THEMATIC PROGRAMME ON
TRADE AND MARKET TRANSPARENCY
Programme Profile
RATIONALE
International tropical timber markets are undergoing structural changes in the face ofchanging global demand and supply patterns and market requirements. Transparency isessential for promoting international trade in timber and other products from sustainably
managed and legally harvested tropical forests. Improvements in market transparency thatneed to be addressed include assessments of future demand and supply, the description ofvalue chains for tropical timber products, end uses, characteristics of markets (includingdomestic markets in tropical regions), and factors influencing market conditions and thecompetitiveness of tropical timber producers. Enhanced market information on non-timber
forest products (NTFPs) and a better knowledge of international market opportunities would
help the development of forest-based small and medium-sized enterprises (SMFEs), which
dominate the NTFP sector. Other specific information gaps include markets for lesser-used
species and new plantation timbers.
Public and private timber procurement policies and emerging regulations designed to promotetrade in legally produced timber and timber products represent new challenges, especially fortropical timber exporters. Non-tarriff barriers and tariff escalation, technical, health andsanitary standards and product specifications in major import markets are also evolving andinfluencing market requirements for timber and timber products. There is a need to monitor
these developments and to support tropical timber producing countries in meeting thechallenges they pose. Consumption and trade can be encouraged by communicating theenvironmental credentials of tropical timber and timber products to buyers, consumers andother stakeholders.
The lack of adequate information makes it difficult to improve national policy and regulatory
frameworks and thereby to promote trade in timber and other products from tropical forests.
Many ITTO producer member countries will benefit from strengthening information systems
concerning the forestry sector and domestic and export markets for forest products.
GENERAL OBJECTIVES
The general objectives of this Thematic Programme would be to: (i) increase the capacity of
producer member countries to develop and employ market intelligence and marketing skills;and (ii) improve market transparency through improved data and analysis.
PROGRAMME STRATEGYThe Thematic Programme would operate at two levels: (i) the country level, to build capacities
to monitor existing markets and develop new markets for products derived from tropicalforests and to promote the trade in tropical timber from sustainably managed and legally
harvested sources; and (ii) at the regional/international level, to improve market transparency
and share experiences on trade and trade promotion.
Activities could include support for:•

the development of market information systems and training on statistical andeconomic information, market intelligence and marketing for all forest products
and services;•studies and exchanges on:
domestic, regional and international market opportunities,
substitution and competitiveness in relation to competing materials andnon-tropical timber and non-timber products,
factors which influence the markets for and competitiveness of tropicaltimber and timber products and NTFPs,
systems for forest certification,
procurement and other relevant policies,
export/import procedures
timber-related technical, safety, health and environmental standards andregulations;•the development of product standards, grading rules and quality control systems
for tropical timber products and NTFPs;•••

strengthening the capacity of and cooperation among customs authorities; and••the improvement of communication on the environmental credentials of tropicaltimber and timber products.

•ANTICIPATED OUTPUTS/OUTCOMES••The intended outcomes of the Thematic Programme would be: (i) improved market
transparency for tropical timber and timber products and NTFPs; (ii) strengthened country
capacity in market intelligence, information systems and trade promotion; and (iii)
improved market conditions that promote trade in tropical timber and timber products andNTFPs.

•POTENTIAL PARTNERS/COLLABORATING AGENCIES••The Thematic Programme would be implemented in close cooperation with ITTO’s TradeAdvisory Group and Civil Society Advisory Group, relevant international and regionalorganizations, national timber trade associations and civil-society organizations.

•INDICATIVE BUDGET AND TIMEFRAME••

An indicative three-year budget for this Thematic Programme that would result insignificant improvements in the three tropical regions would be US$5 million, most ofwhich would be for country-level activities and the remainder for regional/international
level activities.

•POTENTIAL DONORS