Intergovernmental actions on illegal logging: options for intergovernmental action to help combat illegal logging and illegal trade in timber and forest products

This report presents a brief overview of the range of options for intergovernmental action to help combat illegal logging and trade in illegal timber and forest products. Actions by individual producer and consumer governments could be complemented by international collaboration. Many of the options listed could be phased; and are also not mutually exclusive.

Producer country measures - This section presents a range of options for dealing with illegal behaviour at source in producing and exporting countries. These include:

• Reform of legislation to include clear definition of illegal activities, effective deterrents, streamlined taxation and better economic intelligence to improve tax revenues.
• Improved industry regulation - open, transparent bidding for concessions, restricted allocation of processing licences to reduce over-capacity; clearly designated liability and performance incentives; the development of professional ethics, the reform of inward investment laws, and restrictions on export points.
• Enhanced enforcement - the establishment of specialised enforcement units, strengthening of resources, improved information and tracking, the use of novel enforcement methodologies such as markers and satellite imaging, and a more systematic approach to intelligence gathering including the use of NGOs.
• Investment in alternative employment opportunities and small-scale and community-based initiatives; improved planning for domestic requirements for timber and the use of positive incentives for compliance.

Consumer country measures -Consumer/importer countries, either by themselves or in groups (such as the G8), can introduce a range of measures. These depend, however, on some system for identification of illegal products, which needs be developed with producer countries within a bilateral, regional or global framework. Options include:

• Enhanced border controls for illegal products, and legislation to allow the prohibition of illegally-sourced timber and products.
• Tariff reductions linked to timber production demonstrating compliance with particular standards.
• Government procurement policies to improve purchasing practices including requirements for chain-of-custody documentation.
• Encouragement for market-based instruments such as labelling and certification, particularly where they include requirements for chain-of-custody documentation; investigation of measures to avoid misleading ‘green claims’; and encouragement for investors to require enhanced information from forestry companies about their activities.

International frameworks - This section identifies options for intergovernmental initiatives, amongst consumer countries and between consumers and producers, and the scope offered by existing international agreements and institutions. Options include:

• Improved enforcement /customs collaboration, greater exchange of data between consumer and producer countries.
• Linking of financial assistance to reforms of forestry practices, engagement of domestic constituencies for reform, and encouragement for independent monitoring.
• The development of a legal framework for establishing international regulations identifying legality of production, a voluntary framework encouraging data exchange and cooperation, a legally binding multilateral agreement requiring , capacity-building and financial assistance clauses.
• The pursuit of initiatives on illegal logging through appropriate international forums, the UN Forum on Forests, the ITTO, CITES (Appendix III opportunities for monitoring international trade) and the Biodiversity Convention.
• Building on the cooperation already established between the World Customs Organisation, Interpol, UNEP, convention secretariats and the G8 Environment Crime working group
• Investigation of the potential role of the OECD Anti-Bribery Convention in permitting customs to act against timber shipments
• Discussion of the WTO implications of trade measures directed against illegally produced timber products and the treatment of labelling, certification and government procurement policies.