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WRM Bulletin
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OUR VIEWPOINT Three good human beings -Terence Freitas, Ingrid Washinawatek and Lahe'ena'e Gay- were murdered on March 4th in Colombia. A FARC guerrilla commander committed this outrageous and senseless crime, which has deserved universal condemnation. We strongly adhere to that condemnation. The news about these deaths --which add three more inocent victims to the thousants of other inocent people murdered in Colombia-- were carried by all the main news agencies. But they omitted to say why Terence, Ingrid and Lahe'ena'e were there in the first place. They weren't there on a tourist tour, nor were they trying to steal knowledge from indigenous peoples or plants for the biotechnology industry. They were there to support the struggle of the U'wa indigenous people against a giant oil multinational. Non of this was mentioned by the multinational media. As a sign of respect for the memory of the three people who lost their lives trying to do what they --and we-- believed should be done, it is our duty to focus our attention on the underlying situation which lead them to be in violence-torn Colombia. The people they were supporting --the U'wa-- are totally opposed to oil exploitation in their ancestral lands. As in many other countries, the Colombian government has not legally recognized the rights of these indigenous peoples to their own territory and has consequently opened up the area for oil exploration. The US based oil corporation Occidental Petroleum applied for a permit to drill, which although still pending at the Ministry of the Environment, sparked U'wa resistance to such plans. Both the company and the government are aware about this opposition --which could even end in the U'wa committing collective suicide-- but the possibility of profits for the former and exports for the latter have been more powerful than justice or self-determination. In order to try to counter the joint strength of a national government and a multinational oil company against the U'wa, their struggle received support from an important number of national and international organizations and also resulted in the creation of the U'wa Defense Working Group, whereTerence Freitas served as the coordinator. Both he, Ingrid and Lahe'ena'e had been working with the U'wa before leaving the area and losing their lives to a ruthless guerrilla commander. Our solidarity to them, to their families and friends must therefore express itself through a continued and increased support to the struggle of the U'wa against oil drilling in their territory, to allow them to live in peace. We are certain that this is what the three would have wished. We make ours the words of the The Hawai'i Statement, which says: "We extend our deepest sympathy and regards to the family and relatives of these fallen warriors, Lahe'ena'e Gay of the Pacific Cultural Conservancy International, Ingrid Washinawatok of the Menominee Nation, the Indigenous Women's Network and countless other organizations, and Terence Freitas, an environmental activist. Let us all pick up the fallen torches, let us continue the struggle. This fight is for our lands, our precious culture and life-giving sources. That is all we seek. Money and power breeds death and destruction...we do not ask for money or riches. We have our wealth in our lands and our cultural beliefs and values. Please, let us just live in nature, it is our way, it is the only way to preserve a future for our children, grandchildren and the generations yet unborn. We answer the call by other indigenous nations to unite in a concerted effort to protect our earth mother and stop needless killing and violence".
LOCAL STRUGGLES AND NEWS AFRICA Resistance to oil industry in Africa A workshop on "Petroleum and Local Resistance", organized by Environmental Rights Action, took place at Port Harcourt, Nigeria, from 9 to 14 February. Oilwatch Africa also held its assembly in the same place. Delegates from several countries in the region --Cameroon, Ghana, Gabon, Chad and Nigeria-- as well as representatives of Oilwatch International attended both events, after which the group made a trip to oil fields in the Niger Delta, where a strong conflict between Shell and the indigenous Ogoni people is ongoing. Several important issues were addressed, such as the situation of the oil industry in tropical countries, the relationship between oil exploitation, local communities and resistance, the role of the State, the conflict over the Chad-Cameroon pipeline, the role of the global economy. Experiences of local struggles -as that of the Ogoni people- were also presented. More information on these activities is available at: ENVIRONMENTAL RIGHTS ACTION #214 Uselu Lagos Road, Benin City, Nigeria In relation with the above, several US environmental NGOs organized for March 21 a rally in North Arlington, USA, to protest against Shell's activities in the Niger Delta. The multinational company started its activities in this area in 1958. While the company has in that period extracted oil valued in more than $30 billion from the lands of the Ogoni people, in return, they have only received spoiled farmland, poisoned water reservoirs and toxic air. To this day, despite pleas from indigenous communities in the Niger Delta --particularly the Ogonis-- and millions of supporters around the world, Shell has done nothing to clean up its oil fields, claiming lack of funds to be devoted to that activity. Nevertheless the company has recently announced that U$S 8.5 billion will be invested over the next 20 years on a new oil and gas project in the Niger Delta. Sources: Olwatch International, 12/3/99; Amigos en Defensa de la Gran Sabana AMIGRANSA/Orinoco Oilwatch, 18/3/99.
ASIA Norwegian, Canadian and Korean capitals get together in global paper business The expansion of the paper industry worldwide is provoking severe social and environmental problems through three types of activities which are part of its production chain: the chipping of native forests, the plantation of extensive monocultures --that generally follow the previous clearcutting of the forest-- and the pollution of water and air caused by the industrial process itself. The new strategy of paper companies seems to be the set up of joint-ventures between different corporations, which means not only the concentration of resources, but also of power and decision-making. Southern countries, where both raw material and labour force are cheap, and legal and environmental controls are weak, are the preferred places to carry out such activities. For example, it has recently been announced that Norske Skog, from Norway, Abitibi Consolidated, from Canada, and Hansol Paper, from Korea, have formed the Pan Asia Paper Company (PAPCO) to operate in Asia Pacific, with headquarters in Singapore. According to Jan Reins, spokesperson of Norske Skog, PAPCO has low-cost assets in a region with high growth potential, and this enhances the company’s profitability. Norske Skog has been running two of the PAPCO mills in Cheong Won in Korea and Sing Buri in Thailand for half a year. These two mills have had high profits over that period. In less than ten years, the company has more than doubled its newsprint capacity and developed from being a medium-sized supplier with mills in Norway into one of the leading global players. More than half of its newsprint capacity is now outside Norway, meaning that the risk profile of the company has become much better balanced. PAPCO will operate in Korea, Thailand and China. The conglomerate’s four paper mills are modern and very efficient, with an average machine age of five years. The newly created company will also be responsible for Norske Skog and Abitibi’s exports within the region. PAPCO’s total tonnage for sale will be of around 1.8 million tonnes, meaning some 30 per cent market share in the Asia Pacific region outside Japan. PAPCO paper exported to America will be sold by Abitibi, while exports to Europe, the Middle East and Africa will be performed by Norske Skog. It is to be remarked that Norske Skog has been repeatedly denounced by Norwegian NGOs for its depredatory activities in the taiga forests. The new strategy of the company is to join in a powerful holding and to settle in Southern countries. The company, that also owns mills in France, the Tzech Republic and Austria, has also set its sights in South America, supposedly the next step of its expansion at the global level. Sources: Matti Ikonen ikonen@www.sll.fi , 3/2/99; Rein Baalsrud Midteng u971841@studbo.hit.no 4/2/99.
Cambodia: can banning be the solution to mangrove conservation? Forests of Cambodia are being menaced by Vietnamese loggers (see WRM Bulletin 18). However, this not the only problem that Cambodian forests are facing. Half of the mangroves of the province of Koh Kong have been cleared either for shrimp farming or for high quality charcoal production. Of the province's original 10,000 hectares of mangrove forest, only 5,000 remain nowadays. Five years ago, the Ministry of the Environment had warned that the clearing of the mangroves would irreparably damage fisheries and wildlife in the area. Initially, clearing the land for shrimp farming was the major problem, but with the collapse of that industry, now charcoal production has become the activity responsible for mangrove destruction. The government of the province has declared a ban on the cutting of mangroves, supposedly to meet a balance between development and preservation. The move has been welcomed by Cambodian environmentalist NGOs, which consider that, even if the reasons for the ban can be considered cynical, it is an attempt to avoid mangroves to disappear completely. Civil society organizations also underscore that there is a need to find job alternatives for the people who have been surviving on charcoal production. Some areas of the province are prepared to stop the harvest of mangroves for charcoal production for the moment. Nevertheless, local communities have denounced that in other areas the trade is protected by the military. There is also the problem of people earning their living on charcoal. For example, An Samnang, one of the workers in charcoal production, comming from Prey Veng province, said he started producing charcoal in Koh Kong when the crops failed in his home village. Such work, even if risky and requiring living in a malarial area, allowed him to make a living. If mangroves are to be saved, it will therefore be insufficient --and socially unfair-- to use banning as the only tool. People, as well as mangroves, need solutions in order to survive. Source: Late Friday News 32 (10/3/99) based on article by Bou Saroeun in Phnom Penh Post, 19/2/99.
Indonesia: opponents to shrimp farming industry under arrest Industrial shrimp pools are increasingly occupying mangroves areas (see article above and the one related to Ecuador in this issue) and agricultural lands in many Southern countries. Their expansion is being strongly resisted by local peasants who have to suffer repression together with the loss of their land and livelihood. Sometimes peasants are forced to become exploited workers at the service of the companies. One example is coming from Indonesia. The Oxford Office of the WRM has addressed Indonesian authorities in relation to the arbitrary arrest of a group of small farmers who opposed industrial shrimp farming in their lands: "The World Rainforest Movement is deeply concerned by the news that Mr Endang Suparmono, arrested on February 8, 1999, and other farmers arrested in late 1998, are still under detention despite ample evidence that the accused farmers were some of the many that were severely exploited by the shrimp-farming company, PT Wachyuni Mandira. We are aware that PT Wahyuni Mandira's 170,000 hectares shrimp farm in the Ogan komering Ilir district has become the focus of violent conflict after a two year dispute between the company and local farmers over land compensation, contracts and credit agreements. It has come to our knowledge that a team from the National Human Rights Commission, who visited the area in late 1998, confirmed the farmers' claims that the contracts were unfair. Amongst other matters, it was also discovered that the Environmental Impact Assessment for the project was not complete and that the company was therefore operating illegally. Other reports confirm the farmers' claims that they were treated like slaves under complete control of the company. It has also been reported that the arrest of Mr Endang Suparmono has been carried out without proof of his involvement in violent acts against company's property and was arrested only because he was one of the farmers' leaders who fought for better terms of employment. Considering the highly unjust nature of the detention of Mr. Endang and the other farmers arrested in conjunction with the company's dispute, we strongly urge you to make sure that the farmers are immediately released and that the company is taken to justice."
Indonesia: Indorayon's future in question For years, environmentalists have accused Indorayon's paper and rayon pulp factory (PT IIU) in Porsea, near Lake Toba in North Sumatra, of polluting the lake and its rivers, clearing the surrounding forests and setting up monoculture plantations of eucalyptus and acacia to obtain raw material. Countless demonstrations and protests have accompanied the company's activity and an Indonesian NGO (WALHI) even brought up a court case against both the company and the government which sanctioned its construction in 1989, for the high level of pollution it was provoking. The problem generated by Indorayon's unsustainable production has proved difficult to solve, due to the different interests and viewpoints of the several actors involved. During this long struggle, local activists and peasants --that have always demanded the closure of the mill-- have even had confrontations with city-based NGOs that demanded that the company take responsibility for its negative impacts but without asking for its closure. A similar situation occurred with the plant's workers, who wanted to keep the mill open in order to safeguard their jobs. Within this conflicting framework, central government spokespeople every now and then claimed that the mill had to be closed down, while the company, in order to neutralize opposition, tried to set up new community organisations prone to reach agreements with. As a solution agreeable to all parts seemed to be very difficult to achieve, on March 12 President Habibie decided to temporarily stop the operations of Indorayon in the area. "The decision was made as a result of public pressure," said North Sumatra Governor Rizal Nurdin after a meeting with the President. Habibie also pledged to immediately issue a presidential decree declaring Lake Toba and 300,000 hectares of land surrounding it as conservation areas. The future of the factory would be decided by experts that would study its environmental impact, especially on nearby Toba Lake. The lake is not only a source of food and water for the communities of the region, but also has a special cultural value for the Batak people who live around it. Nurdin also stated that, based on the results of the study, the President would decide whether to close, relocate or allow the company to continue to operate. Source: Otto Miettinen < om@sll.fi >, 20/3/99.
CENTRAL AMERICA Guatemala: Maya Biosphere Reserve under threat Carmelita and Uaxactun are two communities who for over 80 years have been living within the boundaries of the Maya Biosphere Reserve in Guatemala (created in 1989), which is currently menaced by oil concessions. The Reserve involves an area of 16,000 sq.km, and constitutes the largest protected tropical forest in the country. Both communities have traditionally lived on the extraction of "xate" (Chamaedorea spp.), the exploitation of "chicle" (chewing gum, Manilkara achras) and the commercial use of pepper (Pimenta dioica), having established a sustainable use pattern of the resources. Last year, President Alvaro Arzu even officially congratulated them for the sustainable use of the territory and resources of the Reserve performed by them, with the support of AFOCOP (Forest Cooperatives Association) . However, in 1997 the government itself put out to tender for oil exploitation an area of 300,000 hectares belonging to the Reserve and coinciding with the portion of forest traditionally used by the above named communities. Two years before, Carmelita had got a permission from the National Council for Protected Areas of Guatemala to use this territory, and Uaxactum is undergoing a similar process. The communities were never informed nor consulted on this plan. As soon as they learnt about it, and with support from Oilwatch, they started an international campaign to stop the oil exploitation project that will negatively affect their livelihoods and culture. More than 300 organizations and individuals worldwide –among them the WRM International Secretariat- joined the initiative by means of a message addressed to the Guatemalan President. To make matters worse, the government situated military personnel in six "border posts" in the heart of the Reserve. Such decision has been strongly resisted by the local people, that consider this as a menace to their integrity and a token of the Government’s attitude to protect the interests of oil companies, as has been happening in other places such as Laguna del Tigre and La Libertad. Last February, 32 leaders representing traditional Peten communities -including Uaxactun and Carmelita and AFOCOP- issued a declaration to the Guatemalan Government and civil society and to the international public where they explain the situation they are facing and invite to reflect upon it. They also express their justified disagreement with the oil concessions: "We want to express our disagreement with President Arzu’s decision to grant petroleum concessions in the protected area of the Maya Biosphere Reserve. As people from Peten, we feel this decision is disastrous and that the damage that will occur to the ecosystems has not been taken into account. We denounce the illegality of permitting this activity in a protected area and we feel devastated by the decision to permit the destruction of the social, environmental, cultural and political balance". The document also denounces pollution and destruction of flora and fauna provoked by petroleum exploitation in tropical forests. "Article 94 of the Constitution states that the Government has an obligation to the health of its citizens, and Article 97 requires the participation of all, to propose social, economic and technological development that prevent contamination and maintain an ecological balance. Petroleum exploitation in the Maya Biosphere Reserve, named one of the most important lungs of the world, implies a clear risk of violating these constitutional obligations of all Guatemalans and more importantly of the Government". The declaration also demonstrates that even from a mere economic point of view oil exploitation is not a profitable activity if compared to traditional land use and tourism; not the mention the impacts on people. In sum: "The rational and sustainable use of natural resources offers, with very rough numbers, more than $10 million, benefiting more than 60,000 people. In 1994, the Minister of Energy and Mines reported receiving $1 million from petroleum activities, benefiting one thousand people." The signatories conclude that "it is NOT acceptable to permit the incursion of any more petroleum companies into the Maya Biosphere Reserve. We, as workers of the land, love the Peten and will do all in our power to protect it. If or when this threat becomes a reality, we will use all legal means to prevent it. We emphatically demand that our right to Constitutional Petitions and Defense be respected". The complete text of the Declaration is available at: Oilwatch Mesoamerica < oilwatch@guate.net >. Sources: Oilwatch Mesoamerica 8/2/99, 5/3/88, 8/3/99.
Nicaragua: demands to address forest fires At the end of October and the beginning of November 1998, the Northwestern region of Nicaragua was devastated by hurricane Mitch. The consequences of this natural disaster were enhanced by the extreme vulnerability of the country, by the lack of organization to face this kind of phenomena and by a historically unsustainable use of the land. For example, in the Western Region almost 80% of the rivers have dried up during the last 30 years because of the felling of dry tropical forests (see article below). Last February, the local NGO Centro Humboldt organized a mobilization of the Nicaraguan civil society in defense of the remaining forests, menaced by fierce fires occuring in the dry season (see WRM Bulletin 20), where in 1998, more than 15,000 fires in forest and agricultural lands occured. According to the organizers the action was a complete success. On March 4, the Civil Initiative for the Prevention and Control of Forest and Agricultural Fires met with the national authorities and presented a letter to the President of Nicaragua, Dr. Arnoldo Aleman, expressing their concern for the environmental and social degradation the country is suffering. Several immediate, short-term, medium-term and long-term steps related to the environment in general and specifically to forests are put forward in the document. Among other demands, it requests that the present Forestry Action Plan is adapted to reality and includes the effective participation of civil society, that the draft bill for the Forest law presented by several civil society organizations is finally approved, and that state offices involved in forest management coordinate their actions. The signatories also suggest that environmental crimes are included in the country’s legislation and that part of the funds freed from the payment of foreign debt are devoted to the National Programme for the Prevention and Control of Forest and Agricultural Fires. Special attention is asked for protected areas, such as Si a Paz, Bosawas Reserve, Masaya, Mombacho and Cosiguina National Parks, as well as for municipalities prone to be affected by forest fires. For different reasons, forest fires are on the rise and today constitute one of the major causes of deforestation and forest degradation throughout the world. Addressing this problem is not easy, given that there are many actors and interests involved who benefit from them. In all cases, however, the starting point is public awareness on the problem and organized pressure to address it. We welcome Nicaraguan organizations for having begun walking in that direction. Sources: Monitoreo Ambiental, Nr. 1, Año 5, enero 1999; Centro Humboldt, 5/3/99.
Mitch effects and deforestation in Nicaragua The Nicaraguan territory lies in a zone of the Earth especially prone to natural phenomena such as hurricanes, floods and earthquakes. Their consequences are generally presented as the result of the rage of nature, without taking into account that the negative effects of natural agents depends not only upon their intensity but also on the vulnerability of the affected society and territory. The case of hurricane Mitch, that affected the NW region of Nicaragua (Occidente and Las Segovias) can be considered paradigmatic in this regard, since economic policy, poverty, bureaucracy, corruption and unsustainable use of land and natural resources had put the country in the worst possible conditions to face this kind of phenomena. The Northwest suffered massive clearcutting of its tropical dry forests during the last 50 years to give place to cotton and banana monocultures for export. These forests have almost completely disappeared and only a few degraded areas with shrub formations survive. Lacking forest cover, nearly 20% of the soils present signs of severe erosion, so that during the dry season topsoil is blown off while in the rainy season it washes away (see WRM Bulletin 17). Two tragic examples show the close relationship between Mitch and deforestation in Nicaragua. Due to the deforestation at the upper Rio Coco watershed, the 500 mm of rain fallen during the hurricane caused the river to rise 20 metres and to burst its banks. At the village of Wiwili, more than 600 houses were washed away and another 1300 houses were affected. Even if the authorities were warned of the danger of flooding on the upper reaches of the Rio Coco, no actions were taken to prevent the tragedy. Another serious case of negligence resulted in tragedy at Las Casitas Volcano. Two days before the crater lake collapsed INETER (Nicaraguan Institute for Territorial Studies) warned the government that conditions were becoming unstable and that potential mud and landslides might occur. An enormous mudslide swept down the side of the mountain, burying entire small villages. 2500 men, women and children -all of them small peasants- died. Many survivors got ill from swallowing and inhaling mud or had their legs amputated. Some days after the tragedy people were to be seen, wandering around with a humble cross in their hands, guessing where their relatives were buried by the mudslide and trying to pay them a posthumous tribute. Such terrible consequences are not inevitable, but unless drastic economic, social and environmental changes are implemented, they will continue to occur. Nicaragua approved in 1993 an Environmental Action Plan, but until now such plan has only existed on paper. Until this and other more comprehensive socioeconomic plans favour a different approach to the relationship between nature and society, as well as within society, then forests, soils, water, biodiversity and -even more importantly- people, will continue to suffer. Sources: Monitoreo Ambiental, Nr. 1, Año 5, enero 1999;
Costa Rica: support to Osa Peninsula forests Statistics of year 1997 show that the deforestation rate in Costa Rica reached 16,400 hectares a year while the reforestation rate was by that time of 12,600 hectares a year. These figures could make us think that there is only a slightly negative balance in annual forest cover. Nevertheless it needs to be underscored that "reforestation" is based upon monocultures of exotic species as gmelina, teak and pine, and the regrowth of secondary forests, while primary forests continue to disappear. The case of forests at Osa Peninsula has recently drawn international attention due to the repression suffered by the environmentalists that are struggling to protect them (see WRM Bulletin 20). This peninsula is home of the remaining Pacific Costa Rican forests, whose complexity and richness in biodiversity –according to a recent report issued by Fundacion Neotropica- is similar to that of the Amazon forests or the tropical forests of Africa and Asia: 1513 plant species, some of them endemic and including 500 tree species have been detected in Osa, while only at Corcovado National Park 124 mammifer species and 375 bird species have been registered. The delicate balance of the ecosystem is sustained by the existence of the forest. Both at the Corcovado and at the Piedras Blancas National Parks logging is banned. On the contrary, logging is permitted at Golfo Dulce and Manglares de Sierpe-Torraba Forest Reserves by means of special concessions issued by the government that require the presentation of a management plan. Environmental organizations have denounced the abuses committed in these areas. Another serious problem affecting Osa Peninsula is the situation of 6000 small peasants that, due to their weak economic position, are prone to accept the offers of logging companies to clearcut the forest. In the framework of the campaign for the defense of the forests of the Osa Peninsula, the environmentalists have claimed that the Ministry of the Environment makes an audit of the ongoing management plans of logging companies. A local Osa Peninsula organization is also asking the authorities to stop logging permits nrs. 781 and 1043.The river Agujitas, which provides water to the local peasants and hotels of the zone would be negatively affected by these projects. Additionally, there is the risk of soil erosion, since the forest to be cut down occupies a steep slope. As part of the campaign at the local level, a monitoring study of the ongoing plans is being performed, focusing on the detection of irregularities. Sources: JUPA (Juventud y Participación), 15/3/99; Nefer Munoz, IPS, 22/3/99.
Costa Rica: the "green gold" bluff Critics to tree plantations mostly refer to eucalyptus or pine monocultures and to their negative environmental and social impacts. Here we present a different case, based on interesting comments whose more relevant fragments we transcribe- we have received related to a recently published book on a teak plantation project in Costa Rica, written by Dr. P. Romeijn: "An interesting new book is out: "GREEN GOLD - On Variations of Truth in Plantation Forestry". It methodically recounts the technical, legal, political and ethical aspects of a teak plantation established in Costa Rica by the Dutch company "Flor y Fauna", and its astonishing sequel of events. The largest environmental groups in the world, the World Wide Fund for Nature (WWF) and one of the largest insurance and banking companies in the Netherlands, OHRA, soon became partners in the business. This seemingly odd trio went on to promote investments in the project as green and ethical, while making a parallel with investments in "Green Gold" due to its unusually high financial returns. The returns offered to investors were based on "scientifically sound" and "conservative" production estimates of over 1000 cubic meters of commercial timber per hectare at the age of 20 years. Such figures, it was assured, were further based on 'local experience'. Thousands of unaware citizens were convinced by the unparalleled investment campaign and the credibility derived by the endorsement of the project by the World Wide Fund for Nature, the participation of the insurance company OHRA, and the subsequent endorsement of the project by the Rainforest Alliance and the Forest Stewardship Council. 'WWF has ascertained that, in ecological and financial terms, the Flor y Fauna plantations set a worldwide example', read one of Flor y Fauna's advertisements. Millions of dollars quickly poured into the project. The case was brought to the attention of the Dutch parliament, with statements of support by the Minister of Agriculture and the Minister of International Cooperation of the Netherlands. The project was referred to by OHRA as an example of "modern development aid" and as a mean to enhance forest conservation in Costa Rica. The project became certified by the Rainforest Alliance as "well managed", based on the principles of forest management subscribed by the Forest Stewardship Council (FSC). The project was so appealing that the FSC publicly endorsed the certificate issued by the Rainforest Alliance, even though this organization had not yet been accredited as an official FSC certifier for plantations at the time. A notorious public campaign was launched to incorrectly inform the public that the project had been 'certified by the FSC', an organization supported by a wide variety of environmental groups, and better known to the Dutch public than the Rainforest Alliance. Investments in the project continued to rise. It was later ruled by the Dutch Advertising Standards Committee that claims made in public ads were 'misleading'. Dozens of similar Dutch plantation initiatives soon followed suit, most of them in Costa Rica, in attempts to cash in the overwhelming receptivity of the public for such visionary, exemplary, green and profitable investments. A dream come true. But the dream was soon shattered. At the end of 1995, a couple of investigation reporters from the most reputable news commentary program on Dutch television, NOVA, dug out a confidential report on the project, commissioned a couple of years earlier by the head office of WWF-International to clarify the business arrangement between WWF-Netherlands, OHRA and Flor y Fauna. Among the report's astonishing conclusions were the following: - WWF seems involved in a commercial operation with questionable technical, financial and ethical implications. - It would be convenient to clarify if making exaggerated claims such as those referred to in this report is considered a violation of laws in the Netherlands. - Expected yields "...exceed by a factor of 4 what are considered high yields for teak on good soil. - This may be considered fraud.' An additional and shocking embarrassment came when it was also exposed that WWF would be 'compensated' for its endorsement of the project with an estimated payment of 86 million dollars, '5% of the turnover of plantation section Teakwood VI', according to WWF-Netherlands. Teakwood VI refers only to the portion of the plantation established in 1993 alone: 750 hectares. Later on WWF also endorsed Teakwood VII and VIII, an additional area of 820 hectares, with alleged proportional 'compensations'. The total area planted by Flor y Fauna in Costa Rica exceeds 3.000 hectares. In consecutive attempts to justify the unjustifiable, Flor y Fauna, OHRA, WWF and the Rainforest Alliance each time modified their previous position and arguments, falling in increasing contradictions, undermining their own position and credibility, and consistently molding 'the truth' to fit the arguments of the time. Therefrom the subtitle of the book: "On variations of truth in plantation forestry". Investments in the project quickly came to a halt, while it was subject to the scrutiny of courts of law. Amongst those most seriously damaged from the exposure of the speculative and fraudulent internalities of the case were the World Wide Fund for Nature (WWF), individual investors, the credibility of both the Forest Stewardship Council (FSC) and the Rainforest Alliance, the reputation of the forestry profession in the Netherlands, and the reliability of forest investments in the tropics." This case shows another aspect of the plantation model: that of commercial practices at odds with ethical standards aiming to attract unaware investors by showing them that plantations are not only a profitable but also a "green" business. A similar approach is that of plantation companies that promote investments in eucalyptus monocultures by small owners, promising them high revenues in a period of ten or twelve years, without taking into account the instability of the world markets.
SOUTH AMERICA Chile: the forestry model in big trouble The Chilean forestry model has been publicized as an example of modern forestry development and has been exported as such to the countries of the region. However, such forestry development style, implemented during the military dictatorship and resulting in economic concentration, the displacement of thousands of peasants and indigenous people and negative environmental impacts is now being severely challenged --through direct actions-- by those affected. In this case, by the Mapuche indigenous peoples. During February and March, the south of Chile witnessed a number of confrontations resulting from the Mapuche's struggle for the recognition of their territorial rights. With the exception of the metropolitan area of the country's capital city Santiago, this is where the majority of this indigenous nation lives, totalling a million people. In order to make effective their ancestral but systematically ignored rights, 300 Mapuche from the communities of Temulemu, Didaico and Pantano, together with others from Lumaco decided to take direct action and on March 5th they attacked the Chorrillos estate, located to the southwest of Traiguen. Their aim was to put a stop to the cutting of pines from a plantation which the enterprise Forestal Mininco considers to be its own. The Agrarian Reform implemented by former President Eduardo Frei Montalva --the current President's father-- recognized the ownership of the Mapuche communities over those lands. Pinochet's military dictatorship later confiscated those lands, which were put on sale and purchased by this enterprise. While the police defended the estate, a numerous group of Mapuche --which included men, women and children-- attacked with traditional weapons and firearms, crying out slogans such as "They are few (the police) and they fight for money; we are many and we fight for life." Fourteen people resulted injured in the struggle and a tense atmosphere settled since then in the area. The indigenous people gave Mininco an ultimatum to definitely stop its activities. While this struggle was taking place, the same enterprise was cutting trees in another sector of the same municipality, and the felling restarted on the following day. In a provocative attitude, the felling was carried out at short distance from the house of Mapuche chief Pascual Pichun, in Santa Rosa de Colpi. Mapuche leaders claim that the company's attitude makes a mockery of the judicial system, given that there has yet not been a decision on the matter. In consequence, further mobilizations can be expected. A week later, in the Province of Arauco, a group of one hundred people, members of some 30 Mapuche families from several communities within the Lautaro-Antiquina area, occupied an estate where Forestal Bosques Arauco operated. Juan Huenupi, council member of the National Corporation of Indigenous Development (CONADI), stated that "the people are tired and justice is not made." He said that the indigenous people that took part in this action claim 50,000 hectares of land that had been recognized as being theirs by the Agrarian Reform and that had been later taken away from them by the military dictatorship. After occupying the estate for a whole day, the Mapuche withdrew in wait for their demands to be taken at last into account. On March 13th, in the nearby area of Canete, a group of Mapuche took the Lleu-Lleu estate by assault. The action took place after a Mapuche meeting (nguillatum) was held, with the participation of members of several communities of Arauco Province (8th Region) as well as from communities from the 9th Region. Osvaldo Carvajal, the current owner of the estate, considers himself as being unfairly involved in a historical conflict between the Mapuche and the Chilean state and initiated legal action against the assailants. On the following day, the police arrested Mapuche film-maker Jeannette Paillan --from the Mapuche Study and Communication Centre Lulul Mawidha-- while she was filming a nguillatum. They claimed that she had participated in the previous day's assault and presented charges of robbery and lootery of private property. However, her detention is in fact part of a number of intimidatory and violent actions suffered by the Lulul Mawidha Centre, carried out by civil and paramilitary groups from the forestry companies operating in the area. Other indigenous people were detained following the assault of Lleu-Lleu. On March 20th, four of them were released for lack of evidence, while three remain in custody waiting to be tried. Maria Llanquileo, spokesperson of the Mapuche Coordination of Arauco, announced that on that same day all the communities of the province would demonstrate in support of those arrested and that other organizations from the rest of the country would also participate. The violence prevailing in the region originates from a situation of injustice, where the forestry enterprises, with the unrestricted support of the state, appropriated the land of the original peoples. In such situation, the Mapuche aim at generating political spaces trying to tip the balance in their favour in the struggle for the recognition of their territorial rights. The Mapuche are among the most neglected sectors within Chilean society and they are confronting a very serious situation as a result of the loss of their territories and natural resources to what they call the "Chilean usurpers": the powerful forestry companies. Dispossessed of the material base of their existence, their culture is threatened. According to Jacques Chonchol, ex-Minister of Agriculture of President Allende's government (overthrown by Pinochet's coup), the dictatorship holds the "main responsibility" over the current conflict, given that it "implemented a counter agrarian reform and the 300,000 hectares that had been returned to the communities as a historical reparation, were taken away from them and auctioned in fraudulent operations where the forestry companies bought them at very low prices." In this way, the forestry companies "have monopolized lands and have even forested in agricultural soils, which implies a crime against the country." The forestry model imposed by the military dictatorship resulted in the concentration of land, production means, management and decision-making in the hands of a small group of corporations which dominate the sector's production chain. Forestal Arauca is precisely one example of this. On the other hand, it is well known that radiata pine and eucalyptus plantations have been one of the main factors in the destruction of Southern Chile's temperate forests. The companies which have generated the social and environmental damages have maintained a tough attitude regarding the Mapuche's demands. Forestal Mininco, a subsidiary of the transnational corporation Compania Manufacturera de Papeles y Cartones (CMPC), with support from CORMA (Chilean Wood Industry Corporation), qualified the action of the Mapuche in the Chorrillos estate as "rural terrorism." Andres Ovalle, the company's manager, claims those lands are "not productive as agricultural lands and are only fit for tree plantations." Felipe Lamarca, spokesperson of SOFOFA (Industrial Development Society) considers that "the government must fully support private investors regarding their rights to own and administer their resources and avoid putting forward proposals which limit such rights", while at the same time declaring his alarm over the indigenous peoples' mobilization, led by a new generation of leaders, and having national and international links with environmental and indigenous peoples' movements. He proposes that the Mapuche abandon their territory or that they are directly transported to the city, but assisted by "state integration policies so that they don't join the ranks of marginality." Far from playing the role it should regarding the defense of the cultural and territorial rights of the native inhabitants of southern Chile, the Chilean state's actions have been geared in favour of forestry enterprises. Mario Rios Santander, Vice-President of the Senate, says that "the government has not provided resources aimed at the indigenous peoples issue." The Minister of National Resources, Adriana Delpiano, admits that the government does not have land to give to the Mapuche of the 9th Region. The government has been constantly dubious regarding whether to try to dialogue or to resort to repression. The actions of the National Corporation of Indigenous Development, conditioned by an insufficient budget, have been ineffective, both in the area of conflict conciliation and in that regarding the satisfaction of the demands of the affected indigenous peoples. At the root of this conflict there are two clearly opposed visions. On the one hand, the neo-liberal approach, where the state encourages the prominence of the private sector, which in turn has been voraciously consuming native forests, using its wood to feed the pulp and paper industry and replacing them by tree monocultures aimed at the same use. To large corporations, the Mapuche only mean an inconvenience and what should be done is to take them away. On the other hand, there is the vision of the native peoples, strongly defending their land, means of subsistence and culture. The issue is not --as some media has tried to ridicule-- to turn back 300 years of history, but to recognize the rights of the indigenous peoples to their territory, their culture and their integrity, in accordance with the tendency in the legislation of many Latin American countries. This would be the way to halt the prevailing situation of violence in the region. It would also serve as a means to stop a forestry development style which benefits a few and is detrimental not only to the Mapuche but also to the Chilean people as a whole. That is, in essence, the famous and promoted "Chilean forestry model" which is intended to be imposed all across Latin America. Sources: Dario Jana 6/3/99, 10/3/99, 12/3/99; Jorge Calbucura 10/3/99, 11/3/99, 18/3/99, 20/3/99; MAPULINK 13/3/99; Monti Aguirre, IRN, 15/3/99; Defensores del Bosque Chileno, "La tragedia del bosque chileno", 1998. Comments: WRM.
Indigenous peoples' demonstration in Venezuela Indigenous communities of the Sierra de Perija and a group of organizations gathered at the Federacion Ecologista del Zulia are calling for a national march to denounce the problems that are affecting indigenous peoples in that country. The demonstration, that is being organized simultaneously in Caracas, Maracaibo, Trujillo, Barinas, Cabimas and Machiques, will take place next Earth Day (22 April) The organizers invite all Latinamerican NGOs and individuals interested in the defense of indigenous peoples' rights and the environment to take part in this event. Those interested in providing support to the march, please contact Jorge Hinestroza ( vitae@cantv.net )
Ecuador: oil exploitation banned in protected areas Oil prospection and exploitation is one of the most destructive activities affecting tropical forests and local communities worldwide. He are happy to announce that -at last- something positive has happened in Ecuador, where the Government has issued two decrees declaring the territory of Tagarei (773,220 hectares) and the zone of Imuya in Cuyabeno (435,000 hectares) as protected areas in perpetuity. These decrees are particularly important for the future of a non contacted Huaorani indigenous community living in the forests of one of those area and for Cofan, Quichua and Siona indigenous communities living in the other. The decrees imply the banning in perpetuity of oil or other mineral extraction. We congratulate the Ecuadorian government for this political decision and we urge this and all governments to ban oil and other mineral exploitation in all protected areas in the world. Source: Oilwatch, 5/2/99.
Ecuador: government tries to hand over mangroves to the private sector Ecuador is currently facing an extremely serious social situation as a result of a number of unpopular economic measures adopted by the government -in line with IMF and World Bank recommendations- which have resulted in workers' strikes, peasant and indigenous peoples' demonstrations, road blockades, violence in many parts of the country, rumours of a possible military coup and generalized caos within the country. Among those measures, there is one which has received strong opposition from the environmental community and from the affected communities and which would further affect the country's mangrove ecosystems, many of which have already been destroyed by commercial shrim farming. In July 1998, the former Minister of the Environment, Flor Maria Valverde, had promised that she would take steps to ensure a permanent ban on mangrove clearcuts by the shrimp farming industry. By that time, the environmental NGO Fundecol had registered 745 cases of mangrove destruction by shrimp farm operators. However, far from disappearing, menaces on mangroves have increased since. On March 2nd President Jamil Mahuad announced on a national broadcast that he had sent to the National Congress a draft bill for the so called Rationalization of Public Finances, that --among other measures to face the budget deficit-- establishes that shrimp farmers that use public lands would have to pay a fee for this use. In prior days, various newspapers warned that this measure was paving the way for shrimp company operators to purchase 60,000 hectares of land –apparently beaches and bays- along the Pacific coast. The operation would mean an income of U$S 60 million dollars to the State budget. At the same time, the government added that the idea of opening new concession areas for shrimp farms would not be discouraged. Traditionally, concessions to shrimp entrepreneurs were in most cases (95% according to Fundecol) not granted in "beaches and bays" but in mangroves as well as in agricultural areas. This was possible because of the existence of false reports and generalized corruption rampant in public administration, which allowed the companies to declare --once the pools were already built-- that there were no mangroves or agricultural lands in the area. Even though the text of the draft bill did not explicitly mention the possibility of coastal areas being sold to the shrimp entrepreneurs, the project caused justified alarm among environmental organizations in Ecuador and worldwide, since it was not difficult to realize that this was its final goal. In this regard, Sandra Cogliotore, President of the Chamber of Aquaculture publicly stated: "We will be the owners of the lands." In previous days, the Chamber of Aquaculture had strongly lobbied for the presidential draft bill to be passed on to the parliament. The industry even discussed the contents of the norm with the Minister of Trade, the Undersecretary of Fisheries, and the Merchant Navy (DIGMER). Civil society quickly reacted to oppose this project, requesting international support to protest against this measure, that would worsen the already fragile situation of mangroves in Ecuador and would legalize the flagrant unlawfulness and depredatory practices with which the shrimp industry has always operated. Paradoxically, the economic crisis itself in which the country was plunged as a result of the announced economic measures halted, at least for the time being, the project. "It appears to us to be adequate that U$S 1,000 is paid per hectare, but the time period and the form or mechanism of payment need to be discussed. At this moment, no one has U$S 1,000 to pay ..." The serious political events and social unrest happening later diverted politicians’ attention away from this issue. Nevertheless, the risk still persists. Some reflections can be made in relation to these facts. The attitude of the Ecuadorian government needs to be highlighted. It has not hesitated in literally auctioning the natural resources of the country –in this case mangroves- to show its willingness to comply with the dictates of the international financing institutions, which demand a "balanced fiscal budget". In its view, the country’s economy is completely divorced from the sustainable use of natural resources. Regarding the shrimp industry itself, it must be said that, after having obtained high profits through the depredation of coastal resources, it now tries to portray itself as cooperating with "development", since shrimp is one of the country's important export. The present situation is ideal for the industry, because it could result in it becoming the owner of a significant area of mangroves that would disappear to give place to shrimp farms. Coastal populations are not taken into account in decisions such as the one being put forward by the government. On the contrary, much of the shrimp industry's infrastructure has occupied and destroyed areas that are part of ancestral territories and until then occupied and managed sustainably by traditional communities that had found there food and shelter. Additionally, the intended boosting of shrimp farming --and consequent mangrove destruction-- does not take into account that mangroves act as natural barriers against the rise of the Pacific Ocean's water. Floods occuring during 1997 and 1998 as a consequence of "EL Niño" phenomenon, showed what is to be expected in coastal areas if mangroves continue to disappear due to the irresponsibility of the authorites and the greed of a few powerful and influential entrepreneurs. For further information, please contact: Accion Ecologica, Mangroves Campaign, e-mail: cmanglar@hoy.net Sources: Late Friday News, 32nd Edition, 9/3/99; Accion Ecológica, 12/3/99.
Brazil: violence against Amazonian indigenous people The destruction of the Amazon forests is strongly related to the violence that indigenous people and local communities have historically suffered to the hands of big landowners and with the compliance of local authorities. On February 22nd the Oxford Office of the WRM sent letters to several Brazilian authorities expressing concern for the assaults and murders recently happened against Macuxi indogenous people in Roraima State. The text of the letter is as follows: "The World Rainforest Movement is deeply concerned by the news concerning ongoing assaults and murders of the indigenous Macuxi people in the Roraima State. According to information received, on February 7 1999, Mr. Paulo José de Souza, an indigenous Macuxi, was twice shot at point blank range by Roberto Rodriguez, a squatter, and brother of both Francisco Rodríguez, a Uiramuta municipal councilor, and of Tiago Rodriguez, who are said to have supported the crime. On February 10 1999, Mr. Egon Heck, a missionary, was stabbed by Jared Batista da Silva, a worker under Roberto Rodriguez. At the moment of the assault, he was on his way together with a group of indigenous people to the place where Mr. Paulo José de Souza had been injured. Suddenly the group was intercepted by eight members of the military police, six of whom were drunk, who threatened the indigenous people with their guns. On 12 February 1999, Mr. Regelino Nascimento de Souza and Renan Almeida André, an indigenous Macuxi aged 14, were found strangled in the Maturuca Maloca. According to the information received, these events are part of an atmosphere of violence currently taking place in Roraima. Following an administrative order in December 1998 authorizing the demarcation of indigenous lands in the Raposa/Serra do Sol area, opposition has been manifested by some political leaders, local authorities and squatters. Moreover, landowners supported by some politicians, have also carried out boycotts to that order. Given the severity of the above-mentioned cases, we urge you to take immediate action to: - guarantee the physical and psychological integrity of the indigenous people of the Raposa/Serra do Sol, Roraima State and, in general, of all indigenous people in Brazil; - guarantee an impartial and exhaustive inquiry into these facts, identify those responsible, bring them before a civil competent and impartial tribunal and apply the penal, civil and/or administrative sanctions provided by law; - ensure in all circumstances respect for human rights and fundamental liberties in accordance with national laws and international human rights standards."
Bolivia: OPIC decission delayed The provision of political risk insurance for a natural gas pipeline that will cut through a primary tropical forest and a pristine wetlands area at Ipias, in the Bolivian Amazon, is under consideration of the Overseas Private Investment Corporation (OPIC). Amazon Watch, Friends of the Earth, and WWF tried to influence OPIC's Board of Directors for them to deny funding to this project (see WRM Bulletin 20) On March 9th the Board voted to delay a decision on the questioned loan guarantees. Spokespersons of the organizations that are resisting the construction of the pipeline consider that this is "a small victory" and are committed to go on putting pressure for the project to be significantly improved or definitively withdrawn before the next OPIC vote. For more information, please contact: Jon Sohn, Friends of the Earth ( jsohn@foe.org ) or Atossa Soltani, Amazon Watch ( asoltani@igc.apc.org ). Source: Atossa Soltani, 9/3/99.
GENERAL Tree plantations: a direct cause of deforestation What follows is part of the statement made in Rome by Mia Siscawati, from the Indonesian Institute for Forest and Environment, on the impacts of industrial tree plantations on people and forests in Indonesia. "As a forester working for environmental NGOs in Indonesia I am glad to have the opportunity to visit the FAO and to join this COFO meeting. I would like also to thank ITFF for the opportunity to have a special meeting with NGOs. In accordance with ITFF’s plan to put special attention on the issue of underlying causes of deforestation and forest degradation, I would like to take this opportunity to present you the deep concerns of Indonesian NGOs regarding one of the direct causes of deforestation in Indonesia: industrial tree plantations. We have identified it as a direct cause of deforestation since the beginning of its development. It was also identified during the case study process and the national workshop on Addressing Underlying Causes of Deforestation and Forest Degradation which was held prior to the Asia Regional Workshop on the same topic which was held in December 1998. Industrial plantations in Indonesia have been extensively developed since the 1990’s. Many evidences have shown that they have caused serious environmental and social problems. I have had the opportunity of witnessing myself the following problems caused by industrial plantations : 1)displacement of Indigenous Peoples and local communities; 2)destruction of natural forests; 3)depletion of soil and water resources; 4)devastating impact on biodiversity in general, and in soil biodiversity in particular; 5)pollution by pesticides and fertilizers, contributing to soil and water resource destruction. Moreover, we have identified that industrial plantations have contributed to the --almost annual-- forest fires in Indonesia since the 1990’s. The relationship between plantations and forest fires in Indonesia has finally reached the government’s attention during 1997-1998 when we, Indonesian People, suffered from the most widespread national disaster ever experienced. Satelite images provided evidence that more than 80 % of hot spots were located in industrial plantation areas. Only 1 % of hot spots were located in community areas. The government of Indonesia officially mentioned that 176 private industrial plantation companies were responsible for the forest fires. As you might be aware, the fires have negatively contributed to climate change. Concerning the issue of climate change, and considering ITFF’s attention on the Kyoto Protocol, I would like to take this opportunity to mention that one of the main causes of global warming is concentration of CO2 in the atmosphere. OECD countries are responsible for 77 % of the world fossil fuel-related emissions of CO2. They have high responsibilities to reduce this emission. We should be aware that there are clear indications that they intend to leave this responsibility and get countries with low level emission to be responsible of capturing their emissions by developing industrial plantations. According to one calculation, 300 million hectares of fast growing trees are required to absorb the annual global emissions of CO2 if the present rate of emissions continues. So far there is no scientific evidence of their efficiency, since their capacity to capture CO2 can be much influenced by climate change. Related to that context, allow me to deliver strong concerns from the NGO Forest Working Group about the potential inclusion of forestry and land use change in the Clean Development Mechanism. This statement was released in Buenos Aires, November 1998, at the Fourth Conference of the Parties of the Climate Change Convention. As you may be aware, the NGO Forest Working Group is an informal coalition of NGOs which has been following intergovernmental negotiations relating to forests since 1995. One of its main concerns is that this inclusion will lead to a strong increase in large-scale monoculture tree plantation development in developing countries. Large-scale tree plantation development is increasingly becoming one of the most important causes of the destruction of native forests and other natural ecosystems. These plantations tend to have very negative social and environmental consequences for local communities, as they deprive them from their land and livelihood. Regarding those concerns, forest conservation policies should focus on providing incentives for Indigenous Peoples and local communities to conserve their forests, instead of providing incentives for industry to invest in large-scale industrial plantations through deregulation and the creation of loopholes." Source: Statement made at the Meeting of NGOs and Interagency Task Force on Forestry (ITFF) Side Meeting of the 14th session of the Committee on Forestry (COFO), Rome, March 5, 1999
Globalization and WTO promote forests destruction The World Trade Organization (WTO) is negotiating a new international agreement to eliminate all tariffs on forest products worldwide, and to consider eliminating non-tariff forest protection measures. The terms of the agreement, that is to be formalized during a Ministerial Meeting to be held in Seattle, USA, from November 30 to December 3 this year, have been strongly critizised by the international environmental NGO community. Actions are being planned to denounce it. What follows is an article which we believe can shed light into this obscure issue: "When trade ministers meet in Seattle at the WTO's Third Ministerial, November 30 - December 3, 1999, they plan to introduce a sweeping new agenda to increase worldwide consumption of wood products, open up native forests to logging, weaken environmental protections, and open the door to invasive species. The most urgent initiative is a new forest products agreement that U.S. Trade Representative Charlene Barshefsky told Congress is a top negotiating priority. A number of other agenda items could have even greater impacts on forests. Advising her are executives from Weyerhaeuser, Boise Cascade, International Paper, and Georgia-Pacific. No one representing protections for forests or workers is at the table. Below is an overview of the new WTO Agenda for forests. Stimulating Demand for Wood Products New Forest Agreement: The U.S. is pushing to complete by December a new agreement on forest products separate from the broader WTO agenda so as not to get bogged down. The agreement focuses on reducing what the industry considers ‘barriers to trade’. The result will be cost reductions for wood products consumers, stimulating demand and intensifying logging. While the current scope of talks covers only tariffs (import taxes), negotiations are expected to introduce "non-tariffs," which can refer to anything, even environmental laws. The U.S. and other big exporters want total elimination of tariffs on wood products worldwide, particularly in the enormous Japanese and Korean markets. Regarding non-tariffs, of most concern to forest protection advocates are things such as customs procedures at national borders intended to prevent the entry of invasive species. "Bioinvasion" is now the second leading cause of species extinction in the world, after habitat destruction. Also, the timber industry is targeting local building codes that require the use of non-wood materials; their elimination could further stimulate demand for wood products. Non-tariff measures are not yet officially on the table, but industry leaders are preparing to introduce them. Weakening Protections against Invasive Species The WTO sets strict limits on what governments can do to prevent the entry of invasive species via a binding agreement known as the Sanitary and Phyto-Sanitary, or SPS, Agreement. While the SPS Agreement currently forbids countries from enacting some of the most effective safeguards that could minimize bioinvasion risks, the U.S. and other countries are advancing proposals that could make even existing safeguards challengeable (illegal) as a barrier to trade. Another emerging form of biological pollution, the unregulated spread of genetically-modified organisms (GMOs), is under discussion at the WTO. The increasing use of gentically-modified varieties of tree seeds poses risks to native forests, where unwanted GMOs may migrate, further mutate, multiply, or transfer to other organisms and species, often with unpredictable results. Proposed rules for the trade in biotechnology products would prevent governments from taking measures to stop GMOs from entering their country. Opening Up Native Forests Logging corporations are increasingly going abroad in search of larger forest reserves and less costly labor and environmental regulations. The WTO is preparing to introduce a broad agenda to protect such foreign investments. Among the ideas being advanced is that of National Treatment, which would require nations to treat foreign investors on the same terms as domestic ones. Brazil, Russia, Mexico, and other countries with significant tracts of native forests have traditionally limited foreign access to natural resources to prevent their exploitation from being determined by absentee owners. WTO investment rules would institutionalize "cut-and run" logging around the world and prevent governments from favoring local entities which may tend to be more accountable to the land and its inhabitants. Weakening Environmental Protections Also on the investment agenda is a new definition of "expropriation" that would allow foreign investors to sue governments for passing legislation that reduces profits from a planned investment. If approved, new government measures to protect forests (or anything in the public interest) could be challenged as an illegal "expropriation" that requires full cash compensation to the foreign investor. Known by critics as the "Pay the Polluter" principle, the WTO's proposed investment rules would send a chill over new environmental protections around the globe. Threatening Certification Initiatives American industry is feeling a real squeeze from competitors who operate in countries with little or no environmental regulation or enforcement. Realizing that they cannot compete on such unequal terms, they now want to create a set of harmonized global rules to "level the playing field." If adopted, industry-set standards would lock-down weak protections in countries where there is major logging of native forests still to be done (Mexico, Chile, Brazil, Indonesia, Russia, etc.), while opening up stronger protections (as in the U.S.) to challenge under the WTO. The WTO has undertaken a broad discussion on adopting industry-defined standards through the International Standards Organization (ISO), and is also considering eco-labeling rules that could define some certification schemes as potential barriers to trade. Jobs, Jobs, Jobs? Department of Commerce statistics show that as wood products exports have increased from the U.S., employment in the sector has decreased. This relationship undermines the conventional wisdom that increased exports create more jobs. What's going on? As companies compete more directly in globalized markets, they are automating production (which requires less workers) to increase their competitiveness. As of 1996, the Department of Labor's Trade Adjustment Assistance program had certified over 5,500 U.S. workers in the forest products sector who have lost their jobs as a result of the North American Free Trade Agreement (NAFTA). Source: Victor Menotti, Director of International Forum on Globalization (IFG) Environment Program, 13/3/99.
The Secretariat, with support from the Oxford Office, has been preparing the upcoming Steering Committee and WRM meetings, to be held in The Netherlands (Enkhuisen) on March 29-30 and 31-1 April respectively.
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