WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/CTE/W/122 
29 June 1999 
 (99-2685) 
Committee on Trade and Environment Original:   English/ 
                 anglais  inglés 
  
 
COMMUNICATION FROM THE SECRETARIAT OF THE INTERGOVERNMENTAL  
FORUM ON FORESTS (IFF) 
  
 The attached background paper
1 has been received from the Secretariat of the 
Intergovernmental Forum on Forests (IFF).  It is being circulated to Members of the CTE in preparation for the Committee Meeting on Trade a nd Environment to be held on 29-30 June 1999.  
 
 
Comité du commerce et de l'environnement 
 
 
COMMUNICATION DU SECRÉTARIAT DU FORUM 
INTERGOUVERNEMENTAL SUR LES FORÊTS 
  
 Le Secrétariat du Forum intergouvernemental sur le s forêts a fait parvenir au Secrétariat la 
note d'information ci-jointe
1, qui est distribuée aux membres du Comité du commerce et de 
l'environnement en vue de la réunion que le  Comité tiendra les 29 et 30 juin 1999. 
 
 
 
Comité de Comercio y Medio Ambiente 
 
 
COMUNICACIÓN DE LA SECRETARÍA DEL FORO 
INTERGUBERNAMENTAL SOBRE LOS BOSQUES 
  
 Se ha recibido de la secretaría del Foro In tergubernamental sobre los Bosques el siguiente 
documento de información
1, que se distribuye a los miembros de l CCMA para preparar la reunión que 
el Comité de Comercio y Medio Ambiente celebrará los días 29 y 30 de junio de 1999.   
__________ 
 
 
                                                     
 
1English only./En anglais seulement./En inglés solamente. WT/CTE/W/122 
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THE WTO COMMITTEE ON TRADE AND ENVIRONMENT 
GENEVA, 29-30 JUNE 1999 
 
THE INTERGOVERNMENTAL POLICY DIALOGUE ON FORESTS:  
THE INTERGOVERNMENTAL  FORUM ON FORESTS (IFF) 
OF THE UNITED NATIONS COMMISSON ON  
SUSTAINABLE DEVELOPMENT (CSD)2 
 
 
TABLE OF CONTENTS 
  
Subject
  Page(s)  
 
I. INTRODUCTION          3  
II. The IPF/IFF Process         3 
III. Highlights of the Third Session of the IFF      4 
IV. Trade and Environment         4 
V. O t h e r  P r o g r a m m e  E l e m e n t s         5  
ANNEX  7-9 
                                                      
2JM-R, IFF/Secretariat, June 1999, United Nations Plaza, Di vision for Sustainable Development, DESA, United Nations, 
New York, N.Y.10017, USA, Phone: (+1 212) 963-4151, Fax: (+1 212) 963-3463, E-mail: munoz-reyes@un.org , 
<http//www.un.org/esa/sustdev/iff.htm>  
  WT/CTE/W/122 
 Page 3 
 
 
I. INTRODUCTION 
1. Forests are increasingly perceived as complex entities, not only from a bio-physical 
perspective, but also from social, economic and political perspectives. 
2. At the United Nations Conference on Environment and Development (UNCED) in 
Rio de Janeiro in June 1992, forests were among the most controversial issues being considered.  The 
prevailing North South polarization concerning forest s did not permit agreements beyond the text of 
the “Non-legally Binding Authoritative Statement of Principles for a Global Consensus on the Management, Conservation and Sust ainable Development of All Types of Forests”, the so-called 
“Forest Principles”, and Chapter 11 of Agenda 21 “Combatting  Deforestation.”  By contrast, the 
“Post-Rio” period 1992-1995 was one of confidence building and emerging Nort h-South partnerships, 
enabling the United Nations Commission on Sustainable Development (CSD), at its third session in 
April 1995, to establish the Intergovernmental  Panel on Forests (IPF), to continue the 
intergovernmental forest policy dialogue. 
3. The mandate of the IPF was for a two-year pe riod (1995-1997) and with a programme of 
work involving several complex and politically sensitive issues grouped in five categories.  In view of 
the progress made in consensus building, the govern ments agreed to continue intergovernmental 
forest policy deliberations and established the Intergovernmental Forum on Forests (IFF) for three years (1997-2000) under the auspices of CSD. 
II. THE IPF/IFF PROCESS 
4. The two years of intensive work of the IPF resulted in over one hundred negotiated proposals 
for action on a number of issues related to sustaina ble forest management (SFM) including national 
forest programmes.  The IPF was charged with the ma ndate to formulate options for further actions to 
combat deforestation and forest degradation an d to promote the management, conservation and 
sustainable development of all types of forests.  On  trade and environment issues in relation to forest 
products and services, the IPF was given the task of  promoting the mutually supportive roles of trade 
and environment.  The IPF was also requested to recommend measures for improving market access 
for forest products on a non-discriminatory basis and to  consider factors that might distort the trade in 
and the value of forest products.  The Panel was also requested to examin e the issue of voluntary 
certification and labelling of forest products. 
5. Following the establishment of the IPF, the info rmal high-level Inter Agency Task Force on 
Forests (ITFF) was formed, comprising the UN Food and Agriculture Organization, ITTO, the Secretariat of the Convention on Biological Divers ity, the UN Department for Social and Economic 
Affairs, the UN Development Programme, the UN  Environment Programme, the World Bank and 
latterly, the Centre for International Forestry Research.  The primary purpose of the ITFF was to 
coordinate the inputs of these eight multilateral in ternational organizations into the IPF process. 
6. On the basis of the outcomes of its four sessions, the IPF presented its report, containing 
107 substantive conclusions and 132 negotia ted proposals for action, to the UNCSD. 
(In April 1997) ( sic). Those proposals under Programme Elemen t IV cover some critical areas:  
market access, the relative competitiveness of for est products, lesser-known species, certification and 
labelling, full cost internalization, and market transparency. 
7. The IPF report was subsequently discussed at the Special Session of the 
UN General Assembly (UNGASS) in June 1997.  As  a result, UNGASS decided to continue the 
intergovernmental policy dialogue on forests th rough the establishment of the ad hoc, open-ended 
Intergovernmental Forum on Forests (IFF) under the aegis of the UNCSD. WT/CTE/W/122 
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8. Building upon the progress made at its previ ous sessions, the IFF undertook building upon the 
progress made at its previous sessions, the IFF undert ook further consideration of the implementation 
of the Proposals for Action of the Intergovernmental Panel on Forests (IPF) and reviewing, monitoring and reporting on progress in the manageme nt, conservation and sustainable development 
of all types of forests;  matters left pending and other issues arising from the Programme Elements of 
the IPF Process;  and international arrangements and mechanisms to promote the management, 
conservation and sustainable development of all types of forests. 
9. The Forum is to also identify the possible el ements of and work towards a consensus on 
international arrangements and mechanisms, for exampl e, a legally binding instrument on all types of 
forests.  The Forum will report on its work to th e Commission on Sustainable Development in 1999.  
Based on the report and depending on the decision taken by the Commission at its Eight Session 
in 2000, the Forum will engage in further acti on on establishing an intergovernmental negotiation 
process on new arrangements and mechanism, for example, a legally binding instrument on all types of forests. 
10. The IFF held its first, organizational meeti ng in October 1997.  Th e second session was held 
in Geneva from 24 August to 4 September 1998, and the third session was held in Geneva from 
3 to 14 May 1999.  The fourth session will be  held in New York from 31 January to 
11 February 2000. 
11. Between the last Meeting of the WTO Committee on Trade and Environment (CTE) held in 
June 1998 and this Meeting, IFF has held two S essions in Geneva, the Second Session was held in 
August - September 1998 and the Thir d Session held on 3 - 14 May 1999. 
III. HIGHLIGHTS OF THE THIRD SESSION OF THE IFF 
12. In accordance with its approved work sche dule, the IFF conducted update discussion on two 
programme elements under Category II which had undergone substantive consideration at its previous 
session but whose draft Co-Chairmen Reports were still heavily bracketed, namely Programme Element II(b) – Matters Left Pendi ng on Trade and Environment and Programme 
Element II(c) – Matters Left Pending on the Transf er of Environmentally Sound Technologies to 
Support Sustainable Forest Management.  The substantive discussion by the IFF at its previous session on two other programme elements, namely , Programme Element II(a) – Promoting and 
Facilitating Implementation and Programme Element II(e ) – Forest-Related Work of International and 
Regional Organizations, had already yielded clean and unbracketed texts on  each of these two elements. 
IV. TRADE AND ENVIRONMENT 
13. Trade and Environment rank among the more complex and contentious issues being discussed 
at on-going post United Nations Conference on Environment and Development (UNCED) 
deliberations on forests at the international level.  
14. To facilitate the task of promoting the inte gration of trade and e nvironment, a general 
framework has been drawn up under Principle 12 of the Rio Declaration on Environment and 
Development, 1992, which inter alia , pronounces that  “Trade policy measures for environmental 
purposes should not constitute a means of arbitrar y or unjustifiable discrimination or a disguised 
restriction on international trade.”  In support of  this principle, two specific programme areas on 
promoting sustainable development through trade and making trade and environment mutually supportive, as contained in Chapter 2 of Agenda  21 – the United Nations Programme of Action for 
Sustainable Development - have been adopted fo r implementation by governments, United Nations 
organizations, development agencies, non-governme ntal organizations (NGOs), independent sector 
groups and other interested parties.   WT/CTE/W/122 
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15. On Programme Element II(b) – Matters Left Pending on Trade and Environment, an update 
discussion on the programme element was conducted in conjunction with the Third Session of the 
IFF.  However, greater efforts and attention we re devoted to the continued negotiation of the 
Co-Chairmen Report on the element, which took pla ce in several sessions within a contact group.  As 
a result of this endeavour, substantial progress was achieved in negotiating the Co-Chairmen Report.  
From a text that was bracketed in its entirety at the close of the Second Session of the IFF, the 
Co-Chairmen Report had been significantly cleaned up with only five bracketed parts remaining.  The 
text of the text under negotiation of the last session is attached in the annex  to this paper.  There was 
guarded optimism regarding the prosp ect that these bracketed parts might be cleared at the next and 
final sessions of the IFF.  
V. OTHER PROGRAMME ELEMENTS 
16. Similar progress was made in respect of Programme Element II(c) – Matters Left Pending on 
the Transfer of Environmentally Sound Technologies to Support Sustainable Forest Management.  At 
the close of the Third Session of the IFF, there remained six bracketed parts of the Co-Chairmen 
Report to be further negotiated at the next session of the IFF. 
17. The IFF subjected four specific Programme Elements to substantive consideration at its 
Third Session.  These Programme Elements which were discussed on a preliminary basis at the 
previous session of the IFF.  Following formal de liberations, negotiations on the draft Co-Chairmen 
Reports on each of these elements were conducted. 
18. On Programme Element I(b) – Monitoring Progress in Implementation of IPF Proposals for 
Action, was duly considered and negotiated during the course of the Third Session of the IFF.  There 
were only two bracketed parts of the report requiri ng further consideration by the IFF at its last 
session. 
19. Progress was also achieved in respect of each of the eight specific items under Programme 
Element II(d) – Issues Arising From the Programme  Elements of the IPF Process Needing Further 
Clarification, namely II(d) (i) – Underlying Cause of Deforestation and Forest Degradation;  II(d)(ii) – 
Traditional Forest – Related Knowledge:  II(d)(iii) – Forest Conservation and Protected Areas;  
II(d)(iv) – Forest Research;  II(d)(v) – Valuation of  Forest Goods and Services;  II(d)(vi) – Economic 
Instruments, Tax Policies and Land Tenure;  II(d )(vii) Future Supply of and Demand for Wood and 
Non-Wood Forest Products;  and II(d)(viii) – Assessm ent, Monitoring and Rehabilitation of Forest 
Cover in Environmentally Critical Areas.  Many of the Co-Chairmen Reports on these items had been negotiated without brackets while the bracketed pa rts of the Co-Chairmen Reports on the remaining 
items were at a manageable level.  All outstanding  matters could be ironed out at the next session of 
the IFF. 
20. The substantive discussion on Programme Elemen t II(a) – Matters Left Pending on the Need 
for Financial Resources, drew much reference to well-known positions he ld by developed and 
developing countries in the past.  The Co-Chairmen Report on the element contained bracketed parts 
in virtually all of its paragraphs.  
21. This was one of the more contentious issues th at would still require tough negotiations by the 
IFF at its next session. 
22. Programme Element III – International Arra ngements and Mechanisms to Promote the 
Management, Conservation and Sustai nable Development of All Types of Forests, is perhaps the most 
contentious and awaited matter before the IFF as it d eals with the sensitive issue regarding the future 
mechanisms and arrangements for intergovernment al forest policy deliberations, including the 
possibility of negotiating a legally binding arrangement  or mechanism for all types of forests.  This 
subject was deliberated in the Plenary and was followed by the distribution of the draft Co-Chairmen WT/CTE/W/122 
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Report for consideration and negotiation.  Although a contact group was set up for this purpose, the 
tangible progress made was the placement of brackets in practically every paragraph of the draft report.  The delegates wished to deal with this ma tter should be dealt with in-depth at the next session 
of the IFF when parties would also have the be nefit of the outcome of the Costa Rica-Canada 
Initiative and an opportunity to discuss the UN Secretary General’s Report on the subject for the 
Fourth Session of the IFF. 
23. The Fourth Session of the IFF, is proposed to be held in New York from 31 January 
to 11 February 2000, will be the fi nal opportunity to resolve these outst anding matters within the IFF.   WT/CTE/W/122 
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ANNEX 
 
MATTERS LEFT PENDING ON TRADE AND ENVIRONMENT  
(PROGRAMME ELEMENT II.B) 
 
I. CONCLUSIONS 
1. Mutually supportive trade and environment po licies can effectively promote the achievement 
of the management, conservation and sustainable deve lopment of all types of forests.  Taking account 
that trade and environment policies have their sp ecific objectives, decision-makers, including trade 
partners, should contribute to achieving trade in  wood and non-wood forest products and services 
from sustainable managed forests, and implement polic ies and actions, in partic ular, avoiding policies 
that have adverse effects, either on trade or on the su stainable management of all types of forests.  It is 
important to take into account the needs of deve loping countries for social and economic development 
and environmental protection, in particular poverty alleviation. 
2. The impact that international trade in w ood and non-wood forest products has on sustainable 
forest management can be both positive and negative.  Trade liberalization adds value to the resource 
and has the potential to promote economic developm ent, contribute to povert y alleviation and reduce 
environmental degradation, provided it is accompanie d by sound environmental and social policies.  
However, trade liberalization must not be a ve hicle for undermining domestic environmental and 
health standards which are consistent with inte rnational trade rules.  Countries should study the 
positive and negative impacts of trade polici es on sustainable forest management.  The 
Uruguay Round yielded significant reductions to tariffs  affecting forest products.  Special attention 
should be given to remaining and emerging trade restrictions which cons train market access, 
particularly for value-added products.  Trade me asures intended to promote sustainable forest 
management should not constitute a means of arbitr ary or unjustifiable discrimination or a disguised 
restriction on international trade. 
3. IFF recognized the potential role of voluntary certification of forest management and 
labelling of forest products as among the potential tool s in promoting sustainable forest management 
and differentiating forest products and services in the market.  However, more practical experience is 
necessary to reach conclusions on the effectiven ess of such programmes.  Moreover, unsuitable 
design or non-transparent application of such sch emes may, in some cases, lead to unjustified 
obstacles to market access. In particular, small- and medium-sized forest owners and enterprises, 
including those of developing countries, may find it excessively costly to implement certification 
and/or labelling schemes.  In the context of these issues, the IFF took note of the work of the WTO with regard to voluntary eco-labelling schemes.  Pr oliferation of certificati on and/or labelling schemes 
calls for further cooperative work , in line with the recommendations of the IPF, towards achieving 
their international comparability and considering their equivalency while taking into account the 
diversity of national and regional situations. 
4. Forest products and services and their subs titutes should be adequately valued through 
full-cost internalization which in turn would in fluence competitiveness of these products and services.  
In this context, countries should undertake analyses of the implications of such valuation on forest 
management and economic developm ent.  Countries should also implement full-cost internalization 
strategies for forest products and services, and their substitutes, taking into consideration the potential 
costs and benefits of improved efficiency  and sustainability of the forest sector. 
5. Some available studies carried out on the rela tive full life-cycle analysis of the environmental 
impacts of forest products and their substitutes suggest  that the former may be preferable, but further 
work on such life-cycle analysis is needed. WT/CTE/W/122 
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6. Increased market transparency is essential in  order to improve the market access for forest 
products and services [including those coming from sust ainable managed forests].  In this regard, the 
role of the private sector is vital but action is also  needed by all interested parties to improve market 
transparency. A better understanding by both produc ers and consumers of the potential relationship 
between trade in forest products, forest service s and their substitutes and sustainable forest 
management, could help to promote responsible choi ces in the supply and demand for forest products, 
forest services and their substitutes. 
7. The nature and extent of illegal trade in w ood and non-wood forest products [including forest 
biological resources], is a serious concern due to damage to ecosystems, loss of biodiversity, lost 
revenue by governments, forest owners and local and/or indigenous communities, and distortion of 
markets for forest products and services.  Nati onal policies and intern ational cooperation are 
important to reduce illegal trade with the aim towards its elimination. 
8. Recent changes in the markets for forest produc ts, such as those caused by the recent financial 
crisis, have raised concerns on the ability to co ntinue the implementation of measures aimed at 
sustainable forest management but have at the sa me time increased the need for it.  The long-term 
impacts of such unpredictable events on efforts to  promote sustainable forest management need 
examination and monitoring.  Such situations highli ght the need to develop strategies for sustainable 
forest management with a long-term perspective so  that the negative effects of short-term market 
changes can be minimized. 
9. Developing countries with low forest cover a nd small island countries have special problems 
in developing their forest sectors to meet local n eeds for forest products and services. They depend, in 
many areas, on other countries to satisfy their need s for forest goods and services.  Trade is essential 
to meet such needs and international economic an d trade policies may have serious impacts on the 
efforts of these countries to expand and rehabilitate their forest cover. 
II. PROPOSALS FOR ACTION 
10. The IFF stressed the importance of impl ementing IPF proposals for action on Trade and 
Environment.  In order to further their  effective implementation the IFF: 
(a) Urged countries, including trade partners , to contribute to achieving trade in wood 
and non-wood products and services from sustainable managed forests, and 
implement policies and actions , in particular, avoiding po licies that have adverse 
effects, either on trade or on sustainable forest management; 
(b) [supported continued efforts by countries  and the World Trade Organization towards 
trade liberalization with special attenti on to removing remaining and emerging trade 
restrictions which constrain market access, particularly for value added forest products];  
(c) [urged countries, international orga nizations [including the WTO] and other 
interested parties to undertake furthe r cooperative work on certification and/or 
voluntary labelling schemes, in line with the recommendations of the IPF, towards 
achieving their international comparability and considering their equivalence, taking 
into account the diversity of national and regional situations [and to ensure such 
schemes do not lead to unjustified obstacles to market access]; 
 (c) bis  [and to ensure such schemes do not l ead to unjustified obstacles to market access]. 
Urged that, when voluntary certification a nd/or labelling schemes are developed and 
applied, they be done so in a way to prom ote sustainable forest management and to 
avoid unjustified obstacles to market access];  WT/CTE/W/122 
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 (d) urged countries to undertake analyses of th e implications of full-cost internalization 
on forest management and economic de velopment and implement full-cost 
internalization strategies for forest prod ucts and services and their substitutes;  
 (e) requested countries, international orga nizations and other interested parties to 
undertake further work on full life-cycle anal ysis of the environmental impacts of 
forest products and their substitutes; 
 (f) called upon all interested parties to take action to improve market transparency, taking 
into account the role of the private sector, to help promote res ponsible producer and 
consumer choices in the supply and demand fo r forest products, forest services and 
their substitutes; 
 (g) called upon countries to consider appropr iate national level actions and promote 
international cooperation to reduce the ille gal trade in wood and non-wood forest 
products [including biological resources]  with the aim of its elimination; 
 (h) urged countries to develop strategies for sustainable forest management with a long 
term perspective so that the negative effects of short term market changes, such as the 
recent regional financial crises, can be minimized; 
 (i) urged countries to recognize the special im portance of imports of forest products for 
countries with low forest cover and frag ile forest ecosystems, and small island 
developing states to satisfy their needs for forest products and services to assist them 
in expanding and rehabilitati ng their forest cover. 
 
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