CELEX: 51995PC0542
Language: en
Date: 1996-01-10
Title: 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

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)
 ---pagebreak---  ---pagebreak---                                 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.
 ---pagebreak---  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.
 ---pagebreak--- 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.
 ---pagebreak--- 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.
 ---pagebreak---                           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
 ---pagebreak--- 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
                                        ¥
 ---pagebreak---                      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.
                                    ?
 ---pagebreak---                                      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.
 ---pagebreak---    UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
                         Geneva
INTERNATIONAL TROPICAL
TIMBER AGREEMENT, 1994
                  UNITED NATIONS
                New York and Geneva, 1994
 ---pagebreak---                                     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
                                    AA
 ---pagebreak---                                     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
 ---pagebreak---  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
 ---pagebreak---                             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
 ---pagebreak---      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                               Japan
  Algeria                                   Liberia
  Australia                                 Luxembourg* *
  Austria                                   Malaysia
  Bahrain                                   Mexico
  Belgium* *                                Myanmar
  Bolivia                                   Nepal
  Brazil                                    Netherlands
  Bulgaria                                  New Zealand
  Cameroon                                  Norway
  Canada                                    Panama
  Chile                                     Papua New Guinea
  China                                     Paraguay
  Colombia                                  Peru
  Congo                                     Philippines
  Costa Rica                                Portugal
  Côte d'Ivoire                             Republic of Korea
  Denmark                                   Russian Federation
  Dominican Republic                        Slovakia
  Ecuador                                   Spain
  Egypt                                     Sweden
  El Salvador                               Switzerland
  Equatorial Guinea                         Thailand
  Finland                                   Trinidad and Tobago
  France                                    United Kingdom of Great Brita.
  Gabon                                        and Northern Ireland
  Germany                                   United Republic of Tanzania
  Ghan.-;                                   United States ct America
  Greece                                    Venezuela
                                             ,urcoean
   ;cserve:
                                     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"
 ---pagebreak---          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
 ---pagebreak---          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
 ---pagebreak---                        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?
 ---pagebreak---                       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
 ---pagebreak---                   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
 ---pagebreak---                                  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
 35 .  Review
36.    Non-discrimination
                           CHAPTER XI.    FINAL PROVISIONS
37     Depositary
38.    Signature, ratification, acceptance and approval
39.   Accession
40.   Notification of provisional application
41.   Entry into force                    •
4 2.   Amendments
43.   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
 ---pagebreak---                                       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:
                                       £1
 ---pagebreak---                                                    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;
                                                            #3
 ---pagebreak---       (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.
                                  Stk
 ---pagebreak---                               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,-
                                  8"
 ---pagebreak--- 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.
                                  £6
 ---pagebreak---                                        - 19 -
                  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.
                                £t
 ---pagebreak---                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
                                       £8
 ---pagebreak---  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
                                        £<*
 ---pagebreak---         (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
                                         TJO
 ---pagebreak--- 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
                                   ^>i
 ---pagebreak--- 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.
                                         T>SL
 ---pagebreak---                       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.
                                         ^3
 ---pagebreak---                                 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.
                                     ^
 ---pagebreak--- 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.
                                   ^r
 ---pagebreak---  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.
                                       ^>G
 ---pagebreak---  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.
                                      3?
 ---pagebreak---                         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.
                                             ^>S
 ---pagebreak--- 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
 ---pagebreak---         (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
 ---pagebreak---              (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
 ---pagebreak---        (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%
 ---pagebreak---         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^
 ---pagebreak---                  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;
                                           ^
 ---pagebreak---        (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.
                                     ^
 ---pagebreak---                                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.
                                          H6
 ---pagebreak---                                    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*
 ---pagebreak---                             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
 ---pagebreak---                                     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
 ---pagebreak---                                           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
 ---pagebreak--- ••.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 4 2 ;
                (b)  Withdrawal from this Agreement under article 4 3 ; or
                (c)  Exclusion from this Agreement under article 4 4 .
         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
 ---pagebreak--- 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_
 ---pagebreak---                                       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                                  23
Colombia                                  24
Congo                                     23
Costa Rica                                  9
Côte d'Ivoire                             23
Dominican Republic                          9
Ecuador                                   14
El Salvador                                 9
Equatorial Guinea                         23
Gabon                                     23
Ghana                                     23
Guyana                                    14
Honduras                                    9
India                                     34
Indonesia                                170
Liberia                                   23
Malaysia                                 139
Mexico                                    14
Myanmar                                   33
Panama                                    10
Papua New Guinea                          28
Paraguay                                  11
Peru                                      25
Philippines                               25
Thailand                                  20
Togo                                      23
Trinidad and Tobago                         9
United Republic of Tanzania               23
Venezuela                                 10
Zaire                                     23
Total                                   1 00i
                                        Th
 ---pagebreak---                                                 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                                         35
    Greece                                          13
    Ireland                                         13
    Italy                                           35
    Netherlands                                     40
    Portugal                                        18
    Spain                                           25
    United Kingdom                                  42
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
U n i t e d States cf A m e r i c a                 51
 ^ctal                                            1 000
                                                   5-q
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(95) 542 final
                                             DOCUMENTS
EN                                                                           11
                                     Catalogue number : CB-CO-95-582-EN-C
                                                             ISBN 92-77-95539-2
Office for Official Publications of the European Communities
L-2985 Luxembourg