[asia-apec 1173] GATT Watchdog - Global Free Logging Agreement at WTO

[Gatt Watchdog]

GATT Watchdog
PO Box 1905 Otautahi (Christchurch)
AOTEAROA (New Zealand)
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Ph  64 3 3662803


                       MEDIA RELEASE FOR IMMEDIATE USE
4 July 1999

"Global Free Logging Agreement" Must Be Outed And Axed before November WTO
Meeting - GATT Watchdog

Wellington may not see eye to eye with Washington over lamb tariffs but the
two governments are in cahoots in pushing for a global trade agreement to
eliminate remaining tariffs on forest products - with dire consequences for
the world's forests,  says GATT Watchdog.  

GATT Watchdog organiser Aziz Choudry recently returned from an international
meeting on forests and globalisation near Seattle, focusing on the upcoming
World Trade Organisation (WTO) Ministerial Meeting and the launch of a new
round of negotiations.  Representatives of non-government organisations in the
USA, Canada, Brazil, Chile, Indonesia, Russia, Japan and Europe met to discuss
strategies about how to stop the agreement.

"The New Zealand government can't see the woods for the trees on matters of
trade and the environment. This forestry agreement is just one example of an
extreme economic agenda which promotes trade liberalisation as an end in
itself.  It needs to be outed and axed," says Aziz Choudry.

"US Trade Representative Charlene Barshefsky has stated that completion of the
wood products agreement is one of the USA's primary trade goals for the
upcoming Ministerial.  And Lockwood Smith has repeatedly argued that the
liberalisation of trade in forestry and fish products is a high priority for
New Zealand trade policy," he said.  

In April, GATT Watchdog sought, under the Official Information Act, documents
relating to negotiations on the forestry agreement from MAF, MFAT and Ministry
for the Environment.  After demands for several thousand dollars for the
information, the group has referred the matter to the Ombudsmen's Office for
investigation and review. 

"This proposal, dubbed the 'Global Free Logging Agreement' by its opponents,
is part of an eight sector Accelerated Tariff Liberalisation package which was
shunted from APEC to the WTO after failure to reach consensus among APEC
member countries. The agreement is scheduled for completion at the third
Ministerial meeting of the WTO to be held in Seattle at the end of November.
It is a declaration of intent to increase logging and further decimate forests
around the world".  

Canada's government also supports the forestry agreement. But Japan, which
wants to protect its domestic wood processing industries, has resisted the
plan in APEC and is likely to do so at the WTO.  Many developing countries
seek a review of existing GATT/WTO agreements, and are wary of moves to
introduce new issues.

"The Accelerated Tariff Liberalisation (ATL) initiative aims to eliminate
tariffs on all forest and paper products by the year 2000 for "developed"
countries and 2003 for "developing" ones, increasing production and
consumption of wood products. A US industry organisation, the American Forest
and Paper Association says wood consumption could increase by 3 to 4%
worldwide if tariffs come down". 

"The ATL reflects the global forestry industry's international trade agenda.
And negotiations are likely to focus on the removal of non-tariff measures
which may jeopardise environmental safeguards like eco-labelling, strong
phytosanitary controls on imports of wood products that carry exotic pests -
like the Asian gypsy moth - and pathogens, and regulations to promote local
industries. Forest protection laws, labour and environmental regulations are
viewed merely as obstacles for greater profit". 
                              
"Anything a good corporate lawyer can say is a "trade barrier" could be
targetted - like export bans on wood products from endangered forests, bans on
the export of unprocessed logs. For the timber transnationals, decreasing
production costs is the name of the game, regardless of the environmental or
social consequences - let alone the rights of Indigenous Peoples to their
territories and resources".

"The timber transnationals seek to eliminate restrictions on where, when and
how to log so production and profits increase.  They want to open up world
markets to forest products so more is sold and profits go up", he said.

Proposed new Multilateral Agreement on Investment (MAI)-like provisions on
investment at the WTO would also let overseas investors challenge any new
government measures to protect forests or local forestry jobs.  

"New Zealand already has one of the most open investment regimes in the world.
According to recent Overseas Investment Commission statistics, 68% of all land
sales to overseas investors between 1991-97 was for forestry purposes," he
said.

"Neither the New Zealand government nor the Clinton Administration have
conducted an environmental impact study on the proposed agreement, although
the US Trade Representative's office and the Council on Environmental Quality
have now agreed to conduct a very limited "economic and environmental
analysis"".

"Weyerhaeuser and International Paper, two out of the four key US timber
transnational corporations which sit on Clinton's trade advisory committee,
and have greatly influenced the drafting of this new agreement, operate in
New Zealand.  We have no doubt that the forestry giants are playing a similar
role in shaping New Zealand's position going into the WTO Ministerial while
everyone else is deliberately being kept in the dark," said Mr Choudry.

For further comment, contact Aziz Choudry ph (03) 3662803