In Brief

EU PLANS TO TACKLE ILLEGAL LOGGING CRITICISED

On 20 July, the European Commission adopted a set of measures to address the problem of illegal logging and the related trade in illegally harvested timber, which is estimated to cost developing countries US$ 12.3 to 18.4 billion annually. Specifically, the Commission plans to set up voluntary partnerships with wood-producing countries affected by illegal logging to support and promote governance reform in their timber sectors. Also, the Commission will develop a regulation setting up a legally-binding licensing scheme with partner countries, to ensure that only legal timber from these countries is allowed into the EU. The measures fall under the Commission's Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT), adopted in May last year.

While the environmental group WWF welcomed the Commissions' continuing efforts to combat illegal logging, they believe that a voluntary scheme was not sufficient. In their opinion, the measures would not address the failure of EU member states to implement necessary measures at the domestic level. According to a WWF survey released in April, 12 out of the 15 old EU member countries had failed to take adequate action against illegal logging (see BRIDGES Trade BioRes, 16 May 2004). Greenpeace also criticised the new measure for not setting up binding principles to ensure that timber licences are consistent and effective.

"Environment-EU: New Measures in Fight Against Illegal Logging," TERRAVIVA, 22 July 2004.

IUCN CALLS FOR SUSTAINABLE RURAL DEVELOPMENT IN EASTERN EUROPE

While WTO Members are trying to hash out a new global agriculture deal (see related story, this issue), IUCN - The World Conservation Union on 22 July released a report highlighting the threats posed to the rural and agricultural environment in the new EU member states in Eastern Europe. The report, entitled "Gaps and Limitation within the Rural Development Plans of CEE New Member States", stresses that environmental quality and biodiversity are under pressure due to inappropriate development strategies in rural areas, and urges the European Commission to establish a common policy to ensure the environmental sustainability of rural development. This new policy should be designed to complement the EU Common Agricultural Policy (CAP). Currently, according to the report, ecologically sound farming practices and the management of protected areas is not attractive to farmers, who can get more funding for intensive farming under the CAP. At the global level, negotiators are discussing how, and how much, Members should be able to subsidise their agricultural and rural sectors, including for environmental purposes and landscape management.

"EU Enlargement Highlights Urgent Need For Common Rural Development Policy To Protect Environment," IUCN RELEASE, 22 July 2004.

NEW US TARIFFS ON SHRIMP IMPORTS FROM CHINA AND VIETNAM

On 6 July, the US Commerce Department proposed new tariffs on shrimp imports from China and Vietnam. The announcement followed a decision by the US International Trade Commission (ITC) that exporters in these countries had been dumping shrimp into the US at artificially low prices. The proposed tariffs, which will go into effect shortly, range from 8 to 113 percent on Chinese exporters, and 12 to 93 percent on Vietnamese exports. However, the Commerce Department will not set final dumping penalties until after the ITC makes its final ruling in January 2005 on whether the US shrimp industry is being harmed by these imports. The tariffs will only apply to frozen and canned warm-water shrimp and prawns, and do not affect breaded, fresh, dried and coldwater shrimp and prawns, and shrimp found in prepared meals.

This decision is part of a preliminary ruling in an antidumping case launched by US shrimpers and processors last year (see BRIDGES Trade BioRes, 3 October 2003). The shrimpers filed the case to combat low domestic shrimp prices. They claim the value of the US shrimp harvest was more than halved between 2000 and 2002, decreasing from US$1.25 billion to US$560 million, because of the dumping of cheap imports. The case is against six countries in total, but decisions against Thailand, Brazil, Ecuador and India are not expected until later this month. Shrimp from these six countries account for 75 percent of total US imports of frozen and canned warm-water shrimp. Not everyone in the US is happy about this decision. US seafood distributors and retailers are opposed to the duties, claiming they will drive up shrimp prices by as much as 44 percent and reduce consumption.

"Update 2: US proposes Tariffs on China Shrimp," FORBES, 6 July 2004; "US Proposes Tariffs on Shrimp Imports," BOSTON GLOBE, 6 July 2004.

EU APPROVES ANOTHER GM IMPORT AS WTO DISPUTE DRAGS ON

On 19 July the European Commission authorised Monsanto's NK603 corn, genetically modified (GM) to tolerate the herbicide Roundup Ready. This EC move followed the failure of European environment ministers to reach a decision on the corn at their last meeting (see BRIDGES Trade BioRes, 8 July 2004). The approval only applies for the use of corn as feed -- not for cultivation -- and imports will only be allowed once the maize also has been approved for food use. Agriculture ministers, meeting on 19 July on this issue, also failed to reach a decision on food use and it will again be up to the Commission to decide on the authorisation by late September. While the GM maize already was the second variety authorised by the Commission since approvals were put on hold in 1998, the US administration stressed that they would continue to pursue the WTO case against the EU's (now no longer existent) de facto moratorium on GM approvals (see BRIDGES Trade BioRes, 11 June 2004). "Our bottom line is Europe needs to have a predictable, timely, transparent and science-based regulatory system for biotech products," said Richard Mills, spokesperson for the US Trade Representative. The proceedings, however, have been delayed to allow parties additional time to prepare their rebuttals (see BRIDGES Trade BioRes, 8 July 2004). No new timeline has been set for when the Panel will issue its report.

For further information on the dispute, see trade-environment.org.

"GMOs: Commission authorises import of GM-maize for use in animal feed," IP/04/957, 19 July 2004; "Europe approves genetically modified corn as animal feed," NYT, 20 July 2004.

AFRICANS TO SEEK CITES PROTECTION FOR DIET CACTUS

South Africa, Botswana and Namibia have proposed the inclusion of the Hoodia cactus in Annex II of the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) at its next Conference of the Parties in November in Bangkok. If included, only limited trade would be allowed under strict controls. The cactus has long been used by African's San Bushmen for its appetite-suppressing qualities. In 1996, the South African Council for Scientific and Industrial Research (CSIR) patented the chemical entity extracted from hoodia and licensed the British pharmaceutical company Phytopharm to develop the plant's commercial potential. Phytopharm in turn sold the development and marketing rights to the Pfizer Corporation. Phytopharm welcomed the move to restrict trade in the species. "This strengthens our position substantially by making the unauthorised exportation of hoodia illegal, rather than merely naughty," said Chief Executive Richard Dixey. The San peoples have high hopes for a share of the profits should a drug be successfully marketed. Following lengthy negotiations, the CSIR concluded a memorandum of understanding with the San tribes in April 2002, which will serve as a basis for benefit-sharing, specifying that the San peoples will receive six percent of the royalties incurred.

"African states seek protection for rare diet plant," REUTERS, 19 July 2004; "Case study: Hoodia Cactus (South Africa)," Case Western Reserve University.