TDfTIMBER.2/16

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

GenevaINTERNATIONAL TROPICALTIMBER AGREEMENT, 1994

UNITED NATI'ONSNew York and Geneva, 1994,

NOTE
The designations employed and the presentation of the material in this publication
do not imply the expression of any opinion whatsoever on the part of the Secretariat of
the United Nations concerning the legal status of any country, territory. <;:ity or area, orof its authorities, or concerning the delimitation of its frontiers or boundaries.

TDmMBER.2J16

UNITED NATIONS PUBLICATION
Sales No. E.94.II.D.23

ISBN 92-1-112358-5

- 3 -CONTENTS

4

Intro ducti on
d Natio ns
List of State s and organ izatio ns repre sente d at the Unite
to theConfe rence for the Nego tiatio n of a Succe ssor Agree ment
1983
ment',
Agree
r
Timbe
Inter natio nal Tropi cal
tiatio n of aAgend a of the unite d Natio ns Confe rence for the Nego
r
Timbe
cal
Tropi
nal
natio
Inter
Succe ssor Agree ment to the
.
.
.
.
.
•
.
.•
Agree ment, 1983

7

9

Forma l Statem ent by Consu mer Members

10

Resol ution adopt ed by the Confe rence

11

Inter natio nal Tropi cal Timbe r Agree ment, 1994

12

GE.84 -S310 8(E)- - - - - - - - - - ----.--~------- 4 -INTRODUCTION
1.
Takin g into accou nt the decis ion of the Inter natio nal
Tropi cal Timbe r
Counc il (ITTC) at its eleve nth sessio n on 4 Decem ber
1991, and in accor dancewith the calen dar of meeti ngs appro ved by the Tradeand Devel opmen t Board on
14 Octob er 1992, the Secre tary-G enera l of,UNCTAD conve
ned the Unite d Natio ns
Confe rence for the Nego tiatio n of a Succe ssor Agreement to the Inter natio nal
Tropi cal Timbe r Agree ment, 1983, on 13 April 1993.
The Confe rence , which was
opene d by Mr. Carlo s Forti n, Deput y to the Secre tary-G
enera l of UNCTAD,
Direc tor of the Comm oditie s Divis ion, and Mr. B.C.Y. Freez ailah , Execu tive
'Direc tor of the Inter natio nal Tropi cal Timbe r Organ
izatio n, was held at the
Palai s des Natio ns, Genev a, in four parts : the firstfrom 13 to
16 April 1993, the secon d from 21 to 25 June 1993,
the third from 4 to
15 Octob er 1993 and the fourt h from 10 to 26 Janua ry
1994.
Mr. Wisbe r Loeis (Indo nesia) was elect ed Presi dentof the Confe rence , andMrs. Yolan de Goedk oop-V an Opijn en (Neth erland s) and
Mr. Jorge Barba (Ecua dor)were elect ed Vice- Presi dents . Mr. Jorge Barba , who
was absen t at the secon dand fourt h parts of the Confe rence , was repla ced by
Mr. Chris tian Espin oza(Ecua dor) as the Vice- Presid ent for the durat ion of
the secon d and fourt hparts of the Confe rence .
2.
The Confe rence had befor e it separ ate propo sals by
the produ cer andconsu mer group s of membe rs of the Inter natio nal Tropi
cal Timbe rOrgan izatio n (ITTO) (TD/T IMBER .2/R.1) , a comp arativ
e tabul ation of theexist ing text of the Intern ation al Tropi cal Timbe r
Agree ment (ITTA ), 1983,
side- by-si de with the separ ate texts of the propo salsprese nted by the
produ cer and consu mer group s of membe rs of the ITTO
(TD/T IMBER .2/R.2 ) and acomp osite text of the propo sals for a succe ssor agreem
ent to the ITTA, 1983,
based on the separ ate texts of the propo sals subm itted
by the produ cer andconsu mer group s (TD/T IMBE R.2/R. 3), which was prepa redby che Secre tary-G enera lof UNCTAD, in coope ration with the Execu tive Direc torof ITTO in accor dancewith the resol ution adopt ed on 16 April 1993 at the
fourth plena ry meeti ng of
the Confe rence . The Confe rence also had befor e it:a non-p aper of the
Chairm an of ITTC on inform al consu ltatio ns regar dinga succe ssor agree ment to
the Inter natio nal Tropi cal Timbe r Agree ment, 1983,
durin g the fourt eenthsessio n of ITTC, (TD/TIMBER.2/CRP.1) ; the Presi dent's revis ed discu ssion paper(TD/T IMBER .2/CRP .2) ; and a paper (TD/T IMBER .2/R.4 ) conta
ining draft artic les
subm itted by the Presi dent follow ing his consu ltatio
ns held pursu ant toopera tive parag raph 1 of the resol ution (TD/TIMBER.2/12) adopt ed at the end of
the third part of the Confe rence.
3.
On 21 Janua ry 1994, a-Form al Statem ent by Consu mer
Members was circu latedin TD/TI MBER .2/L.6 (see p. 10). A Statem ent on the
Susta inabl e Manag ement ofFores ts in the Europ ean Union by the Europ ean Union
was circu lated at theConfe rence on 24 Janua ry 1994 (TD/T IMBE R.2/L. 7).
Parti cipat ion and crede ntials

4.
Repre senta tives of 61 State s attend ed the Confe rence
as parti cipan ts
and 2 as obser vers. The first part of the Confe rence
was attend ed by the
repre senta tives of 57 State s, SS atten ding- as partic
ipant s and 2 as obser vers.
The secon d part was attend ed by the repre senta tivesof 50 State s atten ding as
parti cipan ts. The third part was attend ed by the repre
senta tives of 52 State s

- 5 -

repre senta tives ofatten ding as parti cipan ts, and the fourth part by theobser ver. Repre senta tives
49 State s, 48 attend ing as partic ipant s and 1 as anof the Confe rence .
of the Europ ean Comm unity partic ipate d in all parts
relate d agenc ies ofA numbe r of Unite d Natio ns bodie s and speci alized and5.
ent invite d to
the Unite d Natio ns, and one natio nal liber ation movem(XXIX), sent
3280
ution
resol
ly
Asse~
al
parti cipat e pursu ant to Generorgan izatio n andobser vers to the Confe rence . One interg overn menta lConfe rence by its
19 non-g overn menta l organ izatio ns partic ipate d in thedecis ion (see pp. 7 and S) .
the repre senta tives ofAt each part of the 'Confe rence, the crede ntials ofon the recom menda tion ofState s parti cipat ing in the Confe rence were appro ved
the Crede ntials Comm ittee.
6.

Stru~tureof the Confe rence

Confe rence adopt ed
At its first plena ry meeti ng, on 13 April 1993, theand its rules of proce dure
its agend a as conta ined in TD/TIMBER.2/4 (see p. 9)of the Whole , chair ed(TD/T IMBER .2/5) and estab lishe d an Execu tive Comm ittee
the two Vice- Presi dents ,by the Presi dent of the Confe rence and suppo rted by
It subse quent ly
to deal with agend a items Sand 9 in close d sessio n.
ntials of theappoi nted a Crede ntials Comm ittee to exami ne the crede
rence (see para. 11
repre senta tives of State s parti cipat ing in the Confe
below ) .
7.

meeti ng,
The Execu tive Comm ittee held 11 meeti ngs. At its firstS.
ical Comm ittee and aon 13 April 1993, it estab lishe d an Econo mic and Technan of the Execu tive
Finan cial and Admi nistra tive Comm ittee. The Chairm
al conta ct group to deal
Comm ittee conve ned, as and when neces sary, an informComm ittee.
with a numbe r of key issue s pendi ng in the Execu tive
Mr. David Boult er
The Econo mic and Techn ical Comm ittee was chair ed by9.
was chair ed by(Cana da). The Finan cial and Admi nistra tive Comm ittee
g the fourt h part of the
Mr. Eugen e Capit o (Gabon) who, in his absen ce durina),Confe rence ,' was repla ced .by Mr. E.O. Nseky ire (Ghand an Edito rial
At its 12th plena ry meeti ng, the Confe rence estab lishe
10.
it with a view toGroup to take up the texts of artic les refer red to
ut touch ing upon
witho
rs
matte
istic
consi derin g any edito rial or lingu
a succe ssor agree ment.
of
text
site
compo
the
re
subst antiv e issue s and to prepa
It had a core memb ershipThis Group was open to all intere sted parti cipan ts.
the produ cer andconsi sting of 10 memb ers, 5 repre senta tives each fromtian Espin oza (Ecua dor)
Chris
Mr.
.
times
three
consu mer group s. The Group met
Mr. E.O. Nseky ire (Ghan a)chair ed this Group at its 1st and 2nd meeti ngs, andchair ed the 3rd meeti ng of the Group .
rence at
The Crede ntials Comm ittee was appoi nted by the Confe
11.
memb ership :ingfollow
the
with
1993,
its 3rd plena ry meeti ng on 14 April
Mr. S. Ise (Japan ) was
Congo , Japan , Mexic o, Nethe rlands and Philip pines .
The Comm ittee had fourelect ed as Chairm an of the crede ntials Comm ittee.
MBER .2/S,
TD/TI
.2/6,
IMBER
meeti ngs and prepa red four repor ts (TD/Tby the Confe rence .
ved
appro
were
TD/TI MBER .2/11 and TD/TI MBER .2/13), which

-----~--

---

- 6 -

Closure of the Conference~2.
At its ~4th (closing) plenary meeting, on 26 January ~994, the Conference
established the text of the International Tropical Timber Agreement, ~994
(see p. ~2) and adopted a final resolution as contained in TD/TIMBER.2/~4(see p. ~~). At the time of the adoption of the Agreement, severaldelegations made statements, summaries of which are reproduced in
TD/TIMBER.2/~5.

Entry into force and duration
13.
The Agreement is open for signature, at United Nations Headquarters in
New York from 1 April 1994 until one month after the date of its entry into
force, by Governments invited to the United Nations Conference for the
Negotiation of a Succe'ssor Agreement to the International Tropical Timber
Agreement, 1983. For the Agreement to enter into force definitively,~2 Governments of producing countries holding at least 55 per cent of thetotal votes as set out in annex A to the Agreement, and 16 Governments ofconsuming countries holding at least 70 per cent of the total votes as set out
in annex B to the Agreement, must either sign the Agreement definitively or
deposit instruments of ratification, acceptance, approval or accession.
If
the requirements for definitive entry into force are not met by~ February 1995, the Agreement will enter into force provisionally on thatdate or on any date within six months thereafter, if 10 Governments ofproducing countries holding at least 50 per cent of the total votes, as set
out in annex A to the Agreement, and 14 Governments of consuming countries .
holding at least 65 per cent of the total votes, as set out in annex B to theAgreement, have either signed the Agreement definitively or have deposited
instruments of ratification, acceptance or approval, or have notified thedepositary that they will apply the Agreement provisionally.
14.
If the requirements for definitive or provisional entry into force havenot been met by 1 September 1995, the Secretary-General of the United Nations
is requested to invite those Governments which have either signed theAgreement definitively, or have deposited instruments of ratification,
acceptance or approval, or have notified the depositary that they will apply
the Agreement provisionally, to meet at the earliest time practicable todecide whether to put the Agreement into force provisionally or definitively
among themselves in whole or in part. Governments which decide to put thisAgreement into force provisionally among themselves may meet from time to time
to review the situation and decide whether this Agreement shall enter into
force definitively among themselves.
15.
The Agreement will remain in force for a period of four years from thedate of its entry into force, unless the Council decides to extend,
renegotiate or terminate it. The Agreement provides that the Council may
decide to extend the Agreement for not more than two periods of three years
each.

--------- - - - -- 7 -LIST OF STATES AND ORGANIZATIONS REPRESENTED AT THE UNITED NATIONSCONFERENCE FOR THE NEGOTIATION OF A SUCCESSOR AGREEMENT TO THE
INTERNATIONAL TROPICAL TIMBER AGREEMENT, 1983*
J:.

ParticipantsAfghanistan
Algeria
Australia
Austria
BahrainBelgium**
Bolivia
BrazilBulgaria
Cameroon
CanadaChile
China
Colombia
Congo
Costa Rica
Cote d'Ivoire
Denmark
Dominican Republic
EcuadorEgypt
El Salvador
Equatorial Guinea
FinlandFranceGabonGermany_GhanaGreeceHonduras
Indonesia
Ireland
Italy

J:J:.

Japan
Liberia
Luxembourg * *Malaysia
MexicoMyanmar
Nepal
Netherlands
New Zealand
NorwayPanamaPapua New Guinea
Paraguay
Peru .
Philippines
Portugal
Republic of Korea
Russian Federation
Slovakia
Spain
SwedenSwitzerland
ThailandTrinidad and Tobago
United Kingdom of Great Britain
and Northern Ireland
United Republic of Tanzania
United States of America
Venezuela
'*'

'*'

'*'

European Community

Observers
States
Democratic People's Republic of Korea
India'*' The full list of participants was distributed in documents
TD/TIMBER.2/INF.1, TD/TIMBER.2/INF.2, TD/TIMBER.2/INF.3 and TD/TIMBER.2/INF.4.
*'*'

Belgium represented Luxembourg at the first, second and fourth parts.

----------- B Invited to participate pursuant to General Assembly
resolution 3280 (XXIX)
Pan Africanist Congress of Azania
United Nations
Convention on International Trade in Endangered Species of Wild Fauna
and Flora
Economic Commission for Europe
United Nations DevelOpment Programme
United Nations Environment Programme**International Trade CentreUNCTAD/GATTSpecialized and related agencies
Food and Agriculture Organization of the United Nations
International Labour Organisation
International Monetary Fund

*

*

*

General Agreement on Tariffs and Trade
Intergovernmental organization
Organization of African Unity
Non-governmental organizations
Advice and Research for Development and Environment
Center for Energy and Environmental Studies
Centre for Resource and Environmental Studies
Friends of the Earth (England, Northern Ireland and Wales)
Friends of the Earth (Ghana)
Friends of the Earth (United States)
Indonesian Network for Forest Conservation
International Alliance of the Indigenous-Tribal Peoples of theTropical Forests
International Council of Environmental Law
International Studies Association
International Technical Tropical Timber Association
National Wildlife Federation
Nuu-Chah-Nulth Tribal Council
Rainforest Action Network
Save the Rainforests
Sierra Club
Traffic International
World Conservation Union
world Wide Fund for Nature

- 9 - .

AGENDA OF THE UNITED NATIONS CONFERENCE FOR THE NEGOTIATION
OF A SUCCESSOR AGREEMENT TO THE INTERNATIONAL TROFICALTIMBER AGREEMENT, 1983
1.

Opening of the Conference2.

Adoption of the agenda

3.

Adoption of the rules of procedure

4.

Election of officers

5.

Credentials of representatives(a)Appointment of the Credentials Committee(b)Report of the Credentials Committee

6.

Admission of observers

7.

Establishment of committees and working parties as required

8.

Freparation of a successor agreement to the International Tropical Timber
Agreement, 1983

9.

Consideration and adoption of final resolutions

10.

Ot~er

business.

- 10 -FORMAL STATEMENT BY CONSUMER MEMBERS
The States listed below, as well as the European Community, participatingin the United Nations Conference for the Negotiation of a Successor Agreement
to the International Tropical Timber Agreement, 1983:
1.

Recognize the importance of the conservation and sustai'nable managementof all types of forests,

2.

Note the high standard of sustainability which has already been achievedby individual countries in the management of their respective forests,

3.

Also note the national commitment's individual Governments have made to
the sustainable management of their forests by the year 2000,

4.

Further note the international initiatives already taken towards
sustainable management of forests, as well as those that 'COUld beundertaken in the future, and5.

Are conscious of the desirability of having all timber-producing
countries meet comparably high standards of sustainable forest
management.

6.

Affirm therefore that:All States listed below commit to implement appropriate guidelin~sand criteria for sustainable management of their forests comparable
to those developed by the International Tropical Timber
Organization;
Those States which have already achieved a high standard ofsustainable management of their forests commit to maintain andenhance the sustainable management of their forests;
Other States commit to the national objective of achieving
sustainable management of their forests by the year 2000; andAppropriate resources should be provided to developing consuming
countries to enable them to achieve the objective of sustainable
forest management.

7.

Request the secretary~General of the United Nations Conference on Tradeand Development to publish and circulate this Statement together with theofficial documents of the Conference.
Australia, Austria, Canada, China, European Community,
Belgium/Luxembourg, Denmark, France, Germany, Greece, Ireland, Italy,
Netherlands, Portugal, Spain, United Kingdom of Great Britain andNorthern Ireland, Finland, Japan, New Zealand, Norway, Republic of Korea,
Russian Federation, Sweden, Switzerl~nd, United States of America.

- 11 RESOLUTION ADOPTED BY THE CONFERENCE
The United Nations Conference for the Negotiation of a Successor
Agreement to the International Tropical Timber Agreement, 1983,
Having met in Geneva from 13 to 16 April 1993, 21 to 25 June 1993, 4 to
15 October 1993 and from 10 to 26 January 1994,
Expressing its gratitude for the facilities and services provided by the
Secretary-General of UNCTAD,
Recording its appreciation of the contribution made by the President of
the Conference and by its other officers, as well as by the secretariat,
Having established the text of the International Tropical Timber
Agreement, 1994, in Arabic, Chinese, English, French, Russian and Spanish,
1.
Requests the Secretary-General of the United Nations to forward
copies of the text of the Agreement to all Governments and intergovernmentalorganizations invited to the Conference for their consideration;
2.
Requests the Secretary-General of the United Nations to arrange for
the Agreement to be open for signature at United Nations Headquarters in
New York during the period laid down in article 38 of the Agreement;
3.
Draws attention to the procedures available to States and tointergovernmental organizations referred to in article 5 of the Agreement tobecome parties to the International Tropical Timber Agreement, 1994, andinvites them to deposit the appropriate instruments to this end.
14th (closing) plenary meeting
26 January 1994

- 12 -

INTERNATIONAL TROPICAL TIMBER AGREEMENT, 1994
CONTENTSPRXAMBLE
14

CHAPTER I.

Artic les1.

. . . . . . . . . . . . . . . . . . . . . . .

Objec tives

CHAPTER 11.
2.

4.

5.

17

7.
8.

9.
10.
11.

12.
13.
14.

15.
16.

ORGANIZATION AND ADMINISTRATION

Headq uarter s and struc ture of the Inter natio nal Tropi
cal Timbe rOrgan izatio n . . . . . . . • .
...... .
Memb ership in the Organ izatio n...... .
Memb ership by interg overn menta l organ izatio ns
CHAPTER IV.

6.

15

DEFIN ITION S

Defin itions
CHAPTER Ill.

3.

OBJECTIVES

19
19
19

INTERNATIONAL TROPICAL TIMBER COUNCIL

comp ositio n of the Inter natio nal Tropi cal Timbe r Counc
il
Power s and funct ions of the Counc il
Chairm an and Vice-C hairm an of the Counc il
sessio ns of the Counc il
Distr ibutio n of votes........ .
Votin g proce dure of the Counc il... .
Decis ions and recom menda tions of the Counc il
Quorum for the Counc il . . . . .
coope ration and coord inatio n with other organ izatio ns
Admis sion of obser vers
Execu tive Direc tor and staff

20
20
20
21
21
22
23
23
23
24

24

CHAPTER V •. PRIVILEGES AND IMMUNITIES
17.

privi leges and irnrnu nities
CHAPTER VI.

18.
19.
20.
21.
22
23.

Finan cial accou nts
Admi nistra tive Accou nt
Speci al Accou nt
The Bali Partn ership Fund
Forms of payme nt
Audit and publi catio n of accou nts

25

FINANCE
26
26
27
28

29
29

- 13 -CONTENTS (conti nued)

CHAPTER VJ::I.
24.
25 .•

26.
27.

°

36 •

STATI STICS , STUDIBS AND INFORMATION

38.
39.

40.
4l.
42.
43.
44.
45.
46.
47.
48.

36

Stati stics , studi es and inform ation
Annua l repor t and review

36

Millce llaneo us

Comp laints .and dispu tes
Gener al oblig ation s of membe rs
Relie f from oblig ation s
res
Diffe renti al and remed ial measu res and· speci al measu
Revie w • • . . . •Non-d iscrim inatio n
CHAPTER X:I.

37

35

Relat ionsh ip with the Common Fund for Comm odities

CHAPTER X.
31.
32.
33.
34.
35.

30
31
31

RELATIONSHIP W:ITH THE COMMON FOND FOR COMMODITIBSCHAPTER IX.
29.
30.

30

•...
Polic y work of the Organ izatio nnizatioOrgan
Proje ct activ ities of theitteesEstab lishm ent of Comm
Funct ions of the Comm ittees
CHAPTBR VIII.

28.

OPERATIONAL ACTIVITIBS

38
38
38

38
39
3!i)

F:INAL PROVJ:SIONS. . . .
.. . . • • .
Depo sitary
appro valandtance
Signa ture, ratifi cat·io n, accep.
.
..........
Acces sion
Notif icatio n of provi siona l appli catio n
Entry into force
Amend ments
Withd rawal
Exclu sionmemb ers
Settle ment of accou nts with withd rawin g or exclu ded
ment
amend
or membe rs unabl e. to accep t an
Durat ion, exten sion and termi natio n. . . . . . . . .
Reser vation s
Suppl ement ary and trans ition al provi sions

40
40
40
40

41
41
42
42

43
43
44
44

ANNEXBS
A.

B.

rces
List of produ cing count ries with tropi cal fores t resou
, and
terms
e
volum
in
r
and/o r net expor ters of tropi cal timbe
41
le
artic
of
alloc ation of votes for the purpo ses
List of consu ming count ries and alloc ation of votes. . . . . . .
purpo ses of artic le 41

45

for the46

- 14 PREAMBLE
The Parties to this Agreement,
Recalling the Declaration and the Programme of Action on the
Establishment of A New International Economic Order; the Integrated Programme
for Commodities; A New Partnership for Pevelopment; the cartagena Commitment
and the relevant objectives contained in the Spirit of Cartagena,
Recalling the International Tropical Timber Agreement, 1983, andrecognizing the work of ~h~ International Tropical Timber Organization and its
achievements since its inception, inciuding a strategy for achieving
international trade in tropical timber from sustainably managed sources,
Recalling further the Rio Declaration on Environment and Development, theNon-Legally Binding Authoritative Statement of Principles for a Global
Consensus on ,the Management,Conservation and Sustainable Development of all
Types of Forests, and the relevant Chapters of Agenda 21 as adopted by theUnited Nations Conference on Environment and Devel.opment in June 1992, in
Rio de Janeiro; the United Nations Framework Convention on Climate Change; andthe Convention on Biological Diversity,
Recognizing the importance of timber to the economies of countries withtimber-producing forests,
Further recognizing the need to promote and apply comparable and~ppropriate guidelines and criteria for the management, conservation andsustainable development of all types of timber-producing forests,
Taking into account the linkages of tropical timber trade and theinternational timber market and the need for taking a global perspective inorder to improve. transparency in the international timber market,
Noting the commitment of all members, made in Bali, Indonesia, in
May 1990, to achieve exports of tropical timber products from sustainably
managed sources by the year 2000 and recognizing Principle 10 of the
Non-Legally Binding Authoritative Statement of Principles for a Global
Consensus on the Management, Conservation and Sustainable Development of all
Types of Forests which states that new and additional. financial resources
should be provided to developing countries to enable them to sustainably
manage, conserve and develop their forests, including through afforestation,
reforestation and combating deforestation and forest and land degradation,
Noting also the statement of commitment to maintain, or achieve by theyear 2000, the sustainable management of their respective forests made by
consuming members who. are parties to the International Tropical Timber
Agreement, 1983 at the' fourth session of the United Nations Conference for the
Negotiation of a Successor Agreement to the International Tropical Timber
Agreement, 1983 in Geneva on 21 January 1994,
Desiring to strengthen the framework"of international cooperation andpolicy development between members in finding solutions to the problems facing
the tropical timber economy,
Have agreed as follows:- J.S CHAPTER I:OBJECTIVES

Artic le J.
Objec tives
al resou rces, as
Recog nizing the sover eignt y of membe rs over their natur
ng Auth oritat ive Statem ent
defin ed in Princ iple 1 (a) of the Non-L egally Bindi, Conse rvatio n andof Princ iples for a Globa l Conse nsus on the Manag ement
tives of the
objec
the
ts,
Fores
of
Susta inabl e Devel opmen t of all Types
refer red to asr
inafte
(here
J.994
ment,
Inter natio nal Tropi cal Timbe r Agree"this Agree ment" ) are:intern ation al
To provi de an effec tive frame work for consu ltatio n,(a)with regar d to all
coope ration and polic y develo pment among all membe rsy;economrtimbe
relev ant aspec ts of the worldiscrim inato ry
To provi de a forum for consu ltatio n to promo te non-d(b)timbe r trade pract ices;(c)

To contr ibute to the proce ss of susta inabl e develo pment;

gy forTo enhan ce the capac ity of membe rs to imple ment a strate(d)
cts from susta inabl yachie ving expor ts of tropi cal timbe r and timbe r produ
manag ed sourc es by the year 2000;
natio nal trade
To promo te the expan sion and diver sifica tion of inter
(e)
tural
struc
the
ving
impro
by
es
in tropi cal timbe r from susta inabl e sourc
one hand,
the
on
nt,
accou
into
g
takin
by
condi tions in intern ation al marke ts,
on the
and,
ies,
suppl
of
nuity
conti
a long- term incre ase in consu mptio n and
and
ement
manag
t
fores
e
inabl
susta
of
other , price s which refle ct the costs
of
t
vemen
impro
the
and
ers,
memb
for
which are remun erativ e and·e quita ble
marke t acces s;a view to
To promo te and suppo rt resea rch and develo pment with(f)'well asasation
utilizwoodofency
impro ving fores t manag ement and effici
s in timbe r
value
t
fores
other
ce
enhan
and
incre asing .the capac ity to conse rve
produ cing tropi cal fores ts;
provi sion of
To devel op and contr ibute towar ds mecha nisms for the(g)neede d to enhan ce the
new and addit ional finan cial resou rces and exper tiseof this Agree ment;
tives
objec
the
n
capac ity of produ cing membe rs to attai
ing great er
To impro ve marke t intell igenc e with a view to ensur(h)gathe ring,
the
ding
inclu
t,
marke
r
transp arenc y in the intern ation al timbe
data relate d
ding
inclu
data,
d
comp ilatio n, and dissem inatio n of trade relate
to speci es being trade d;cal timbe r fromTo promo te incre ased and furth er proce ssing of tropi(i)
promo ting
to
view
a
with
ries
susta inabl e sourc es in produ cing member countrtunit ies
oppo
yment
emplo
their
asing
their indus triali zatio n and thereb y incre
and expor t earni ngs;

- 16 -

(j)
To encou rage membe rs to suppo rt and devel op indus trial
tropi caltimbe r refor estat ion and fores t manag ement activ ities
as well as
rehab ilitat ion of degra ded fores t land, with due +egar
d for the inter ests oflocal comm unitie s depen dent on fores t resou rces;(k)
To impro ve marke ting and distri butio n of tropi cal timber expor ts
from susta inabl y manag ed sourc es;(1)
To encou rage membe rs to devel op natio nal polic ies aimed
atsusta inabl e utiliz ation and conse rvatio n of timbe r
produ cing fores ts and their
genet ic resou rces and at maint aining the ecolo gicalbalan ce in the regio ns
conce rned, in the conte xt of tropi cal timbe r trade ;(m)
To promo te the acces s to, and trans fer of, techn ologi
es andtechn ical coope ration to imple ment the objec tives ofthis Agree ment, inclu dingon conce ssion al and prefe renti al terms and condi tions,as mutua lly agree d; and(n)marke t.

To encou rage inform ation -shar ing on the intern ation

al timbe r

-17 -

CHAPTER II.

DEFINITIONSArticle :2
Definitions
For the purposes of this Agreement:
1.
"Tropical' timber" means non-coniferous tropical wood for industrial uses,
which grows or is produced in the countries situated between the Tropic ofCancer and the Tropic of Capricorn. The term covers logs, sawnwood, veneer
sheets and plywood. Plywood which includes in some measure conifers oftropical origin shall also be covered by this definition;

2.
"Further processing" means the transformation of logs into primary wood
products, semi-finished and finished products made wholly or almost wholly of
tropical timber;
3.
"Member" means a Government or an intergovernmental organization referred
to in article 5 which has consented to be bound'by this Agreement whether it
is in force provisionally or definitively;
4.
"Producing member" means any country with tropical forest resources
and/or a net exporter of tropical timber in ,volume terms which is listed inannex A and which becomes a party to this Agreement, or any country withtropical forest resources and/or a net exporter of tropical timber in volume
terms which is not so listed and which becomes a party to this Agreement andwhich the Council, with the consent of that country, declares to be a
producing member;
5.
"Consuming member" means any country listed in annex B which becomes aparty to this Agreement, or any country not so listed which becomes a party tothis Agreement and which the Council, with the consent of that country,
declares,to be a consuming member;
6.
"Organization" means the International Tropical Timber Organization
established in accordance with article 3;
7.
"Council" means the International Tropical Timber Council established inaccordance with article 6;
8.
"Special vote" means a vote requiring at least two thirds of the votes
cast by producing members present and voting and at least 60 per cent of thevotes cast by consuming members present and voting, counted separately, on
condition that these votes are cast by at least half of the producing memberspresent and voting and at least half of the consuming members present andvoting;

-------------------~---~---~---------~-- ~8 -

9.
"Simple distributed majority vote" means a vote requiring more than halfof the votes cast by producing members present and voting and more than halfof the votes cast by consuming members present and voting, counted separately;10.
"Financial year" means the period from 1 January to 31 December
inclusive;
11.
"Freely usable currencies" means the deutsche mark, the French franc, theJapanese yen, the pound sterling, the United States dollar and any othercurrency which has been designated from time to time by a competentinternational monetary organization as being in fact widely used to makepayments for international transactions and widely traded in the principal
exchange markets.

- 19 CHAPTER Ill.

ORGANIZATION AND ADMINISTRATION
Artic le 3

Headq uarter s and struc ture of the Inter natio nal
Tropi cal Timbe r Organ izatio nlished by the
The Inter natio nal Tropi cal Timbe r Organ izatio n estab
1.
being for theriuein
conti
shall
1983
ment,
Inter natio nal Tropi cal Timbe r Agreethe opera tion of thispurpo ses of admin isteri ng the provi sions and super vising
Agree ment.
estab lishe d under
The Organ izatio n shall funct ion throu gh the Counc il
2.
s refer red to inartic le 6, the comm ittees and other subsi diary bodie
artic le 26 and the Execu tive Direc tor and staff .
ama, unles s the
The headq uarter s of the Organ izatio n shall be in Yokoh
3.
Coun cil, by speci al vote, decid es other wise.
The headq uarter s of the Organ izatio n shall at
4.
territ ory of a membe r.

all times be locat ed in the

Artic le 4
Memb ership in the Organ izatio n
There shall be two categ ories of memb ership in the(a)Produ cing; and(b)Consu ming.

Organ izatio n, namel y:

Artic le 5
Memb ership by interg overn menta l organ izatio ns
be const rued as
Any refere nce in this Agree ment to "Gove rnmen ts" shall1.
overn menta l organ izatio n
inclu ding the Europ ean Comm unity and any other interg, concl usion andhavin g respo nsibi lities in respe ct of the negot iationcomm odity agree ments .
cular
parti
in
,
ments
appli catio n of intern ation al agree
ture, ratifi catio n,
Accor dingly , any refere nce in this Agree ment to signa
siona l appli catio n, or toaccep tance or appro val, or to notif icatio n of provi
l organ izatio ns, beacces sion shall , in the case of such interg overn menta
catio n, accep tance or
ratifi
ture,
signa
to
const rued as inclu ding a refere nce
n, or to acces sion, by
appro val, or to notif icatio n of provi siona l appli catio
such interg overn menta l organ izatio ns.
tence, such
In the case of votin g on matte rs withi n their compe
2.
votes equal to the
of
r
numbe
a
with
vote
interg overn menta l organ izatio ns shallState s in accor dance withtotal numbe r of votes attrib utabl e to their member
interg overn menta l
such
of
s
State
artic le 10. In such cases , the member
indiv idual votin g
their
ise
organ izatio ns shall not be entit led to exerc
right s.

- 20 -

CHAPTER IV.

INTERNATIONAL TROPICAL TIMBER COUNCIL
Article 6

Composition of the International Tropical Timber Council
1.
The highest authority of the Organization shall be the International
Tropical Timber Council, which shall consist of all the members of theOrganization.

2.
Each member shall be.represented in the Council by one representative andmay designate alternates and advisers to attend sessions of the Council.
3.
An alternate representative shall be empowered to act and vote on behalfof the representative during the latter's absence or in special circumstances.
Article 7
Powers and functions of the Council
1.
The Council shall exercise all such powers and perform or arrange for the
performance of all such functions as are necessary to carry out the provisionsof this Agreement.
2.
The Council shall, by special vote, adopt such rules and regulations as
are necessary to carry out the provisions of this Agreement and as are
consistent therewith, including its own rules of procedure and the financial
rules and staff regulations of the Organization. Such financial rules shall,inter alia, govern the receipt and expenditure of funds under the
Administrative Account, the Special Account and the Bali Partnership Fund.
The Council may, in its rules of procedure, provide for a procedure whereby it
may, without meeting, decide specific questions.
3.
The Council shall keep such records as are required for the performanceof its functions under this Agreement.
Article B
Chairman and Vice-Chairman of the Council
1.
The Council shall elect for each calendar year a Chairman and aVice-Chairman, whose salaries shall not be paid by the Organization.
2.
The Chairman and the Vice-Chairman shall be elected, one from among therepresentatives of producing members and the other from among therepresentatives of consuming members. These offices shall alternate each year
between the two categories of members, provided, however, .that this shall notprohibit the re-election of either or both, under exceptional circumstances,by special vote of the Council.

.

3.
In the temporary absence of the Chairman, the Vice-Chairman shall act in
his place. In the temporary absence of both the Chairman and theVice-Chairman, or in the absence of one or both of them for the rest of theterm for which they were elected, the Council may elect new officers from- 21 -

among the representatives of the producing members and/or from among therepresentatives of the consuming members, as the case may be, on a temporary
basis or for the rest of the term for which the predecessor or predecessors
were elected.
Article 9
Sessions of the Council
1.
As a general rule, the Council shall hold at least one regular session ayear.
2.
The Council shall meet in special session whenever it so decides or at
the request of:(a)
The Executive Director, in agreement with the Chairman of theCouncil; or(b)A majority of producing members or a majority of consuming
members; or(c)Members holding at least 500 votes.

3.
Sessions of the Council shall be held at the headquarters of theOrganization unless theCcuncil, by special vote, decides otherwise. If on
the invitation of any member the Council meets elsewhere than at theheadquarters of the Organization, that member shall pay the additional cost ofholding the meeting away from headquarters.
4.
Notice of any sessions and the agenda for such sessions shall be
communicated to members by the Executive Director at least six weeks inadvance, except in cases of emergency, when notice shall be communicated atleast seven days in advance.

Article 10Distribution of votes
1.
The producing members shall together hold 1,000 votes and the consuming
members shall together hold 1,000 votes.
2.

The votes of the producing members shall be distributed as follows:(a)Four hundred votes shall be distributed equally among the three
producing regions of Africa, Asia-Pacific and Latin America. The votes thus
allocated to each of these regions shall then be distributed equally among the
producing members of that region;(b)
Three hundred votes shall be distributed among the producing
members in accordance with their respect~ve shares of the total tropicalforest resources of all producing members; and- 22 -Cc)
Three hundred votes shall be distributed among the producing
members in proportion to the average of the values of their respective net
exports of tropical timber during the most recent three-year period for which
definitive figures are available.
3.
Notwithstanding the provisions of paragraph 2 of this article, the total
votes allocated to the producing members from the African region, calculated
in accordance with paragraph 2 of this article, shall be distributed equally
among all producing members from the African region.
If there are any
remaining votes, each of these votes shall be allocated to a producing member
from the African region: the first to the producing member which is allocatedthe highest number of votes calculated in accordance with paragraph 2 of thisarticle, the second to the producing ,member which is allocated the second
highest number of votes, and so on until all the remaining votes have been
distributed.
4.
For purposes of the calculation of the distribution of ~otes underparagraph 2 (b) of this article, "tropical forest resources" means productive
closed broadleaved forests as defined by the Food and Agriculture Organization(FAO) .

S.
The votes of the consuming members shall be distributed as follows:eachconsuming member shall have 10 initial votes: the remaining votes shall be
distributed among the consuming members in proportion to the average volume of
their respective net imports of tropical timber during the three-year period
commencing four calendar years prior to the distribution of votes.
6.
The Council shall distribute the votes for each financial year at the
beginning of its first session of that year in accordance with the provisionsof this article. Such distribution shall remain in ef'fect for the rest ofthat year, except as provided for in paragraph 7 of this article.
7.
Whenever the membership of the Organization changes or when any member
has its voting rights suspended or restored under any provision of thisAgreement, the Council shall redistribute the votes within the affectedcategory or categories of members in accordance with the provisions of thisarticle. The Council shall, in that event, decide when such redistribution
shall become effective.

8.

There shall be no fractional votes.
Article 11
Voting procedure of the Council

1.
Each member shall be entitled to cast the number of votes it holds and nomember shall be entitled to divide its votes. A member may, however, castdifferently from such votes any votes which it is authorized to cast underparagraph 2 of this article.
2.
By written notification to the Chairman of the Council, any producing
member may authorize, under its own responsibility, any other producing

- 23 under its own respo nsibi lity,
membe r, and any consu ming membe r may autho rize,
ests and to cast its votes
any other consu ming membe r, to repre sent its interat any meeti ng of the Coun cil.
3.

have cast its votes .
When absta ining , a membe r shall be deeme d not to
Artic le 12
Decis ions and recom menda tions of the Counc il

and to make all
The Counc il shall. endea vour to take ali decis ions1.
ed, the Coun cil
reach
be
t
canno
recom menda tions by conse nsus. If conse nsus
simpl e distri buted
a
by
tions
menda
shall take all decis ions and make all recom
vote.
al
speci
a
for
des
provi
majo rity vote, unles s this Agree mentof artic le 11,
Where a membe r avail s itsel f of the provi sions
2.
Coun cil, such membe r
the
of
ng
meeti
a
at
cast
are
parag raph 2·, and its votes
artic le, be consi dered asshall , for the purpo ses of parag raph 1 of thisprese nt and votin g.
Artic le 13
Quorum for the Counc il
be the prese nce of a
The quorum for any meeti ng of the Counc il shall1.
le 4, provi ded thatartic
inmajo rity of merr~ers of each categ ory refer red toin their respe ctive
votes
total
such memb ers hold at least two third s of thecateg ories .
10f this artic le on
If there is no quorum in accor dance with parag raph2.
quorum on the
the
day,
ing
follow
the day fixed for the meeti ng and on therity of membe rs
majo
a
of
nce
prese
the
be
subse quent days of the sessio n shallded that such memb ers hold aof each categ ory refer red to in artic le 4, provi
categ ories .
majo rity of the total votes in their respe ctive
Repre senta tion in accor dance with artic le3.
consi dered as prese nce.

11, parag raph 2, shall be

Artic le 14
Coope ration and coord inatio n with other organ izations

for consu itatio ns and
The Counc il shall make arrang ement s as appro priate
1.
s, inclu ding thecoope ration with the Unite d Natio ns and its organt (UNCTAD) and the Comm ission
Unite d Natio ns Confe rence on Trade and Devel opmen
l organ izatio ns, inclu dingon Susta inabl e Devel opmen t (CSD), interg overn menta
the Conve ntion on
andthe Gener al Agree ment on Tarif fs and Trade (GATT)and Flora (CITE S), and
FaunaInter natio nal Trade in Endan gered Speci es of Wild
non-s overn menta l organ izatio ns.
um exten t possi ble, utiliz e the~he Organ izatio n shall , to the maxim
2.
interg overn menta l, gover nmen tal
facil ities , servi ces and exper tise of exist ing

- 24 -or non-governmental organizations, in order to avoid duplication of efforts inachieving the objectives of this Agreement and to enhance the complementarity
and the efficiency of their activities.
Article 15
Admission of observers
The Council may invite any non-member Government or any of theorganizations referred to in article 14, article 20 and article 29, interested
in the activities of the Organization to attend as observers any of themeetings of the Council.
Article 16
Executive Director and staff
1.

The Council shall, by special vote, appoint the Executive Director.

2.
The terms and conditions of appointment of the Executive Director shallbe determined by the Council.
3.
The Executive Director shall be the chief administrative officer of theOrganization and shall be responsible to the Council for the administrationand operation of this Agreement in accordance with decisions of the Council.
4.
The Executive Director shall appoint the staff in accordance withregulations to be established by the Council. The Council shall, by special
vote, decide the number of executive and professional staff the Executive
Director may appoint. Any changes in the number of executive and professional
staff shall be decided by the Council by special vote . . The staff shall be
responsible to the Executive Director.
5.
Neither the Executive Director nor any member of the staff .shall have any
financial interest in the timber industry or trade, or associated commercial
activities.
6:
In the· performance of their duties, the Executive Director and staff
shall n~t seek or receive instructions from any member or from any authority
external to the Organization. .They shall refrain from any action which mightreflect adversely on their positions as international officials ultimately
responsible to the Council. Each member shall respect the exclusively
international character of the responsibilities of the Executive Director andstaff and shall not seek to influence them in the discharge of their
responsibilities.

- 25 -

CHAPTER V.

PRIVILEGES AND IMMUNITIESArtic le 17Privi leges and immu nities
in parti cular
The Organ izatio n shall have legal perso nality . It shall1.
le and immov able
movab
of
se
dispo
and
re
have the capac ity to contr act, to acquis.
edingprope rty, and ~o insti tute legal proceizatio n, of its
The statu s, privi leges and immu nities of the Organ2.
senta tives of membe rs
Execu tive Direc tor, its staff and exper ts, and of repre
gover ned by thewhile in the territ ory of Japan shall contin ue to be
and the Inter natio nal
Headq uarter s Agree ment betwe en the Gover nment of Japan
Febru ary 1988, with such
Tropi cal Timbe r Org~'ization signe d at Tokyo on 27
g of this Agree ment.
ioninamend ments ,as may be neces sary for the prope r functtries, agree ments
The Organ izatio n may concl ude, with one or more coun
3.
leges and
privi
ity,
capac
to be appro ved by the Counc il relati ng to such
Agree ment.
this
of
g
ionin
funct
r
immun iLies as may be neces sary for the prope
anoth er count ry, theIf the head~arters of the Organ izatio n is moved to4.
the Organ izatio n
with
ude
concl
ble,
possi
as
member in quest ion shall , as soon
cil. pendi ng thea headq uarte rs agreem ent to be appro ved by the Counreque st the new hostshallnizatioOrgantheconcl usion of such an agreem ent,
nal legis latio n, exemp tion
Gover nment to gr~it, withi n the "limi ts of its natio
n to its emplo yees, andfrom taxat ion on remun eratio n paid by the Organ izatio
izatio n.
,on the asset s, incom e and other prope rty'of the Organ
this Agree ment.
The Headq uarter s Agree ment shall be indep enden t of5.
shall , howev er, termi nate:(a)

By agreem ent betwe en the host Gover nment and the OrganIt

izatio n;n being moved
In the event of the headq uarter s of the Organ izatio(b)or;from the count ry of the host Gover nment(c)

In the event of the Organ izatio n ceasin g to exist .

- 26 -

CHAPTER VI.

FINANCE

Article 18
Financial accounts
1.

There shall be established:Ca)

The Administrative Account;

Cb)

The Special

Cci

The Bali Partnership Fund; and(d)necessary.

Acc~unt;

Sur.h other accounts as the Council shall deem appropriate and2.
The Executive Director shall be responsible for the administration ofthese accounts and the Council shall make provision therefor in the financial
rules of the Organization.
Article 19
Administrative Account1.
The expenses necessary for the administration of this Agreement shallbe brought into the. Administrative Account and shall be met by annual
contributions paid by members in accordance with their respective
constitutional or institutional procedures and assessed in accordancewith paragraphs 3, 4 and 5 of this article.
2.
The expenses of delegations to the Council, the committees and any othersubsidiary bodies of the Council referred to in article 26 shall be met by themembers concerned.
In cases where a member requests special services from theOrganization, the Council shall require that member to pay the costs of suchservices.
3.
Before the end of each financial year, the Council shall approve theadministrative budget of the Organization for the following financial year andshall assess the contribution of each member to that budget.

,
The contribution of each member to the administrative budget for eachfinancial year shall be in the proportion which the number of its votes at thetime the administrative budget for that financial year is approved bears to
the tot~l votes of all the members: In assessing contributions, the votes ofeach merr~er shall be calculated without regard to the suspension of any
merr~er's voting rights. or any redistribution of votes resulting therefrom.
4.

5.
The ini.tial contribution of any member joining the Organization after theentry into force of this Agreement shall be assessed by the Council on thebasis of the number of votes to be held b~ that member and the period
remaining in the current financial year, but the assessment made upon othermembers from the current financial year shall not thereby be altered.

- 27 -e due on the first day
Contr ibutio ns to admi nistra tive budge ts shall becom
6.
respe ct of the finan cialof each finan cial year. Contr ibutio ns of membe rs inon the date on whichyear in which they join the Organ izatio n shall be due
they becom e memb ers.
admi nistra tive
If a member has not paid its full contr ibutio n to the7.
in accor dance,due
esbudge t withi n four month s after such contr ibutio n becom
reque st that
shall
tor
with parag raph 6 of this artic le, the Execu tive Direc
still not
has
r
membe
that
member to make payme nt as quick ly. as possi ble. If
r shall
membe
that
st,
reque
paId its contr ibutio n withi n t~o month s after such
at
If
nt.
payme
make
to
lity
inabi
be reque sted to state the reaso ns for its
has
r
membe
that
n,
ibutio
contr
of
date
the expir y of seven month s from the due
until
nded
suspe
be
shall
s
right
g
votin
its
still not paid its contr ibutio n,unles s the Coun cil, bysuch time as it has paid in full its contr ibutio n,a member has paid its
speci al' vote, decid es other wise. If, on the contr ary,n four month s after suchfull contr ibutio n to the admi nistra tive budge t withi
with parag raph 6 of this artic le, thecontributio~ becom es due in accor dance
be estab lishe d by thememb er's contr ibutio n shall receiv e a disco unt as may
Coun cil in the finan cial rules of the Organ izatio n.
raph 7 of thisA member whose right s have been suspe nded under parag8.
n.
artic le shall remai n liabl e to pay its contr ibutio
Artic le 20
Speci al Accou nt
1.

2.

There shall be estab lishe d two sub-a ccoun ts under the(a)

The pre-P rojec t Sub-A ccoun t; and(b)

The Proje ct Sub-A ccoun t.

The possi ble sourc es of finan ce for the Speci al Accou

Speci al Accou nt:

nt may be:(a)

The Common Fund for Comm oditie s;

(b)

and
Regio nal and intern ation al finan cial instit ution s;(c)volun tary contr ibutio ns.

only
The resou rces of the Speci al Accou nt shall be used3.
pre-p rojec ts or proje cts.

for appro ved

shall be reimb ursed
All expen diture s under the Pre-P rojec t Sub-A ccoun t
4.
appro ved and funde d.
ly
quent
subse
are
cts
from the Proje ct Sub-A ccoun t if proje
Agree ment the Counc il
If withi n six month s of the entry into force of thist, it shall review
ccoun
Sub-A
t
rojec
Pre-P
does not receiv e any funds for then.
actio
the situa tion and take appro priate
rojec ts or
All recei pts perta ining to speci fic ident ifiab le pre-p5.
Accou nt. All
that
into
ht
broug
be
shall
nt
proje cts under the Speci al Accou
cts, inclu ding remun eratio n
expen diture s incur red on such pre-p rojec ts or proje
be charg ed to the sameand trave l expen ses of consu ltants and exper ts, shall
Accou nt.

- 28 -

6.
The Coun cil shall , by speci al vote, estab lish terms
and condi tions on
which it would , when and where appro priate , sponsor proje cts for loan
finan cing, where a membe r or membe rs have volun
tarily assum ed full oblig ation s
and respo nsibi lities for such loans . The Organ
izatio n shall have no
oblig ation s for such loans .
7.
The Counc il may nomin ate and spons or any entit ywith ~he conse nt of that
entit y, inclu ding a membe r or memb ers, to receiv
e loans for the finan cing ofappro ved proje cts and to under take all the oblig
ation s invol ved, excep t that
the Organ izatio n shall reserv e to itsel f the rightto monit or the use ofresou rces and to follow up on the imple menta tionof proje cts so finan ced.
Howev er, the Organ izatio n shall not be respo nsible
for guara ntees volun tarily
provi ded by indiv idual membe rs or other entit ies.
B.
No membe r. shall be respo nsibl e by reaso n of its
memb ership in the
Organ izatio n for any liabi lity arisin g from borro
wing or lendin g by any othermembe r or entit y in conne ction with proje cts.

9.
In the event that volun tary unear marke d funds areoffer ed to theOrgan izatio n, the Counc il may accep t such funds. Such funds may be utiliz ed
for appro ved pre-p rojec ts and proje cts.
10.
The Execu tive Direc tor shall endea vour to seek,
on such terms andcondi tions as the Counc il may decid e, adequ ate
and assur ed finan ce forpre-p rojec ts and proje cts appro ved by the Council.
11.
contr ibutio ns for speci fied appro ved proje cts shallbe used only for the
proje cts for which they were origi nally intend ed,
unles s other wise decid ed by
the Co\~cil in agreem ent with the contr ibuto r.
After the comp letion of a
proje ct, the Organ izatio n shall return to eachcontr ibuto r for speci fic
proje cts the balan ce of any funds remai ning pro
rata to each contr ibuto r's
share in the total of the contr ibutio ns origi nallymade avail able forfinan cing that proje ct, unles s other wise agree d
to by the contr ibuto r.
Artic le 21
The Bali Partn ership Fund
1.
A Fund for susta inabl e manag ement of tropi cal timber produ cing fores ts
is hereb y estab lishe d to assis t produ cing members to make the inves tment s
neces sary to achie ve the objec tive of artic le 1(d) of this Agree ment.
2.

The Fund shall be const ituted by:(a)Contr ibutio ns from donor memb ers;(b)
Fifty per cent of incom e earne d as a resul t ofactiv ities relat ed
to the speci al Accou nt;(c)Resou rces from other priva te and publi c sourc es
which theOrgan izatio n may accep t consi stent with its financial rules .

- 29 -

il only for
Resou rces of the Fund shall be alloc ated by the Counc
3.
1 of this
raph
parag
in
pre-p rcjec ts and proje cts for the purpo se set out
artic le and appro ved in accor dance with artic le 25.
4.

take into accou nt:
In alloc ating resou rces of the Fund, the Counc il shallcontr ibutio n
The speci al needs of memb ers whose fores try secto rs'(a)the strate gy
of
tion
menta
to their econo mies is adver sely affec ted by the impl.e
from
cts
produ
r
timbe
for achie ving the expor ts of tropi cal timbe r andsusta inabl y manag ed sourc es by the year 2000;
who estab lish
The needs of members with signi fican t fores t areas
(b)
ts.
fores
cing
produ
r
conse rvatio n progra mmes in timbe
the resou rces
The Coun cil shall exami ne annua lly the adequ acy of
resou rces neede d bylavail able to.th e Fund and endea vour to obtai n"add itiona
abili ty of memb ers
The
produ cing merrbe rs to achie ve the purpo se of the Fund.
this artic le willof(a)4
to· imple ment the strate gy refer red to in parag raph
be influe nced by the avail abili ty of resou rces.

s.

rules for the
The Counc il shall estab lish pOlic ies and finan cial
6.
ment of accou nts on
settleopera tion of the ~d, includ ing rules cover ing thetermi natio n.or expir y of this Agree ment.
Artic le 22
Forms of payme nt
payab le in freel yContr ibutio ns to. the Admi nistra tive. Accou nt shall be
1.
hange restr ictio ns.
usabl e curre ncies and shall be exemp t from foreig n-exc
the Bali Partn ershi p
Finan cial contr ibutio ns to the Speci al Accou nt and2.
shall be exemp t from
Fund shall be payab le in freely usabl e curre ncies andforeig n-exc hange restr ictio ns.
contr ibutio ns to
The Counc il may also decid e to accep t other forms of3.
scien tific andding
the Speci al Accou nt or the Bali Partn ershi p Fund, inclu
appro ved
of
ts
emen
techn ical equip ment or perso nnel, to meet the requir
proje cts.
Artic le 23
Audit and publi catio n of accou nts
the purpo se of
The CO\4~cil shall appoi nt indep enden t audit ors for1.
n.
izatioaudit ing the accou nts of the Organ
Accou nt, of the
Indep enden tly audit ed statem ents of the Admi nistra tive2.
be made avail able toSpeci al Accou nt and of the Bali Partn ership Fund shallfinan cial year, but notmemb ers as soon as possi ble after the close of eachdered for appro val by thelater than six month s after that date, and be consi
ry of the audit edCounc il at its next sessio n, as appro priate . A summa
shed.
accou nts and balan ce sheet shall there after be publi

----------------------~

_._-

---

- 30 CHAPTER VII.

OPERATIONAL ACTIVITIESArticle 24

Policy work of the Organization
In order to achieve the objectives set out in article 1, the Organization
shall undertake policy work and project activities in the areas of Economic
Information and Market Intelligence, Reforestation and Forest Management andForest Industry, in a balanced manner, to the extent possible integrating
policy work and project activities.
Article 25
Project activities of the Organization1.
. Bearing in mind the needs of developing countries, members may submit
pre-project and project proposals to the Council in the fields of researchand development, market intelligence, further and increased wood processing
in producing member countries, and reforestation and forest management.
pre-projects and projects should contribute to the achievement of one or moreof the objectives of this Agreement . .
2.
The Council, in approving pre-projects and projects, shall take into
account:
la)Their relevance to the objectives of this Agreement;(b)Their environmental and social effects;(c)balance;

The desirability of maintaining an appropriate geographical(d)
The interests and characteristics of each of the developing
producing regions;(ej
The desirability of equitable distribution of resources among thefields referred to in paragraph 1 of this article;(f)Their cost-effectiveness; and(8)

The need to avoid duplication of efforts.

3.
The Council shall establish a schedule and procedure for submitting,appraising, and prioritizing pre-projects and projects seeking funding fromthe Organization, as well as for their implementation, monitoring andevaluation. The Council shall decide on the approval of pre-projects andprojects for financing or sponsorship in accordance with article 20 orarticle 21.
4.
The Executive Director may suspend disbursement of the Organization's
funds to a pre-project or project if they~re being used contrary to theproject document or in cases of fraud, waste, neglect or mismanagement.

- 31 -

il at its next sessi on a
The Execu tive Direc tor will provi de to the Counc
take appro priate actio n.
shallrepor t for its consi derat ion. The Counc ilspons orship of any
The Counc il may, by speci al vote, termi nate its
S.
pre-p rojec t or proje ct.
Artic le 26
Estab lishm ent of Comm ittees
1.

of the Organ izatio n:
The follow ing are hereb y estab lishe d as Comm ittees(a)igenc e;Comm ittee on Econo mic Inform ation and Marke t Intell(b)Comm ittee on Refor estati on and Fores t Manag ement(c)Comm ittee on Fores t Indus try; and(d)Comm ittee on ·Finan ce and Admi nistra tion.

;other comm ittees and
The Counc il may, by speci al vote, estab lish such
2.
sary.
neces
and
priatesubsi diary bodie s ~s it deems appro
open to all memb ers.
parti cipat ion in each of the comm ittees shall be3.
be decid ed by the Coun cil.
The rules of proced~re of the c~mmittees shallin parag raphs 1 and 2 of
The comm ittees and subsi diary bodie s refer red to4.
the gener al direc tion of,
this artic le .shall be respo nsible to, and work underdiary bodie s shall be
the Coun cil. Meeti ngs of the comm ittees and subsi
conve ned by the Coun cil:
Artic le 27
Funct ions of the Comm ittees
1.

t Intell igenc e shall :The Comm ittee on Econo mic Inform ation and Markestati stics andKeep under review the avail abili ty and quali ty of(a)n;izatioother inform ation requi red by the Organas decid ed by&.aly se the stati stica l data and speci fic indicator~(b)timbe r trade ;the Counc il for the monit oring of intern ation alr marke t, its
Keep under contin uous review the intern ation al timbe(c)basis of the data menti oned
curre nt situa tion and short -term prosp ects on theation, inclu dingin subpa ragrap h (b) above and other relev ant inform
inform ation relate d to undoc ument ed trade ;for, and natur e of,Make recom menda tions to the Co~cil on the need(d)t elast icity ,markeprice s,appro priate studi es on tropi cal timbe r, inclu ding
prosp ects ofterm
cts, and longmarke t s\wst ituta bility , marke ting of new produ
studi esanyreviewor andthe intern ation al tropi cal timbe r marke t; and monitcomm ission ed by the Counc il;

- 32 -ee)
Carry out any ether tasks related to the economic, technical andstatistical aspects of timber assigned to it by the Council;(f)
Assist in the provision of technical cooperation to developing
member countries to improve their relevant statistical services.
2.

The Committee on Reforestation and Forest Management shall:{a,Promote cooperation between members as partners in development offorest activities in me\TIber countries, int,er alia, in the following areas:(i)

Reforestation;(H)

Rehabilitation;(Hi)~orestmanagement;(b)
Encourage the increase of technical assistance and transfer oftechnology in the fields of reforestation and forest management to developing
countries;(c)
Follow up on-going activities in this field, and identify andconsider problems and possible solutions to them in cooperation with thecompetent organizations;(d)Review regularly the future needs of international trade inindust%'ial tropical timber and, on this basis, identify and consider
appropriate possible schemes and measures in the field of reforestation,
rehabilitation and forest management;(e)Facilitate the transfer of knowledge in the field of reforestationand forest management with the assistance of competent organizations;(f)Coordinate and harmonize these activities for cooperation in thefield of reforestation and forest management with relevant activities pursued
elsewhere, such as those under the auspices of the Food and Agricultural
Organization (FAO), the United Nations Environmental Programme (UNEP), theWorld Bar~, the t1nited Nations Development Programme (UNDP), regional
development banks and other competent organizations.
3.

The Comnittee on Forest Industry shall:(a)Promote cooperation between member countries as partners in'thedevelopment of processing activities in producing member countries,
inter alia, in the following areas:(i)

Product development through transfer of technology;(H)

Human resources development and training;(Hi)

Standardization of nomenclature of tropical timber;(iv)

Harmonization of specifications of processed products;

- 33 -.

(v)

andEncou ragem ent of inves tment and joint ventu res;

(vi)

and
Marke ting includ ing the promo tion of lesse r known
lesse r used speci es;

facil itate
Promo te the excha nge of inform ation in order to(b)in thessing
er procestruc t.ural chang es invol ved in incre ased and furthr count ries;
membe
oping
devel
inter ests of all membe r count ries, in parti cular
ident ify andFollow up on-go ing .activ ities in this field , and{cjwith theration
coope
in
them
consi der proble ms and possi ble solut ions tocomp etent organ izatio ns;
for the proce ssing
Encou rage the incre ase of techn ical 'coop eratio n(d)membe r count ries.
of tropi cal timbe r for the benef it of produ cingof the Organ izatio n in
In order to promo te the polic y and proje ct work
4.
ation and Marke t
a balan ced manne r, the Comm ittee on Econo mic Inform
Fores t Manag ement andIntel ligen ce, the Comm ittee on Refor estati on and
the Comm ittee on Fores t Indus try shall each:isal, monit oring and
Be reBp~nsible for ensur ing the effec tive appra(a)evalu ation of pre-p rojec ts and proje cts;(b)proje cts;

pre-p rojec ts andMake recom menda tions to the Counc il relati ng toproje cts andFollow up the imple menta tion of, pre-p rojec ts and(c)
as widel y as
ts
resul
their
of
n
provi de for the colle ction and dissem inat.io
possi ble for the benef it of all memb ers;(d)Devel op and advan ce polic y ideas to the Coun cil;y work and makeReyiew regul arly the resul ts of proje ct and polic(e)
the Orga nizat ion's progra mme;
recom menda tions to the Counc il on the futur e of
ity areas for
RevieW regul arly the strate gies, crite ria and prior(f)ion's Actio n
nizat
Orga
in theprogra l:llne' develo pment and proje ct work conta ined
Plan a~d recom mend revis ions to the Coun cil;u~lding and humanTake accou nt of the need to streng then capacity~b(g)resou rce develo pment in membe r count ries;of thisCarry out any other task relate d to the objec tives(h)Agree ment assig ned to them by the Coun cil.
ion of the Comm ittees
Resea rch and develo pment shall be a common funct
5.
le.
artic
this
refer red to in parag raphs 1, 2, and 3 of
6.

:
The Comm ittee on Finan ce and Admi nistra tion shallregar ding the
Exami ne and make recom menda tions to the Counc il(a)and the
sals
propo
t
budge
tive
nistraappro val of the Organ izatio n'S admin;izatiomanag ement opera tions of the Organ- 34 -

Cb)
Revie w the asset s of the Organ izatio n to ensur eprude nt asset
manag ement and that the Organ izatio n has suffi cient
reserv es to carry out its
work;
(c)
Exami ne and make recom menda tions to the Counc il
on the budge tary
impli catio ns of the Organ izatio n's annua l work
progra mme, and the actio ns thatmight -be taken to secur e the resou rces neede d to
imple ment it;(d)Recom mend to the Counc il the choic e of indep enden
t audit ors andreview the indep enden t audit ed statem ents;(elRecom mend to the Counc il any modi ficati ons it may
judge neces saryto the Rules of Proce dure or the Finan cial Rules;
ef)
Revie w the Orga nizati on's reven ues and the exten
t to which they
const rain the work of the Secre tariat ;-~--------

CHAPTER VIII.

3S -RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIESArtic le 28

Relat ionsh ip with the Common Fund for Comm oditie s
ities of the
The organ izatio n shall take full advan tage of the facil
Common Fund for Comm oditie s.

-.~~-- - - - - - - - _. .

-.-~.

- 36 CHAPTER IX.

STATISTICS, STUDIES AND INFORMATION
Article 29

Statistics. studies and information
1.
The Council shall establish close relationships with relevantintergovernmental, governmental and non-governmental organizations, in orderto help ensure the availability of recent reliable data and information on the
trade in tropical timber, as well as relevant information on non-tropicaltimber and on the management of timber producing forests. As deemed necessary
for the operation of this Agreement, the Organization, in cooperation withsuch organizations, shall compile, collate and, where relevant, publish
statistical information on production, supply, trade, stocks, consumption andmarket prices of timber, the extent of timber resources and the management oftimber producing forests.
2.
Members shall, to the fullest extent possible not inconsistent with theirnational legislation, furnish, within a reasonable time, statistics andinformation on timber, its trade and the activities aimed at achieving
sustainable management of timber producing forests as well as other relevant
information as requested by the Council; The Council shall decide on the typeof information to. be provided under this paragraph and on the format in which
it is to be presented.
3.
The Council shall arrange to have any relevant studies undertaken of thetrends and of short- and long-term problems of the international timbermarkets and of the progress towards the achievement of sustainable managementof timber producing forests.
Article 30
Annual report and review
1.
The Council shall, within s~x months after the close of each calendar
year, publish an annual report on its activities and such other information as
it considers appropriate.
2.

The Council shall annually review and assess:(a)

The int.ernational timber situation;(b)
Other factors, issues and developments considered relevant toachieve the objectives of this Agreement.
3.

The review shall be carried out in the light of:(a)Information supplied by members in relation to national production,
trade, supply: Rtocks, consumption and prices of timber;(bi
Other statistical data and specific indicators provided by members
as requested by the Council;

- 37 towar ds theInform ation suppl ied by membe rs on their progr ess
(c)
ts;
fores
cing
susta inabl e manag ement of their timbe r produ
may be avail able to the Counc il
Suc~ other relev ant inform ation as(d)the Unite d Natio ns system andinnseithe r direc tly or throu gh the organ izatio
l organ izatio ns.
mentainterg overn menta l, gover nmen tal or non-g overn
among membe
The Counc il shall promo te the excha nge of views
4.
regar ding:r count ries

cing fores ts
The statu s of susta inabl e manag ement of timbe r produ(a)and relate d matte rs in membe r count ries;
objec tives , crite ria
Resou rce flows and requir emen ts in relat ion to
and guid~lines set by the Organ izatio n.
(b)ce the techn ical
Upon reque st / .the Counc il shall endea vour to enhan
5.
r coun tries, to
membe
oping
capac ity of ~ember count ries, in parti cular devel
ding the
inclu
ing,
-shar
ation
obtai n the data neces sary for adequ ate inform
ers.
memb
to
ities
facil
provi sion of resou rces for train ing andthe repor ts of
The resul ts 0.£ the review shall be includ ed. in
6.
Coun cil/s delib eratio ns.

the- 38 -

CHAPTER X.

MISCELLANEOUS

Article 31
Complaints and disputes
Any complaint that a member has failed to fulfil its obligations under
this Agreement and any dispute concerning the interpretation or application ofthis Agreement shall be referred to the Council for decision. Decisions of
the Council on these matters shall be final and binding.
Article 32
General obligations of members
1.
Members shall, for the duration of this Agreement, use their best
endeavours and.cooperate to promote the attainment of its objectives and to
avoid any action contrary thereto.
2•
Merr.bers undertake to accept and carry out the decisions of the Council
under the provisions of this Agreement and shall refrain from implementing
measures which would have the effect of limiting or running counter to them.

Article 33
Relief from obligations
1.
Where it is necessary on account of exceptional circumstances or
emergency or force majeure not expressly provided for in this Agreement, theCouncil may, by special vote, relieve a member of an obligation under thisAgreement if it is satisfied by an explanation from that member regarding thereasons why the obligation cannot be met.
2.
The Council, in granting relief to a member under paragraph 1 of thisarticle, shall state explicitly the terms and conditions on which, and theperiod for which, the member is relieved of such obligation, and the reasons
for which the relief is granted.

Article 34
Differential and remedial measures and special measures
1.
Developing importing members whose interests are adversely affected bymeasures taken under this Agreement may apply to the Council for appropriate
differential and r~medial measures; The Council shall consider taking
appropriate measures in accordance with section Ill, paragraphs 3 and 4, ofresolution 93 (IV) of the United Nations Conference on Trade and Development.
2.
Members in the category of least developed countries as defined by theUnited Nations may apply to the Council for special measures in accordancewith section Ill, paragraph 4, of resolution 93 (IV) and with paragraphs 56
and 57 of the Pal'is Declaration and Programme of Action for the Least
Developed Countries for the 1990s.

- 39 - .

Artic le 35
Review
The Counc il shall review the scope of this Agree ment
entry into force .

four years after its

Artic le 36
Non-d iscrim inatio n
res to restr ict orNothi ng in this Agree ment autho rizes the use of measu
rn impor ts of and
conce
they
as
ban inter natio nal trade in, and in parti cularutiliz ation of, timbe r and timbe r produ cts.

- 40 -

CHAPTER XI.

FINAL PROVISIONS

Artic le 37
Depo sitary
The Secre tary-G enera l of the Unite d Natio ns ishereb y desig nated as thedepos itary of this Agree ment.
Artic le 38
Signa ture. ratifi catio n. accep tance and appro val
1.
This Agree ment shall be open for signa ture, at
Unite d Natio ns
Head quart ers from 1 April 1994 until one monthafter the date of its entry
into force , by Gover nment s invite d to the Unite
d Natio ns Confe rence for the
Nego tiatio n of a Succe ssor Agree ment to the Internatio nal Tropi cal Timbe r
Agree ment, 1983.
2.

Any Gover nment refer red to in parag raph 1 of thisartic le may:(a)
At the time of signin g tais Agree ment, decla rethat by suchsigna ture it expre sses its conse nt to be boundby this Agree ment (defi nitiv esigna ture) i or(b)
After signin g this Agree ment, ratify ,> accep t or
appro ve it by thedepos it of an instru ment to that effec t with thedepos itary.
Artic le 39
Acces sion
1.
This Agree ment shall be open for acces sion by theGover nment s of all
State s upon condi tions estab lishe d by the Council, which shall inclu de atime- limit for the depos it of instru ments of accession. The Counc il may,
howev er, grant exten sions of time to Gover nments which are unabl e to acced e by
the time- limit set in the condi tions of accessi~•.
2.
Acces sion shall be effec ted by the depos it of an
instru ment of acces sion
with th~ d~positary.
Artic le 40
Notif icatio n of provi siona l appli catio n
A signato~y Gover nment which inten ds to ratify ,accep t or appro ve thisAgree ment, or a Gover nment for which the Counc
il has estab lishe d condi tions
for acces sion but which has not yet been able todepos it its instru ment, may,at any time, notif y the depos itary that it will
apply this Agree ment
provi siona lly eithe r when it enter s into force
in accor dance with artic le 41,
or, if it is alread y in force , at a specifi~d date.

-

4~

-

Artic le 4~
Entry into force
y on ~ Febru ary ~995 orThis Agree ment shall enter into force defin itivel
1.
cing count ries holdi ng at
on any date there after , if ~2 Gover nment s of produ
in annex A to this· Agree ment,
least 55 per cent of the total votes as set out
ng at .leas t 70 per cent of theand ~6 Gover nment s of consu ming count ries holdi
ment have signe d this Agree ment
total votes as s~t out in annex B to this Agreeved it or acced ed there todefin itive ly or have ratifi ed,. accep ted or appro
39.
pursu ant to artic le 38,. p~ragraph 2, or artic leitive ly
If this Agree ment has not enter ed into force defin2.
lly on that date or on
siona
provi
force
on 1 Pebru ary 1995, it shall enter into
nment s of produ cing
any da.te withi n seven·m onths there after , if, ~o Gover
votes as set out in annex
total
the
of
cent
count ries holdi ng at least so. perming count ries holdi ng at
A to this Agree ment, and ~4 Gover nment s of consu
as set out in annex B to this Agree ment,~east 65 per cent of the total votes
ratifi ed, accep ted or appro ved
have signe d this Agree ment defin itive ly or havenotif ied the depos itary under
it pursu ant to artic le 38, parag raph 2, or haveprovi siona lly.
artic le 40 that they will apply this Agree ment
parag raph ~ or ~aragraph 2
If the requir emen ts for entry into force under3.
~995, the Secre tary-G enera lof this artic le have not been met on ~ Septe mbers which have signe d thisof the Unite d Natio ns shall inv~te those Gover nment
or appro ved it pursu ant toAgree ment defin itivel y or have ratifi ed, accep ted
itary that they will apply
artic le 38 . parag raph 2, or have notif ied the depos
time pract icabl e to
est
earli
this Agree lnent provi siona lly, to meet at·th e
lly or defin itive ly
siona
provi
force
decid e wheth er to put this Agree ment into
e to put this
decid
which
s
nment
among thems elves in whole or in part. Govertime to time
from
meet
may
elves
Agree ment into force provi siona lly among thems
into
enter
shall
ment
Agree
this
to review the situa tion and decid e wheth er
force defin itivel y among thems el-/es .
itary under artic le 40
For any Gover nment which has not notif ied the depos
4.
and which depos its itsthat it will apply this Agree ment provi siona lly
or acces sion after the entry
val
appro
,
tance
instru ment of ratifi catio n, accep
enter into" force on theinto force of this Agree ment, this A.gree ment shalldate of such depos it.
conve ne-the Counc il as
The Execu tive Direc tor of the Organ izatio n shall5.
this Agree ment.
soon as possi ble after the entry into force ofArtic le 42
Amend ments
amend ment of thisThe Counc il may, by speci al vote, recom mend an
Agree ment to memb ers.
~.

notif y the depos itary
The Counc il shall fix a date by whiph membe rs shall2.
of their accep tance of the amend ment.

- 42 -

3.
An amend ment shall enter into force 90 days after thedepos itary hasreceiv ed notif icatio ns of accep tance from membe rs const
itutin g at least
two third s of the produ cing membe rs and accou nting
for at least 75 per cent of
the votes of the produ cing memb ers,· and from membe
rs const itutin g at least
two third s of the consu ming membe rs and accou nting
for at least 75 per cent of
the votes of the consu ming memb ers.
4.
After the depos itary inform s the Counc il that the requi
remen ts for entry
into force of t!le amend ment have been met, and notwi
thstan ding the provi sionsof parag raph 2 of this artic le relati ng to the datefixed by the Coun cil, amembe r may still notif y the depos itary of its accep
tance of the amend ment,
provi ded that such notif icatio n is made befor e theentry into force of theamend ment.

5.
Any member which has not notif ied its accep tance ofan amend ment by thedate on which such amend ment enter s into force shallcease to be a party tothis ·Agree ment as from that date, unles s such member has satis fied the Counc ilthat its accep tance could not be obtai ned in time owing
to diffi culti es incomp leting its const itutio nal or instit ution al proce
dures , and the Counc il
decid es to exten d for that member the perio d for accep
tance of the amend ment.
Such member shall not be bound by the amend ment before it has notif ied its
accep tance there of.
6.
If the requir emen ts for the entry into force of theamend ment have notbeen met by the date fixed by the Co~~cil in accor dancewith parag raph 2 ofthis artic le, the amend ment shall be consi dered withd
rawn.
Artic le 43
Withd rawal
1.
A member may withd raw from this Agree ment at any timeafter the entry
into force of this Agree ment by givin g writt en notic
e of withd rawal to thedepos itary. That member shall simul taneo usly informthe Counc il of the actio n
it has taken ..
2.
Withd rawal shall becom e effec tive 90 days after thenotic e is receiv ed by
the depos itary.
3.
Fjnan cial oblig ation s to the Organ izatio n incur red
by a member under thisAgree ment shall not be termi nated by its withd rawal.
Artic le 44
Exclu sion
If the Counc il decid es that any member is in breac hof its oblig ation s
under this Agree ment and decid es furth er that suchbreac h signi fican tly
impai rs the opera tion of· this Agree ment, it may, by
speci al vote, exclu de thatmembe r from this Agree ment. The Counc il shall imme
diatel y so notif y thedepos itary. Six month s after the date of t~e Coun
cil's decis ion, that membe rshall cease to be a party to this Agree ment.

- 43 -

Artic le 45
ded memb ers
Settle ment of accou nts with withd rawin g or exclu
ment
or membe rs unabl e to accep t an amend
nts with a membe r
The Counc il shall determ ine any settle ment of accou
1.
to:which cease s to be a party to this Agree ment owing(a)under artic le 42;
Non-a ccepta nce of an amend ment to this Agree ment(b)orWithd rawal from this Agree ment under artic le 43;(c;

Exclu sion from this Agree ment under artic le 44.

to the Admi nistra tive
The Counc il shall retain any contr ibutio n paid
2.
Partn ershi p Fund by a membe r
Accou nt, to the Speci al Accou nt or to the Bali
which cease s to be a party to this Agree ment.
Agree ment shall not be
A membe r which has cease d to be a party to this3.
ation or the other asset s ofentit led to any share of the proce eds of liquid
e for payme nt of any part of
the Organ izatio n. Nor shall such membe r be liabl
natio n of this Agree ment.
the defic it, if any, of the Organ izatio n upon termi
Artic le 46
Durat ion. exten sion and termi natio nd of four years after its
This Agree ment shall remai n in force for a perio
1.
vote, decid es to exten d,
entry into force unles s the Coun cil, by speci alprovi sions of this artic le.
the
with
dance
reneg otiate or termi nate it in accor
d this Agree ment for
The Counc il may, by speci al vote, decid e to exten
2.
two perio ds of three years each.
refer red to in parag raph 1. If, befor e the expir y of the four- year perio d
3.
sion .perio d refer red to inof this artic le, or befor e the expir y of an exten
a new agree ment to repla ceparag raph 2 of this artic le, as the case may be,
yet enter ed into force eithe r
this Agr~e:n~nt has b~en negot iated but has notby speci al vote, exten d thisdefin itivel y or provi siona lly, the Counc il may,into force of the new
Agree ment until the provi siona l or defin itive entry
agree ment.
force durin g any perio d
If a new agreem ent {s negot iated and enter s into4.
raph 3 of this
parag
or
2
of exten sion of this Agree ment under parag raphthe entry into
upon
nate
artic le, this Agree ment, as exten ded, shall termi
force of the new agreem ent.
e to termi nate thisThe Counc il may at any time, by speci al vote, decid5.
ine.
determmay
Agree ment with effec t from such date as it

- 44 6.
Not~.... ithsta nd:i.n g the termi natio n of' thisAgree ment, the Counc il shallconti nue ir~ being for a peri\.. ,d not excee ding 18
month s to carry out theliqui datio n of the Orga nizat ion, i~cludillg thesettle ment of accou nts, and,subj ect to rele-.r ant d€:ci! 3ions t,,) be taken by speci
al vote, shall have durin gthat perio d such powe ..."s ,:tnd funct ions as may beneces sary for these purpo ses.
7.

The COllrJ cil shall not:'.f y the' deposita~ty of any
decis ion taken Under thisartic :e.
brtic1 e 4i
Reser vation s
Re:;''' 'rvatio ns may not be mad,!!! wi:h respe ct to anyof the provi sions of
this Agree ment..
Arti clf,Li. §.
S!Jpplemer;.:;..;!!:y_ and trane: ition al provi sions~.
This Agree ment E·hall bt:~ the succe ssor to the Internatio nal Tropi cal
Timbe r Agree ment, 1983.

:2 •All acts by or on behal f of the Organ izat.io n or
any of its organ s underthe Intel. -natio nal Tropi cal Ti mber Agr\:.' ement . 10993,
which are in effec t on thedate of entry into force of this Agree ment andthe t.erms of which do notprovi de for expir y on that: da;::e sr..all remai Il in
effec t unles s chang ed under
the provi sions of this Agreem E':nt.

IN WITNESS WHEREC.F the unders ig:r:.e d, being duly
i-.luth orized there. to, haveaffix ed their signa tures under this Agree menton the dates indic ated.
DONE at Genev a, on tw.;:m ty-six Ja."'lUa :rYi one thous..md nine hundr ed andninet y-fou r, the text of th:i.6 Agree ment .1:'1 theArabi c, ::hine se, Engli sh,
Frenc h, . Russi an and Spani sh' .langu ages beir~g equally authe ntic.

- 45 - 'ANNEX A

rces
List of produ cing count ries with tropi cal fores t resou
,
terms
e
volum
in
r
timbe
cal
tropi
of
and/o r net expor ters
41
and alloc ation of votes for the purpo ses of artic leBoli "Jia
Brazi lCame roan
Colom bia
Congo
Costa Rica
Cote d'Ivo ire
Domin ican Repub lic
Ecuad orEl Salva dor
Equa torial Guine a
Gabon
Ghana
Guyan aHondu .ras
India
Indon esia
Liber ia
Malay sia
Mexic oMyanmarPanam aPapua New Guine aParagu a.y
PeruPhilip pines
Thail andTogo
Trini dad and Tobag oUnite d Repub lic of Tanza nia
Venez uela
Zaire

Total

21
133
23
24

23
9

23
9
1.4
9

23
23
23

14
9
34

170
23
139

14
33'
10
28

11
25
25
20
23
9

23
10
23

1 000