COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 10.01.1996 
COM(95) 542 final 
95/0272 (ACC) 
Proposal for a 
COUNCIL DECISION 
concerning the signing and notification of the provisional application of 
the International Agreement on Tropical Timber 1994 
on behalf of the European Community 
(presented by the Commission) 

Explanatory memorandum 
I. Introduction 
The fourth session of the United Nations Conference to negotiate an agreement to replace 
the 1983 International Tropical Timber Agreement (ITTA) saw the conclusion of a new 
Agreement (Annex ) with the adoption of a resolution at the fourteenth plenary session 
held on 26 January 1994. 
At this formal session closing the conference, the Commission reiterated on behalf of the 
European Community and its Member States its reservation pending further study and 
assessment of this new Agreement (Annex ). This reservation had already been 
expressed at the session officially marking the end of negotiations completed in an 
atmosphere of uncertainty. 
The reasons for the Community's reservation were manifold but rooted essentially in the 
negotiating directives approved by the Council on 17 May 1993 (Doc. 6270/93 -
Proba 18 of 3 May 1993) and the fact that certain Member States' delegations were 
unable to consult their national governments before accepting a situation which amounted 
to a fait accompli 
In keeping with its instructions, the Community negotiated in a spirit of openness and 
flexibility and sought to avoid the scope of the Agreement being extended to encompass 
all types of timber, including those from temperate and northern forests, and the ITTO 
being recognized as the body responsible for global management of all forests. 
These aims were not achieved completely. 
Some of the Agreement's objectives were extended to cover all timbers and hence all 
forests. In addition, a weakening of the producer countries' commitment to Target 2000 
(the date from which world trade in tropical timber is to be based on the principles of 
sustainability) and financial commitments which some Member States deemed to be too 
binding prompted the Community to conclude that it would be desirable to reflect further 
on the matter before entering into an international commitment of this kind. 
Over the last few months Commission departments and the Council working party on 
commodities (Proba) have discussed and analysed the text of the Agreement in depth in 
order to assess all the points which might facilitate a decision and, if possible, open the 
way for signing and provisional application by the European Community. The Standing 
Committee on Forestry was brought into these discussions where its responsibilities were 
involved. 
The aim of this proposal for a decision is to take stock of the situation and propose to 
the Council, on the basis of a series of technical and political considerations, that it 
withdraw the reservation entered in Geneva so that the EU can participate in the 1994 
International Tropical Timber Agreement. 
This approach is also designed to enable the Union to play a more prominent role in 
international forums where trade, development and environment issues are discussed, 
particularly at present following the session of the Commission on Sustainable 
Development held in New York in April 1995. 
At the meeting of the ITTO Council held in Accra, Ghana, from 10 to 18 May 1995, the 
Commission finally decided to announce initiation of the procedures for withdrawing the 
reservation lodged in Geneva. 
In making this announcement the Community was able to indicate clearly its points of 
reference and interpretation for applying the future Agreement upon its entry into force. 
The same principles will be reaffirmed in a short declaration which will be lodged on the 
occasion of the signing and notification of provisional application by the European 
Community. 
II. Assessment of the Agreement 
1. New ITTA and Community negotiating directives 
The first question relates to how far the new text corresponds to the Community's 
negotiating directives. The present Agreement would appear to go well beyond the 
accepted terms of the directives. The extension of some of the Agreement's measures to 
all types of timber, and hence to all forests, is already at odds with the principle that the 
Community confine itself to tropical timber. (See Article 1(a), (b), (f), (1) and (n) and 
Articles 29 and 30). 
It is nonetheless clear that tropical timber remains the aim or main subject of the 
Agreement. This is borne out by Article 1(d), (e), (i), (j) and (k) and Article 21. 
Accepting such an extension should therefore not pose any major problems for the 
Community, especially as the negotiating directives made direct reference to the outcome 
of the deliberations of the 1992 Rio Conference (UNCED) and to the need to safeguard 
international cooperation. 
2. Extension of the Agreement's scope 
The Community has held fast to the view that the extension of the Agreement does not 
meet the needs and concerns of the tropical producer countries as the common purpose 
of all commodity agreements must be to safeguard the interests of the production areas. 
Extending the scope would mean mixing provisions that were not necessarily 
homogeneous and which would not benefit the tropical producers alone. 
Intergovernmental cooperation on all types of forest should therefore take place in a more 
appropriate forum than that provided by the International Tropical Timber Agreement. 
This move should not jeopardize the negotiation of a future global convention embracing 
all forests. 
3. Target 2000 
This a fundamental objective for the EU. However, the wording used in the general 
context of the Agreement seems ambiguous. The producer countries have also established 
a link between Target 2000 and the provision of adequate financial resources, thus 
impairing the effectiveness of such a commitment. 
The financial aspect linked to the achievement of Target 2000 is, however, clearly 
addressed in Article 21 of the Agreement, where there is mention of sustainable 
development of forests producing tropical timber via a Bali partnership fund.-
So despite a measure of disappointment concerning the commitment given by producer 
countries, there is reason to believe that a commitment does in fact exist (for example in 
the Preamble or in Article 1) even though it does seem to be diluted and overshadowed 
by the commitment on the part of consumer countries. 
It should be stressed here that the European Union made a formal commitment in Geneva 
to the conservation, sustainable management and development of all the forests of its 
Member States. At the same time it expressed the hope that negotiations on a global 
convention on forests could be started as soon as possible in order to bring the aims set 
out in Target 2000 together in a binding legal instrument encompassing all types of forest 
and the whole range of problems linked with deforestation. 
4. Financing 
This is one of the thorniest points in the new ITTA. Article 1(g) refers to mechanisms 
designed to provide new and additional financial resources. 
On several occasions certain delegations stated that this wording involved too narrow a 
reference to the UNCED commitment; it was also impossible for them to commit their 
national financial authorities. This was, moreover, one of the reasons for which the 
Community delegations sought in Geneva endorsement from the national financial 
departments. 
The wording seems fairly general but it could be said that the creation of the Bali 
partnership fund already meets the criterion of a new and additional mechanism. In 
addition, Article 21 seems to rule out any direct financial commitment on the part of 
members since it refers explicitly to the "contribution of donor members", where "donor" 
implies an action which is discretionary and voluntary and in no sense binding. 
5. Non-discrimination as regards trade 
A careful reading of Article 36 suggests that it would be impossible to invoke the new 
ITTA as a basis for any multilateral trade restrictions against timber-exporting countries, 
especially those not conforming to Target 2000. In any case, it would not seem possible 
to impose trade restrictions on tropical timber in the absence of any similar multilateral 
trade measures applicable to timber from temperate and northern forests. 
Thus the principle of non-discrimination appears to be safeguarded. 
Nevertheless, it is regrettable that these provisions do not also apply to exports (restrictive 
measures introduced by some producer countries such as Indonesia), but this is because 
the overall package of concessions was accepted too rapidly. 
6. Final remarks and conclusions 
In general, it can be concluded that the European Community's participation in the 1994 
International Tropical Timber Agreement is perfectly justified, indeed desirable, given the 
international context in which it is being concluded. 
It is essential that the Union defend some form of dialogue and cooperation at global 
level on tropical timber and tropical forests. If it does not, the powerful pressures exerted 
at various international and national levels could lead to the adoption of draconian 
measures, which would probably not be effective to ensure genuine protection of tropical 
forests against a background of sustainable and rational trade. 
It is therefore vital that the EU should not be isolated or stand aside from high-level 
international environmental or trade and commercial initiatives. 
Furthermore, under Article 41 the Agreement is due to enter into force on 1 February 
1995 or at a later date provided it has been concluded by twelve producer country 
governments holding at least 55% of the votes allocated to that group of countries and 
by sixteen consumer country governments holding at least 70% of the votes allocated 
to them. The European Community and its Member States currently account for more 
than 43% of the consumer country votes needed for the Agreement to enter into force. 
Participation in the Agreement by the European Community and its Member States is 
therefore important both economically and politically. 
III. The Commission proposes to the Council that the European Community and its 
Member States: 
should sign the 1994 Tropical Timber Agreement as soon as possible; 
should declare their intention to apply the Agreement provisionally; 
should accompany these steps by the attached interpretative declaration the text of 
which has been negotiated with the Member States. 
The Commission requests that the President of the Council designate the persons 
empowered to sign the Agreement on behalf of the Community and to lodge the 
notification of provisional application by the Community with the United Nations 
Secretariat. 
At a later stage, when all the national authorities have given a definitive ruling, a 
proposal will be made to the Council concerning ratification or accession to the 
International Agreement. 
Proposal for a Council Decision of ... 
concerning the signing and provisional application of the International Agreement 
on Tropical Timber 1994 on behalf of the European Community 
THE COUNCIL OF THE EUROPEAN UNION, 
Ha/ing regard to the Treaty establishing the European Community and in particular 
Article 113 thereof, in conjunction with Article 228(2) thereof, 
Having regard to the proposal from the Commission, 
Whereas the International Tropical Timber Agreement 1994 negotiated on the basis of 
Resolution 93(IV) of the "new partnership for development: Cartagena Commitment" 
and the relevant objectives in the final document "Cartagena Spirit" adopted by the 
United Nations Trade and Development Conference at its eighth session is open for 
signing from 1 April 1994 to i January 1995; 
Whereas the Council of the International Tropical Timber Organization has decided to 
extend the time-limit to 1 September 1995 or as soon as possible thereafter; 
Whereas, pursuant to Article 42(3) of the 1983 International Tropical Timber 
Agreement, that Agreement was extended until the provisional or definitive entry into 
force of the new Agreement; , 
Whereas the objectives pursued by the Agreement fit into the context of the common 
commercial policy; 
Whereas the Member States are called upon to participate, through financial 
contributions, in the measures provided for in the Agreement; 
Whereas all the Member States have expressed their intention to sign and to contribute 
towards the provisional application of the Agreement; whereas the Community 
therefore should sign the Agreement lodged with the United Nations Secretary-General 
and, as soon as possible, notify its intention to apply the new Agreement 
provisionally, 
6 
HAS DECIDED AS FOLLOWS: 
Article 1 
1. The Community shall sign the International Tropical Timber Agreement 1994 
lodged with the United Nations Secretary-General as soon as possible. The text 
of the Agreement is attached to this Decision. 
2. The Community shall notify the United Nations Secretary-General of its 
intention to apply the International Tropical Timber Agreement 1994 
provisionally, in accordance with Articles 40 and 41(2) thereof. 
Article 2 
The President of the Council is hereby authorized to designate the persons empowered 
to sign the Agreement on behalf of the Community and deposit the notification of its 
provisional application by the Community. 
Done at Brussels, 
For the Council 
The President 
¥ 
Declarations to be entered in the minute 
1. The Council and the Commission declare that this Decision is being adopted in 
order to enable the International Tropical Timber Agreement 1994 to be applied as 
soon as possible. It is being taken with the pragmatic aim of adhering as closely as 
possible to existing practices and it does not prejudice the basis and nature of future 
measures concerning commodities, including the renewal of this agreement. 
2. The Member States1 representatives meeting within the Council declare that their 
governments are prepared to sign the new International Tropical Timber Agreement 
as soon as possible, together with the Community, and to ensure, by common accord 
with the European Community, its provisional application. 
Those states which cannot decide to apply the Agreement on a provisional basis by 
an act of their government will begin their parliamentary ratification procedures as 
soon as possible. Pending ratification they will take all measures to ensure that the 
Agreement can be applied as regards the Community's competence. 
? 
Draft Declaration 
by the European Community and its Member States 
addressed to the United Nations 
The European Community and its Member States interpret the terms of the ITTA 1994 
as follows: 
(a) Unless the scope of the Agreement is changed pursuant to Article 35, the Agreement 
shall refer solely to tropical timber and tropical forests. 
(b) Any financial contribution other than the contribution to the administrative budget 
provided for in Article 19 shall be entirely voluntary. 
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 
Geneva 
INTERNATIONAL TROPICAL 
TIMBER AGREEMENT, 1994 
UNITED NATIONS 
New York and Geneva, 1994 
CONTENTS 
Introduction 
List of States and organizations represented at the United Nations 
Confereace for the Negotiation of a Successor Agreement to the 
International Tropical Timber Agreement, 1983 . 
Agenda of the United Nations Conference for the Negotiation of a 
Successor Agreement to the International Tropical Timber 
Agreement, 1983 
Formal Statement by Consumer Members 
Resolution adopted by the Conference . 
International Tropical Timber Agreement, 1994 
A A 
INTRODUCTION 
1. Taking into account the decision of the International Tropical Timber 
Council (ITTC) at its eleventh session on 4 December 1991, and in accordance 
with the calendar of meetings approved by the Trade and Development Board on 
14 October 1992, the Secretary-General of UNCTAD convened the United Nations 
Conference for the Negotiation of a Successor Agreement to the International 
Tropical Timber Agreement, 1983, on 13 April 1993. The Conference, which was 
opened by Mr. Carlos Fortin, Deputy to the Secretary-General of UNCTAD, 
Director of the Commodities Division, and Mr. B.C.Y. Freezailah, Executive 
Director of the International Tropical Timber Organization, was held at the 
Palais des Nations, Geneva, in four parts: the first from 13 to 
16 April 1993, the second from 21 to 25 June 1993, the third from 4 to 
15 October 1993 and the fourth from 10 to 26 January 1994. 
Mr. Wisber Loeis (Indonesia) was elected President of the Conference, and 
Mrs. Yolande Goedkoop-Van Opijnen (Netherlands) and Mr. Jorge Barba (Ecuador) 
were elected Vice-Presidents. Mr. Jorge Barba, who was absent at the second 
and fourth parts of the Conference, was replaced by Mr. Christian Espinoza 
(Ecuador) as the Vice-President for the duration of the second and fourth 
parts of the Conference. 
2. The Conference had before it separate proposals by the producer and 
consumer groups of members of the International Tropical Timber 
Organization (ITTO) (TD/TIMBER.2/R.1), a comparative tabulation of the 
existing text of the International Tropical Timber Agreement (ITTA), 1983, 
side-by-side with the separate texts of the proposals presented by the 
producer and consumer groups of members of the ITTO (TD/TIMBER.2/R.2) and a 
composite text of the proposals for a successor agreement to the ITTA, 1983, 
based on the separate texts of the proposals submitted by the producer and 
consumer groups (TD/TIMBER.2/R.3), which was prepared by the Secretary-General 
of UNCTAD, in cooperation with the Executive Director of ITTO in accordance 
with the resolution adopted on 16 April 1993 at the fourth plenary meeting of 
the Conference. The Conference also had before it: a non-paper of the 
Chairman of ITTC on informal consultations regarding a successor agreement to 
the International Tropical Timber Agreement, 1983, during the fourteenth 
session of ITTC, (TD/TIMBER.2/CRP.1); the President's revised discussion paper 
(TD/TIMBER.2/CRP.2) ; and "a paper (TD/TIMBER.2/R.4} containing draft articles 
submitted by the President following his consultations held pursuant to 
operative paragraph 1 of the resolution (TD/TIMBER.2/12) adopted at the end of 
the third part of the Conference. 
3. On 21 January 1994, a Formal Statement by Consumer Members was circulated 
in TD/TIMBER.2/L.6 (see p. 10). A Statement on the Sustainable Management of 
Forests in the European Union by the European Union was circulated at the 
Conference on 24 January 1994 (TD/TIMBER.2/L.7). 
Participation and credentials 
4. Representatives of 61 States attended the Conference as participants 
and 2 as observers. The first part of the Conference was attended by the 
representatives of 57 States, 55 attending as participants and 2 as observers. 
The second part was attended by* the representatives of 50 States attending as-
participants. The third part was attended by the representatives of 52 States 
A9L 
attending as participants, and the fourth part by the representatives of 
49 States, 48 attending as participants and l as an observer. Representatives 
of the European Community participated in all parts of the Conference. 
5. A number of United Nations bodies and specialized and related agencies of 
the United Nations, and one national liberation movement invited to 
participate pursuant to General Assembly resolution 3280 (XXIX), sent 
observers to the Conference. One intergovernmental organization and 
19 non-governmental organizations participated in the Conference by its 
decision (see pp. 7 and 8). 
6. At each part of the Conference, the credentials of the representatives of 
States participating in the Conference were approved on the recommendation of 
the Credentials Committee. 
Structure of the Conference 
7. At its first plenary meeting, on 13 April 1993, the Conference adopted 
its agenda as contained in TD/TIMBER. 2/4 (see p. 9) and its rules of procedure 
(TD/TIMBER.2/5) and established an Executive Committee of the Whole, chaired 
by the President of the Conference and supported by the two Vice-Presidents, 
to deal with agenda items 8 and 9 in closed session. It subsequently 
appointed a Credentials Committee to examine the credentials of the 
representatives of States participating in the Conference (see para. 11 
below). 
8. The Executive Committee held 11 meetings. At its first meeting, 
on 13 April 1993, it established an Economic and Technical Committee and a 
Financial and Administrative Committee. The Chairman of the Executive 
Committee convened, as and when necessary, an informal contact group to deal 
with a number of key issues pending in the Executive Committee. 
9. The Economic and Technical Committee was chaired by Mr. David Boulter 
(Canada). The Financial and Administrative Committee was chaired by 
Mr. Eugene Capito (Gabon) who, in his absence during the fourth part of the 
Conference, was replaced by Mr. E.O. Nsekyire (Ghana) . 
10. At its 12th plenary meeting, the Conference established an Editorial 
•3reup to take up the texts of articles referred to it with a view to 
considering any editorial or linguistic matters without touching upon 
substantive issues and to prepare the composite text of a successor agreement 
This Group was open to all interested participants. It had a core membershii. 
consisting of 10 members, 5 representatives each from the producer and 
consumer groups. The Group met three cimes. Mr. Christian Espinozu i£c,-....-">. .ior. 
chaired this Group at its 1st and 2nd meetings, and Mr. E.G. Nsekyire •;Ghana,' 
choired the 3rd meet: no o.c the Group. 
11. The Credentials Committee was appointed by the Conference at. 
its 3rd plenary meeting on 14 April 1993, with the following membership: 
Congo, Japan, Mexico, Netherlands and Philippines. Mr. S. Ise (Japan) was 
elected as Chairman of the Credentials Committee. The Committee had four 
meetings and prepared four reports (TD/TIMBER.2/6 , TD/TIMBER.2/8 , 
TD/TIMBER.2/11 and TD/TIMBER.2/13), which were approved by the Conference. 
Az 
Closure of the Conference 
12. At its 14th (closing) plenary meeting, on 26 January 1994, the Conference 
established the text of the International Tropical Timber Agreement, 1994 
(see p. 12) and adopted a final resolution as contained in TD/TIMBER.2/14 
(see p. 11). At the time of the adoption of the Agreement, several 
delegations made statements, summaries of which are reproduced in 
TD/TIMBER.2/15. 
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 Successor Agreement to the International Tropical Timber 
Agreement, 1983. For the Agreement to enter into force definitively, 
12 Governments of producing countries holding at least 55 per cent of the 
total votes as set out in annex A to the Agreement, and 16 Governments of 
consuming 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 
1 February 1995, the Agreement will enter into force provisionally on that 
date or on any date within six months thereafter, if 10 Governments of 
producing 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 the 
Agreement, have either signed the Agreement definitively or have deposited 
instruments of ratification, acceptance or approval, or have notified the 
depositary that they will apply the Agreement provisionally. 
14. If the requirements for definitive or provisional entry into force have 
not been met by 1 September 1995, the Secretary-General of the United Nations 
is requested to invite those Governments which have either signed the 
Agreement 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 to 
decide whether to put the Agreement into force provisionally or definitively 
among themselves in whole or in part. Governments which decide to put this 
Agreement 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 the 
date 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. 
^V 
LIST OF STATES AND ORGANIZATIONS REPRESENTED AT THE UNITED NATIONS 
CONFERENCE FOR THE NEGOTIATION OF A SUCCESSOR AGREEMENT TO THE 
INTERNATIONAL TROPICAL TIMBER AGREEMENT, 1983* 
Participants 
Afghanistan 
Algeria 
Australia 
Austria 
Bahrain 
Belgium* * 
Bolivia 
Brazil 
Bulgaria 
Cameroon 
Canada 
Chile 
China 
Colombia 
Congo 
Costa Rica 
Côte d'Ivoire 
Denmark 
Dominican Republic 
Ecuador 
Egypt 
El Salvador 
Equatorial Guinea 
Finland 
France 
Gabon 
Germany 
Ghan.-; 
Greece Japan 
Liberia 
Luxembourg* * 
Malaysia 
Mexico 
Myanmar 
Nepal 
Netherlands 
New Zealand 
Norway 
Panama 
Papua New Guinea 
Paraguay 
Peru 
Philippines 
Portugal 
Republic of Korea 
Russian Federation 
Slovakia 
Spain 
Sweden 
Switzerland 
Thailand 
Trinidad and Tobago 
United Kingdom of Great Brita. 
and Northern Ireland 
United Republic of Tanzania 
United States ct America 
Venezuela 
;cserve: ,urcoean 
States 
Democratic People's Republic of Korea 
The full list of participants w.is distributed m documents 
DIMBEP . 2/iNF. 1 , TD/TIMBER. 2/INF. 2 , TD/TIMBER . 1 ''"iNF . ; and TD/TIMBER.;. IN' 
** Belgium represented Luxembourg at the first, second and fourth pa: 
^5" 
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 Centre UNCTAD/GATT 
Specialized 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 the 
Tropical 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 
A6 
AGENDA OF THE UNITED NATIONS CONFERENCE FOR THE NEGOTIATION 
OF A SUCCESSOR AGREEMENT TO THE INTERNATIONAL TROPICAL 
TIMBER AGREEMENT, 198 3 
1. Opening of the Conference 
2 . 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. Preparation of a successor agreement to the International Tropical Timber 
Agreement, 1983 
9. Consideration and adoption of final resolutions 
10. Other business. 
Af 
FORMAL STATEMENT BY CONSUMER MEMBERS 
The States listed below, as well as the European Community, participating 
in 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 sustainable management 
of all types of forests, 
2. Note the high standard of sustainability which has already been achieved 
by individual countries in the management of their respective forests, 
3 . Also note the national commitments 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 be 
undertaken in the future, and 
5. 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 guidelines 
and 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 of 
sustainable management of their forests commit to maintain and 
enhance the sustainable management of their forests; 
Other States commit to the national objective of achieving 
sustainable management of their forests by the year 2000; and 
Appropriate 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 Trade 
and Development to publish and circulate this Statement together with the 
official 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 and 
Northern Ireland, Finland, Japan, New Zealand, Norway, Republic of Korea, 
Russian Federation, Sweden, Switzerland, United States of America. 
A? 
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 intergovernmental 
organizations 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 to 
intergovernmental organizations referred to in article 5 of the Agreement to 
become parties to the International Tropical Timber Agreement, 1994, and 
invites them to deposit the appropriate instruments to this end. 
14th (closing) plenary meeting 
26 January 19 94 
M 
INTERNATIONAL TROPICAL TIMBER AGREEMENT, 1994 -
CONTENTS 
PREAMBLE 
CHAPTER I. OBJECTIVES 
Articles 
1. Objectives 
CHAPTER II. DEFINITIONS 
2. Definitions 
CHAPTER III. ORGANIZATION AND ADMINISTRATION 
3 . Headquarters and structure of the International Tropical Timber 
Organization 
4. Membership in the Organization 
5. Membership by intergovernmental organizations 
CHAPTER IV. INTERNATIONAL TROPICAL TIMBER COUNCIL 
6. Composition of the International Tropical Timber Council . . . 
7. Powers and functions of the Council 
8. Chairman and Vice-Chairman of the Council 
9. Sessions of the Council 
10. Distribution of votes 
11. Voting procedure of the Council 
12. Decisions and recommendations of the Council 
13. Quorum for the Council 
14. Cooperation and coordination with other organizations .... 
15. Admission of observers 
16. Executive Director and staff 
CHAPTER V. PRIVILEGES AND IMMUNITIES 
17. Privileges and immunities 
CHAPTER VI. FINANCE 
18. Financial accounts 
19. Administrative Account 
20. Special Account 
21. The Bali Partnership Fund 
22 Forms of payment 
23. Audit and publication of accounts 
%o 
CONTENTS (continued) 
CHAPTER VII. OPERATIONAL ACTIVITIES 
24. Policy work of the Organization . . . 
25. Project activities of the Organization 
26. Establishment of Committees . . . . . 
27. Functions of the Committees 
CHAPTER VIII. RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES 
28. Relationship with the Common Fund for Commodities 
CHAPTER IX. STATISTICS, STUDIES AND INFORMATION 
29. Statistics, studies and information 
30. Annual report and review 
CHAPTER X. Miscellaneous 
31. Complaints and disputes 
32. General obligations of members 
33. Relief from obligations 
34. Differential and remedial measures and special measures 
3 5 . Review 
36. Non-discrimination 
CHAPTER XI. FINAL PROVISIONS 
3 7 Depositary 
38. Signature, ratification, acceptance and approval 
39. Accession 
40. Notification of provisional application 
41. Entry into force • 
4 2 . Amendments 
4 3 . Withdrawal . . 
45. Settlement of accounts with withdrawing or excluded members 
or members unable to accept an amendment 
46. Duration, extension, and termination 
4n. Reservations 
4?. ;-or.-Dl ementarv and transitional provisions ... .... 
ANNEXES 
A. List of rrod'j'~ i r.'T covntr: es v:th tropical forest resource... 
and/or net exporters of tropical timber in volume terms, and 
allocation of votes tor the purposes of article 4 1 
E. List of consuming countries and allocation of votes for the 
purposes of article 4 1 
a. A 
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 Development; the Cartagena Commitment 
and the relevant objectives contained in the Spirit of Cartagena, 
Recalling the International Tropical Timber Agreement, 1983, and 
recognizing the work of the International Tropical Timber Organization and its 
achievements since its inception, including a strategy for achieving 
international trade in tropical timber from sustainably managed sources, 
Recalling further the Rio Declaration on Environment and Development, the 
Non-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 the 
United Nations Conference on Environment and Development in June 1992, in 
Rio de Janeiro; the United Nations Framework Convention on Climate Change; and 
the Convention on Biological Diversity, 
Recognizing the importance of timber to the economies of countries with 
timber-producing forests, 
Further recognizing the need to promote and apply comparable and 
appropriate guidelines and criteria for the management, conservation and 
sustainable development of all types of timber-producing forests, 
Taking into account the linkages of tropical timber trade and the 
international timber market and the need for taking a global perspective in 
order 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 maintiiin, or achieve by the 
year 2000, the sustainable management of their respective forests made bv 
consuming members who are parties to the International Tropical Timber 
Agreement, 1983 at the fourth session of the United i\ai jons Confer encc; 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 and 
policy development between members in finding solutions to the problems facing 
the tropical timber economy, 
Have agreed as follows: 
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CHAPTER I: OBJECTIVES 
Article 1 
Objectives 
Recognizing the sovereignty of members over their natural resources, as 
defined in Principle 1 (a) 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, the objectives of the 
International Tropical Timber Agreement, 1994 (hereinafter referred to as 
"this Agreement") are: 
(a) To provide an effective framework for consultation, international 
cooperation and policy development among all members with regard to all 
relevant aspects of the world timber economy; 
(b) To provide a forum for consultation to promote non-discriminatory 
timber trade practices; 
(c) To contribute to the process of sustainable development; 
(d) To enhance the capacity of members to implement a strategy for 
achieving exports of tropical timber and timber products from sustainably 
managed sources by the year 2000; 
(e) To promote the expansion and diversification of international trade 
in tropical timber from sustainable sources by improving the structural 
conditions in international markets, by taking into account, on the one hand, 
a long-term increase in consumption and continuity of supplies, and, on the 
other, prices which reflect the costs of sustainable forest management and 
which are remunerative and equitable for members, and the improvement of 
market access; 
(f) To promote and support research and development with a view to 
improving forest management and efficiency of wood utilization as well as 
increasing the capacity to conserve and enhance other forest values in timber 
producing tropical forests; 
(g) To develop and contribute towards mechanisms for the provision f 
new and additional financial resources and expertise needed to enhance the 
capacity of producing members to attain the objectives of this Agreement: 
(h) To improve market intelligence with a view to ensuring greater 
transparency in the international timber market, including the gathering, 
ocvri 1 -i t ion, ~-ind dissemination of trade related data, incltiding data relat-:.i 
;- o s n e c i *" s ' " e i : -. •-- t r a ~i e d • 
(I) To promote increased and further processing of tropical timber from 
sustainable sources in producing member countries with a view to promoting 
their industrialization and thereby increasing their employment opportunities 
and export earnings; 
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(j) To encourage members to support and develop industrial tropical 
timber reforestation and forest management activities as well as 
rehabilitation of degraded forest land, with due regard for the interests of 
local communities dependent on forest resources; 
(k) To improve marketing and distribution of tropical timber exports 
from sustainably managed sources; 
(1) To encourage members to develop national policies aimed at 
sustainable utilization and conservation of timber producing forests and their 
genetic resources and at maintaining the ecological balance in the regions 
concerned, in the context of tropical timber trade; 
(m) To promote the access to, and transfer of, technologies and 
technical cooperation to implement the objectives of this Agreement, including 
on concessional and preferential terms and conditions, as mutually agreed; and 
(n) To encourage information-sharing on the international timber 
market. 
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CHAPTER II. DEFINITIONS 
Article 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 of 
Cancer and the Tropic of Capricorn. The term covers logs, sawnwood, veneer 
sheets and plywood. Plywood which includes in some measure conifers of 
tropical 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 in 
annex A and which becomes a party to this Agreement, or any country with 
tropical 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 and 
which the Council, with the consent of that country, declares to be a 
producing member; 
5. "Consuming member" means any country listed in annex 3 which becomes a 
party to this Agreement, or any country not so listed which becomes a party to 
this 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 in 
accordance 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 the 
votes cast by consuming members present and voting, counted separately, on 
condition that these votes are cast by at least half of the producing members 
present and voting and at least half of the consuming members present and 
voting,-
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9. "Simple distributed majority vote" means a vote requiring more than half 
of the votes cast by producing members present and voting and more than half 
of 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, the 
Japanese yen, the pound sterling, the United States dollar and any other 
currency which has been designated from time to time by a competent 
international monetary organization as being in fact widely used to make 
payments for international transactions and widely traded in the principal 
exchange markets. 
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CHAPTER III. ORGANIZATION AND ADMINISTRATION 
Article 3 
Headquarters and structure of the International 
Tropical Timber Organization 
1. The International Tropical Timber Organization established by the 
International Tropical Timber Agreement, 1983 shall continue in being for the 
purposes of administering the provisions and supervising the operation of this 
Agreement. 
2 . The Organization shall function through the Council established under 
article 6, the committees and other subsidiary bodies referred to in 
article 26 and the Executive Director and staff. 
3. The headquarters of the Organization shall be in Yokohama, unless the 
Council, by special vote, decides otherwise. 
4. The headquarters of the Organization shall at all times be located in the 
territory of a member. 
Article 4 
Membership in the Organization 
There shall be two categories of membership in the Organization, namely: 
(a) Producing; and 
(b) Consuming. 
Article 5 
Membership by intergovernmental organizations 
1. Any reference in this Agreement to "Governments" shall be construed as 
including the European Community and any other intergovernmental organization 
having responsibilities in respect of the negotiation, conclusion and 
application of international agreements, in particular commodity agreements. 
Accordingly, any reference in this Agreement to signature, ratification, 
acceptance or approval, or to notification of provisional application, or to 
accession shall, in the case of such intergovernmental organizations, be 
construed as including a reference to signature, ratification, acceptance or 
approval, or to notification of provisional application, or to accession, by 
such intergovernmental organizations. 
2. In the case of voting on matters within their competence, such 
intergovernmental organizations shall vote with a number of votes equal to the 
total number of votes attributable to their member States in accordance with 
article 10. In such cases, the member States of such intergovernmental 
organizations shall not be entitled to exercise their individual voting 
rights. 
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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 the 
Organization. 
2. Each member shall be represented in the Council by one representative and 
may designate alternates and advisers to attend sessions of the Council. 
3. An alternate representative shall be empowered to act and vote on behalf 
of 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 provisions 
of 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 cf 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 performance 
of its functions under this Agreement. 
Article 8 
t Chairman and Vice-chairman of the Council 
1. The Council shall elect for each calendar year a Chairman and a 
Vice-chairman, whose salaries shall not be paid by the Organization. 
2. The Chairman and the Vice-Chairman shall be elected, one from among the 
representatives of producing members and the other from among the 
representatives of consuming members. These offices shall alternate each year 
between the two categories cf members, provided, however, that this shall not 
prohibit 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 the 
Vice-chairman, or in the absence of one or both of them for the rest of the 
term for which they were elected, the Council may elect new officers from 
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among the representatives of the producing members and/or from among the 
representatives 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 a 
year. 
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 the 
Council; 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 the 
Organization unless the Council, by special vote, decides otherwise. If on 
the invitation of any member the Council meets elsewhere than at the 
headquarters of the Organization, that member shall pay the additional cost of 
holding 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 in 
advance, except in cases of emergency, when notice shall be communicated at 
least seven days in advance. 
Article 10 
Distribution 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 respective shares of the total tropical 
forest resources of all producing members; and 
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(c) 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 allocated 
the highest number of votes calculated in accordance with paragraph 2 of this 
article, 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 votes under 
paragraph 2 (b) of this article, "tropical forest resources" means productive 
closed broadleaved forests as defined by the Food and Agriculture Organization 
(FAO) . 
5. The votes of the consuming members shall be distributed as follows: each 
consuming 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 provisions 
of this article. Such distribution shall remain in effect for the rest of 
that 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 cf this 
Agreement, the Council shall redistribute the votes within the affected 
category or categories of members in accordance with the provisions of this 
article. The Cour.cii 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 no 
member shall be entitled to oivide its votes. A member may, however, cast 
differently from such votes any votes which it is authorized to cast under 
paragraph 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 
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member, and any consuming member may authorize, under its own responsibility, 
any other consuming member, to represent its interests and to cast its votes 
at any meeting of the Council. 
3. When abstaining, a member shall be deemed not to have cast its votes. 
Article 12 
Decisions and recommendations of the Council 
1. The Council shall endeavour to take all decisions and to make all 
recommendations by consensus. If consensus cannot be reached, the Council 
shall take all decisions and make all recommendations by a simple distributed 
majority vote, unless this Agreement provides for a special vote. 
2. Where a member avails itself of the provisions of article 11, 
paragraph 2, and its votes are cast at a meeting of the Council, such member 
shall, for the purposes of paragraph 1 of this article, be considered as 
present and voting. 
Article 13 
Quorum for the Council 
1. The quorum for any meeting of the Council shall be the presence of a 
majority of members of each category referred to in article 4, provided that 
such members hold at least two thirds of the total votes in their respective 
categories. 
2. If there is no quorum in accordance with paragraph 1 of this article on 
the day fixed for the meeting and on the following day, the quorum on the 
subsequent days of the session shall be the presence of a majority of members 
of each category referred to in article 4, provided that such members hold a 
majority of the total votes in their respective categories. 
3. Representation in accordance with article 11, paragraph 2, shall be 
considered as presence. 
Article 14 
Cooperation and coordination with other organizations 
1. The Council shall make arrangements as appropriate for consultations and 
cooperation with the United Nations and its organs, including the 
United Nations Conference on Trade and Development (UNCTAD) and the Commission 
on Sustainable Development (CSD), intergovernmental organizations, including 
the General Agreement on Tariffs and Trade (GATT) and the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora (CITES), and 
non-governmental organizations. 
2. The Organization shall, to the maximum extent possible, utilize the 
facilities, services and expertise of existing intergovernmental, governmental 
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or non-governmental organizations, in order to avoid duplication-of efforts in 
achieving 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 the 
organizations referred to in article 14, article 20 and article 29, interested 
in the activities of the Organization to attend as observers any of the 
meetings 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 shall 
be determined by the Council. 
3. The Executive Director shall be the chief administrative officer of the 
Organization and shall be responsible to the Council for the administration 
and operation of this Agreement in accordance with decisions of the Council. 
4. The Executive Director shall appoint the staff in accordance with 
regulations 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 not seek or receive instructions from any member or from any authority 
external to the Organization. They shall refrain from any action which might 
reflect 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 and 
staff and shall not seek to influence them in the discharge of their 
responsibilities. 
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CHAPTER V. PRIVILEGES AND IMMUNITIES 
Article 17 
Privileges and immunities 
1. The Organization shall have legal personality. It shall in particular 
have the capacity to contract, to acquire and dispose of movable and immovable 
property, and to institute legal proceedings. 
2. The status, privileges and immunities of the Organization, of its 
Executive Director, its staff and experts, and of representatives of members 
while in the territory of Japan shall continue to be governed by the 
Headquarters Agreement between the Government of Japan and the International 
Tropical Timber Organization signed at Tokyo on 27 February 1988, with such 
amendments as may be necessary for the proper functioning of this Agreement. 
3. The Organization may conclude, with one or more countries, agreements 
to be approved by the Council relating to such capacity, privileges and 
immunities as may be necessary for the proper functioning of this Agreement. 
4. If the headquarters of the Organization is moved to another country, the 
member in question shall, as soon as possible, conclude with the Organization 
a headquarters agreement to be approved by the Council. Pending the 
conclusion of such an agreement, the Organization shall request the new host 
Government to grant, within the limits of its national legislation, exemption 
from taxation on remuneration paid by the Organization to its employees, and 
on the assets, income and other property of the Organization. 
5. The Headquarters Agreement shall be independent of this Agreement. It 
shall, however, terminate: 
(a) By agreement between the host Government and the Organization; 
(b) In the event of the headquarters of the Organization being moved 
from the country of the host Government; or 
(c) In the event of the Organization ceasing to exist. 
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CHAPTER VI. FINANCE 
Article 18 
Financial accounts 
1. There shall be established: 
(a) The Administrative Account; 
(b) The Special Account; 
(c) The Bali Partnership Fund; and 
(d) Such other accounts as the Council shall deem appropriate and 
necessary. 
2. The Executive Director shall be responsible for the administration of 
these accounts and the Council shall make provision therefor in the financial 
rules of the Organization. 
Article 19 
Administrative Account 
1. The expenses necessary for the administration of this Agreement shall 
be 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 accordance 
with paragraphs 3, 4 and 5 of this article. 
2. The expenses of delegations to the Council, the committees and any other 
subsidiary bodies of the Council referred to in article 26 shall be met by the 
members concerned. In cases where a member requests special services from the 
Organization, the Council shall require that member to pay the costs of such 
services. 
3. Before the end of each financial year, the Council shall approve the 
administrative budget of the Organization for the following financial year and 
shall assess the contribution, of each member to that budget. 
4. The contribution cf each member.to the administrative budget for e- n 
financial year shall be in the proportion which the number of its votes at th--> 
time the administrative budget for that financial year is approved boars to 
the total votes of all the members. In assessing contributions, the votes of 
each member shall he calculated without regard to the suspension of any 
member's voting rights or any redistribution of votes resulting therefrom. 
5. The initial contribution of any member joining the Organization after trie 
entry into force of this Agreement shall be assessed by the Council on the 
basis of the number of votes to be held by that member and the period 
remaining in the current financial year, but the assessment made upon other 
members from the current financial year shall not thereby be altered. 
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6. Contributions to administrative budgets shall become due-on the first day 
of each^financial year. Contributions of members in respect of the financial 
year in which they join the Organization-shall be due on the date on which 
they become members. 
7. If a member has not paid its full contribution to the administrative 
budget within four months after such contribution becomes due in accordance 
with paragraph 6 of this article, the Executive Director shall request that 
member to make payment as quickly as possible. If that member has still not 
paid its contribution within two months after such request, that member shall 
be requested to state the reasons for its inability to make payment. If at 
the expiry of seven months from the due date of contribution, that member has 
still not paid its contribution, its voting rights shall be suspended until 
such time as it has paid in full its contribution, unless the Council, by 
special vote, decides otherwise. If, on the contrary, a member has paid its 
full contribution to the administrative budget within four months after such 
contribution becomes due in accordance with paragraph 6 of this article, the 
member's contribution shall receive a discount as may be established by the 
Council in the financial rules of the Organization. 
8. A member whose rights have been suspended under paragraph 7 of this 
article shall remain liable to pay its contribution. 
Article 20 
Special Account 
1. There shall be established.two sub-accounts under the Special Account: 
(a) The Pre-Project Sub-Account; and 
(b) The Project Sub-Account. 
2. The possible sources of finance for the Special Account may be: 
(a) The Common Fund for Commodities; 
(b) Regional and international financial institutions; and 
(c) Voluntary contributions. 
3. The resources of the Special Account shall be used only for approved 
pre-projects or projects. 
4. All expenditures under the Pre-Project Sub-Account shall be reimbursed 
from the Project Sub-Account if projects are subsequently approved and funded. 
If within six months of the entry intc force or this Agreement the Council 
dees not receive any funds for the Pre-Project Sub-Account, it shall review 
the situation and take appropriate action. 
5. All receipts pertaining to specific identifiable pre-projects or 
projects under the Special Account shall be brought into that Account. All 
expenditures incurred on such pre-projects or projects, including remuneration 
and travel expenses of consultants and experts, shall be charged to the same 
Account. 
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6. The Council shall, by special vote, establish terms and conditions on 
which it would, when and where appropriate, sponsor projects for loan 
financing, where a member or members have voluntarily assumed full obligations 
and responsibilities for such loans. The Organization shall have no 
obligations for such loans. 
7. The Council may nominate and sponsor any entity with the consent of that 
entity, including a member or members, to receive loans for the financing of 
approved projects and to undertake all the obligations involved, except that 
the Organization shall reserve to itself the right to monitor the use of 
resources and to follow up on the implementation of projects so financed. 
However, the Organization shall not be responsible for guarantees voluntarily 
provided by individual members or other entities. 
8. No member shall be responsible by reason of its membership in the 
Organization for any liability arising from borrowing or lending by any other 
member or entity in connection with projects. 
9. In the event that voluntary unearmarked funds are offered to the 
Organization, the Council may accept such funds. Such funds may be utilized 
for approved pre-projects and projects. 
10. The Executive Director shall endeavour to seek, on such terms and 
conditions as the Council may decide, adequate and assured finance for 
pre-projects and projects approved by the Council. 
11. Contributions for specified approved projects shall be used only for the 
projects for which they were originally intended, unless otherwise decided by 
the Council in agreement with the contributor. After the completion of a 
project, the Organization shall return to each contributor for specific 
projects the balance of any funds remaining pro rata to each contributor's 
share in the total of the contributions originally made available for 
financing that project, unless otherwise agreed to by the contributor. 
Article 21 
The Bali Partnership Fund 
1. A Fund for sustainable management of tropical timber producing forests 
is hereby established to assist producing members to make the investments 
necessary to achieve the objective of article 1 (d) of this Agreement. 
2. The Fund shall be constituted by: 
(a) Contributions from donor members ; 
(b) Fifty per cent of income earned as a result of activities related 
to the Special Account ; 
(c) Resources from other private and public sources which the 
Organization may accept consistent with its financial rules. 
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3. Resources of the Fund shall be allocated by the Council only for 
pre-projects and projects for the purpose set out in paragraph 1 of this 
article and approved in accordance with article 25. 
4. In allocating resources of the Fund, the Council shall take into account: 
(a) The special needs of members whose forestry sectors' contribution 
to their economies is adversely affected by the implementation of the strategy 
for achieving the exports of tropical timber and timber products from 
sustainably managed sources by the year 2000; 
(b) The needs of members with significant forest areas who establish 
conservation programmes in timber producing forests. 
5. The Council shall examine annually the adequacy of the resources 
available to the Fund and endeavour to obtain additional resources needed by 
producing members to achieve the purpose of the Fund. The ability of members 
to implement the strategy referred to in paragraph 4 (a) of this article will 
be influenced by the availability of resources. 
6. The Council shall establish policies and financial rules for the 
operation of the Fund, including rules covering the settlement of accounts on 
termination or expiry of this Agreement. 
Article 22 
Forms of payment 
1. Contributions to the Administrative Account shall be payable in freely 
usable currencies and shall be exempt from foreign-exchange restrictions. 
2. Financial contributions to the Special Account and the Bali Partnership 
Fund shall be payable in freely usable currencies and shall be exempt from 
foreign-exchange restrictions. 
3. The Council may also decide to accept other forms of contributions to 
the Special Account or.the Bali Partnership Fund, including scientific and 
technical equipment or personnel, to meet the requirements of approved 
projects. 
Article 23 
Audit and publication of accounts 
1. The Council shall appoint independent auditors for the purpose of 
auditing the accounts of the Organization. 
2. Independently audited statements of the Administrative Account, of the 
Special Account and of the Bali Partnership Fund shall be made available to 
members as soon as possible after the close of each financial year, but not 
later than six months after that date, and be considered for approval by the 
Council at its next session, as appropriate. A summary of the audited 
accounts and balance sheet shall thereafter be published. 
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CHAPTER VII. OPERATIONAL ACTIVITIES 
Article 24 
Policy work of the Organization 
In order to achieve the objectives set out in article l, the Organization 
shall undertake policy work and project activities in the areas of Economic 
Information and Market Intelligence, Reforestation and Forest Management and 
Forest Industry, in a balanced manner, to the extent possible integrating 
policy work and project activities. 
Article 25 
Project activities of the Organization 
1. Bearing in mind the needs of developing countries, members may submit 
pre-project and project proposals to the Council in the fields of research 
and 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 more 
of the objectives of this Agreement. 
2. The Council, in approving pre-projects and projects, shall take into 
account : 
(a) Their relevance to the objectives of this Agreement; 
(b) Their environmental and social effects; 
(c) The desirability of maintaining an appropriate geographical 
balance; 
(d) The interests and characteristics of each of the developing 
producing regions; 
(e) The desirability of equitable distribution of resources among the 
fields referred to in paragraph l of this article; 
(f) Their cost-effectiveness : and 
(g) 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 from 
the Organization, as well as for their implementation, monitoring and 
evaluation. The Council snail decide on the approval of ore-projects- and 
projects for financing or sponsorship in accordance with article 20 or 
article 21. 
4. The Executive Director may suspend disbursement of the Organization's 
funds to a pre-project or project if they are being used contrary to the 
project document or in cases of fraud, waste, neglect or mismanagement. 
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The Executive Director will provide to the Council at its next session a 
report for its consideration. The Council shall take appropriate action. 
5. The Council may, by special vote, terminate its sponsorship of any 
pre-project or project. 
Article 26 
Establishment of Committees 
1. The following are hereby established as Committees of the Organization: 
(a) Committee on Economic Information and Market Intelligence; 
(b) Committee on Reforestation and Forest Management; 
(c) Committee on Forest Industry; and 
(d) Committee on Finance and Administration. 
2. The Council may, by special vote, establish such other committees and 
subsidiary bodies as it deems appropriate and necessary. 
3. Participation in each of the committees shall be open to all members. 
The rules of procedure of the committees shall be decided by the Council. 
4 . The committees and subsidiary bodies referred to in paragraphs 1 and 2 of 
this article shall be responsible to, and work under the general direction of, 
the Council. Meetings of the committees and subsidiary bodies shall be 
convened by the Council. 
Article 27 
Functions of the Committees 
1. The Committee on Economic Information and Market Intelligence shall: 
(a) Keep under review the availability and quality of statistics and 
other information required by the Organization; 
(b) Analyse the statistical data and specific indicators as decided by 
the Council for the monitoring of international timber trade; 
(c) Keep under continuous review the international timber market, its 
current situation and short-term prospects on the basis of the data mentioned 
in subparagraph (b) above and other relevant information, including 
information related to undocumented trade; 
(d) Make recommendations to the Council on the need for, and nature of, 
appropriate studies on tropical timber, including prices, market elasticity, 
market substitutability, marketing of new products, and long-term prospects of 
the international tropical timber market, and monitor and review any studies 
commissioned by the Council; 
3>S 
(e) Carry out any other tasks related to the economic, technical and 
statistical 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 of 
forest activities in member countries, inter alia, in the following areas: 
(i) Reforestation; 
(ii) Rehabilitation; 
(iii) Forest management; 
(b) Encourage the increase of technical assistance and transfer of 
technology in the fields of reforestation and forest management to developing 
countries; 
(c) Follow up on-going activities in this field, and identify and 
consider problems and possible solutions to them in cooperation with the 
competent organizations; 
(d) Review regularly the future needs of international trade in 
industrial 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 reforestation 
and forest management with the assistance of competent organizations; 
(f) Coordinate and harmonize these activities for cooperation in the 
field 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), the 
World Bank, the United Nations Development Programme (UNDP), regional 
development banks and ether competent organizations. 
3. The Committee on Forest Industry shall: 
(a) Promote cooperation between member countries as partners in the 
development of processing activities in producing member countries, 
inter alia, in the following areas: 
(i) Product development through transfer of technology; 
(ii) Human resources development and training; 
(iii) Standardization of nomenclature of tropical timber,-
(iv) Harmonization of specifications of processed products; 
ko 
(v) Encouragement of investment and joint ventures; and 
(vi) Marketing including the promotion of lesser known and 
lesser used species; 
(b) Promote the exchange of information in order to facilitate 
structural changes involved in increased and further processing in the 
interests of all member countries, in particular developing member countries; 
(c) Follow up on-going activities in this field, and identify and 
consider problems and possible solutions to them in cooperation with the 
competent organizations; 
(d) Encourage the increase of technical cooperation for the processing 
of tropical timber for the benefit of producing member countries. 
4. In order to promote the policy and project work of the Organization in 
a balanced manner, the Committee on Economic Information and Market 
Intelligence, the Committee on Reforestation and Forest Management and 
the Committee on Forest Industry shall each: 
(a) Be responsible for ensuring the effective appraisal, monitoring and 
evaluation of pre-projects and projects; 
(b) Make recommendations to the Council relating to pre-projects and 
projects; 
(c) Follow up the implementation of pre-projects and projects and 
provide for the collection and dissemination of their results as widely as 
possible for the benefit of all members; 
(d) Develop and advance policy ideas to the Council; 
(e) Review regularly the results of project and policy work and make 
recommendations to the Council on the future of the Organization's programme; 
(f) Review regularly the strategies, criteria and priority areas for 
programme development and project work contained in the Organization's Action 
Plan and recommend revisions to the Council; 
(g) Take account of the need to strengthen capacity-burlding and human 
resource development in member countries; 
(h) Carry out any other task related to the objectives of this 
Agreement assigned to them by the Council. 
5. Research and development shall be a common function of the Committees 
referred to in paragraphs 1, 2, and 3 of this article. 
6. The Committee on Finance and Administration shall: 
(a) Examine and make recommendations to the Council regarding the 
approval of the Organization's administrative budget proposals and the 
management operations of the Organization; 
41 
(b) Review the assets of the Organization to ensure prudent asset 
management and that the Organization has sufficient reserves to carry out its 
work ; 
(c) Examine and make recommendations to the Council on the budgetary 
implications of the Organization's annual work programme, and the actions that 
might be taken to secure the resources needed to implement it; 
(d) Recommend to the Council the choice of independent auditors and 
review the independent audited statements; 
(e) Recommend to the Council any modifications it may judge necessary 
to the Rules of Procedure or the Financial Rules; 
(f) Review the Organization's revenues and the extent to which they 
constrain the work of the Secretariat; 
H% 
CHAPTER VIII. RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES 
Article 28 
Relationship with the Common Fund for Commodities 
The Organization shall take full advantage of the facilities of the 
Common Fund for Commodities. 
M^ 
CHAPTER IX. STATISTICS, STUDIES AND INFORMATION 
Article 29 
Statistics, studies and information 
1. The Council shall establish close relationships with relevant 
intergovernmental, governmental and non-governmental organizations, in order 
to help ensure the availability of recent reliable data and information on the 
trade in tropical timber, as well as relevant information on non-tropical 
timber and on the management of timber producing forests. As deemed necessary 
for the operation of this Agreement, the Organization, in cooperation with 
such organizations, shall compile, collate and, where relevant, publish 
statistical information on production, supply, trade, stocks, consumption and 
market prices of timber, the extent of timber resources and the management of 
timber producing forests. 
2. Members shall, to the fullest extent possible not inconsistent with their 
national legislation, furnish, within a reasonable time, statistics and 
information 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 type 
of 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 the 
trends and of short- and long-term problems of the international timber 
markets and of the progress towards the achievement of sustainable management 
of timber producing forests. 
Article 30 
Annual report and review 
1. The Council shall, within six 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 international timber situation; 
(b) Other factors, issues and developments considered relevant to 
achieve 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, stocks, consumption and prices of timber; 
(b) Other statistical data and specific indicators provided by members 
as requested by the Council; 
^ 
(c) Information supplied by members on their progress towards the 
sustainable management of their timber producing forests; 
(d) Such other relevant information as may be available to the Council 
either directly or through the organizations in the United Nations system and 
intergovernmental, governmental or non-governmental organizations. 
4. The Council shall promote the exchange of views among member countries 
regarding : 
(a) The status of sustainable management of timber producing forests 
and related matters in member countries; 
(b) Resource flows and requirements in relation to objectives, criteria 
and guidelines set by the Organization. 
5. Upon request, the Council shall endeavour to enhance the technical 
capacity of member countries, in particular developing member countries, to 
obtain the data necessary for adequate information-sharing, including the 
provision of resources for training and facilities to members. 
6. The results of the review shall be included in the reports of the 
Council's deliberations. 
^ 
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 of 
this 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. Members 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, the 
Council may, by special vote, relieve a member of an obligation under this 
Agreement if it is satisfied by an explanation from that member regarding the 
reasons why the obligation cannot be met. 
2. The Council, in granting relief to a member under paragraph 1 of this 
article, shall state explicitly the terms and conditions on which, and the 
period 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 by 
measures taken under this Agreement may apply to the Council for appropriate 
differential and remedial measures. The Council shall consider taking 
appropriate measures in accordance with section III, paragraphs 3 and 4, of 
resolution 93 (IV) of the United Nations Conference on Trade and Development. 
2. Members in the category of least developed countries as defined by the 
United Nations may apply to the Council for special measures in accordance 
with section III, paragraph 4, of resolution 93 (IV) and with paragraphs 56 
and 57 of the Paris Declaration and Programme of Action for the Least 
Developed Countries for the 1990s. 
H 6 
Article 35 
Review 
The Council shall review the scope of this Agreement four years after its 
entry into force. 
Article 36 
Non-discrimination 
Nothing in this Agreement authorizes the use of measures to restrict or 
ban international trade in, and in particular as they concern imports of and 
utilization of, timber and timber products. 
4* 
CHAPTER XI. FINAL PROVISIONS 
Article 37 
Depositary 
The Secretary-General of the United Nations is hereby designated as the 
depositary of this Agreement. 
Article 38 
Signature, ratification, acceptance and approval 
1. This Agreement shall be open for signature, at United Nations 
Headquarters 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 Successor Agreement to the International Tropical Timber 
Agreement, 1983. 
2. Any Government referred to in paragraph 1 of this article may: 
(a) At the time of signing this Agreement, declare that by such 
signature it expresses its consent to be bound by this Agreement (definitive 
signature); or 
(b) After signing this Agreement, ratify, accept or approve it by the 
deposit of an instrument to that effect with the depositary. 
Article 39 
Accession 
1. This Agreement shall be open for accession by the Governments of all 
States upon conditions established by the Council, which shall include a 
time-limit for the deposit of instruments of accession. The Council may, 
however, grant extensions of time to Governments which are unable to accede by 
the time-limit set in the conditions of accession. 
2. Accession shall be effected by the deposit of an instrument of accession 
with the depositary. 
Article 40 
Notification of provisional application 
A signatory Government which intends to ratify, accept or approve this 
Agreement, or a Government for which the Council has established conditions 
for accession but which has not yet been able to deposit its instrument, may, 
at any time, notify the depositary that it will apply this Agreement 
provisionally either when it enters into force in accordance with article 41, 
or, if it is already in force, at a specified date. 
H2 
Article 41 
Entry into force 
1. This Agreement shall enter into force definitively on 1 February 1995 or 
on any date thereafter, if 12 Governments of producing countries holding at 
least 55 per cent of the total votes as set out in annex A to this Agreement, 
and 16 Governments of consuming countries holding at least 70 per cent of the 
total votes as set out in annex B to this Agreement have signed this Agreement 
definitively or have ratified,, accepted or approved it or acceded thereto 
pursuant to article 38, paragraph 2, or article 39. 
2. If this Agreement has not entered into force definitively 
on 1 February 1995, it shall enter into force provisionally on that date or on 
any date within six months thereafter, if, 10 Governments of producing 
countries holding at least 50 per cent of the total votes as set out in annex 
A to this Agreement, and 14 Governments of consuming countries holding at 
least 65 per cent of the total votes as set out in annex B to this Agreement, 
have signed this Agreement definitively or have ratified, accepted or approved 
it pursuant to article 38, paragraph 2, or have notified the depositary under 
article 40 that they will apply this Agreement provisionally. 
3. If the requirements for entry into force under paragraph 1 or paragraph 2 
of this article have not been met on 1 September 1995, the Secretary-General 
of the United Nations shall invite those Governments which have signed this 
Agreement definitively or have ratified, accepted or approved it pursuant to 
article 38, paragraph 2, or have notified the depositary that they will apply 
this Agreement provisionally, to meet at the earliest time practicable to 
decide whether to put this Agreement into force provisionally or definitively 
among themselves in whole or in part. Governments which decide to put this 
Agreement 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. 
4. For any Government which has not notified the depositary under article 40 
that it will apply this Agreement provisionally and which deposits its 
instrument of ratification, acceptance, approval or accession after the entry 
into force o£ this Agreement, this Agreement shall enter into force on the 
date of such deposit. 
5. The Executive Director of the Organization shall convene "the Council as 
soon as possible after the entry into force of this Agreement. 
Article 42 
Amendments 
1. The Council may, by special vote, recommend an amendment of this 
Agreement to members. 
2. The Council shall .fix a date by which members shall notify the depositary 
of their acceptance of the amendment. 
W 
42 
3. An amendment shall enter into force 90 days after the depositary has 
received notifications of acceptance from members constituting at least 
two thirds of the producing members and accounting for at least 75 per cent of 
the votes of the producing members, and from members constituting at least 
two thirds of the consuming members and accounting for at least 75 per cent of 
the votes of the consuming members. 
4 . After the depositary informs the Council that the requirements for entry 
into force of the amendment have been met, and notwithstanding the provisions 
of paragraph 2 of this article relating to the date fixed by the Council, a 
member may still notify the depositary of its acceptance of the amendment, 
provided that such notification is made before the entry into force of the 
amendment. 
5. Any member which has not notified its acceptance of an amendment by the 
date on which such amendment enters into force shall cease to be a party to 
this Agreement as from that date, unless such member has satisfied the Council 
that its acceptance could not be obtained in time owing to difficulties in 
completing its constitutional or institutional procedures, and the Council 
decides to extend for that member the period for acceptance of the amendment. 
Such member shall not be bound by the amendment before it has notified its 
acceptance thereof. 
6. If the requirements for the entry into force of the amendment have not 
been met by the date fixed by the Council in accordance with paragraph 2 of 
this article, the amendment shall be considered withdrawn. 
Article 43 
Withdrawal 
1. A member may withdraw from this Agreement at any time after the entry 
into force of this Agreement by giving written notice of withdrawal to the 
depositary. That member shall simultaneously inform the Council of the action 
it has taken. 
2 . Withdrawal shall become effective 90 days after the notice is received by 
the depositary. 
3. Financial obligations to the Organization incurred by a member under this 
Agreement shall not be terminated by its withdrawal. 
Article 44 
Exclusion 
If the Council decides that any member is in breach of its obligations 
under this Agreement and decides further that such breach significantly 
impairs the operation of this Agreement, it may, by special vote, exclude that 
member from this Agreement. The Council shall immediately so notify the 
depositary. Six months after the date of the Council's decision, that member 
shall cease to be a party to this Agreement. 
o~0 
••.V!Ç£v 
Article 45 
Settlement of accounts with withdrawing or excluded members 
or members unable to accept an amendment 
1. The Council shall determine any settlement of accounts with a member 
which ceases to be a party to this Agreement owing to: 
(a) Non-acceptance of an amendment to this Agreement under article 42; 
(b) Withdrawal from this Agreement under article 43; or 
(c) Exclusion from this Agreement under article 44. 
2. The Council shall retain any contribution paid to the Administrative 
Account, to the Special Account or to the Bali Partnership Fund by a member 
which ceases to be a party to this Agreement. 
3. A member which has ceased to be a party to this Agreement shall not be 
entitled to any share of the proceeds of liquidation or the other assets of 
the Organization. Nor shall such member be liable for payment of any part of 
the deficit, if any, of the Organization upon termination of this Agreement. 
Article 46 
Duration, extension and termination 
1. This Agreement shall remain in force for a period of four years after its 
entry into force unless the Council, by special vote, decides to extend, 
renegotiate or terminate it in accordance with the provisions of this article. 
2. The Council may, by special vote, decide to extend this Agreement for 
two periods of three years each. 
3. If, before the expiry of the four-year period referred to in paragraph 1 
of this article, or before the expiry of an extension period referred to in 
paragraph 2 of this article, as the case may be, a new agreement to replace 
this Agreement has been negotiated but has not yet entered into force either 
definitively or provisionally, the Council may, by special vote, extend this 
Agreement until the provisional or definitive entry into force of the new 
agreement. 
4. If a new agreement is negotiated and enters into force during any period 
of extension of this Agreement under paragraph 2 or paragraph 3 of this 
article, this Agreement, as extended, shall terminate upon the entry into 
force of the new agreement. 
5. The Council may at any time, by special vote, decide to terminate this 
Agreement with effect from such date as it may determine. 
S>1 
6. Notwithstanding the termination of this Agreement, the Council shall 
continue in being for a period not exceeding 18 months to carry out the 
liquidation of the Organization, including the settlement of accounts, and, 
subject to relevant decisions to be taken by special vote, shall have during 
that period such powers and functions as may be necessary for these purposes. 
7. The Council shall notify the depositary of any decision taken under this 
article. 
Article 47 
Reservations 
Reservations may not be made with respect to any of the provisions of 
this Agreement. 
Article 48 
Supplementary and transitional provisions 
1. This Agreement shall be the successor to the International Tropical 
Timber Agreement, 1983. 
2. All acts by or on behalf of the Organization or any of its organs under 
the International Tropical Timber Agreement, 1983, which are in effect on the 
date of entry into force of this Agreement and the terms of which do not 
provide for expiry on that date shall remain in effect unless changed vr^â^r 
the provisions of this Agreement. 
IN WITNESS WHEREOF the undersigned, being duly authorized thereto, hi 
affixed their signatures under this Agreement on the dates indicated. 
DONE at Geneva, on twenty-six January, one thousand nine hundred and 
ninety-four, the text of this Agreement in the Arabic, Chinese, English, 
French, Russian and Spanish languages being equally authentic. 
?~Z_ 
ANNEX A 
List of producing countries with tropical forest resources 
and/or net exporters of tropical timber in volume terms, 
and allocation of votes for the purposes of article 41 
Bolivia 21 
Brazil 133 
Cameroon 2 3 
Colombia 24 
Congo 2 3 
Costa Rica 9 
Côte d'Ivoire 23 
Dominican Republic 9 
Ecuador 14 
El Salvador 9 
Equatorial Guinea 23 
Gabon 2 3 
Ghana 2 3 
Guyana 14 
Honduras 9 
India 34 
Indonesia 170 
Liberia 23 
Malaysia 139 
Mexico 14 
Myanmar 3 3 
Panama 10 
Papua New Guinea 2 8 
Paraguay 11 
Peru 2 5 
Philippines 25 
Thailand 20 
Togo 2 3 
Trinidad and Tobago 9 
United Republic of Tanzania 23 
Venezuela 10 
Zaire 2 3 
Total 1 00i 
Th 
ANNEX B 
List of consuming countries and allocation of votes 
for the purposes of article 41 
Afghanistan 10 
Algeria 13 
Australia 18 
Austria 11 
Bahrain 11 
Bulgaria 10 
Canada 12 
Chile 10 
China 36 
Egypt 14 
European Community (302) 
Belgium/Luxembourg 26 
Denmark 11 
France 44 
Germany 3 5 
Greece 13 
Ireland 13 
Italy 35 
Netherlands 40 
Portugal 18 
Spain 25 
United Kingdom 4 2 
Finland 10 
Japan 320 
Nepal 10 
New Zealand 10 
Norway 10 
Republic of Korea 97 
Russian Federation 13 
Slovakia 11 
Sweden 10 
Switzerland t 11 
United States cf America 51 
^ctal 1 000 
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