Joint UNECE/FAO Workshop on AND TRADE OF ILLEGALLY-DERIVED PRODUCTS IN THE UNECE REGION : CAUSES AND EXTENT

Canada Report

Governance and in Canada

Canada’s forest represents over 10 percent of the world’s , 25 percent of the world’s natural forest, 30 percent of the world’s boreal forest and 20 percent of the world’s temperate rainforest. According to recent statistics from Canada’s Forest Inventory, there are almost 402 million hectares of forest and other wooded land in Canada. Of this, 73% is not reserved, with potential for commercial forest activities. Just under one million hectares, or one-third of one percent of our non-reserved with commercial potential, are harvested each year. Roughly 93% of this area is publicly owned (77% Provincial and 16% Federal), with the balance owned privately by some 425,000 land owners.

Under the Constitution, the Federal government’s role in is grounded in its responsibilities at a national level – economy, trade and commerce, international relations, science and technology, environment, pesticide regulation, training, Federal lands and parks, and Aboriginal affairs – while the Provinces and Territories own and regulate the natural resources within their boundaries with exclusive powers to legislate for the enhancement, conservation and management of forest resources. Each Province and Territory has its own legislation, regulations, standards and programs through which is allocates forest harvesting rights and management responsibilities. In granting Crown timber leases, they set stringent planning and operational guidelines for companies.

Provincial and Territorial Governments have the mandate to set harvest levels, known as annual allowable cuts (AACs). These AACs are not static numbers, but are revised periodically to reflect change. Most provinces review and revise their AACs every five to ten years, to reflect changes in economic, social and environmental issues and pressures. Provinces and Territories take a long-term view in setting AACs, in order to take into account future needs for forest goods and services. Increasingly, Crown timber leases require companies to tend and regenerate forests to meet objectives that extend well beyond the commercial to encompass forest and ecosystem health, wildlife and habitat protection, traditional and indigenous forest use, recreation and aesthetics.

These Federal, Provincial and Territorial policies ensure that Canadian forest companies operate in a highly regulated environment that is subject to regular scrutiny and audit. A recent study conducted at Yale University on forest regulatory regimes found that: “The

1 stringency of Canadian regulations compare with the most stringent of our world case studies”1.

In addition, many Canadian companies are embracing forest certification as a way of verifying their forest management practices, and Canada supports certification as a vehicle for demonstrating sustainable forest management. According to the Canadian Sustainable Forestry Certification Coalition, as of June 2004 approximately 58 million hectares had been certified2 under one or more of the forest-specific certification systems available in Canada. This figure has more than tripled over the last two years, and the Forest Products Association of Canada (FPAC), an industry organization whose membership accounts for roughly 75% of Canada’s harvest, has made forest certification a condition of its membership.

Canada’s regulatory environment and commitment to sustainable forest management help to ensure that illegal logging does not become a significant problem in Canada’s forests.

Global market and trade of forest products

According to FAO data, Canada is the world’s largest exporter of forest products; in 2002, Canada accounted for 16.9% of the global total by value. The forest sector is one of the greatest contributors to Canada’s balance of trade, and provides roughly 3% of Canada’s GDP.

However, while Canada is a major producer and exporter of forest products, it imports a far smaller share of the global total. According to FAO data, Canada imported 2.9% of the world total in 2002. In 2003, Canadian imports of tropical hardwood, plywood, and veneered or laminated panels totalled CDN $63.8 million3.

Illegal logging

As described in the section above, the Federal, Provincial, and Territorial Governments in Canada have put in place an extensive network of laws, regulations, agreements, and policies that apply to forests. These include procedures and provisions for enforcement of laws relating to forests.

Furthermore, Canada considers that in general, the standard of law enforcement that applies to forests is equal to the standard found in all other aspects of Canadian society. In particular, the standard is also sufficient to contribute to the achievement of the objectives of sustainable forest management.

1 Cashore & McDermott, 2004, “Global Environmental Forest Policies: Canada as a Constant Case Comparison of Select Forest Practice Regulations” at: (http://www.ifor.ca/docs/FINAL%20BCashore%20July%2016.ppt, Conclusions - Image 23). 2 Canadian Sustainable Forestry Certification Coalition website at: http://www.sfms.com/statusf.htm. 3 Source: Strategis, Statistics Canada, HS440724, HS440725, HS440726, HS440729, HS440831, HS440839, HS441213, HS441222, HS441292.

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Accordingly, the Federal, Provincial and Territorial Governments do not consider illegal logging as a serious issue in Canada.

Canada does, however, recognize the importance of illegal logging as a global environmental, social and economic issue. As such, Canada is committed to work within international processes to help combat illegal logging and minimize its impacts on the world’s forests, forest peoples, and forest product markets.

Canada has adopted national border measures to prevent the import of illegally harvested wood and wood products into Canada. For example, Canada's commitment under the Convention on International Trade in Endangered Species (CITES) includes a requirement that each imported shipment of bigleaf mahogany (Swietenia spp) be accompanied by a CITES export permit (when exported from the listing countries) and a CITES Certificate of Origin (if the origin was other than the listing countries) in order to control access to the foreign market of illegally harvested timber4. In addition to this measure, Canada separated HS Codes5 (statistical suffixes of 10-digits, instead of 8- digits) in order to be able to identify the form of product – sawn wood, or lumber, or veneer – under which the mahogany is imported.

The Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA) is also the legislative vehicle by which Canada meets its obligations under CITES. WAPPRIITA controls the international trade and interprovincial transport of certain wild animals and plants, as well as their parts and derivatives, in order to protect Canadian and foreign species of animals and plants that may be at risk of overexploitation because of illegal trade6.

International implications on FLEG/FLEGT initiatives

In addition to national measures, Canada actively shows its dedication – since the launching of the G8 Action Programme on Forest (APF) in 1998 – to help the international community to combat illegal logging. The APF gave rise to international partnerships on Forest Law Enforcement and Governance (FLEG) initiatives and led to Ministerial processes in East Asia and Pacific (2001) and in Africa (2003), where Canada was represented by officials from the Canadian Forest Service. Canada also attended in May 2004 the scoping meeting for the latest Europe and Northern Asia FLEGT initiative that should evolve to a Ministerial process in 2005.

At the G8 Summit in 2003, Leaders pledged to continue efforts to combat illegal logging and now pursue their commitment. For example, Canada and the EU have discussed this

4 The definition of “illegally harvested timber” in this sentence refers to “timber not harvested in ways consistent with the local States' regulations preventing or restricting exploitation”. 5 HS: Harmonized Commodity Coding System ( http://www.cbsc.org/english/search/display.cfm?code=1555&Coll=FE_FEDSBIS_E) 6 WAPPRIITA: (http://www.cites.ec.gc.ca/eng/sct4/index_e.cfm ).

3 issue at their 2004 meeting7, and Canada brings its experience within Canada into bilateral discussions. Canada also participates in several conferences and workshops on illegal logging on the international scene. In the future, Canada will ensure to liaise with international partners in order to work together through the FLEG/FLEGT and other multilateral processes to combat illegal logging and trade in illegally harvested wood in the world's priority problem areas.

Canadian Forest Service September 2004

7 http://www.dfait-maeci.gc.ca/canadaeuropa/EU/partnership_agenda-en.asp

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