WORLD TRADE
ORGANIZATIONWT/CTE/W/2221
6 February 2003
(03-0778)
Committee on Trade and Environment Original:  English
SUSTAINABLE DEVELOPMENT AND THE TRADE OF
FOREST AND FISHERY PRODUCTS
Submission by Japan
I. BACKGROUND
1. Japan submitted, on 5th November 2002, a proposal on "Market Access for Non-Agricultural
Products – Communication from Japan – (TN/MA/W/15)".  While pointing out the need to pay due
attention to the protection of the environment a nd the promotion of sustainable development, the
paper stated that “special consideration should be given, in the course of market access negotiations,
to goods which have to be appropriately addressed in terms of global environment issues and thesustainable use of exhaustible natural resources.  In this regard, Japan intends to make a specific
proposal on this point as part of this proposal.”  At the same time, Members have been discussing the
issue of forest and fishery products in the Committee on Trade and Environment and in the
Negotiating Group on Rules.  Japan hereby submits this paper as a further contribution to the
negotiations on forest and fishery products.  It contains a specific proposal on the questions that arerelated to the market access of those products. When discussing forest and fishery products,
consideration of global environmental issues and the sustainable use of exhaustible natural resources
are of particular importance.   In addition, this paper addresses issues concerning the trade and
environment, and rules in a comprehensive manner.  Japan expects to see constructive discussions on
these issues in the relevant committee and negotiating groups.  The points explained below are not
exhaustive and Japan reserves the right to submit additional proposals.
II.  BASIC IDEAS
2. The Doha Ministerial Declaration firmly reconfirms the commitment to the objective of
sustainable development, which is clearly stated in the Preamble of the Marrakesh Agreement.
Therefore, the negotiations on forest and fishery products should aim at contributing to the objective
of sustainable development. To this end, due consideration should be given to the fact that the Plan ofImplementation, as well as other documents of the World Summit on Sustainable Development
(WSSD), requires action at all levels to achieve sustainable forest management and sustainable
fisheries. In particular, these documents emphasize the urgent need to prevent, deter and eliminate
illegal, unreported and unregulated (IUU) fishing.  Negotiations based on the Doha Ministerial
Declaration should also address how international trade can contribute to sustainable forestmanagement and sustainable fisheries in all countries, while considering the roles of the forest in
solving or improving global environmental problems, and considering the characteristic of forest and
fishery resources as exhaustible, but renewable natural resources.
                                                     
1 This document was previously submitted by Japan as a proposal in the Negotiating Group on Market
Access (TN/MA/W/15/Add.1, dated 6 January 2003).WT/CTE/W/222
Page 2
3. Needless to say, negotiations on the market access for non-agricultural products should be
evaluated as a whole, ensuring the balance with other negotiations.  It should be noted that the civil
society is also concerned about the potential negative influence of a free trade regime on forest and
fishery resources2.  It is indispensable for the WTO to promote trade liberalization, while fully
acknowledging such concerns of the civil society, taking into consideration the global environmental
issues and ensuring sustainable use of exhaustible natural resources.
Sustainable forest management and forest products trade
4. Forests are an exhaustible natural resource, which can be depleted through reckless
exploitation or poor management, but can be renewabl e if it is managed appropriately.  Furthermore,
the forest provides various public benefits, such as the mitigation of global warming, the conservationof biological diversity and the prevention of soil erosion as well as landslides.  The forest, therefore, is
expected to play an indispensable role in tackling global environmental issues through sustainable
forest management.  However, forests in the world have been decreasing and degrading due to them
being used for agricultural development, over-grazing, the over-harvesting of fuel wood, and
inappropriate commercial harvesting.  For example, the FAO estimated
3 that around 94 million
hectares of forest have been lost over the past ten years, and that existing forests are degrading from
closed forests to open forests. Currently, approximately 20% of the world forest products are subject
to international trade4 and a lot of the wood is produced for the purpose of exports .  Japan, while
greatly contributing to the development of trade in forest products as a major wood-importing
country, is also interested in the promotion of sustainable forest management in the world.  Promotingsustainable forest management, through which the various needs of forests are being continuously
fulfilled, has been one of the world’s challenges since the United Nations Conference on Environment
and Development (UNCED) in 1992.  In particular , at the WSSD, participants reaffirmed that
"Achievement of sustainable forest management is an essential goal of sustainable development”.
-150 -100 -50 0 50 million haChan ge of forest area between 1990 and 2000
TotalPlanted forestNatural forest
5. In order to promote trade in forest products in a sustainable manner under the multilateral
trading system, it is indispensable that each country cooperates to promote sustainable forest
management.  Japan believes that sound forest resources are the fundamental basis for the sustainable
development of trade in forest products, and that the promotion of trade in forest products on a
medium to long-term basis, through achieving sustainable forest management, will follow theobjectives of sustainable development, which were firmly endorsed by the Doha Ministerial
                                                     
2 The NGOs, consumers and others expressed their anxiety of the negative influence of a free trade
regime on the sustainable use of forest and fishery resources. The IUCN (International Union for Conservationof Nature) resolved at its 2
nd World Conference on the Conservation of Nature, held in October 2000, to be
“aware that trade liberalisation may encourage unsu stainable exploitation of natural resources and the
marginalization of local communities”, and that it “urges IUCN to investigate the environmental consequences
of trade liberalisation”.
3 FAO State of the World’s Forests 2001.
4 Estimation based on FAO statistical data.WT/CTE/W/222
Page 3
Declaration.  In this regard, trade liberalization should not lead to further forest devastation and proper
consideration shall be given to the various public benefits that forests provide.
Sustainable fishery resource management and trade in fishery products
6. Fishery resources are exhaustible natural resources that can be depleted by over-exploitation,
but they are renewable with proper fishery manageme nt.  Fisheries are not only an economic activity,
but are also contributive to food security, and to the maintenance and development of rural fishing
communities which are dependent on fishing in many countries, in particular, Asian and island
countries.  It is essential to achieve the objective of sustainable development in the fishery sector,
taking into account the various roles that fisheries play in each country. However, given the increasing
demand for fishery products all over the world, world fishery resources have been declining due tosuch factors as catches being made of a capacity beyond reproduction and to IUU (illegal, unreported
and unregulated) fishing undermining international ma nagement efforts.  According to the FAO, the
proportion of the world fishery resources, fully or over-exploited, has been increasing steadily by 40
points over the past three decades, culminating at 75% in 1999
5.  34% of the world fishery products
are subject to international trade6 and many catches are made for export purposes.  Japan, while
greatly contributing to the development of fish ery trade as the largest fish-importing country,
importing one-fourth of the total world fishery trade on a value basis, is also interested in the
conservation of world fishery resources.
Proportion of world fishery resources that are
 fully or over-exploited
0 20 40 60 80 1001970
1980
1993
1999Y
ear
%fully or over-
exploitedothers
Source: Review of the State of World Fishery Resources, FAO 1997, The State of World Fisheries
and Aquaculture, FAO 2000
7. It is a prerequisite for each country to implement adequate resource management in a
cooperative fashion in order to promote fishery trade in a sustainable manner under the multilateral
trading system.  Japan believes that sound fishery resources are the fundamental basis for the
development of fishery trade, and that the implementation of proper resource management and the
development of fishery trade on a medium to long-term basis will follow the objectives of sustainable
development, which were firmly endorsed by the Doha Ministerial Declaration.  In this regard, dueconsideration should be given to the roles and functions of fisheries and fishing communities, which
contribute to the sustainable development of resources, in order to prevent them from collapsing.
                                                     
5 The State of World Fisheries and Aquaculture, FAO 2000
  Review of the State of World Fishery Resources, FAO 1997
6 FAO Yearbook of Fishery Statistics - Commodities 1999WT/CTE/W/222
Page 4
III. SPECIFIC POINTS TO BE DISCUSSED ON FOREST PRODUCTS
Levels of Tariffs
8. When conducting the negotiations regarding tariffs on forest products as part of the
negotiations on market access for non-agricultural products, in accordance with the Doha MinisterialDeclaration, due consideration should be given to the following points:
(i) Natural and social conditions surrounding forests vary in each Member.  Tariffs on forest
products play the role of adjusting the differen ces in those conditions.  From the viewpoint of
the promotion of sustainable forest management, this function should be duly maintained.
In this respect, it is crucial to ensure th at each Member retains flexibility among products
when determining the appropriate level of tariffs,  by taking into account such factors as the
trends of domestic production and consumption, and the international supply and demand of
each product, while giving due consideration to the conditions and the management of forests
and the experiences of past trade negotiations.  Full consideration should also be given to the
importance of the wood industry, which has been evolving in parallel with forests and
forestry.
(ii) Japan does not support the idea to call for further sector-specific tariff reductions in the forest
products sector, including zero-for-zero and harmonization, in addition to the general tariff
reduction formula, since it ignores the conditions and the management of forests in each
country, seriously impedes the promotion of sustainable forest management, and does not
represent the position of importing countries.  From the viewpoint of ensuring a total balanceof the negotiations, those regarding tariffs should neither be independently conducted, nor
isolated from other issues including export tax and export restriction.
Special and differential treatment, and capacity building for developing countries
9. Japan’s general idea on special and differential treatment, and on capacity building for
developing countries, is set out in the aforementioned proposal (TN/MA/W/15).  In order to ensure
the long-term development of forestry and trade in forest products, it is important to provide technical
and financial assistance which will contribute to the promotion of sustainable forest management in
developing countries.
Export restriction of unprocessed logs
10.(i) Japan recognizes the necessity of trade measures that are taken for the purpose of the
conservation of the environment or of natural resources if implemented in a WTO-consistent
manner.
(ii) One of the specific trade measures taken for this purpose in the forest products sector is
export restriction maintained by some Members on forest products including unprocessed
logs.  These export restrictions are explained by the Members as a necessary measure for
preserving forest resources, thereby protecting wild animals and plants inhabiting in the
forests.  In this sense, Japan could agree with the rationale behind this measure in light of the
objective of environment protection.
(iii) However, there does exist cases whereby no export restrictions are imposed on processed
wood products made from the unprocessed logs which are subject to the export restriction.
The consistency of these measures with the WTO agreements should therefore be scrutinized
in light of the appropriate trade measures for the purpose of the conservation of the
environment and of natural resources.WT/CTE/W/222
Page 5
Export tax
11. Since export tax, unlike tariff, is unbound, exporting Members are allowed to set at will the
rate thereof.  In this sense, the rights and obligations between importing and exporting countries
remains unbalanced.  For this reason, export tax should be discussed in the negotiations on marketaccess for non-agricultural products.
Illegal logging and labelling on forest products
12. Recently, illegal logging has been internationally recognized as a major factor impeding
efforts towards sustainable forest management.  In the WSSD, participants adopted the Plan of
Implementation, which reaffirmed to take "immediate action on domestic forest law enforcement andillegal international trade in forest products".  Japan has already presented a contribution paper to the
Regular Session of the Committee on Trade and Environment with the aim of pursuing a possible
contribution from a trade perspective on illegal logging
7.  Japan also raised the issue of labelling on
forest products in its aforementioned paper in order to expand discussions on illegal logging,
considering the growing international interest in us ing labelling on forest products as an effective tool
to promote sustainable forest management.
IV. SPECIFIC POINTS TO BE DISCUSSED ON FISHERY PRODUCTS
Levels of tariffs
13. When conducting negotiations regarding tariffs on fishery products, as part of the negotiations
on market access for non-agricultural products, in accordance with the Doha Ministerial Declaration,
due consideration should be given to the following points:
(i) It is crucial to ensure that each Member re tains flexibility among products when determining
the level of tariffs, taking into account the leve l of fishery resources and the status of fishery
management;
(ii) A zero-for-zero approach in the fishery sector should not be pursued since it will abolish all
tariffs regardless of the level of fishery resources, the management status and the importance
of fisheries and fishing communities in each country.  It will also add an extra pressure to the
resources through inducing catches beyond the renewable capacity of resources, thereby
impeding sustainable development of fisheries.
Special and differential treatment, and capacity building for developing countries
14. Japan’s general idea regarding the special and differential treatment of developing countries,
as well as capacity building, is set out in its proposal (TN/MA/W/15).  In order to assure the long-term development of fisheries and fishery trade, it is important to provide adequate technical and
financial assistance, which will contribute to the promotion of sustainable fishery resource
management in developing countries.
Conservation and management measures for resources and trade measures
15. The market access of fishery products, together with trade and environment, should be
considered in common, from the standpoint of the pr omotion of sustainable development, with regard
to the roles and necessities of trade-related measures that could complement conservation and
management measures for fishery resources.
                                                     
7 WT/CTE/W/211 (11 June 2002) The discussion was held at the CTE regular sessions in June and in
October 2002.WT/CTE/W/222
Page 6
Fisheries subsidies issue
16. The Rules Negotiating Group has been discussing the trade-distorting aspects of fisheries
subsidies.  However, no concrete cases have been provided8 to demonstrate that trade distortions
caused by fisheries subsidies are unique, and it is obvious that trade distortion is not limited to thefishery sector alone.  There is, therefore, no need to create a special discipline for the fishery sector
from a trade-distorting point of view.  It is necessary, however, in accordance with Paragraph 28 of
the Doha Ministerial Declaration, to conduct negotiations aimed at clarifying and improving
disciplines under the Agreement on Subsidies and Countervailing Measures, while preserving the
basic concepts, principles and effectiveness of the Agreement and its instruments and objectives, and
taking into account the needs of developing and least-developed participants.  As agreed at the
WSSD, elimination of IUU fishing and solving the problem of over-capacity are two important issuesfor achieving the sustainable development of fisheries.  Comprehensive efforts should be made
towards achieving a solution to these issues, taking into full account the discussions had in specialized
organizations, such as the FAO
9.  Japan is prepared to make a maximum contribution for the purpose
of promoting discussions, and urges other concerned Members to also partake in discussions
conducted by those organizations having expertise.  Taking into account the work of theseorganizations, the WTO should examine how to address fisheries subsidies at the Regular Session of
the Committee on Trade and Environment, for the purpose of solving IUU fishing and over-capacity
issues.
Labelling for environmental purposes in the fishery sector
17. The trade and environment section of the Doha Ministerial Declaration lists up labelling for
environmental purposes as one of the items to be studied at the Regular Session of the Committee on
Trade and Environment. The Committee has, therefor e, the duty to report to the 5th Ministerial
Conference and to make recommendations, including on the desirability of negotiations regarding this
item.  In the fishery sector, labelling for environmental purposes is likely to contribute to the
sustainable use of fishery resources by way of stimulating a voluntary and proper choice by
consumers if implemented properly.  Arbitrary labelling, which does not consider impartial and
scientific criteria, would pose the risk of an unjustifiable restriction of trade.  Therefore, the FAO,
having expertise on fisheries should first try to establish scientific and objective guidelines in order to
implement labelling for environmenta l purposes in the fishery sector
10.  The WTO should consider
how to deal with this issue from a trade viewpoint, taking into account the established guidelines.
__________
                                                     
8 The report of the FAO expert consultation on fisheries subsidies held in November 2000 states,
“Information regarding effects of fisheries subsidies on trade is limited”.  Also, no evidence has been providedin recent discussions of the WTO on this topic that a certain subsidy affects trade.
9 The FAO held the 2nd expert consultation on fisheries subsidies in December this year, to be
followed by a governmental consultation.  The Fisheries Committee of the OECD will launch a comprehensive
study on government financial transfers next year.
10 Labelling issues, including that for environmental purposes in the fishery sector, will be discussed at
the FAO Committee on Fisheries to be held in February 2003.