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Investigation Into the Global Trade in Malagasy Precious Woods: Rosewood, Ebony and Pallisander

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Investigation Into the Global Trade in Malagasy Precious Woods: Rosewood, Ebony and Pallisander Investigation Into the Global Trade in Malagasy Precious Woods: Rosewood, Ebony and Pallisander October 2010 CONDUCTED BY IN COOPERATION WITH Global Witness and the Environmental Madagascar National Parks, the Investigation Agency (US) National Environment and Forest Observatory and the Forest Administration of Madagascar Logging camp in Masoala National Park, August 2009. Over a thousand loggers invaded the park in early 2009, setting up hundreds of such camps. © Toby Smith/EIA/Global Witness Investigation Into the Global Trade in Malagasy Precious Woods: Rosewood, Ebony and Pallisander October 2010 CONDUCTED BY IN COOPERATION WITH Global Witness and the Environmental Madagascar National Parks, the Investigation Agency, Inc. (US) National Environment and Forest Observatory and the Forest Administration of Madagascar © Environmental Investigation Agency and Global Acknowledgements Witness, 2010. No part of this publication may be reproduced in any form by any means without Global Witness and EIA would like to acknowledge the permission in writing from EIA or Global Witness. support received by the German-Malagasy Cooperation, EIA and Global Witness are solely and entirely as well as the JMG Foundation. responsible for the contents of this report. Cover photo © Toby Smith/EIA/Global Witness 2 Table of Contents EXECUTIVE SUMMARY 4 INTRODUCTION 6 METHODOLOGY 7 RECENT STATUTORY AND TRADE DEVELOPMENTS 8 New legislation 8 Convention on International Trade in Endangered Species 8 US Lacey Act enforcement action 8 US House of Representatives resolution on illegal logging in Madagascar 9 UNESCO World Heritage “in danger” listing 9 TRADE FLOWS I: SOURCING, MANUFACTURING AND RETAIL SALES IN CHINA 10 Import-export links with Madagascar 10 Manufacturing 10 Retail markets 11 TRADE FLOWS II: US AND EU RETAIL TRADE IN MALAGASY PRECIOUS WOOD 12 Rosewood retail sales in the United States 12 Rosewood retail sales in the European Union 13 INTERNATIONAL ACTORS INVOLVED IN PRECIOUS WOODS TRADE 14 Shipping companies 14 CONDITIONS IN MADAGASCAR FOR THE CONTROL OF ILLEGALLY HARVESTED WOOD 15 Expected trends in sourcing of precious woods 15 CONCLUSIONS OF FINDINGS 16 RECOMMENDATIONS FROM THE SECOND PHASE OF GLOBAL WITNESS/EIA INVESTIGATION 17 RECOMMENDATIONS FROM THE FIRST PHASE OF GLOBAL WITNESS/EIA INVESTIGATION 18 (NOVEMBER 2009) ACRONYMS ANNEXES CITES Convention on International Trade 1. Executive Summary of Investigations of Illegal Logging in Sava, Madagascar 21 in Endangered Species (November 2009) FWS US Fish & Wildlife Service 2. The 13 operators officially recognized as dealing in precious wood as listed in 22 ICE US Immigration and Inter-ministerial Order 003/2009 Customs Enforcement 3. Decree 2010-141 23 MEF Ministère de l’Environnement et 4. Letter of Minister of the Environment and Forests to CITES Secretariat 26 des Forêts ; Ministry of the Environment and Forests 5. List of Chinese companies named as recipient (destinataire) of shipments 27 MNP Madagascar National Parks 6. Open Letter to Shipping company Delmas 28 7. Delmas response to EIA and Global Witness 30 Investigation Into The Global Trade In Malagasy Precious Woods: Rosewood, Ebony and Pallisander | October 2010 3 Executive Summary In June 2009, Madagascar National Parks cated in our first investigation report to export and timber products into the European Union (MNP) with an official mandate of the Ministry illegal timber. market. Like the US Lacey Act (see below), of the Environment and Forests contracted this is a critical first step in stopping the trade Recent developments suggest progress may be Global Witness and the Environmental Investi- in illegal timber destined for US and European on the horizon. In March 2010, the new Minister gation Agency (EIA) to investigate and monitor markets. for Forests signed Decree No. 2010-141 (see the flow of illegally harvested precious wood Annex 2), once again prohibiting the cutting, from the national parks and surrounding areas extraction and export of rosewood and ebony. of Madagascar’s SAVA Region. This illicit trade in Lacey Act enforcement action Recent enforcement actions may indicate a rare, high-value species such as ebony, rose- more aggressive stance towards the export In November 2009, US enforcement agencies wood and pallisander serves export markets in of illegally harvested timber, which would be used the newly amended 2008 Lacey Act to China, the United States and Europe, where it cautiously welcomed. Global Witness and EIA raid the offices of iconic Nashville-based guitar is used to manufacture furniture and musical will be monitoring this situation closely. manufacturer Gibson, on the back of the Global instruments. The quick profits on offer have Witness/EIA findings. Gibson is suspected fuelled a timber rush which has decimated of importing illegal Malagasy ebony via its Madagascar’s few remaining precious forests. The Convention on International European trading partner Theodor Nagel GmbH Our November 2009 report, Investigation Trade in Endangered Species & Co KG. Nagel sourced its timber from trader into the illegal felling, transport and export of (CITES) Société Thunam Roger, based in Antalaha, 1 northern Madagascar. It is difficult to assess precious wood in SAVA Region Madagascar , Following the recommendations of our first the precise impact of this case, but its profile revealed the inner workings of the trade and report, in June 2010 the Minister for Environ- generated significant media interest in the the extent of the damage. It estimated the ment and Forests submitted a request to United States and Europe. Our data analysis traffic’s value at up to USD460,000 per day the Secretariat of CITES to list all Malagasy shows that those who had imported Malagasy on international markets, with most profits Dalbergia and Diospyros species (to which timber in the US and Europe prior to this raid pocketed by a small group of “timber barons”, ebony, rosewood and pallisander belong) on have since stopped. who typically channel the money into overseas Appendix III of the CITES convention. This would bank accounts and property (See Annex 1 for require the certification of the timber’s legal Executive Summary). harvesting, and allow better tracking and con- Timber flows from Madagascar to This latest report tells what happened next. trol of these species in the international trade. China It traces several important developments Until now, however, a lack of understanding This investigation reveals that between 15 since the November publication, and presents between the CITES Secretariat and Madagascan and 20 major Chinese buyers are actively findings from our follow-up investigations into authorities regarding the details of the request involved in the illegal precious wood trade from the trade flows and consumer markets which appears to have delayed implementation. Madagascar, together accounting for more facilitate and promote demand for Madagas- than 95 per cent of wood purchased from the car’s precious woods. United States and European timber barons of the SAVA Region. One Chinese legislative action company claims to have imported over 1,000 containers of Malagasy rosewood in three New decrees relating to illegal Following publication of our report and years, with plans to ship in 1,000 more in timber in Madagascar extensive input from EIA, in November 2009 the next two years – deals that have come the United States House of Representatives Following our initial investigation and subse- about through what it describes as a “special passed Bill H.R. 839, which strongly condemns quent campaigning, the Malagasy authorities relationship” with high-ranking officials in the “the illegal extraction of Madagascar’s natural issued a series of decrees designed to clean up Malagasy government. the precious woods sector. Unfortunately, these resources and its impact on biodiversity and measures reproduce many of the problems livelihoods of rural communities”. The bill called Many of these imports are destined for small highlighted in our original report. Whilst upon importing countries to “ensure that they wholesalers and furniture factories, feeding a recognising the illegal nature of the timber, do not contribute to the demand for illegally highly lucrative domestic market. Rosewood they nonetheless authorise timber exports from sourced precious woods from Madagascar” furniture prices range from a few thousand specific traders, following payment of a penalty. and upon “consumers of rosewood and ebony US dollars to almost a million US dollars for products to check their origin, and boycott top-end products. Although reliable information This ad hoc authorisation policy simply those made of Malagasy wood”. on the size of the market is not yet available, encourages further logging to replenish the EIA’s enquiries put it in the region of several timber stock, in anticipation of further decrees Furthermore, in July 2010 the European permitting its export. Specifically, the decrees Parliament passed the “Timber Import Regula- have enabled those particular traders impli- tion”, prohibiting the import of illegal timber 1. http://eia-global.org/PDF/Report--Madagascar--Forest--Aug09- -English.pdf 4 hundred million US dollars. The main bulk of instruments, carvings, decorative and luxury rosewood from Madagascar. This followed the products are made for the Chinese domestic office items. Interviews in the United States issuing of Decree 2010-141, which once again market, with small quantities exported to the and European Union countries
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