In Brief

EU AND MALAYSIA TO COMBAT ILLEGAL TIMBER TRADE

On 25 September, Malaysia and the EU launched formal negotiations to establish a voluntary partnership agreement (VPA) to combat illegal timber trade. The VPA is set to be the first agreement under the European Forest Law Enforcement, Governance and Trade (FLEGT) programme, which was established as a follow-up to the World Summit on Sustainable Development to improve developing country capacity to control illegal logging and reduce trade in illegal timber. The development of VPAs with timber-producing countries is one of the measures set out by the 2003 FLEGT Action Plan (see Bridges Weekly, 23 May 2003).

The aim of the EU-Malaysia VPA is to contribute to sustainable forest management and prevent illegally produced timber from entering the EU market. A timber licensing scheme will be set up, which customs authorities will use to verify the legality of imported timber. The VPA will also provide for joint studies, knowledge-sharing and capacity-building.

EU Development Commissioner Louis Michel noted that "in taking this step, the EU and Malaysia aim to demonstrate that trade and good governance can reinforce each other as a positive force for development and sustainable resource management." Malaysian Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui, said he believed the agreement would promote bilateral trade in timber products between the two countries.

Future VPAs are also in the works between the EU and Ghana and the Democratic Republic of Congo, with official negotiations set to start at the end of this year.

"Malaysia and EU Agree to Start Negotiations on FLEGT," EC PRESS RELEASE, 25 September 2006.

CODEX: WHEN IS A SARDINE A SARDINE?

After ten years of discussions, the Codex Committee on Fish and Fishery Products (CCFFP) at its 18-22 September meeting in Beijing, China, finally agreed on amendments to the Standard for canned sardines and sardine-type products (see Bridges Trade BioRes, 8 July 2004). At the request of Chile, the Committee added the species Clupea bentincki to the Codex definition of sardines. The Committee also revised the labelling guidelines for sardines to allow for more detailed information on the species and its origin.

Countries have long been haggling at both the Codex Committee and the WTO over which sardines should be allowed to be called sardines in international trade. In 2002, Peru launched - and won - a dispute against the EU over the EU's refusal to allow the Pacific species Sardinops sagax sagax to be labelled as sardines in the European market despite a Codex Standard 94 Article, which explicitly recognises the species as "sardines". The WTO case highlighted the importance of international standards, such as Codex, for ensuring compliance with WTO rules, given that the WTO Agreement on Technical Barriers to Trade states that measures based on international standards are "rebuttably presumed" not to pose unnecessary obstacles to trade. The draft amendments have now been forwarded to the Codex Alimentarius Commission for final adoption. The next meeting of the CCFFP will take place in early 2008.

Documents of the meeting are available at http://www.codexalimentarius.net/download/report/666/fp28_01e.pdf.

ICTSD reporting.

DEVELOPING COUNTRIES PRESS FOR SPEEDIER WIPO TALKS ON GR, TK

During the annual General Assembly of the World Intellectual Property Organisation (WIPO) -- held from 25 September to 3 October in Geneva developing countries called for the process on on the protection of traditional knowledge (TK), folklore and genetic resources at the specialised Intergovernmental Committee (IGC) to be speeded up. They reemphasised the need for a legally binding instrument to this effect, in order to restrict the misappropriation of resources and biopiracy (the uncompensated and undisclosed use of genetic materials). Developed countries recognised the importance of the issue, but called for further discussions before looking at the possibility of a legally binding instrument.

Members also decided to postpone talks on a treaty on the harmonisation of countries' national patent systems. Negotiations have broken down because developing countries have been calling for a broader scope of the negotiations, which they say should include, among other issues, disclosure of origin of genetic resource and TK in patent applications, prior informed consent of the resource and TK holders, and benefit sharing for developing countries at the latest informal meeting of the Standing Committee on the Law of Patents (SCP) in April this year (see Bridges Weekly, 26 April 2006). Patent harmonisation and the potential treaty will be revisited at next year's General Assembly.

For a complete report on the WIPO General Assembly, see Bridges Weekly, 4 October 2006.

ICTSD reporting.

HOW TO INTEGRATE BIODIVERSITY CONSIDERATIONS INTO DEVELOPMENT COOPERATION

Government and civil society participants gathered from 19 to 21 September at a conference on "Biodiversity in European Development Cooperation" in Paris -- organised by IUCN in partnership with the European Commission -- to discuss how to better integrate biodiversity into EU development cooperation. At the close of the meeting, the 400 participants adopted a "message" on how this could be done, providing concrete recommendations on how the EU could turn its biodiversity commitments into action.

The EU provides half of the world's funding for development cooperation. Over the last decade, the bloc has sought to integrate biodiversity concern into its development cooperation, including though an initiative entitled "Halting the loss of biodiversity by 2010 - and Beyond" and a thematic programme on biodiversity. However, effective mainstreaming of biodiversity into development cooperation remains a challenge, partly due to limited implementation.

Meanwhile, the concept of aid for trade have gained momentum, with discussion taking place under the Doha trade negotiations in response to developing countries' call for mechanisms to help them overcome supply side constraints. While the links between the aid for trade mandate and biodiversity protection was not explicitly discussed at the conference, the need for coherence with trade policies and mainstreaming of biodiversity considerations in trade policy were highlighted.

The conference participants adopted the consensus-based "Message from Paris: Integrating biodiversity into European development cooperation". The text reflects their views on the key areas of intervention where the EU could make a meaningful contribution to achieving the objectives of the Convention on Biological Diversity through its development cooperation. The message highlights four major challenges that the EU would need to act upon by: supporting mainstreaming in partner countries; improving governance; employing innovative instruments and enhancing policy coherence; and recognising biodiversity in Overseas Countries and Territories. In addition, participants stressed the need to incorporate the 2010 biodiversity target into the Millennium Development Goals (MDG) framework.

The further information, see http://www.countdown2010.net/paris2006. For a summary report, see IISD Linkages.

ICTSD reporting.

CARIBBEAN MINISTERS CALL FOR DOHA REVIVAL, RAISE CLIMATE CONCERNS

Six Caribbean foreign ministers discussed the lack of progress in recent global trade negotiations, threats posed by climate change and the need for multilateral solutions at the UN General Assembly on 27 September. They called for more trade benefits and less greenhouse gas emissions.

While deploring the suspension of the Doha round in July this year, the ministers reminded UN members of the special situation of small island developing states, calling for special consideration in trade agreements and stressing the importance of trade preferences. "Fundamental to a viable and equitable trade regime is the need to take account of the wide disparity in structural characteristics and approaches to economic policy among the many members of the WTO, and the consequent need for flexibility," said Jamaica Foreign Minister Anthony Hylton. "The international community must come to grips with the fact that 'one size fits all' approach is inappropriate and impractical," Saint Lucia Minister Petrus Compton added.

Bahamas Foreign Minister Frederick Mitchell drew attention to the threat that climate change poses to the small and vulnerable economies of the Caribbean. "To a small-island developing state, there are few things more important than securing the necessary assistance in order to build resilience against the many hazards that afflict our country on a consistent basis, including the violent storms that pass through our region even more frequently as a result of global warming," he said.

Countries represented include Grenada, St. Lucia, Jamaica, Bahamas, Dominica, Belize, and Guyana.

"Small island States discuss trade, environment and collective action during UN debate," UN NEWS CENTRE, 27 September 2006.

NEW SEED MONITORING CENTRE IN NAIROBI

The Alliance for a Green Revolution (AGRA) -- a Rockefeller and Bill Gates Foundation joint endeavour -- is setting up a seed centre in Nairobi, Kenya. The centre forms part of a US$150 million programme to spur a "Green Revolution" on the African continent. The goal is to allow farmers to produce higher yielding crops to spur economics, curtail famine and improve health. The seed centre will be a hub for monitoring and evaluation of the Programme for Africa's Seed Systems (PASS), supporting a variety of national-level and regional programmes.

Under AGRA, forty national crop breeding programmes have been set up to create improved seeds that can withstand local pests, diseases, rainfall patterns and soil properties, as well as carry traits demanded by local farmers. Eight to ten of Africa's major food crops, which greatly vary by region, will be the focus of research and development. Another aim is to improve 200 specific crop varieties in five years. This programme will focus on plants with built-in insect-and disease-resistance.

AGRA also intends to ensure that the improved crop varieties are distributed to smallholder farms by means of private and public resources, including approximately 60 seed companies, public community systems and public extension. Farmer management practices and access to markets and financing will also be addressed through development investments. In addition, AGRA will support graduate level training across the continent.

Nearly three-quarters of Africa's land area is being farmed without modern methods, such as fertilisers and advanced seeds, keeping much of the farming population in the shackles of extreme poverty.

"Kenya: Nairobi to Host Bill Gates Seed Research Centre," THE EAST AFRICAN, 26 September 2006; "Gates Foundation partners with Rockefeller in Africa agriculture investment," SEATTLE TIMES, 12 September 2006.

SUSTAINABILITY IMPACTS OF HORTICULTURE TRADE IN AFRICA EXAMINED

A recent assessment of potential impacts of liberalising horticulture trade (green beans, peas and roses) between Eastern and Southern Africa (ESA) and the EU under the Economic Partnership Agreements (EPAs) currently under negotiation cautions that expected expansion of production would put pressure on the environment due to an increased use of agrochemicals, water and energy. At the same time, the report notes that the agreement has the potential to contribute to investment in more environmentally-friendly technologies -- such as hydroponics and spot sprayings -- and codes of conduct that promote more environmentally responsible production.

Regarding economic and social impacts in the ESA region, the sustainability impact assessment (SIA) concludes that the EPA promises continued employment and possibly more jobs, as it builds on the ACP countries' cost savings advantages in energy and labour. Noting that the horticulture sector is "vital" for several ACP countries and "an important contributor to economic performance and employment", the report stresses that preserving duty-free market access to the EU is crucial for ESA countries.

The ESA region exports most of its horticulture products to the EU. In Kenya, horticulture is the primary source of foreign currency, constituting nearly 20 percent of total exports. Fresh vegetables and cut flowers make up almost 40 percent of total agricultural exports in Zambia.

To access the SIA on horticulture in the EU-ESA agreement, visit http://ec.europa.eu/trade/issues/global/sia/studies_geo.htm.

ICTSD reporting.

NEW HOPE FOR RESPONSIBLE SOY PRODUCTION

Soy producers, processors and traders as well as financial institutions and civil society groups came together in early September in Asunción, Paraguay, at the second Roundtable on Responsible Soy (RTRS), to give this multi-stakeholder initiative the formal status of a new international organisation. The organisation has the mandate to reduce the negative impacts of soy production, and is in part the result of growing consumer demand for environmentally and socially sustainable soy. Its goals include the protection of biodiversity from conversion of natural habitats to agriculture, the improvement of agricultural practices, and the soy industry's full compliance with labour laws.

The new organisation's immediate tasks are to create globally applicable principles, criteria and indicators for the responsible production, processing and trade of soy within the next 18 months.

"The private sector is beginning to understand that it needs to do its homework, and quickly, in order to avoid less desirable outcomes such as product boycotts or the establishment of non-tariff barriers to eradicate irresponsibly produced soy," commented Leonardo Lacerda of WWF's Global Forests Programme.

Soy is used in edible foodstuffs and oils, cosmetics, and feed for livestock, such as cattle, pigs, poultry and fish.

"Responsible soy on the way," WWF RELEASE, 4 September 2006.