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Chapter 2 Policies shaping forest products markets
2.1
INTRODUCTION
Wood is a diverse material that enables great innovation. The use of wood and the management of the forest resource from which it is derived have influence across policies, markets and economies. The growth of the green economy depends on the development of policies and market-based instruments that support further innovation and diversification of forest product markets while also addressing environmental concerns and social needs. The EU Forest Strategy, which was adopted on 20 September 2013, responds to the challenges facing the forest sector and to key policy developments in the EU. Policy developments include Europe 2020 (a strategy for growth and jobs); the Resource Efficiency Roadmap; the Rural Development Policy; the Industrial Policy; the Climate and Energy Package (with its 2020 targets); the Plant Health and Reproductive Materials Strategy; and the Biodiversity and Bioeconomy strategies (European Commission, 2013). Various bodies have adopted conclusions or opinions on the EU Forest Strategy since its initial adoption, including the Agriculture and Fisheries Council’s conclusions, the Economic and Social Committee’s opinion, and the Committee of the Regions’ opinion (European Commission, 2015a).
2.2
TRADE-RELATED
2.2.1
Transatlantic free trade
The EU and Canada concluded negotiations on the Comprehensive Economic and Trade Agreement in September 2014. The text of this agreement will now undergo a legal review followed by a translation into all official languages of the EU. At a later stage, the agreement will need to be approved by the Council and the European Parliament (European Commission, 2015e). The Transatlantic Trade and Investment Partnership (TTIP) trade agreement between the EU and the US is still under negotiation. The goal of the TTIP is to remove trade barriers from a wide range of economic sectors and to make it easier to trade goods and services between the two parties. Negotiations began in July 2013 and are expected to continue through 2015. In April 2015, the US Congress made progress on the Trade Priorities and Accountability Act, which aims to advance trade agreements like the TTIP and the Trans-Pacific Partnership (Council on Foreign Relations, 2015).
2.2.2
2014 and the first quarter of 2015, the effective SLA export tax on western Canadian shipments to the US was zero; however, an export tax of 5% was imposed in April and May 2015 for the first time since October 2013 (Random Lengths, 2015). Also related to Canada’s forest policy is the Canadian Boreal Forest Agreement (CBFA), which addresses sustainable forest management and applies to more than 73 million hectares of forestland. The CBFA encompasses seven conservation organizations, 19 forest companies and 51% of the forests in Canada’s boreal region (CBFA, 2015). A report on ecosystembased management (EBM) released by the CBFA in August 2014 (Van Damme et al., 2014) concluded, among other things, that several policy gaps remain that limit the full implementation of EBM. These include weak links to EBM in operations; a lack of clear standards for including EBM in forest management practices; few examples of integrated land-use planning and assessment capacity; and the poor quality of input data to support effective EBM.
2.2.3
CIS forest trade and policy
There have been changes in more than 40 forest policy regulations in the Russian Federation in the last two years. The most important of these is the development of a system for monitoring harvested timber, EGAIS, which was launched in 2014. As of July 2014, all freight traffic of harvested timber must have supporting documentation establishing its origin (Rossiyskaya Gazeta, 2014). After July 2015, forest users will register transactions via an electronic form; administrative responsibility for violation of the rules of the Federal Law will come into force in January 2016. The 72nd Session of the UNECE Committee on Forests and the Forest Industry was held in Kazan in November 2014, which was a significant event for Russian forestry. The key themes of the session were the contributions of forests to a green economy; domestic and international markets for timber products; and sustainable forest management as a way of addressing climate change (UNECE, 2014). The World Bank approved a $40.71 million loan to Belarus in March 2015 for a new forestry development project designed
US and Canada forest trade and policy
The Softwood Lumber Agreement (SLA) between Canada and the US is set to expire on 12 October 2015. The SLA has been in place since 2006 and addresses tariffs on lumber traded between the two countries. With the recent recovery in the US housing market, there is increased potential for conflict over the agreement as demand for softwood lumber grows. Although the SLA will expire, it allows up to two years for the two nations to establish a revised policy. In
Source: UNECE/FAO, 2014.