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Vol. 1983/ 0039 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
C O M M I S S I O N  
O K  T H E
E U R O P E A N  C O M M U N I T I E S
Gencrol f-ocretnriotC O M (8 3 ) 1 2 9  final 
Brussels, 1 1  M a rc h  1 9 8 3
FOR OFFICIAL U S E  ONLY
C O M M I S S I O N  C O M M U N I C A T I O N  T O  T H E  C O U N C I L
concerning the negotiation o f a n  international agreem ent 
o n  tropical tim ber
(G en ev a, 1 4 -3 1  M a rc h  1 9 8 3 )
C 0 M ( 8 3 )  1 2 9  final

■i|·.
I
: i  C o m m issio n  com m u n icatio n  to the C ouncil concerning the 
negotiation of a n  international ag reem en t o n  tropical tim ber 
(G en ev a, 1 4 -3 1  M a rc h  1 9 8 3 )
Int roduct i  o n
T h e  U nited Nations C onference o n  Tropical T im b e r to b e  held in  G e n e v a  
fro m  1 4  to 3 1  M a rc h  1 9 8 3  will h a v e  to agree o n  the provisions o f a n  
international agreem ent o n  tropical tim ber.
T his Conference will b e  the o u tc o m e  o f lengthy preparatory w o rk , w h ic h  
actually c o m m e n c e d  as far b ack  a s M a y  1 9 7 7  u n d er the UNCTAD Integrated 
P ro g ra m m e  for C om m odities.
It em erged fro m  the initial exchanges o f v ie w s in  1 9 7 7  that producers a n d  
consum ers recognized that an  agreem ent in  this sphere could n o t com prise 
price stabilization m easures involving the regulation o f supply, notably 
through storage, since the characteristics o f the product w e re  su c h  that 
it w a s  m u c h  better to leave the trees unfelled if m arkets shrank.
T h e  discussions held at the six preparatory m eetings, the m eetings o f 
experts o n  research a n d  d evelopm ent a n d  o n  m ark et information a n d  a  
m eeting o n  institutions a n d  allied issues w e re  consequently geared to a n  
agreem ent involving "other m easures" (often described a s a  "second 
w in d o w "  agreem ent w ith reference to the structures o f the C o m m o n  F u n d  for 
Com m odities).
O n  the basis of the general provisions o f the 1 9 8 2  International Jute 
A greem ent, it is planned to set u p  a n  international organization for 
tropical timber, w h ic h  w o u ld  b e  responsible for im plem enting the agreem ent 
a n d  supervising its operation. T h e  negotiations will focus o n  the 
following essential co m p o n en ts to b e  incorporated in  this international 
fram ew o rk  for cooperation b etw een  producer a n d  co n su m e r countries: the
objectives, definitions, institutional a n d  administrative provisions, 
the financial aspects, the operational activities, inform ation a n d  
studies.

-  2 -
T h e  operational activities com prise m ainly exam ining a n d  approving 
projects, w orking out term s of financing a n d  ensuring their proper 
implementation, in the following four spheres: research a n d  developm ent,
information, processing, a n d  reafforestation a n d  forest m an ag em en t. T h e  
projects m u st m e e t certain criteria already established or still to b e  
laid d o w n : they m u st b e  financed fro m  a  special account funded b y  
contributions fro m  the second w in d o w  o f the C o m m o n  F u n d , regional a n d  
international financial institutions a n d  voluntary donors. T h e  agreem ent 
w o u ld  b e  concluded for a  m in im u m  o f five years.
E co n o m ic  im portance o f tropical tim ber
Tropical timber constitutes o n e  o f the m o s t im portant resources o f m a n y  
developing countries in  Africa, A m e ric a  a n d  A sia.
T h e  w orld m arket in  tropical tim ber is highly competitive. T h ere are a  
great m a n y  producers, sellers a n d  purchasers, a n d  a  very w id e  product 
range m e a n s there are n o  w o rld  prices a s such. R egular quotations are 
issued, how ever, for certain products a n d  o n  certain m arkets, a n d  these 
set the "m arket trend," w h ic h  w o u ld  appear to b e  o n  a n  u p w a rd  sw in g  for 
the next decade, given the g a p  b etw een  potential d e m a n d  a n d  available 
supplies plus the increase in  operating costs. T h e  v o lu m e  o f exports o f 
logs will probably decline, w h ereas the v o lu m e  o f finished w o o d  products 
should increase fro m  3 %  to 4 %  in  the next decade.
T h e  com m ercial value o f tropical tim ber reached the appreciable figure 
o f 8 7  6 0 0 m  in  1980, of w h ic h  8 4  3 0 0 m  w a s  attributable to logs, 8 1  9 0 0 m  to 
s a w n  w o o d , 8 3 0 0 m  to veneer sheets a n d  8 1  1 0 0 m  to p ly w o o d .
A sian producers account for over 7 5 %  o f the total value o f exports 
(M alaysia 3 4 % , Indonesia 3 1 % , Philippines 8 % ). African producers c o m e  
second w ith alm ost 1 8 %  o f the value o f exports (Ivory C o ast 8 % ), w h ereas 
Latin A m erican producers, w h o  h a v e  e n o rm o u s potential, cannot e v e n  claim  
6 %  (Brazil 3 % ).
T h e  value of exported tim ber m a y  b e  broken d o w n  b y  category a s follows: 
6 5 %  logs, 2 5 %  s a w n  w o o d , 2 .7 %  veneer sheets, 6 .7 %  p ly w o o d . T h e  value o f 
processed products (veneer sheets a n d  p ly w o o d ) exported b y  the producer 
countries accounts for less than 1 0 %  o f the value o f total exports, w hile 
exports of su ch  products fro m  transit processing countries a m o u n t to 
double this figure.

-  3 -
Europe's consum ption ( 3 9 % , o f w h ic h  the C o m m u n ity  3 4 % )  is slightly lo w er 
than Asia's (4 1 % , o f w h ic h  Japan 4 0 % ); o f the rem aining 2 0 %  the U nited 
States accounts for 1 0 % .
T h e  re-exporting and/or processing transit countries are net im porters 
o w in g  to their high lo g  consum ption a n d  despite the large v o lu m e  o f 
p ly w o o d  w h ich  they export.
T h e  pattern of average unit values b y  stage o f processing is a s follows: 
logs 2101, s a w n  w o o d  2 2 1 2 , veneer sheets 2 3 5 0 , p ly w o o d  2 3 0 9  (per m ^  at the 
fob stage).
T h e  average unit values b y  geographical region are a s follows: Africa
2141, A sia 2100, Latin A m e ric a  2 1 3 6 , all categories o f African w o o d  
having a  m u c h  higher value than A sian  w o o d .
*
*  ★
In  the light o f the foregoing a n d  given the prospect o f a  n e w  contribution 
fro m  the C o m m u n ity  a n d  its M e m b e r  States to the im plem entation o f the 
U N C T A D  Integrated P ro g ra m m e  for C o m m o d ities, the C o m m issio n  proposes that 
the C o m m u n ity  a n d  the M e m b e r  States should participate in  the U nited 
Nations C onference o n  Tropical T im b e r in  accordance w ith  the custom ary 
procedures a n d  o n  the basis o f a  draft c o m m o n  position, a s set o u t in  the 
A n n e x  to the C o m m u n icatio n "'.
S e e  C ouncil d o cu m en t P ro b a 2 0  o f 2 7  M a rc h  1 9 8 1 .

A N N E X
Draft c o m m o n  position o f the C o m m u n ity  a n d  its M e m b e r  States for 
the negotiation o f a n  International A g re e m e n t o n  Tropical T im b er
T his c o m m o n  position is designed to provide the necessary negotiating 
flexibility a n d  to enable the C o m m u n ity  a n d  its M e m b e r  States to 
participate in a  final agreem ent, taking account o f the positions likely 
to b e  put forw ard b y  other participants in the course o f the negotiations. 
It is possible that, in  the light o f the developm ent o f the negotiations, 
it will b e  necessary to m o d ify  o r supplem ent this position. S h o u ld  
difficulties arise o n  the spot, they will b e  referred to the Council's 
bodi es.
I. O B J E C T I V E S
T h e  basic objectives o f the C o m m u n ity  a n d  its M e m b e r  States in  negotiating 
a n  International A g ree m e n t o n  Tropical T im b er, account being taken o f the 
provisions of U N C T A D  Resolutions 93(IV ) a n d  124C V ), are in particular:
1 . to prom ote harm onious expansion a n d  reasonable equilibrium o f the 
international m arket in  tropical tim ber;
2 . to im p ro v e the quality a n d  p ro m o te the u se of tropical timber, including 
less w idely k n o w n  a n d  u sed  varieties, in  international trade a n d  for 
dom estic consum ption;
3. to im prove the m arketing a n d  distribution o f producing m e m b e rs' 
tropical timber;
4 . to encourage producing m e m b e rs' processing activities, w ith a  v iew  
encouraging their industrialization a n d  increasing their export 
earnings;to

5 . to im prove the regularity a n d  ad eq u acy  o f supplies of tropical 
timber to the C o m m u n ity .
T h e se  objectives c a n  b e  attained th r o u g h  th e incorporation in  th e  
A g r e e m e n t of fou r basic c o m p o n e n ts : resea rch  a n d  d ev elo p m en t; im p r o v e m e n t
of m a r k e t inform ation; ex p a n sio n  a n d  intensification o f processing  
activities in  th e developing p ro d u cin g  countries; reafforestation a n d  
forest m a n a g e m e n t.
M A I N  P R O V I S I O N S  O F  T H E  A G R E E M E N T
1 . Establishment o f a n  International Tropical T im b e r Organization (IT T O ).
T h e  C o m m u n ity  a n d  its M e m b e r  States agree to the establishment o f a n  
International Tropical T im b e r Organization to apply the provisions a n d  
supervise the operation o f the A g reem en t, w ith  structures a s lightweight 
as is compatible w ith the successful perform ance o f its activities.
2 . Definition of tropical tim ber.
T h e  definition o f tropical tim ber shall cover non-coniferous industrial 
tropical w o o d . T h e  term  "tropical tim ber" shall refer m ainly to tropical 
logs a n d  s a w n  timber; it will also include veneer sheets a n d  p ly w o o d  
m a d e  entirely or for the m o s t part fro m  tropical timber, it being 
understood that the processing coefficients shall appear in u n h e w n  tim ber 
equivalent in the A g reem en t.
3 . Headquarters o f the International Tropical T im b e r Organization.
T o  enable the Organization to receive the m a x im u m  possible back-up fro m  
the facilities, services a n d  expertise o f existing organizations, in  
particular F A O ,  preference should b e  given to a n y  proposed location for 
the Organization's headquarters that w o u ld  perm it it to m a k e  the m o s t o f 
those faci li t i  es.
A . Allocation o f votes.
V o tes in the C ouncil should b e  split equally betw een  producer m e m b e rs  
a n d  consum er m em b ers.
W ithin each group the n u m b e r o f votes held b y  ea ch  country will b e  related 
to its share of net w o rld  exports o r im ports, a s applicable. It w o u ld  b e

h
understood that L im ited departures fro m  this principle within each  g roup 
w o u ld  b e  com patible w ith the allocation o f a n  appropriate n u m b e r o f 
initial votes.
5 . Cooperation w ith existing bodies.
T h e  International Tropical T im b e r Organization shall, a s regards its 
institutional structures a n d  the perform ance o f its functions, receive the 
m a x im u m  possible back-up from , a n d  m a k e  full u se of, the facilities, 
services a n d  expertise o f existing organizations su c h  as F A O ,  E C E , IT C ,
U N I D O  an d  U N C T A D .
6. Financing.
T h e  Organization's administrative account shall b e  fu nded b y  direct 
contributions m a d e  b y  each  participant in  proportion to the votes it holds 
in the Tropical T im b e r C ouncil.
T h e  Organization's p ro g ra m m e s o n  research a n d  developm ent, m arket 
information, processing, a n d  reafforestation a n d  forest m a n a g e m e n t will b e  
financed m ainly fro m  the second w in d o w  o f the C o m m o n  F u n d , b y  other 
international or regional financial institutions a n d  b y  voluntary contri­
butions. T h e  financing o f the organization's p ro g ra m m e s will b e  based o n  
individually approved projects. H o w e v e r, in  the event o f funds being 
offered voluntarily a n d  unearm arked to the Organization, the C ouncil shall 
consider allowing these funds to b e  allocated to projects already approved 
under specific p ro g ram m es.
7 . Criteria for the approval of projects.
In  order to b e  approved b y  the Tropical T im b e r Council, projects concerning 
m arket information, processing, or reafforestation a n d  forest m a n a g e m e n t 
should as far as possible m e e t the criteria already set for research a n d  
developm ent projects or at least m e e t criteria adopted b y  the Council.
8. C om m ittees.
T w o  com m ittees should b e  set u p  a s perm anent bodies, n am ely  a  C o m m ittee o n  
Projects a n d  a n  A dvisory Technical C o m m ittee, it being understood that the 
C ouncil could set u p  a d  h o c  com m ittees if it decided there w a s  a  need..

T h e  first of these com m ittees will e x a m in e a n d  assess proposals for projects, 
take decisions o n  a n y  preliminary operations considered essential, m a k e  
recom m endations concerning these projects, a n d  determ ine possible sources o f 
financing; it will m onitor the execution o f the projects a n d  publish the 
results achieved.
T h e  second will study the n eed  for, a n d  w a y s  of im plem enting, im provem ents 
an d  incentives in the spheres o f standardization, processing a n d  
reafforestation.
'9 . M ark et information.
T h e  A g reem en t should provide for discussion b y  the C ouncil of the m arket 
situation a n d  prospects, o n  the basis o f the data a n d  forecasts presented 
b y  the Executive Director.
10. C o m m o n  F u n d .
T h e  provisions o f the A g re e m e n t should b e  su c h  that full advantage c a n  b e  
taken o f the facilities offered b y  the C o m m o n  F u n d , w h e n  the F u n d  b e c o m e s 
operat i  o n a l.
1 1 . Entry into force.
T h e  A g reem en t should enter into force if, at a  date to b e  set, the net 
w orld export a n d  im port rates o f the participant countries reach percentages 
to b e  determ ined o n  the basis o f the products covered. T h e  C o m m u n ity  a n d  
its M e m b e r  States will press for the w idest possible participation in the 
A greem ent.
1 2 . Duration of the A g reem en t.
T h e  A g reem en t could h av e a  five-year period o f validity, w ith the possibility 
of extension for tw o  further periods o f o n e  year each.
1 3 . Special arrangem ents for certain g ro u p s o f developing countries.
Special arrangem ents could b e  established for the least developed countries 
if they so  desired.