Forest policies
Development strategies
Legislation
Tariff/trade barrier
Government's in the forestry sector of Asia Pacific was a central and major theme of the many source documents reviewed. Four sub-issues were identified in this category.
Table 42. Country Focus of Selected References for Asia Pacific Forestry Sector Review
Table 43. Forest Sector Issues by Group and Sub-Topic for Asia Pacific Region
Government
Forest Policies
Development Strategies
Legislation
Tariffs/Trade Barriers
Conservation
Reforestation
Wildlife and Timber Reserves
Stand Management
Biodiversity
Sustainability
Deforestation/Degradation
Agroforestry
Harvest Levels
Forest Protection & Fire
Land Use/Watershed Management
Forest Products/Forest Industry
Forest Products
Now-Wood Forest Products
Forest Processing
Research/Institutions
Large Scale Forest Industry
Small Scale Forest Industry
Trade & Marketing
Certification
Substitution
Barriers (Internal)
Barriers (External)
Demand
Social-Economic & Environmental
Environmental Functions
Rural Energy Development
Enhancement of Research
Planned Economy
Market Economy
Perhaps the most pervasive issue identified relates to the broad role and adequacy of forest policies for the several countries of the Asia Pacific Region. Sub-issues involve the specification of goals and objectives for the forestry sector, the setting of priorities, the examination and selection of strategies for achieving policies, and the measurement and assessment of the effectiveness of policy implementation in achieving the desired goals.
The Asian Development Bank analysis of the forestry situation in the Asia Pacific region summarized the status of National Policies for a number of the individual countries. This summary is shown as Table 44. National policies have generally been examined and updated within the past decade. Yet the ADB review indicates that policy is still very much evolving given the status of political and economic change within the Region. The ADB identified four areas where policy direction is needed (Jaakko Poyry, 1995):
1) Classification of and terms of access to forest resources,
2) Sustainable management and development of forest resources,
3) utilization of forest-based products, and
4) the surrounding institutional framework and linkages with other sectors
While forest policies may be adequate in terms of stating general principles, a primary weakness is in the actual implementation and interpretation of direction in practice. Successful strategies, based on realistic priorities are required to implement policy directives.
The problem of policy implementation leads directly to widespread concern regarding the development of strategies to implement policy and to deal with new and complex problems confronting the forestry sector. A broad series of "Strategic Plans" have been developed within the Asia Pacific Region under either the Master Plan or Tropical Forestry Action Programme (TFAP) processes to carry out a systematic analysis of the forestry sector and to formulate policy strategies and programmes for implementation. Table 45 summarizes the scope of these reviews as of 1995.
Policy, to be effective, must be clearly recorded in statutory language consistent with the systems and culture where it is to be made effective. Beyond basic forest policy statements, fundamental 'forestry laws' are frequently enacted detailing the various purposes and means for carrying out policy. Issues of the role and responsibility of government and governmental institutions, rights and privileges of resource use, budgeting and staffing, numerous other aspects of sector policy need to be carefully crafted to clarify intent and means for achieving sector results. In practice, legislation is frequently piecemeal and overlapping, partly formal legislation and partly administrative decree or regulation, and possibly lacking in the specifics needed to adequately judge the relevance and probability of achieving desired goals. Consolidation and codifying of legislation, administrative decrees, and related rules and regulations may reveal shortcomings and problem areas where policy is not effectively implemented or where substantial gains might be anticipated in efficiency and performance of the forestry sector.
Table 44. Countries Analyzed and Year of Issuance of National Forest Policy (ADB)
|
Country |
Year of the national forest policy |
South Asia |
Bangladesh |
1994 |
India |
1988 |
|
Nepal |
1989 |
|
Pakistan |
1991 |
|
Sri Lanka |
1995 |
|
Temperate Asia |
PR of China |
1991 |
Insular Southeast Asia |
Indonesia |
1992 |
Malaysia |
19881 |
|
the Philippines |
1988 |
|
Continental Southeast Asia |
Lao PDR |
1986 |
Thailand |
1995 |
|
Viet Nam |
1989 |
|
Tropical Oceania |
Papua New Guinea |
1992 |
1 Forestry Sector ReviewSource: Asian Development Bank. 1995.
Table 45. Master Plans and Tropical Forestry Action Plans in the Analyzed Countries (ADB)
Country |
Basic Forestry Sector Development Strategy |
Year of Finalisation |
|
South Asia: |
|||
|
Bangladesh |
Forestry Master Plan |
1993 |
|
India |
National Forestry Action |
1993 |
Programme |
1988 |
||
|
Nepal |
Master Plan for the Forestry Sector |
1988 |
|
Pakistan |
Forestry Sector Master Plan |
1992 |
|
Sri Lanka |
Forestry Sector Master Plan |
1995 |
Temperate Asia: |
|||
|
People's Republic of China |
Eight-Five-Year Plan |
1991-1995 |
Ten-Year Plan |
1991-2000 |
||
Insular Southeast Asia: |
|||
|
Indonesia |
National Forestry Action Program |
1991 |
|
Malaysia |
Industrial Master Plan |
1992 |
|
the Philippines |
Master Plan for Forestry Development |
1992 |
Continental Southeast Asia: |
|||
|
Lao PDR |
Tropical Forestry Action Plan |
1990 |
|
Thailand |
Forestry Sector Master Plan |
1993 |
|
Vietnam |
Tropical Forestry Action Programme1 |
1991 |
Tropical Oceania: |
|||
|
Papua New Guinea |
|
|
1 Forestry Sector ReviewADB, Status of Forestry and Forest Industries in Asia Pacific Region 1995
Another important role of government impacting the forest sector is in the regulation and direction for economic trade between nations. This is no less so than for the forestry sector of the Asia Pacific region. Trade barriers can be economic in the form of tariffs, duties and other surcharges related to transactions (either import or export) or can be non-tariff-barriers in the form of rules and regulations as to how commerce is conducted. In either case, countries have many 'reasons' to impose barriers, primarily to protect perceived components of their economic base. Policies to discourage or restrict imports in favor of domestic activity are commonplace, seeking to preserve self interests at the risk of lower overall economic efficiency and welfare. Likewise, policies designed to prohibit or limit exports are seen as means to reallocate resources, often with a preference for greater processing or utilization for domestic consumption.
Trade barriers in the Asia Pacific region have been well studied by Bourke (1988) and others. While barriers have been generally reduced, a pattern often persists of reduced barriers for lower valued, commodity grade trade while maintaining progressively higher barriers for semi-processed or finished goods. This is particularly likely in the case of import tariffs designed to protect and/or promote secondary processing opportunities.
A summary of trade barriers perceived to operate for major ITTO consumer countries is reproduced in Table 46. As illustrated, a pattern of duties and tariffs, at higher levels for processed products is evident for the Netherlands and Korea, for example. Quotas for imports are also imposed in the European Union for plywood. To the extent that trade barriers exist, trade is restricted and markets distorted. Government policies favoring more open trade is widely promoted as desirable for the Asia Pacific forestry sector. Trading blocs are emerging in many parts of the world, opening trade on a localized basis. Movements towards assuring open market access to and by Asia Pacific nations will remain a long term issue requiring action by governments at all levels. Questions of 'certification' of timber by origin or sustainability is frequently seen as a trade barrier and at best a potential threat to established trade in spite of well-intentioned policies aimed at assuring long term sustained forests.
Table 46. Tropical Timber Trade Barriers in ITTO Consumer Countries, 1994
Country |
Product |
Description |
|
Australia |
Sawnwood |
2-7 percent, depending on species and country of origin; some reductions apply as of 1 July 1995 |
|
Canada |
Logs, sawn, ven. |
None |
|
Plywood |
8-9 percent import tariff, depending on species |
||
China |
Logs |
3 percent import tax, 17 percent value-added tax |
|
Sawnwood |
6 percent import tax, 17 percent value-added tax |
||
Veneer |
20 percent import tax, 17 percent value-added tax |
||
Plywood |
20 percent import tax, 17 percent value-added tax |
||
Egypt |
Sawnwood |
5 percent customs tariff on lumber imports, plus a 5 percent sales tax and 3 percent customs service fee (tariff reduced in 1994 to promote domestic industry) |
|
EU |
|||
|
France |
Logs and sawn |
None |
Plywood |
10 percent (except waivers under GSP, Lomé) |
||
|
Netherlands |
Logs |
None |
Sawnwood |
0-2.5 percent import tariff, depending on species |
||
Veneer |
4-6 percent import tariff, depending on species |
||
Plywood |
10 percent import tariff, depending on species |
||
|
Portugal |
All |
None |
|
U.K. |
Logs, sawnwood |
None |
Plywood |
9.4-10 percent, depending on species |
||
Japan |
Veneer |
Tariff base rate 15 percent (subject to GSP scheme), to be reduced to five percent by 1999 |
|
Plywood |
Tariff base rate 17-20 percent (subject to GSP scheme), to be reduced to 8.5-10 percent by 1999 |
||
New Zealand |
All |
None |
|
Norway |
All |
None |
|
Rep of Korea |
Logs |
2 percent import tariff |
|
Sawnwood |
5 percent import tariff |
||
Veneer |
5 percent import tariff |
||
Plywood |
8 percent import tariff |
||
U.S. |
All |
None (GSP scheme) |
Source: ITTO. 1995. Annual review and assessment of the world tropical timber situation 1995.