WRITTEN QUESTION E-0067/03 by Olivier Dupuis (NI) to the Commission. Heavy deforestation in Laos.
Date: 2003-01-23
Institutions: European Parliament, Provisional data
Subjects: EU relations, Laos, cooperation policy, deforestation, forestry holding, illicit trade, public sector

18.9.2003

EN

Official Journal of the European Union

C 222 E/147

(2003/C 222 E/170)

WRITTEN QUESTION E-0067/03

by Olivier Dupuis (NI) to the Commission

(23 January 2003)

Subject: Heavy deforestation in Laos

On 12 December, the ‘Bangkok Post’ published an article about the arrest of six Vietnamese workers
employed by the Laotian ‘DAFI’ company who had been arrested for illegally entering Thailand with two
trucks,
in order to pick up 300 tree trunks. The event has drawn attention to the lucrative wood-
trafficking business, in which it appears that high-ranking Laotian Communist officials have been actively
involved, with complete impunity, for nearly three decades. In the Lao People’s Democratic Republic, the
state companies DAFI, AFD and Phoudoï maintain an effective monopoly over fuel imports, the mining of
ore and the exploitation of
forests. According to an international report on the timber trade and
exploitation of forests (cid:1) ‘The Poverty Reduction and Environmental Management in Remote Greater
Mekong Sub-region Watersheds project and its Timber Trade and Wood Flow’ (cid:1) DAFI, AFD and
PHOUDOÏ are literally ‘above the law’. The report states that, in spite of rules on logging quotas and forest
production practices, the Ministry of Agriculture and Forestry has no control over the three highly unusual
companies, whose working procedures remain a mystery. Several
international environmental organi-
sations, such as Global Witness, the Environmental Investigation Agency, the International Tropical Timber
Organization and the Earth Policy Institute have denounced the Lao PDR authorities’ continued and
‘deliberate’ practice of deforestation and ‘illegal trafficking’ of wood, and have alerted the Thai government
to the situation. According to thesesources, such practices have led to a reduction in the percentage of the
country covered by forest to ‘less than 40 %’ compared to the 70 % recorded 30 years ago, just before the
Communists took power.

Is the Commission aware of the practices of the Laotian state companies? Does the Commission not
believe these practices to be wholly at odds with the programmes financed by the international community
to fight against deforestation in Laos? Does the Commission not consider that,
in response to this
umpteenth example of serious misappropriation of funding from international donors, it should suspend
all cooperation programmes with Laos and propose that the Council adopt a similar position as regards
bilateral cooperation programmes between the Member States and Lao PDR?

Answer given by Mr Patten on behalf of the Commission

(24 February 2003)

The Commission’s assessment of the economic and political development in Lao People’s Democratic
Republic (PDR) and the nature of Community assistance to LAO PDR, is outlined in the Community (cid:1)
Lao PDR Country Strategy Paper (1), which was adopted in 2002 after agreement by Member States. The
Commission’s views on the situation in the environment/forestry sector are set out
in the paper,
demonstrating the Commission’s continued concern about the current level of deforestation in Laos.

the population living on less than USD 1 per day. Consequently,

Laos is the poorest of the Southeast Asian countries, with a gross domestic product per capita of only
USD 350 and with 30 % of
the
development programmes of the Commission and of Member States focus on the most vulnerable
segments of the population. Rural development, including the improvement of living conditions of families
located in buffer zones of forest areas, health and basic education are the main areas of intervention, with
particular attention being given to human rights and good governance actions. No Community support is
given to the forestry sector nor to the four state companies mentioned in the Honourable Member’s
question.

In agreement with Member States, the Commission maintains a policy of constructive political dialogue
with the Laotian government, alongside continued support to the Laotian population through Community-
assisted development programmes, which aim to support and accelerate the democratisation process in the
country.

(1) http://europa.eu.int/comm/external_relations/lao/csp/02_06_en.pdf.