Criterion 7. Legal, Institutional, and Economic Framework for Forest Conservation and
Sustainable Management
National Report on Sustainable Forests—2010
Indicator 7.56.
Extent to Which the Economic Framework (Economic Policies and Measures) Supports the
Conservation and Sustainable Management of Forests Through Investment and Taxation
Policies and a Regulatory Environment That Recognizes the Long-Term Nature of Investments
and Permits Nondiscriminatory Trade Policies for Forest Products
What is the indicator and why is it important?
This indicator provides information about U.S. trade policies
and how they may affect markets in ways that can affect
sustainable forest management. If trade policies, such as import
or export quotas, mask market signals that affect domestic
timber harvest, these policies may adversely affect economic,
social, or environmental components of sustainable forest
management.
What does the indicator show?
Trade policies are obviously the purview of the Federal
Government, both as logic dictates and as stated explicitly in
the U.S. Constitution. Many national and international laws,
rules, regulations, and international agreements address trade in
forest products, protection of endangered species and important
natural habitats, and potential discrimination. The United States
is a net forest products importer, but also exports considerable
amount of wood as well. The United States imports mostly
sawn wood and panels, and exports pulp, paper, and roundwood, but exports much less than it imports on a volume basis.
Trade from Canada and the United States has been contentious.
The United States imported about 39 percent of its sawn
wood consumption and 28 percent of its panel consumption
in 2004, with almost 90 percent of this coming from Canada.
U.S. trade is governed partially by the North American Free
Trade Agreement (NAFTA), by some accords under the World
Trade Organization (WTO), and by agreements stemming from
General Agreement on Trade and Tariffs (GATT). The legal
Canadian-U.S. lumber dispute reached a fragile resolution in
2006, and remains in force, but with continuing issues.
The United States also participates in international agreements
that have environmental and social objectives. The Convention
on International Trade in Endangered Species (CITES) protects
endangered fauna and flora; Ramsar protects endangered
wetlands; the North American Migratory Bird Treaty acts
to protect those bird species whose migration routes include
North America; and NAFTA and Central American Free Trade
Agreements (CAFTA) include environmental protection and
worker protection standards. Private sector forest products firms
and forest landowners generally operate completely within
these laws, rules, regulations, and international agreements
Table 56-1. Policy and Governance Classification.
Mechanism
Nondiscretionary/mandatorya
Informational/educationalb
Discretionary/voluntaryc
Fiscal/economicd
Market basede
Scale:
National (N),
Regional (R),
State (S),
Local (L)
N, S
N
Approach
Prescriptive
Process or
Systems Based
Performance or
Outcome Based
L, R, I
L, R, I
L, R, I
Private
Enterprise
M
Laws (L), Regulations or Rules (R), International Agreements (I), Government Ownership or Production (G).
b
Education (E), Technical Assistance (T), Research (R), Protection (P), Analysis and Planning (A).
c
Best Management Practices (B), Self-regulation (S).
d
Incentives (I), Subsidies (S), Taxes (T), Payments for Environmental Service (P).
e
Free enterprise, private market allocation of forest resources (M), or market based instruments and payments, including forest certification (C) wetland banks (W), capand-trade (T), conservation easement or transfer of development rights (E).
a
Last Updated June 2011 1
National Report on Sustainable Forests—2010
What has changed since 2003?
The U.S. Lacey Act of 1900 forbade import of foreign animal
or interstate commerce in illegally taken wild animals or
birds. The Lacey Act was extended in the 2008 Farm Bill to
combat imports of illegal flora from other countries. This act
was enacted as a means to control illegal logging and is being
implemented with detailed regulations, as of 2009.
Last Updated June 2011 Concerns with nontrade barriers such as phytosanitary standards and how illegal logging strictures under the 2008 Lacey
Act Amendments still require temperate policy responses and
monitoring to ensure that fair trade continues. The WTO, for
instance promotes free trade, and adjudicates disputes among
countries, but recognizes that each case must be considered
carefully.
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