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Cablegate: Brazil Forest Stewartship Council Meeting On Certified

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R 151839Z MAY 08
FM AMEMBASSY BRASILIA
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INFO RUEHBU/AMEMBASSY BUENOS AIRES 5510
RUEHSG/AMEMBASSY SANTIAGO 0329
RUEHLP/AMEMBASSY LA PAZ 6193
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RUEHQT/AMEMBASSY QUITO 2473
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RUEHCV/AMEMBASSY CARACAS 4090
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RUEHRI/AMCONSUL RIO DE JANEIRO 6162
RUEATRS/DEPT OF TREASURY WASHDC
RUEHC/DOI WASHDC
RUEAEPA/HQ EPA WASHDC
RUMIAAA/USCINCSO MIAMI FL
RUEHRC/USDA WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 03 BRASILIA 000663

SIPDIS

E.O. 12958: N/A
TAGS: SENV EAGR EAID TBIO ECON SOCI XR BR
SUBJECT: BRAZIL FOREST STEWARTSHIP COUNCIL MEETING ON CERTIFIED
PRODUCTS


-------
Summary
-------

1. SUMMARY: The 3rd Brazil Certified Fair and the Amazonia
Sustainable Forum (Sao Paulo, April 2008) brought together the
Brazilian Council for Forestry Management and the Forest Stewardship
Council (FSC), in partnership with Friends of the Earth, Imafora,
and Imazon for discussion of sustainable forest management and
forest product certification with producers, traders, and consumers.
The events promoted FSC-certified products and strategic business
models intended to be certifiable, marketable, and sustainable. END
SUMMARY

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The Event
----------

2. The 3rd Certified Brazil Trade Fair of FSC Certified Products
(Sao Paulo April 16-18, 2008) was jointly organized by the Institute
for Forest and Agriculture Management and Certification (Imaflora),
the Institute for Man and the Environment of the Amazon Region
(Imazon), Friends of Earth for the Brazilian Amazon, the CBMF
Brazilian Council for Forestry Management (FSC/BRAZIL), with
sponsorships from USAID, Suzano Paper and Pulp, Klabin, Banco Real,
Banco do Brasil, and others.

3. This 3rd Certified Brazil Trade Fair follows the initial 2004
Trade Fair which advocated the potential for the certification
market in Brazil. The 2nd 2006 Trade Fair confirmed the success of
the forest certified market, bringing in an increased number of
exhibitors, products, and visitors. All three trade fairs focused
on promotion of the sustainable management and development of the
Brazilian forest sector.

4. The 2008 Trade Fair showcased the rising demand for
FSC-certified products worldwide, as well as rising demand for
financial institutions with sustainable procurement policies.
Sectors represented at the Trade Fair included wood and non-wood
forest product processors, civil construction, architecture,
exterior/interior design, personal care products, and retail trade.

5. To be granted the FSC label, forest products must be produced
from raw materials obtained from environmentally appropriate,
socially beneficial, and economically viable forest management.
Certified chain of custody records trace the raw material from the
forest to the end user, ensuring origins and handling of timber and
non-timber forest products. The FSC label carries the highest
credibility in national and international markets, serving as the
only volunteer system that includes environmental, social and
economic sectors.

----------------
A growing market
----------------
6. According to Forest Stewardship Council (FSC) International
global data for 2008, over 100 million forest hectares are
FSC-certified in 79 countries. Of this 100 million hectares, 13
million are classified as tropical forest. In 2006, the market value
of FSC-labelled products exceeded USD $20 billion. The UN Food and
Agriculture Organization reports the FSC certification program to be
the fastest growing forest certification scheme in the world.

7. Brazil remains the Latin American country with the most
certified forest enterprises (206) and the largest certified forest
area (6.2 million hectares with 70 certified holders). Bolivia
holds second place (1.7 million hectares with 17 certified holders);
and Peru holds a distant third (628,385 hectares with 9 certified
holders).

8. Although certified forest enterprises are on the rise, 80% of

BRASILIA 00000663 002 OF 003


the annual wood extraction from the Brazilian Amazon forest is
illegal. Illegal logging in Bolivia and Peru also remains a
problem.

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Brazilian Perspective
---------------------

9. Tasso Azevedo, the Director of the Brazilian Forest Service,
emphasized that FSC-certification is a tool to create a sustainable
forest economy which increases the value of the standing forest
instead of illegal timber products. The FSC certification program
strengthens collaboration between environmental, social and economic
sectors in Brazil by promoting strategic and sustainable land
management for business growth. The 2007 approval of Brazil's
Public Forest Management Law further promotes the alliance between
governmental sectors, civil society, and business enterprises.

10. Azevedo offered two examples of forest preservation
initiatives: 1) Greenpeace program (Cidade Amiga da Amazonia) that
encourages state governments and Brazilian municipalities (36
participants thus far) to prohibit use of illegally logged wood in
public purchasing; and 2) the FSC-Certified Products Purchasing
Guide (Paginas Verdes, Guia de Compras de Produtos Certificados FSC)
which stimulates the certified product chain as well as consumption
of certified products
http://www.fsc.org.br/arquivos/Completo_PV.pd f

-------------------------------
The Amazonia Sustainable Forum
-------------------------------

11. Following the 2008 Trade Fair, the Amazonia Sustainable Forum,
led a public dialogue on the need for an equitable and sustainable
Amazonia in which leadership will promote new alternatives to the
present model of deforestation and predatory exploration of natural
resources of the Amazon Forest. Forum discussion was led by French
economist Ignacy Sachs and Jecinaldo Barbosa, indigenous leader of
COIAB (the Coordination of Indigenous Organizations of the Brazilian
Amazon).

12. Amazonia represents 59 percent of the total area of Brazil,
provides livelihood for 12.2 percent of the population (22.2
million), contains 180 different ethnic groups, reports 10 million
inhabitants below the poverty line, and only contributes 8 percent
to national GNP. The deforested area of Amazonia is reported at
700,000 km2, roughly 1.5 times the size of France.

----------
Conclusion
----------

13. The 3rd Certified Brazil Trade Fair, 2008 demonstrated the
increasing market share of FSC-certified forest products, indicating
that sustainable development of Brazilian forests is a viable
business strategy. Forests across Brazil, Amazonia and Latin
America are now more often being viewed as worth more standing than
cut. Business strategies that define the new and sustainable roles
between Amazonian ecosystems and their inhabitants are becoming
certifiable, marketable, and sustainable.

14. COMMENT: Subsequent to the trade fair event, the EU announced
its intention to approve a wood exportation law that would require a
mandatory seal attesting to legitimate product origin. The EU, with
its 27 member countries, is considered the most lucrative timber
products market in the world. According IMAZON, 36 percent of the
wood extracted from Legal Amazonia (Amazon states of Brazil) is
exported, with 47 percent destined for the European market. EU wood
industries estimate that illegal timber product commerce amounts to
an annual loss of tax revenue approximating US$ 15 billion. END
COMMENT.

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CHICOLA

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