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Introduction

There are many reasons - social, environmental and economic - for wishing to manage forests sustainably, and there are many factors that influence the sustainability of forests. Forest products trade policy is one of them.

Among the main trade issues that have been highlighted in the debate on how to encourage sustainable management of the forests are: trade liberalisation, unsustainable consumption, certification, and the effects of trade policies such as export bans and controls. However, there is still a lack of agreement and a lack of clarity on many issues, and it is generally acknowledged that more in-depth analysis is needed in order for countries to formulate forestry and trade policies based on a better understanding of the implications of different policies.

The purpose of the project is to analyse the impacts of forest products trade on sustainable forest management, taking into account the full environmental costs and social impacts. The project aims to provide information and analysis of the relation between trade and the environment in order to assist policy makers formulate forestry and trade policies that encourage sustainable forest management.

Focus

The overall focus of the research is forest sector trade policy and its impacts on sustainable forest management (SFM). IIED's approach is to organise the issues under the four headings of context, instruments, impacts and implications. This research will:

• describe the underlying context, actors and trends that drive the forest products sector, regionally and globally, and that link trade in forest products to forest management practices;
  
• identify the range of policy instruments, agreements and processes that influence both trade in forest products and forest management, directly or indirectly;
  
• analyse the social, economic and environmental impacts of policies (and of policy change), focusing on trade-related measures, their links to forest management, and to the broader aims of sustainable development; and
  
• assess the implications of the findings and evaluate alternative trade policy options for encouraging more sustainable forest management, as well as the conditions and levers for change, within and outside the trade policy arena.

The primary beneficiaries of the project will be those with an interest in encouraging sustainable forest management, particularly those responsible for forestry and trade policy formulation and development in both producing and consuming countries.

What we propose to do

1. Project Advisory Group (PAG) - a small group of people with experience and contacts in the worlds of trade policy, forestry, the environment and development will be assembled to act as a sounding board for the project as it proceeds.
   
2. Issues Paper - An issues paper will be produced by IIED, based on a review and synthesis of existing literature, identifying important sources of information and influential actors in the debate. It will set out a coherent analytical framework, identify major debates and knowledge gaps, evaluate key trends and new challenges affecting the trade in forest products, and define an agenda for research under this study.
   
3. Networking and feedback - An outline of the Issues Paper will be presented by IIED at the inaugural meeting of the PAG. This will be followed by a complete draft of the paper, which will be submitted for review by the PAG and other technical experts in the field. The completed Issues Paper will be disseminated widely as a means to solicit feedback on the proposed research from a range of stakeholders, and to stimulate others to provide relevant unpublished data and background material. The process of networking and seeking feedback will thus continue throughout the course of the study.
   
4. In-depth analysis and sub-studies - Based on the gap analysis and work plan set out in the Issues Paper, IIED will proceed with detailed research on priority issues. Where appropriate IIED will commission supplementary sub-studies on specific cases or themes. Potential sub-study topics include:
   
   

   domestic trade policy reform and SFM in selected developing countries; non-tariff barriers to imports of forest products in major consumer countries; impacts of forest certification on trade and forest management in countries with a relatively large proportion of certified forests. how selected companies have responded to growing demand for certified timber; impacts of forest sector trade policy reform on biological diversity; markets for forest environmental services, and their trade impacts; or 'footprint' analysis of specific forest products or trade flows.

   
   
5. Final reporting and dissemination - IIED and its collaborators will prepare their final reports and other presentation materials. These will be presented firstly to FAO and the PAG, and secondly to participants at two proposed workshops (in Geneva and Rome). Subject to available funding, the research findings will subsequently be disseminated to a much wider audience.

Progress to date

The work plan outlined above was endorsed at the inaugural meeting of the Project Advisory Group held 4-5 October 2001 at the FAO in Rome. The outline Issues Paper was presented and valuable feedback was received from members of the PAG. The project timetable was also discussed and agreed. IIED is currently in the process of drafting the Issues Paper.

Partners and Donors

IIED researchers contributing to this project are:

James Mayers
Duncan MacQueen
James MacGregor

Funding for this project comes from the Government of Japan via the Food and Agriculture Organization of the United Nations (FAO).

Further information

For more information on the project please contact Maryanne Grieg-Gran.

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