IUCN World Conservation Congress Jeju, Korea, 9 September 2012

1. IUCN World Conservation Congress Jeju, Korea, 9 September 2012 International and national legal frameworks for logging and timber trade: In support of forest ecosystem resilience and legal prohibition of illegal timber in trade General overview of global timber trade and legality Chen Hin Keong Global Forest Trade Programme Leader

2. MAJOR TRADE FLOWS: TROPICAL LOGS, 2010 (million m3)

3. MAJOR TRADE FLOWS: TROPICAL SAWNWOOD, 2010 (million m3)

4. MAJOR TRADE FLOWS: TROPICAL PLYWOOD, 2010 (million m3)

5. The Illegal Logging Problem • Centuries-old problem rooted in social conflicts over access to forest resources • Illegal logging is the extraction, processing, transport and sale of timber in breach of law The World Bank Group G8 Action Programme on Forests “Illegal logging and other forest crimes of various kinds are common in many parts of the world and often involve players in both producer and consumer countries. The World Bank estimates the market value of global annual lossesfrom illegal cutting of forests in public lands at over $10 billion—more than eight times the total official development assistance lows for the sustain-able management of forests.” “Illegal logging robs national and subnational governments, forest owners and local communities of significant revenues and benefits, damages forest ecosystems, distorts timber markets and forest resource assessments and acts as a disincentive to sustainable forest management. International trade in illegally harvested timber including transfer pricing, under invoicing and other illegal practices, exacerbates the problem of illegal logging. ”

6. Trading Partners’ Concerns Where is illegal timber coming from? Indonesia has progressed since this chart was prepared in 2004 WORLD BANK 2006; Data source: SENECA CREEK 2004

7. Supply-side approaches Governance and forest control in producer countries Behaviour changes of producers “Be legal”, sustainable forest management, certification, etc Demand-based approaches Responsible consumption Public procurement Import regulation (such as Lacey Act, FLEGT, CITES, etc.) Approaches to Tackling the Problem

8. Revise forestry policies Strengthen forestry legislation Strengthen timber trade controls Enhance institutional capacity – human resource, equipment, mechanisms, training Improve enforcement Network with other stakeholders such as NGOs, private sector International cooperation Governance and Supply Side Controls

9. Be legal Code of practice/ Guidelines Improve harvesting practice – Reduce Impact Logging Joining “stepwise” programmes such as GFTN, TFT or Smartwood’s Smartstep Using third party verification of legality such as VLO & VLC Chain-of-custody certification Certification schemes Behaviour Changes of Producers

10. Public procurement policies targeting government agencies’ consumption of timber – UK, France, Netherlands, Germany, Belgium, Denmark, Japan, etc. Demand-Based Approaches

11. Lacey FLEGT Action Plan CITES Import Regulations

12. History of the Lacey Act • Oldest wildlife protection statute in the U.S. • Well-established tool to combat trafficking in illegal wildlife, fish and plants • Amendments provide a tool to assist other countries and U.S. states in combating illegal logging

13. Amended Lacey Act • Expands Lacey protection to broader range of plants and products, including timber • Introduces new declaration requirement for plant products • Amendments were effective May 22, 2008; enforcement of the declaration requirement is being phased in

14. Summary of Background • The Lacey Act prohibits trafficking in illegally harvested plants and products, including timber • Violators face serious penalties; penalties are based on the type of violation • Requires U.S. importers to file a plant import declaration

15. Additional information can be found on the USDA APHIS website: http://www.aphis.usda.gov/plant_health/lacey_act/index.shtml

16. FLEGT Action Plan adopted in 2003 Aim: to address illegal logging and related trade Proposes to combine supply and demand measures: FLEGT voluntary partnership agreements Public procurement policies Due Diligence Regulation (Timber Regulation) Technical and financial assistance FLEGT

17. Voluntary Partnership Agreement Voluntary partnership agreements between the EU and timber-producing countries to: • Increase trade in “guaranteed” legal timber between FLEGT partner countries and the EU • Set up control and licensing systems to provide a Government-backed guarantee of legality • Provide financial, technical and institutional support to improve forest governance • Signed in Ghana, Cameroon, Indonesia • Many more under negotiation – including in Vietnam

18. VPA Legality Assurance System • The underlying legality definition is based on the laws and procedures of the timber producing country; • Legality assurance system also covers chain of custody, verification, licensing and Independent monitoring procedures. • Countries that sign a VPA then set up a scheme that the EU accepts as proof of legality against the agreed definition

19. Conventions on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Indonesia is a signatory since 1978 • Obligatory for Parties to CITES to enact legislation to control trade of CITES listed species • Species listed in Appendix I, II and III depending on threat of trade on the survivability of the species in the wild

20. CITES (Cont.) • Encompasses both legal and sustainable aspects of this species: • “…the export of any specimen of a species included in Appendix [I. II or III] shall require the prior grant and presentation of an export permit. An export permit shall only be granted when.....a Management Authority of the State of export is satisfied that the specimen was not obtained in contravention of the laws of that State for the protection of fauna and flora…” • If you trade in CITES species you must register any import or export of this species. You will break the law if you do not do this. • Main CITES timber species in Southeast Asia is Ramin, Bigleaf Mahogany in Americas, Ebony in Africa.

21. Thank youhk.chen(a)traffic.orgwww.traffic.org