Most of our industry has an incomparable record of looking after its resources—its forests and the environment. But a minority, which treats forests like coal or iron ore deposits, there to be mined, disfigures parts of the industry. The consequences are well known. Fortunately, responsible governments, associations, the industry and non-governmental organizations (NGOs) generally agree on what's to be done. So they've begun to work together on sustainability and environmental protection. But more needs to be done.
This comment began while I was visiting a European port that had installed new handling equipment in its forest products terminal. It was a dedicated crane designed to handle bigger loads of paper rolls, pulp bales and logs. The incoming ship was Russian, so a tiny alarm bell rang in my mind. Was the cargo from sustainable forests? Was it illegal?
The port's PR team droned on about this widget and that gizmo. Then a fast inflatable churned into the harbor. It was a Greenpeace vessel, brightly colored, blaring out political stuff. It pulled alongside the Russian ship. Two young men in military fatigues scrambled up the side and onto the deck. They had no time to unfold their banners or use the bullhorn because the Russian crew, with great speed, turned the water hoses on them and washed them over the side. All this took place in about three minutes. No harm was done except for wet and bruised egos. Nothing much happened after that.
But the scene reinforced my feeling that the ship was carrying illegally harvested timber. And it was, but the cargo was from Indonesia! I hadn't expected this.
Asian Losses
The Indonesian forestry ministry estimates that the country suffers a financial loss of $US3.7 billion each year due to illegal logging and forest products trading. Early this year, the ministry revealed that four illegal logging cases had been discovered, while reporting 21 cases of illegal distribution of wood in one of its national parks. Police also impounded two ships for smuggling 5,386 cubic meters of logs and detained 13 motor boats off the coast of Java.
The country has a major problem in policing this trade because the army and police are the only authorities up-country, and they collude with local businessmen in the smuggled timber racket.
The Thai government has set up a phone hotline for information from the public on Mafia-type harvesting and smuggling of forest products. Names and details provided by the public will be added to an official list of the "usual suspects" suspected of illegal activities, compiled by the Ministry of Natural Resources and Environment.
Brazilian Trade
In another part of the world, Brazil, the deforestation rate jumped 40% last year. The Brazilian Ministry of Environment reported that in 2002, an area of 25,476 sq. km was deforested compared to 18,166 sq. km in 2001.This was the biggest rise since 1995. What is not clear is how much was destroyed by illegal harvesting and how much by legal soy farmers. Brazil is expected to become the world's biggest soy producer in seven years.
Last summer, Miami port authorities denied entry to a Greenpeace vessel, MV Esperanza, which wanted to protest about the import of illegally harvested Amazon timber. The protest was effectively blunted by the port's policing operations, the US coastguard and customs officers.
Protection - US Leads
In Europe, the key issues are illegal Russian timber (mainly in northwest Russia) and harvesting in old-growth forests in northern Finland. Inter-governmental talks and positive negotiations between the forest industry and the NGOs are addressing these issues. This writer is on one of the committees, so progress is being made!
The World Bank has estimated that the loss of revenue from illegal logging to producer and consumer governments is US $5 billion annually. However, prospects to curb the trade have improved dramatically as a result of action by the US government. Last July, US Secretary of State Colin Powell announced a global initiative to assist developing countries to reduce illegal logging and tackle corruption in the forest industry. It's not fashionable, at present, to call on the US to take any kind of global initiative, but no one else can do it.
The US has allocated $15 million to cover 19 existing programs for good governance and law enforcement in countries that struggle with illegal logging. Unusually, the State Department's initiative—also supported by USAID—endorsed several proposals developed by World Wildlife Fund, which has used market forces to encourage responsible forest management and to discourage illegal trade.
I'll also hazard a guess and say that the American Forest & Paper Association (AF&PA), which has taken a tough stance on illegal logging, may also have influenced the US government in its strategy.
What reassures me is that a country dedicated to free trade and market forces now has a global working alliance with AF&PA and an occasionally hostile NGO to help police, and maybe eradicate, illegal logging and smuggling.
