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V

CONCLUSIONS

1. CUSTOM TARIFFS

EC, USA and Japan, collectively account for 60% of the world import trade of NWFPs. Custom duties on NWFPs in these markets are generally quite low; 40-47% of the NWFP-containing tariff lines face no duty, while another 24-27% of the tariff lines face a nominal duty of 1-5%. Only a few tariff lines (4% in case of EC and USA and 9.5% in Japanese market), containing products like natural honey, truffles, spices, maple syrup and certain articles of natural cork and bamboo face custom duty higher than 15%. In addition to the import duty, a consumption tax of 3% is levied on almost all products imported into Japan.

Tariffs on the NWFPs imported into developing countries, however, are considerably higher. For example, import tariff rates as high as 60-65% are not uncommon for some NWFPs in the major exporting nations of China and India. Such high tariff rates reflect both the tendencies of "protectionism" as well as revenue generation for the state.

2. URUGUAY ROUND

Tariff rates will be reduced further after implementation of decisions of the Uruguay Round. Average bound rate on NWFP-containing tariff lines will be reduced to 1.70%, 1.95% and 2.96% in the EC, USA and Japan, respectively. More than 97% of the NWFP-containing tariff lines will then face import duty less than 10%. A few products like natural honey, some articles of rattan or of palm leaf, flour and meal of sago, shellac and maple syrup will, however, still be facing custom tariffs higher than 15% in these markets.

3. EXPORT TAXES

Tariffs (taxes) levied on NWFPs exported from developing countries are also common and can reach high levels. The main objective of these is to secure revenue for the state, although such high rates can prove counter-productive by reducing the profitability and hence the extent of the trade, encouraging cross-border smuggling and reducing the standard of care and protection of the forests and their products.

4. NON-TARIFF MEASURES

Species protection regulations (CITES) and health and safety regulations are two common forms of NTMs facing NWFP trade in EC, USA and Japanese markets. The former attempts to regulate trade in plants and animals in order to protect them from extinction; the latter attempts to stop the introduction of micro-organisms and unwanted forms of animal life into the importing countries. The latter are important for legitimate health and safety reasons and hence their enforcement is essential, despite their distorting effect on international trade in NWFPs. It is therefore important that suppliers in developing countries are aware of the importance of effectively meeting the phyto-sanitary regulations and standards of developed countries.

5. TECHNICAL STANDARDS

Elaborate technical and quality standards exist for a number of NWFPs and most purchases are made on the basis of a product analysis of samples supplied by the exporter in a laboratory selected by the buyer. Although most of these are not formal trade restrictions imposed for protective reasons they do constitute major barriers to many suppliers. Most are however legitimate regulations that exporters must adapt to if they are to trade internationally. The more effectively exporters can meet the regulations the more effective their trade will be.

6. STATE CONTROL AND POLICIES

State controls over collection, processing, pricing and trade are common in developing countries, and tend to distort and restrain international trade in NWFPs. Thus, steps should to be taken to minimize these wherever possible, since regulated trade through the private sector is likely to be more effective.

7. CONSUMER/TRADE BOYCOTTS

NWFP trade does not face the same problems of restriction and controls such as consumer/trade boycotts, direct control or bans which face international trade in timber and some other wood products. These are being promoted as solutions to the problems of the world's forests. These efforts to sustain forests do offer good opportunities and prospects for international trade in NWFPs since they are seen as being beneficial to the protection of the forests. Thus this may in fact provide a strong tool for the marketing of NWFPs.

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