Liberalization of Trade in
Forest Products

The Pacific Basin Economic Council supports across the board, global trade liberalization as the best means to expand trade and investment, and enhance the economic well being of all peoples. On occasion, certain specific sectors, which hold especially strong promise to provide broad-based global economic benefits, should be considered for expedited liberalisation.

Substantial benefits will accrue from the early liberalization of trade in forest products within the APEC region.

Liberalization of the forest products sector will promote higher rates of economic growth. It will promote improved living standards (not least by helping to reduce the cost of housing), greater development of infrastructure, increased employment and investment opportunities in both importing and exporting economies. Liberalization will also stimulate greater innovation and productivity in the forest product sectors. It will encourage the removal of trade distortive economic and trade policies (such as the imposition of prescriptive and non-scientific building codes).

Sustainable management of forestry resources is a priority for all APEC members.

Liberalization, accompanied by sound domestic sustainable development policy, will promote environmental conservation. By creating conditions for economic growth, liberalisation of forest products will maximise the prospects for sufficient resources to be made available to ensure sustainable management of APEC members’ forestry resources. Liberalization will encourage the management of forestry resources on a sustainable basis.

APEC economies account for a large proportion of the world’s trade in forest products. In 1995 exports of forest products between APEC economies were valued at US$100 billion. Furthermore, for many members, the APEC region is the destination for 95-99% of their forest product exports. Early liberalization of the forest products sector will help to ensure that future demand is met, and that the APEC region achieves its full economic growth potential.

All timber exporting member economies, including developing members, will benefit from early liberalization in the forest products sector. In turn, importing economies will benefit as a result of the lower price of forest products.

PBEC supports the proposal that APEC members take action to remove all tariffs and trade distorting non-tariff measures including elimination of all trade distorting subsidies and, furthermore, ensure that all building codes and phytosanitary measures are scientifically valid and not designed to restrict trade.

Endorsed by the PBEC Steering Committee, November 21, 1997
Adopted by the PBEC Board of Directors, November 21, 1997
PBEC Mid-term Steering Committee Meeting
Whistler, B.C. Canada

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