PRODUCTION AND TRADE IN THE ASIA PACIFIC REGION

Trade in forestry products in the Asia-Pacific region is dominated by a few major countries. As Table 1 shows, 98 percent of gross trade (total exports plus total imports) involving Asia Pacific countries is participated in by one of 13 nations. A closer examination of Table 1 shows 75 percent of Asia Pacific trade involves the participation of Japan, China, Indonesia, Malaysia or Korea, with Japan alone participating in 34 percent of gross trade. Furthermore, an examination of the Direction of Trade tables in the FAO Yearbook (1994) shows that a minimum of 38 percent of Japan's trade is identifiable as being with other Asia Pacific countries. It can also be calculated, by deducting the portion of trade readily identifiable as being with countries external to the region, that Japan is a partner in at least 48 percent of the intra-regional forestry trade in the Asia-Pacific region.

It can be seen that the five largest exporting countries are Indonesia, Malaysia, Japan, New Zealand and China. These five account for 75 percent of exporting in the Asia Pacific region, with Indonesia and Malaysia together responsible for more than 50 percent of exports. Japan, China, Korea, Hong Kong and Thailand are the five largest importing countries in the region accounting for 86 percent of its gross imports; Japan and China alone account for 63 percent of imports.

It is evident from the table that, in value terms, the Asia-Pacific region runs a major forest products deficit with the rest of the world. Net imports of forest products total more than US$18 billion for the region.

Table 1: Trade in the Asia Pacific Region (1994)

Country	Roundwood		Sawnwood		Panels		Pulp		Paper		Forest Products
(all figures '000's)	Imports (US$)	Exports (US$)	Imports (US$)	Exports (US$)	Imports (US$)	Exports (US$)	Imports (US$)	Exports (US$)	Imports (US$)	Exports (US$)	Imports (US$)	Exports (US$)	Trade (US$)	Asia-Pac trade (%)
Japan	6802285	2668	4567400	18137	2390069	35764	1824404	7736	1320050	1426340	16980960	1491974	18472934	34.24
China	496248	135610	622963	272841	1444668	194672	781053	23778	2100412	622461	5466960	1262413	6729373	12.47
Indonesia	30290	22542	9377	353904	21197	3792433	438129	68876	187060	460377	689256	4730688	5419944	10.05
Malaysia	12820	995081	27740	1627137	34015	1593750	41585	0	581599	56275	698068	4280304	4978372	9.22
Korea	1087455	738	462687	18337	735992	50194	825838	779	501053	931610	3631409	1002764	4634173	8.59
Hong Kong	104897	961	183850	2813	588913	18519	12094	2567	1908061	759179	2804335	784330	3588665	6.65
Australia	898	362622	432941	20212	102103	91621	89086	0	934351	157792	1559954	632702	2192656	4.06
Thailand	267377	7909	598779	71225	40497	45243	150315	30659	532157	160724	1630235	319255	1949490	3.61
Singapore	32492	13828	213187	188513	243388	192556	14031	24333	627687	266164	1135073	701231	1836304	3.40
New Zealand	1159	474740	23289	320403	7234	209845	7330	235844	190295	203829	229571	1445325	1674896	3.10
PNG	1	641152	73	1992	343	926	0	0	5964	5	6382	644075	650457	1.21
Philippines	52977	1179	54197	27330	17737	18826	28163	0	200585	2152	354415	90116	444531	0.82
India	48118	1165	2496	4231	7725	17543	80421	186	140430	10721	279889	35376	315265	0.58
TOTAL	8937017	2660195	7198979	2927075	5633881	6261892	4292449	394758	9229704	5057629	35466507	17420553	52887060	98.00

Source: FAO 1996

Table 2: Wood Production in the Asia-Pacific Region (1994)

Source: FAO (1996)

Table 2 lists forest products production for the 10 largest roundwood producers in the Asia-Pacific region. Wood production is heavily concentrated in a handful of countries with the four largest producers China, Indonesia, Malaysia and Japan accounting for 70 percent of production and the seven largest producers accounting for 91 percent of production. Vietnam is the only country among the top ten wood producers which is not listed in Table 1 as a major wood products trader. Korea, Hong Kong and Singapore are major wood traders which do not produce large quantities of wood. Processing facilities in these three countries account for the significant production of manufactured wood products from "Other" countries.

Given the dominance of the 13 countries identified in Table 1 and the complexities of trade matrices it seems sufficient to assume the major impacts of the Uruguay Round outcomes, and other trade arrangements, will largely fall among these countries. The bulk of the analysis in this paper will, consequently, concentrate on these 13 countries.