safeguard trade in forest products and services. Firstly, since 2003, “the European Union’s policy to fight illegal logging and associated trade works in conjunction with the Forest Law Enforcement Governance and Trade (FLEGT) Action Plan” to ensure that trade in forest and services is safeguarded31. This association covers both supply and demand side measures to address illegal logging and employs two pieces of legislation: one, allowing for the control of the entry of timber to the EU member states endorsed in 2005; and two, an overarching measure to prohibit placing of illegal timber and timber products on the internal market since 2008. In this regard, it is reported that a good number of “private sector timber trade and retail federations and companies” belonging to the EU have given their promises of eliminating all timber that is illegally harvested from their supply chains enacting appropriate Codes of Conduct. Similarly, some banking institutions within EU have come up with policies that do not allow services to any of their clients connected with illegal logging activities. To succeed in this venture, FLEGT Action Plan is involved in aggressive ‘capacity-building’ in third-world nations to ensure that each and everyone is enlightened on the matter of “illegal logging” and the need to go for legally harvested timber and timber products only. Efforts to protect forest ecosystems have been there for a long time, to be specific since 1992. 32 Underline this fact by restating the 1992 statement of forest principles at the Earth Summit in Rio. At this Earth Summit, more than 178 states were represented and all endorsed a statement of principles for the sustainable management of forests. Studies report that these principles were not really binding and lacked the force of international law but nonetheless they form a strong basis upon which a future legally binding multilateral agreement may be built33. This materialized in 1994 when the International Tropical Timber Agreement (ITTA) was created, coming in the heels of the original ITTA of 1983 aimed to regulate the trade in tropical timber – a hardwood – with a market share of some $7.5 billion per year34. In addition to ITTA’s objectives of improving forest management through reforestation, another effort from the International Tropical Timber Organization (ITTO) came in handy. The main function of ITTO is to “promote international trade in tropical forest products and services as well as focusing on sustainable forest management”35. Both ITTA and ITTO work together in encouraging member states to develop coherent national policies that can be used to sustainably manage and conserve forests. As mentioned earlier in other sections of this research paper, timber certification has been used effectively to protect forests and their products. It is reported that the exercise started in earnest in 1990 when a number of Non Governmental Organizations appeared and started using ‘consumer pressure’ to force for the promotion of ‘sustainable forestry’36. Through this “pressure movement”, only timber and its products that are certified should be traded in freely at the international market. A good example of this strategy of forestry protection is employed by one organization, the “Forest Stewardship Council” which issues certification to timber that ‘has been sustainably logged’ only37. In addition to this, consumers are advised against purchasing tropical hardwoods that have not been labeled with ‘certification mark’. Through this strategy, consumers are able to “use this labeling or certification” to make informed decisions about their purchases of forest products and services. Some quarters, although not confirmed claim that “these wood certification and labeling programs violate at least the spirit of the General Agreement on Tariffs and Trade (GATT)”38. CONCLUSIONS From the preceding discussions in this research paper, it has been made clear that forest resources play a vital role in the life of other living organisms, both terrestrial and aquatic. In fact, majority of the human population inhabiting rural communities entirely depend on forestry for their livelihoods. Similarly, most of world’s urban settlements depend on water harnessed from rivers whose main sources are from forested areas in the world. But the wanton destruction of forest resources observed in today’s activities by human beings deprives the world of this much needed water supply. The Harmony Gold Mining Co Ltd v Regional Director: Free State, Department of Water Affairs and Forestry [2006] JDR (SCA) case clearly confirms this conclusion where the defendant was instructed to ‘mine’ while keeping in mind the protection of the environment39. Despite the identified importance of forest resources to life, the research paper has also demonstrated that human activities are destroying forested land cover at a very alarming rate, a situation which demands for conceited interventions. Among the identified destructive activities include the unauthorized harvesting of timber and its products which is encouraging everyone to get engaged in various unfair practices of trading in forest products and services. The challenge surrounding the issue of trade in forest products and services is more of a political agenda than economical. The political will of governments and agencies to adopt sustainable forest management holds the key to effective protection of flora in both natural and semi-natural forest ecosystems. SUGGESTIONS FOR FUTURE RESEARCH As noted throughout this discourse, trade in forest products and services form a significant area of international concern. This concern is found revolving around the protection of environmental degradation, conservation of natural resources including world’s fauna and flora, and the runaway global Green House Gasses emissions contributing to climate change40. The specific concern of this research paper has been that of trade in forest and services. A number of research gaps have been identified in this area that need to be clogged. One, since climate policy cannot address the problems of climate change in isolation, further research is needed in identifying sustainable forest management that will ensure more forests to act as ‘carbon sinks’ in photosynthesis, hence minimizing these emissions. More non-climate policies such as those in the area of ‘trade, finance, water, energy, health, and agriculture’ among others will have to be formulated. Another area of further research will be that of ‘capacity building’ where more insights will be needed to identify ways of making the local communities aware of their obligations in matters dealing with trade in natural resources and services. More case studies will be necessary to explore how much the local community is enlightened in their obligations in trade in forest and services. Finally, further studies need to be instituted in the area of “the role of international agreements in trade in forest and services”. The WTO and other international bodies involved in trade and environment should be studied to evaluate whether they meet sustainability standards in their provisions relating to trade in forest and services. BIBLIOGRAPHY Articles and Books Andonova, L B, “From Rio to Rio and Beyond: Innovation in Global Environmental Governance’ (2012) 21(1) Journal of Environment & Development 57. Burnett, Kim and Murphy, Sophie, ‘What Place for International Trade in Food Sovereignty?’ (2014) Journal of Peasant Studies 1. Charnovitz, Steve, ‘The WTO’s Environmental Progress’ (2007) Journal of International Economic Law 1. Copeland, Brian R and Taylor, M Scott, Trade and the Environment: Theory and Evidence, (Princeton University Press, 2003). Cox, J. Robert, ‘Golden Tropes and Democratic Betrayals: Prospects for the Environment and Environmental Justice’, (MIT Press, 2007). Francesco, Sindico, Unravelling the Trade and Environment Debate through Sustainable Development Law Principles, (2012). 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What can be taken from the Montreal Protocol and the WTO?’ (2012) 37(12) Energy Policy 5105 Cases Harmony Gold Mining Co Ltd v Regional Director: Free State, Department of Water Affairs and Forestry [2006] JDR (SCA) Wildlife Society of Southern Africa and Others v Minister of Environmental Affairs and Tourism [1996] (3) SA (TKS) Trustees, Biowatch Trust v Registrar: Genetic Resources, and Others [2005] SA 111(T) Read More