The Impact of Current and Potential Timber Species Listing on CITES: The Implications for Guyana’s Timber Trade Report prepared a part of ITTO Project: Prepared for the Guyana Forestry Commission within the framework of the ITTO-project “Enhancing the Sustainable Management and Commercial Utilisation of the CITES-Listed Species Cedrela Odorata (Red Cedar) In Guyana”, TMT-SPD 014/13 Rev. 1 (M) December, 2015 ABBREVIATIONS ..................................................................................................................................... 7 1 INTRODUCTION .................................................................................................................................. 8 2 THE ROLE OF CITES / CITES AS A REGULATORY AUTHORITY. ........................................ 8 2.1 MEASURES UNDER THE CONVENTION ........................................................................... 9 2.2 THE COST FOR CITES .......................................................................................................... 10 2.2.1 THE COSTS OF IMPLEMENTING AND ENFORCING THE CONVENTION ......... 10 2.2.2 GUYANA LAWS AND REGULATIONS .......................................................................... 12 2.3 FINANCIAL IMPLICATIONS OF CITES LISTING OF TIMBER SPECIES ................ 14 2.3.1 TRADE IMPLICATION FOR GUYANA ......................................................................... 16 CONCLUSION ......................................................................................................................................... 18 REFERENCE ............................................................................................................................................ 19 ANNEX ...................................................................................................................................................... 20 6 ABBREVIATIONS CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CoP Code of Practice GFC Guyana Forestry Commission GoG Government of Guyana IUCN the World Conservation Union WAPPRIITA Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act 7 1 INTRODUCTION Trees provide a multitude of products for human consumption. From an economic perspective, it is the timber itself that provides the greatest contribution with respect to revenue. Forestry has long been one of the major economic activities globally and for developing tropical countries such as Guyana. Because tropical timber producing country rely on timber exploitation as a major revenue earner, it is only obvious that Human activities places global biodiversity under increasing pressure and that these countries will come under scrutiny with respect to the sustainability of their flora and fauna due to the exploitation of commercially valuable species. In an effort to protect species from over exploitation or extinction international agreements such as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an agreement between governments, aims to ensure that international trade in specimens of wild animals and plants does not threaten their survival. CITES was drafted as a result of a resolution adopted in 1963 at a meeting of members of IUCN (The World Conservation Union), agreed upon by representatives of 80 countries in 1973, and entered in force on 1 July 1975. Countries that have signed onto the agreement are bound thereby and are require to implement the conventions, and ensure that domestic legislation is adequate to ensure CITES implementation at the national level. How then does the implementation of CITES affect producer countries and what impact does CITES listings have on countries with respect to international trade. This paper seeks to focus on the impact on trade from a producer country perspective, highlighting some of the challenges faced by countries like Guyana should commercially valuable timber species be listed on CITES. 2 THE ROLE OF CITES / CITES AS A REGULATORY AUTHORITY. CITES regulates international trade by means of trade measures, which include the listing of species on Appendix I, II and III, and the use of export/import permit requirements. CITES list restricts trade not only of the raw materials (logs, boards, veneer) but can also include finished products of some species such as guitars made from Brazilian Rosewood deemed illegal unless accompanied by an export permit. Dependent on which appendix the species falls under importation can be deemed illegal or become excessively expensive, discouraging trade. 8 The overall objective of CITES is the prevention of over-exploitation of species through international trade and ensuring their long term survival. Due to the nature of trade across borders, between countries, CITES requires international cooperation to achieve its objectives. In this light CITES was created and to date provides protection to over 35,000 species of plants and animals. CITES provides on one hand protection for species from extinction and provides a framework through which timber species can be legally traded and managed, in an attempt to ensure continuity of the species and to stem illegal activities. However, what may be beneficial to one country may not be the same for other countries as each nation does not face the same economic situation. Some developing countries are reliant on the trade of their commercially valuable timber species, some of which may have been placed in one the three CITES appendices. With respect to commercially valuable timber placed on the CITES list poses a challenge to find a balance at the national level. 2.1 Measures under the convention Under CITES species listings fall into three (3) categories: Appendix I includes species which are "threatened with extinction and are, or may be affected by international trade”. Trade measures include a ban on commercial trade and a system of import and export permits to allow non- commercial trade is required. Appendix II includes species, "which although not necessarily now threatened with extinction, may become so unless trade in specimens of such species is subject to strict regulation in order to avoid utilisation incompatible with their survival". Species in appendix II can only be traded if export permits are issued on the basis of the exporting country, with no import permit being required. However, export permits must be presented to the importing country to validate authenticity and approval for export. 9 Appendix III contains species that national authorities wish to list and for which they seek the assistance of other Parties to regulate trade. Species trade can only occur if an export permit is issued, based on similar criteria as required for Appendix I export permits. 2.2 The Cost for CITES There are two major costs to CITES membership and listing of species in the CITES appendixes: 1) The costs of implementing and enforcing the Convention; and 2) The costs involved in foregoing income from trade prohibited by the Convention. The cost of implementation and enforcement of the convention will be varied based on the country. For exporting countries, like Guyana and Brazil, higher cost will be incurred with respect to the supply side of regulating international trade. On the other hand there is the lost trade revenue that countries will be faced with as cost to being listed on the CITES appendixes. Since CITES depends on member countries to support and regulate trade in listed species, restrictions form importing countries can significantly affect the revenue earning capacity of producer countries. The objective of CITES is to allow for the replenishment of the restricted species like Cedrela Odorata for example listed in Appendix III in the country under treat like Columbia, Guatemala and Peru, but also found in other countries including Guyana. Unless it is an endemic species like Greenheart in Guyana’s case, countries with the listed species but with good management practices will also feel the impact of trade restrictions. This places a limitation and a burden on countries where the species is deemed to be managed sustainably and not seen at a national level as being under threat. 2.2.1 The costs of implementing and enforcing the Convention Implementation of CITES regulations requires first and foremost in country reform of domestic laws and legislation to support CITES. CITES as a non-self-executing treaty, cannot be implemented until specific legislation is adopted for that purpose. National legislation will have 10 to incorporate these provisions in creating specific obligations since these cannot be enforced in the courts and penalties cannot be applied for non-compliance unless specifically provided for under national legislation. This is the major challenge to countries whether importing or exporting and places considerable stain on the financial and human resources of a country. Some countries such as Costa Rica and Paraguay have enacted laws to prohibit all international trade in given species. Several cases can be reviewed where countries have made the necessary legal provisions at the national level to facilitate CITES regulations. Australia for example ratified CITES in July 1976 and Australian CITES legislation is part of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). In Canada the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA) covers all three appendices