PART IV

FORESTRY IN REGIONAL
ECONOMIC GROUPS

This chapter presents summary information on forest cover and forest products (production and trade) for the 11 regional economic groups listed below. In each case, the figures for imports and exports take into account the value of international trade with all countries, including those within the regional group. The regional economic groups covered are:

• Association of Southeast Asian Nations (ASEAN)
• Caribbean Community and Common Market (CARICOM)
• Commonwealth of Independent States (CIS)
• Economic Community of West African States (ECOWAS)
• European Community (EC)
• Latin American Economic System (LAES)
• League of Arab States
• North American Free Trade Agreement (NAFTA)
• South Asian Association for Regional Cooperation (SAARC)
• South Pacific Forum (SPF)
• Southern African Development Community (SADC)

Association of Southeast Asian Nations

The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967 in Bangkok with the signing of the Bangkok Declaration. At present, its members are Brunei Darussalam, Cambodia, Indonesia, the Lao People's Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. The ASEAN Declaration states that the aims and purposes of the Association are: i) "to accelerate economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations"; and ii) "to promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations Charter".

DESCRIPTION OF THE FOREST SECTOR

Nearly half of the ASEAN region is covered with tropical forest, accounting for about 6 percent of the world's total forest area. Three-quarters of total wood production is used as fuelwood and charcoal. ASEAN is an important timber-producing region (particularly of tropical hardwoods), accounting for 5 percent of the world's industrial roundwood production. More than three-quarters of this comes from Indonesia and Malaysia. These two countries are major producers and exporters of wood-based panels (mainly plywood), together accounting for 19 percent (in value) of world export trade in panels. The region is rapidly developing its pulp and paper industry. Many ASEAN countries are major exporters of non-wood forest products, in particular rubber, rattan and bamboo. Forests in the ASEAN region are of global significance in terms of biological diversity conservation.

Caribbean Community and Common Market

The Caribbean Community and Common Market (CARICOM) was established by the Treaty of Chaguaramas on 4 July 1973, for the principal purpose of enhancing, through cooperation, the economic, social and cultural development of the people of member countries. CARICOM'S members are Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname and Trinidad and Tobago.

DESCRIPTION OF THE FOREST SECTOR

The CARICOM countries account for only 1 percent of the world's forest area, most of which is located in Guyana and Suriname. These countries, as well as Belize and Dominica, have a high percentage of their land area under forest. With the exception of Dominica, CARICOM's small island states have a moderate to low forest cover. CARICOM's share of world production and trade in forest products is minor and its members are heavily dependent on imports to meet their paper, sawnwood and wood-based panel requirements. Guyana is the Community's most active country in terms of forest industries.

Commonwealth of Independent States

The Commonwealth of Independent States (CIS) was established in December 1991. It is a voluntary association consisting of Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, the Republic of Moldova, the Russian Federation, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The main purpose of the Commonwealth is to develop and strengthen cooperation and to serve the cause of peace and security.

DESCRIPTION OF THE FOREST SECTOR

Nearly one-quarter of the world's forests are located in the CIS. The Russian Federation, which alone contains 22 percent of the world's forests, accounts for 94 percent of the group's total forest area. In addition to the Russian Federation, which has 50 percent of its land area under forest, Belarus and Georgia are also heavily forested (with 45 and 44 percent of their land under forest, respectively). The other countries have a low to moderate forest cover. The Russian Federation accounts for about 90 percent of both production and consumption of forest products in the CIS. It is a major exporter of industrial roundwood, accounting for 24 percent (by volume) and 14 percent (by value) of world trade in logs. This is a significant increase from 1996, when the Russian Federation accounted for 20 percent of the volume of world trade in logs. The other countries are highly dependent on imports to meet their requirements for wood products.

Economic Community of West African States

The Treaty of Lagos establishing the Economic Community of West African States (ECOWAS) was signed by representatives of 15 West African States in Lagos on 28 May 1975. At present, the following countries adhere to the treaty: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, the Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, the Niger, Nigeria, Senegal, Sierra Leone and Togo. The ECOWAS Treaty specifies that the Community's objective, to be achieved in stages, is the creation of an economic and monetary union. Cooperation in the development of agriculture, forestry, animal husbandry and fisheries is one of its primary aims. The first stage in this cooperation entails the harmonization of internal and external policies, the second stage envisages the adoption of a common agricultural policy.

DESCRIPTION OF THE FOREST SECTOR

ECOWAS members together contain only 2 percent of the world's forests. While only 12 percent of the combined land area is under forest, an additional 23 percent is classified as "other wooded land", which contributes to the production of various forest products, grazing and desertification control. "Trees outside forests", such as those in agroforestry systems, are also an important resource. More than 90 percent of the wood produced by ECOWAS member countries is used as woodfuel. Within the Community, the most important producers of industrial wood products are Nigeria, Côte d'Ivoire and Ghana. ECOWAS accounts for only a minor share of world imports and exports of wood products.

European Community

The Treaty of Rome established the European Economic Community (EEC) in 1957. In 1993, the Treaty of Maastricht established the European Union (EU) as a broader framework which retained the EEC, now the European Community (EC), as a legal entity. The following countries are members: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom. The aims of the EC include the abolition of restrictive trading practices and the free movement of capital and labour within the union. A single market with free movement of goods and capital was established in January 1993.

DESCRIPTION OF THE FOREST SECTOR

About one-third of the region is covered with forest, ranging from boreal to Mediterranean scrub forest. About 70 percent of the forests are located in four countries: Sweden, Finland, France and Germany. Although the EC has only 3 percent of the world's forest area, it is a leading producer of wood-based products, in particular paper and panels. It is a major trader, accounting for 42 and 40 percent of the value of world exports and imports of wood-based products, respectively. Sweden, Finland, Germany, France and Austria are among the world's top ten exporters of forest products, and Germany, the United Kingdom, France, the Netherlands, Spain and Belgium and Luxembourg are among the top ten importers.

Latin American Economic System

The Latin American Economic System (LAES) is a regional intergovernmental organization that groups 28 Latin American and Caribbean countries: Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, the Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Suriname, Trinidad and Tobago, Uruguay and Venezuela. LAES was established on 17 October 1975 by the Panama Convention. The objectives of LAES are to promote a system for consultation and coordination, aiming to achieve consensus in the form of joint positions and common strategies, for the Latin American and Caribbean region on economic issues. The common strategies may be for individual countries or groups of countries. LAES also serves to promote cooperation and integration among the countries of the region.

DESCRIPTION OF THE FOREST SECTOR

Forest cover varies greatly within the group, ranging from very heavily forested countries (Belize, Brazil, Suriname and Guyana) to countries with a small percentage of land area under forest (Barbados, Haiti, El Salvador and Uruguay). All the Amazon basin countries are members of LAES, which accounts for its large amount of forest area, representing 25 percent of the world's forest cover. Together, LAES member countries are important wood producers, particularly of woodfuel, industrial roundwood and sawnwood, and significant exporters of pulp for paper. The region's tropical forests have global significance in terms of biological diversity conservation and carbon storage.

League of Arab States

The League of Arab States, more generally known as the Arab League, was established on 22 March 1945. It comprises Algeria, Bahrain, the Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, the Libyan Arab Jamahiriya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, the Sudan, the Syrian Arab Republic, Tunisia, the United Arab Emirates and Yemen. The broad objectives of the Arab League are to develop cooperation and strengthen complementarity among its member states in economical, cultural, scientific, social and military fields. To do so, the League has set up several specialized agencies. Those of interest to FAO are: the Arab Bank for Economic Development in Africa (Khartoum, the Sudan); the Arab Centre for the Study of Arid Zones and Dry Lands (Damascus, the Syrian Arab Republic); the Arab Fund for Economic and Social Development (Kuwait); the Arab League Educational, Cultural and Scientific Organization (Tunis, Tunisia); the Arab Organization for Agricultural Development (Khartoum, the Sudan); the Arab Academy for Science and Maritime Transport (Alexandria, Egypt); and the Inter-Arab Investment Guarantee Corporation (Kuwait).

DESCRIPTION OF THE FOREST SECTOR

The combined forest area of these countries accounts for only 2 percent of the world's forests. Some countries (Algeria, Morocco, Somalia, the Sudan and Yemen) have significant areas of "other wooded land" which, although not counted in the forest area figures, are important for forest products, grazing and desertification control. Fuelwood and charcoal are the major forest products. Production of industrial wood is very limited; about two-thirds of the demand for industrial roundwood and processed wood products is met by imports. Gum arabic, a non-wood forest product, is a major export of the Sudan.

North American Free Trade Agreement

Canada, Mexico and the United States are members of the North American Free Trade Agreement (NAFTA), which came into effect on 1 January 1994. NAFTA´s main aims are to contribute to the expansion of world trade; create, expand and secure markets for the goods produced in members' territories; reduce distortions in trade; create new employment opportunities; improve working conditions and living standards in members' territories; and address related environmental and conservation issues. NAFTA is a trading bloc of global reach. It is innovative because it establishes linkages between economies with different levels of economic development. Current discussions see the linking of existing subregional integration schemes of NAFTA into a Free Trade Area of the Americas.

DESCRIPTION OF THE FOREST SECTOR

One-fourth of the area of the NAFTA countries is forest land. Together, the three countries account for 14 percent of the world's forest area. Almost 90 percent of the region's forest is located in Canada and the United States, which are major world producers of wood. Canada and the United States together produce 40 percent of the world's industrial roundwood, and more than one-third of all processed wood products, including almost half the world's paper pulp. NAFTA is extremely important in world trade of wood products. The value of its exports of sawnwood and pulp for paper represents nearly one-half of the world's export market. It accounts for nearly one-third of the world's import market for sawnwood and one-fifth of the paper, wood panels and paper pulp markets. The forest sector in NAFTA is a significant source of revenue and employment through forest industries, forest-based recreation and tourism.

South Asian Association for Regional Cooperation

The South Asian Association for Regional Cooperation (SAARC) was established in 1985 by the Heads of State and Government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAARC's main goal is to accelerate economic and social development in its member states through joint action in agreed areas of cooperation. To achieve this objective, SAARC seeks to:

• promote the welfare of the peoples of South Asia and to improve their quality of life;

• accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potential;

• promote and strengthen collective self-reliance among the countries of South Asia;

• promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields;

• strengthen cooperation with other developing countries;

• strengthen cooperation among the Association's members in international fora on matters of common interest, and cooperate with international and regional organizations with similar aims and purposes.

DESCRIPTION OF THE FOREST SECTOR

SAARC member countries contain only 2 percent of the world's forest area but support 22 percent of the earth's population. The region's forest cover is relatively low (19 percent of total land area), but "trees outside forests", particularly on agricultural land, are an important source of wood and non-wood forest products, notably in Bangladesh, Sri Lanka, Pakistan and parts of India. More than 90 percent of all wood production is used as fuelwood and charcoal, three-quarters of which is consumed in India alone. SAARC accounts for 21 percent of world production of woodfuel. International trade in wood products is limited. India is a major exporter of non-wood forest products, including medicinal plants, essential oils, bidi leaves and lac.

South Pacific Forum

The South Pacific Forum (SPF), consisting of Heads of Government, was established in 1971. Its members and affiliated agencies are: Australia, Cook Islands, Fiji, Kiribati, Marshall Islands, the Federated States of Micronesia, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. SPF provides an opportunity to discuss a wide variety of South Pacific and international concerns and issues common to members, including the promotion of a free trade area in the South Pacific region. The Forum Secretariat promotes regional cooperation among members on important economic issues.

DESCRIPTION OF THE FOREST SECTOR

SPF countries together contain less than 3 percent of the world's forest area. Although 94 percent of the region's forest area is located in Australia and Papua New Guinea, several countries are heavily forested - most notably Solomon Islands, Papua New Guinea and Vanuatu as well as, to a lesser extent, Samoa and Fiji. Australia and New Zealand have large plantation programmes and also dominate the region's production of industrial roundwood and processed wood products. The region (led by Australia, New Zealand and Papua New Guinea) is a significant exporter of industrial roundwood. However, the Asian economic crisis, which began in mid-1997, resulted in a reduction of SPF's share in world exports of industrial roundwood from 15 percent in 1996 to 7 percent in 1998. The region shows signs of having recovered to a large extent since then. The small island nations have abundant coconut tree resources which serve as a source of wood, coconuts, copra and palm oil for local populations.

Southern African Development Community

The Declaration and Treaty establishing the Southern African Development Community (SADC) was signed at the Summit of Heads of Government in Windhoek, Namibia in August 1992. At present, its members are: Angola, Botswana, the Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, the United Republic of Tanzania, Zambia and Zimbabwe. The objectives of SADC are to: achieve development and economic growth, alleviate poverty, enhance the standard and quality of life of the peoples of southern Africa and support the socially disadvantaged through regional integration; evolve common political values, systems and institutions; promote and defend peace and security; promote self-sustaining development on the basis of collective self-reliance and the interdependence of member states; achieve complementarity between national and regional strategies and programmes; promote and maximize productive employment and utilization of the resources of the region; achieve sustainable utilization of natural resources and effective protection of the environment; and strengthen and consolidate the long-standing historical, social and cultural affinities and links among the peoples of the region.

DESCRIPTION OF THE FOREST SECTOR

The SADC region encompasses a large and diverse forest area, including both tropical and temperate forests. SADC countries together account for 9 percent of the world's forests. A large part (38 percent) of this is located in the Democratic Republic of the Congo, which has 60 percent of its land area under forest. In addition, Angola, Malawi, the United Republic of Tanzania and Zambia all have a high percentage of their land area under forest. Lesotho, South Africa and Swaziland have significant forest plantation programmes. South Africa, although it has only 2 percent of SADC's forest area, dominates its production and trade of forest products. It produces almost 60 percent of the region's industrial roundwood, 65 percent of sawnwood, more than 80 percent of both panels and paper pulp, and nearly all the region's paper and paperboard. South Africa also dominates the region's exports in most products, although Swaziland exports important quantities of pulp for paper. SADC's forests are important for carbon storage (particularly those of the Democratic Republic of the Congo) and biological diversity conservation, and they have important wildlife resources.