In Brief

EU ANGLES FOR SUSTAINABLE FISHING

The European Commission adopted a new strategy on sustainable fishing on 4 July, which aims to end overfishing and bring the catch rates of major fish stocks to levels that do not compromise their productive potential. With the proposed policy, the Commission aims to implement the EU's commitment to restore stocks to levels that can produce at maximum sustainable yield by 2015, made at the World Summit on Sustainable Development in 2002. The new approach "will be a central element of the Union's strategy to restore the sustainability of our fisheries and the competitiveness of our fleets. It will also help us meet the commitment taken along with our international partners to achieve sustainability wherever our fleets are involved," said EU Fisheries Commissioner Joe Borg. In a communication to the Council and European Parliament, the Commission recognised that overfishing has contributed to the depletion of fish stocks, leading to fewer catches, less income for fishing communities, and lower levels of profitability. In the short-term, the Commission is calling for less fishing to allow stocks to rebound. In the longer-term, under the framework of the Common Fisheries Policy, the Commission intends to establish target rates of fishing appropriate to each stock. While the new policy calls for a gradual change, EU members plan to mitigate impacts to fishing communities through financial assistance from the European Fisheries Fund (see Bridges Trade BioRes, 30 June 2006).

In related news, the environmental group WWF on 5 July announced that the Mediterranean and East Atlantic bluefin tuna is "on the verge of collapse." In a report, WWF shows that fishing far exceeds the quota, catch figures have been underreported and industrial fleets are plundering bluefin tuna breeding grounds. The report identifies the EU, Libya and Turkey as the main culprits of most of the illegal, unregulated, and unreported catches.

The European Commissions' communication.

CITES COMMITTEE DISCUSSES TIMBER SPECIES AND MEDICINAL PLANTS

Among an extensive range of agenda items, the Plant Committee of the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) addressed trade in timber species and medicinal plants at its 16th meeting on 3-8 July 2006 in Lima, Peru. Committee members specifically discussed how to protect bigleaf mahogany, one of the most valuable species in the international timber trade due to its hard wood (see Bridges Trade BioRes, 27 May 2005). The tree is a major target of illegal harvesting, particularly in places such as the Peruvian Amazon. Members adopted a recommendation from the report of the Bigleaf Mahogany Working Group, agreeing not to subject the species at this time to the so-called Review of Significant Trade (RST), a mechanism for reviewing biological, trade and other information pertaining to endangered species. Instead, the Committee agreed to investigate the high volume of bigleaf mahogany imports to the Dominican Republic. Furthermore, mahogany exports would only be allowed after determining that trade will not threaten the survival of the species and after verifying the legal origin of the timber.

Despite the inclusion of Asian medicinal plant species among those subject to CITES international trade controls, the species has not been adequately protected by the regulations. Medicinal plants were removed from the RST process because the majority of the problems faced by these species stem from illegal trade and the RST process only addresses legal trade. Instead, the Committee decided to endorse recommendations to study seven Appendix-II Asian medicinal species and cover illegal trade. Among these medicinal species are the African cherry (Prunus africana), which is exported to Europe to manufacture medication for diseases related to the prostrate.

At the request of South Africa and Namibia, the Committee also clarified regulations regarding hoodia exports, stressing that all exports had to be accompanied by a CITES permit. Hoodia is a rare cactus that has long been used by African's San Bushmen for its appetite-suppressing qualities and whose commercial potential is being developed (See BRIDGES Trade BioRes, 23 July 2004).

For a summary report of the meeting, see IISD Linkages.

ICTSD Reporting; ENB, Vol. 21 No. 48, 10 July 2006.

US AND CANADA FINALISE SOFTWOOD LUMBER DEAL

The US and Canada on 1 July signed an agreement regulating trade in softwood lumber, marking a new truce in their two decade-long dispute (Bridges Trade BioRes, 2 September 2005). Based on a tentative deal struck in April, the formal accord halts all legal battles and retaliatory duties on softwood lumber. Of the USD 5 billion the US has collected since 2002 from antidumping and countervailing duties on Canadian lumber, it will return USD 4 billion to Canada. The remaining USD 1 billion will be split between the US government and forestry industry. The agreement effectively manages trade in softwood lumber by requiring Canadian regions to levy export taxes that will rise from 0 to 15 percent based on export price triggers and US market share. It also contains safeguard measures in the event that a region exceeds its allocated share. The accord is meant to last for seven years, although each country will be able to terminate it after three.

The crux of the disagreement was over Washington's allegation that the 'stumpage fees' Canada charges for harvesting timber on state-owned land were so low that they constituted a subsidy. Washington has maintained retaliatory duties on Canadian lumber imports since 2002, throughout extensive legal battles in the both the WTO and NAFTA (North American Free Trade Agreement) dispute settlement systems.

Some critics of the deal have argued that it allows the US government to retain too much of the money collected in extra duties. Other commentators have countered that a better deal was unlikely, since the US had not shown any indication that it would comply with various NAFTA rulings in favour of Canada. Canadian government officials insist that the deal will make softwood lumber trade stable and predictable. The agreement requires approval by Canadian industry and provinces, as well as the parliament. It does not require legislation in the US.

Text of the agreement.

ICTSD reporting; "US, Canada Ink Deal To End Timber Row," AGENCE FRANCE PRESSE, 1 July 2006; "Canada, U.S. Reach Deal in Softwood Lumber Dispute," BLOOMBERG, 1 July 2006; "Emerson unwilling to revisit softwood lumber deal," CTV.CA, 10 July 2006; "Better than nothing: That's the real dirt on the softwood deal," GLOBE AND MAIL, 6 July 2006.

LAMY TAKES UP 'SHUTTLE DIPLOMACY' IN WAKE OF WTO COLLAPSE

After the WTO had failed to reach a framework deal on agriculture and industrial tariffs at a high-profile ministerial-level meeting in Geneva at the end of June, Members have asked Lamy to step up consultations with governments in an attempt to facilitate an agreement as soon as possible (see Bridges Weekly, 3 July 2006). Lamy believes that a 'modalities' agreement -- formulae and figures to determine the extent of reductions and exceptions to them -- would require parallel concessions on a 'triangle' of issues: the US would have to agree to make deeper cuts to domestic farm support, the EU to increased agricultural market access, and developing countries such as Brazil and India to offer more on industrial tariffs. Following the start of his 'shuttle diplomacy' in Tokyo, Lamy said on 6 July that he was "encouraged by the commitment to the round" that he had seen from top Japanese officials, though his new role as "confidante to Member governments" prevented him from responding to questions about the evolution of any country's positions. He said that he would continue his consultations with other major trading nations, during which he would "try to test with them different hypotheses and different numbers" in an attempt to discern their "red lines".

At the same time, several trade diplomats are looking to the 15-17 July G8 summit in St. Petersburg for major trading nations to come up with a way out of the deadlock. The leaders of Brazil, China, India, Mexico, and South Africa -- all members of the G-20 group of developing countries at the WTO which has been pushing for further liberalisation in agriculture trade -- will also be in St. Petersburg, thus bringing together several of the key players in the Doha Round talks. Sources report that Lamy, too, will be present.

ICTSD reporting; "Lamy says WTO in 'red zone,' seeks urgent action to save process," KYODO NEWS, 6 July 2006; "Developed countries must take initiative to push WTO talks," TIMES OF INDIA, 12 July 2006; "Brazil's Lula to promote Doha trade talks during G8 summit," FT, 12 July 2006; "Doha round: It's not only what we trade, but how," IHT, 5 July 2006; "G8 may hold key to WTO deal," REUTERS, 7 July 2006.

INTERNATIONAL COURT SIDES WITH URUGUAY IN PAPER MILLS DISPUTE

Argentina was defeated in its attempt to prevent the construction of two paper mills along the shared banks of the Rio Uruguay in a ruling by the International Court of Justice on 13 July. The court determined that the mills posed no "imminent threat" to Argentina's environment. "There is not enough ground for a provisional measure to suspend construction," said International Court of Justice President Rosalyn Higgins. Argentina contended that the construction of the mills violated an agreement between the two countries on the use of the river. In addition, it argued that the mills would damage the environment -- particularly the fresh-water dorado and catfish -- and cost the region ecotourism jobs. The country's environmental activists have tried to obstruct the building of the mills through trade blockades and more recently by targeting international financing and bank loans (see BRIDGES Trade Biores, 3 April 2006). Uruguay argues that the environmental impacts would be minimal. Vice-President Rodolfo Nin Novoa suggested that the two countries should jointly monitor work on the pulp mills, as "Uruguay has as much interest as Argentina in avoiding contamination to the people of both countries". The new mills are expected to generate around 8,000 jobs and increase GDP by 1.6 percent. The mills constitute the biggest industrial investment in the country's history.

ICTSD Reporting; "Montevideo Applauds Hague Ruling On Paper Mills, Urges Dialogue," IPS, 13 July 2006; "Argentina Loses Bid To Block Uruguay Building Mills," BLOOMBERG, 13 July 2006; "ICJ Rules Metsa-Botnia's Pulp Mills' Construction In Uruguay To Continue" AFX NEWS, 13 July 2006.