Trade and sustainability: the impact of the International Tropical Timber Agreements on exports

Houghton, Kendall; Naughton, Helen T.

doi:10.1007/s10784-017-9373-x

Cited by 7 publications

(5 citation statements)

References 29 publications

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“…The consumers’ environmental preference as well as the producers’ capability to supply sustainable product quality show a theory consistent positive and significant influence on the probability as well as on the value of tropical timber trade. The counterfactual analysis reveals that the total trade effects are clearly positive for ITTA signatories, which is in line with the findings of Houghton and Naughton (). Exporters as well as importers can considerably increase their value of tropical timber trade flows by either increasing their sustainable tropical timber production or by committing themselves to consume more sustainably produced tropical timber.…”

Section: Resultssupporting

confidence: 89%

“…In a recent time series study on the trade impacts of the amendment of the US Lacey Act 2008, Prestemon () finds a double‐digit percentage increase in prices of regulated tropical timber imports in the United States. With regard to the ITTA, Houghton and Naughton () find that membership in the ITTA does not decrease exports of timber in general, but leads to shift across timber categories.…”

Section: Background and Previous Literaturementioning

confidence: 99%

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Product quality and sustainability: The effect of international environmental agreements on bilateral trade

2018

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This paper addresses the impact of sustainability in production on international trade. In particular, it examines the effect of the International Tropical Timber Agreement (ITTA) on tropical timber trade. The empirical analysis is based on a gravity equation in a difference‐in‐difference setting, which is estimated by a panel Heckman's selection model. This accounts for the potentially systematic selection of trading partners into timber trade activity. We then conduct a comprehensive comparative static analysis solving the structural gravity model with and without the ITTA. This allows us to determine the trade impact of an ITTA‐induced increase in sustainability for participating as well as for third countries. We find that countries participating in the ITTA exhibit a significant and substantial increase in trade values ranging from 4% to 6%. Furthermore, we observe that this effect is more pronounced for smaller member countries. Non‐ITTA countries are confronted with reduced values of tropical timber trade flows.

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Section: Resultssupporting

confidence: 89%

Section: Background and Previous Literaturementioning

confidence: 99%

Product quality and sustainability: The effect of international environmental agreements on bilateral trade

2018

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“…The gravity model has been used by Chan and Au [47], Thi Thu Thuong [48], Natale et al [49] and Morley et al [50] to analyse international trade flows in a wide variety of manufactured products, agri-food products and seafood, as well as in the field of services. It has even been used in a number of studies on the subject of the present research-namely, following Borsky et al [26] and Houghton and Naughton [51], the international timber trade specifically for the case of tropical timber. It has also been applied by Akyüz et al [52] to study the trade in forest products between the EU and Turkey and by Buongiorno et al [53] to analyse the world trade in forest products.…”

Section: Theoretical Arguments and Hypotheses To Be Testedmentioning

confidence: 99%

Transparency Index of the Supplying Countries’ Institutions and Tree Cover Loss: Determining Factors of EU Timber Imports?

Pajares

Martínez-Alcalá

Gallego-Valero

et al. 2020

Forests

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Illegal logging and the associated deforestation have serious consequences for biodiversity, the climate, the economy and society. The EU Timber Regulation (EUTR) prohibits the placing of illegally harvested timber or timber products on the market. The objective of this paper is to analyse the recent evolution of EU imports of these products from the international market, in order to check how the transparency index of the supplying countries’ institutions and tree cover loss have influenced this trajectory. To that end, a panel data model is estimated with 228 observations from 38 exporting countries between 2012 and 2017. The results show that EU timber imports have a direct association with the transparency index and an inverse relationship with tree cover loss; both these relationships are highly significant at the one-percent level. Other significant factors are the performance of the EU construction sector (as a proxy for timber demand) and timber supply. In the short and medium-term, Voluntary Partnership Agreements (VPAs) signed between the EU and non-EU timber-producing countries have a negative influence on the supply to EU member states. This study presents an analysis of EU timber imports after the implementation of the EUTR, providing specific conclusions that can inform policymakers’ efforts to foster sustainable forest management.

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“…Despite all the efforts to address deforestation and forest degradation [1], unsustainable forest management practices and illegal logging remain a widespread problem [2], representing a major threat to the world's forests [3][4][5]. Fuelwood and industrial wood harvesting and trade have been identified as direct deforestation and forest degradation drivers [6,7], and their impacts are emphasized by illegal practices often associated with them [8]. To prevent imports of illegally sourced timber and timber products, the European Union (EU) adopted the EU Timber Regulation (EUTR) in 2013, which addresses the demand side of timber supply chains (importing EU countries).…”

Section: Introductionmentioning

confidence: 99%

Alignment of National Forest Policy Frameworks with the EU Timber Regulation Requirements: Insights from Montenegro and the Republic of Srpska (Bosnia and Herzegovina)

Radosavljević

Masiero

Rogelja

et al. 2023

Forests

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The Western Balkans represent a priority area for improving forest legality monitoring systems in line with the European Union Timber Regulation (EUTR). However, research on EUTR implementation in Western Balkan countries is still sporadic with a limited geographical scope; therefore, the preparedness of forestry sector actors for the EUTR in the region is largely unknown. The main objective of this study is to determine to what extent the forest policy frameworks of Montenegro and the Republic of Srpska (Bosnia and Herzegovina) are aligned with the EUTR requirements. To achieve this aim, we applied a qualitative content analysis of policy documents identified via an expert-based approach. Our results show that both countries have well-developed policy frameworks addressing illegal logging and preventing illegal activities in forestry, especially through dedicated action plans. Key actors in both countries are public, including the ministries responsible for forestry, public forest enterprises, and forestry inspectorates. The forestry sector in Montenegro is facing significant changes due to the termination of forest concessions and the reorganization of the management of state forests, including forest certification. The Republic of Srpska has relatively well-established institutional bodies for EUTR implementation but, in some cases, insufficient exchange of information and cooperation among them. Our findings indicate that the forestry sectors in Montenegro and the Republic of Srpska (as well as in Serbia, Croatia, and Slovenia, as per previous research) are dynamic, undergoing various changes, so there is room for improvement in terms of capacities (e.g., human, technological, infrastructural), legal responsibilities, and information access and availability. With an increasing focus on “deforestation-free” commodities within the EU and global policy arena, a new, more demanding, and broader regulation is expected at the EU level, replacing the EUTR. The incoming regulation will expand existing EUTR requirements, likely posing severe challenges to many EU member countries. This could be even more challenging for countries with less developed or advanced systems to enforce legality requirements, including Western Balkan countries.

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Trade and sustainability: the impact of the International Tropical Timber Agreements on exports

Cited by 7 publications

References 29 publications

Product quality and sustainability: The effect of international environmental agreements on bilateral trade

Product quality and sustainability: The effect of international environmental agreements on bilateral trade

Transparency Index of the Supplying Countries’ Institutions and Tree Cover Loss: Determining Factors of EU Timber Imports?

Alignment of National Forest Policy Frameworks with the EU Timber Regulation Requirements: Insights from Montenegro and the Republic of Srpska (Bosnia and Herzegovina)

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