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INTERNATIONAL TROPICAL TIMBER AGREEMENT 1994
(Geneva, 26.I.1994)
Preamble
The Parties to this Agreement,
Recalling the Declaration and the Programme of Action on the
Establishment of A New International Economic Order; the Integrated
Programme for Commodities; A New Partnership for Development: the
Cartagena Commitment and the relevant objectives contained in the
Spirit of Cartagena,
Recalling the International Tropical Timber Agreement, 1983, and
recognizing the work of the International Tropical Timber Organization
and its achievements since its inception, including a strategy for
achieving international trade in tropical timber from sustainably
managed sources,
Recalling further the Rio Declaration on Environment and
Development, the Non-Legally Binding Authoritative Statement of
Principles for a Global Consensus on the Management, Conservation and
Sustainable Development of all Types of Forests, and the relevant
Chapters of Agenda 21 as adopted by the United Nations Conference on
Environment and Development in June 1992, in Rio de Janeiro; the
United Nations Framework Convention on Climate Change; and the
Convention on Biological Diversity,
Recognizing the importance of timber to the economies of
countries with timber-producing forests,
Further recognizing the need to promote and apply comparable and
appropriate guidelines and criteria for the management, conservation
and sustainable development of all types of timber-producing forests,
Taking into account the linkages of tropical timber trade and the
international timber market and the need for taking a global
perspective in order to improve transparency in the international
timber market,
Noting the commitment of all members, made in Bali, Indonesia, in
May 1990, to achieve exports of tropical timber products from
sustainably managed sources by the year 2000 and recognizing Principle
10 of the Non-Legally Binding Authoritative Statement of Principles
for a Global Consensus on the Management, Conservation and Sustainable
Development of all Types of Forests which states that new and
additional financial resources should be provided to developing
countries to enable them to sustainably manage, conserve and develop
their forests, including through afforestation, reforestation and
combatting deforestation and forest and land degradation,
Noting also the statement of commitment to maintain, or achieve
by the year 2000, the sustainable management of their respective
forests made by consuming members who are parties to the International
Tropical Timber Agreement, 1983 at the fourth session of the United
Nations Conference for the Negotiation of a Successor Agreement to the
International Tropical Timber Agreement, 1983 in Geneva on 21 January
1994,
Desiring to strengthen the framework of international cooperation
and policy development between members in finding solutions to the
problems facing the tropical timber economy,
Have agreed as follows:
Chapter I. OBJECTIVES
Article 1
Objectives
Recognizing the sovereignty of members over their natural
resources, as defined in Principle 1 (a) of the Non-Legally Binding
Authoritative Statement of Principles for a Global Consensus on the
Management, Conservation and Sustainable Development of all Types of
Forests, the objectives of the International Tropical Timber
Agreement, 1994 (hereinafter referred to as "this Agreement") are:
(a) To provide an effective framework for consultation,
international cooperation and policy development among all members
with regard to all relevant aspects of the world timber economy;
(b) To provide a forum for consultation to promote
non-discriminatory timber trade practices;
(c) To contribute to the process of sustainable development;
(d) To enhance the capacity of members to implement a strategy
for achieving exports of tropical timber and timber products from
sustainably managed sources by the year 2000;
(e) To promote the expansion and diversification of international
trade in tropical timber from sustainable sources by improving the
structural conditions in international markets, by taking into
account, on the one hand, a long-term increase in consumption and
continuity of supplies, and, on the other, prices which reflect the
costs of sustainable forest management and which are remunerative and
equitable for members, and the improvement of market access;
(f) To promote and support research and development with a view
to improving forest management and efficiency of wood utilization as
well as increasing the capacity to conserve and enhance other forest
values in timber-producing tropical forests;
(g) To develop and contribute towards mechanisms for the
provision of new and additional financial resources and expertise
needed to enhance the capacity of producing members to attain the
objectives of this Agreement;
(h) To improve market intelligence with a view to ensuring
greater transparency in the international timber market, including the
gathering, compilation, and dissemination of trade-related data,
including data related to species being traded;
(i) To promote increased and further processing of tropical
timber from sustainable sources in producing member countries with a
view to promoting their industrialization and thereby increasing their
employment opportunities and export earnings;
(j) To encourage members to support and develop industrial
tropical timber reforestation and forest management activities as well
as rehabilitation of degraded forest land, with due regard for the
interests of local communities dependent on forest resources;
(k) To improve marketing and distribution of tropical timber
exports from sustainably managed sources;
(l) To encourage members to develop national policies aimed at
sustainable utilization and conservation of timber-producing forests
and their genetic resources and at maintaining the ecological balance
in the regions concerned, in the context of tropical timber trade;
(m) To promote the access to, and transfer of, technologies and
technical cooperation to implement the objectives of this Agreement,
including on concessional and preferential terms and conditions, as
mutually agreed; and
(n) To encourage information-sharing on the international timber
market.
Chapter II. DEFINITIONS
Article 2
Definitions
For the purposes of this Agreement:
1. "Tropical timber" means non-coniferous tropical wood for
industrial uses, which grows or is produced in the countries situated
between the Tropic of Cancer and the Tropic of Capricorn. The term
covers logs, sawnwood, veneer sheets and plywood. Plywood which
includes in some measure conifers of tropical origin shall also be
covered by this definition;
2. "Further processing" means the transformation of logs into
primary wood products, semi-finished and finished products made wholly
or almost wholly of tropical timber;
3. "Member" means a Government or an intergovernmental
organization referred to in article 5 which has consented to be bound
by this Agreement whether it is in force provisionally or
definitively;
4. "Producing member" means any country with tropical forest
resources and / or a net exporter of tropical timber in volume terms
which is listed in annex A and which becomes a party to this
Agreement, or any country with tropical forest resources and / or a
net exporter of tropical timber in volume terms which is not so listed
and which becomes a party to this Agreement and which the Council,
with the consent of that country, declares to be a producing member;
5. "Consuming member" means any country listed in annex В which
becomes a party to this Agreement, or any country not so listed which
becomes a party to this Agreement and which the Council, with the
consent of that country, declares to be a consuming member;
6. "Organization" means the International Tropical Timber
Organization established in accordance with article 3;
7. "Council" means the International Tropical Timber Council
established in accordance with article 6;
8. "Special vote" means a vote requiring at least two thirds of
the votes cast by producing members present and voting and at least 60
per cent of the votes cast by consuming members present and voting,
counted separately, on condition that these votes are cast by at least
half of the producing members present and voting and at least half of
the consuming members present and voting;
9. "Simple distributed majority vote" means a vote requiring more
than half of the votes cast by producing members present and voting
and more than half of the votes cast by consuming members present and
voting, counted separately;
10. "Financial year" means the period from 1 January to 31
December inclusive;
11. "Freely usable currencies" means the deutsche mark, the
French franc, the Japanese yen, the pound sterling, the United States
dollar and any other currency which has been designated from time to
time by a competent international monetary organization as being in
fact widely used to make payments for international transactions and
widely traded in the principal exchange markets.
Chapter III. ORGANIZATION AND ADMINISTRATION
Article 3
Headquarters and structure of the International Tropical
Timber Organization
1. The International Tropical Timber Organization established by
the International Tropical Timber Agreement, 1983 shall continue in
being for the purposes of administering the provisions and supervising
the operation of this Agreement.
2. The Organization shall function through the Council
established under article 6, the committees and other subsidiary
bodies referred to in article 26 and the Executive Director and staff.
3. The headquarters of the Organization shall be in Yokohama,
unless the Council, by special vote, decides otherwise.
4. The headquarters of the Organization shall at all times be
located in the territory of a member.
Article 4
Membership in the Organization
There shall be two categories of membership in the Organization,
namely:
(a) Producing; and
(b) Consuming.
Article 5
Membership by intergovernmental organizations
1. Any reference in this Agreement to "Governments" shall be
construed as including the European Community and any other
intergovernmental organization having responsibilities in respect of
the negotiation, conclusion and application of international
agreements, in particular commodity agreements. Accordingly, any
reference in this Agreement to signature, ratification, acceptance or
approval, or to notification of provisional application, or to
accession shall, in the case of such intergovernmental organizations,
be construed as including a reference to signature, ratification,
acceptance or approval, or to notification of provisional application,
or to accession, by such intergovernmental organizations.
2. In the case of voting on matters within their competence, such
intergovernmental organizations shall vote with a number of votes
equal to the total number of votes attributable to their member States
in accordance with article 10. In such cases, the member States of
such intergovernmental organizations shall not be entitled to exercise
their individual voting rights.
Chapter IV. INTERNATIONAL TROPICAL TIMBER COUNCIL
Article 6
Composition of the International Tropical Timber Council
1. The highest authority of the Organization shall be the
International Tropical Timber Council, which shall consist of all the
members of the Organization.
2. Each member shall be represented in the Council by one
representative and may designate alternates and advisers to attend
sessions of the Council.
3. An alternate representative shall be empowered to act and vote
on behalf of the representative during the latter`s absence or in
special circumstances.
Article 7
Powers and functions of the Council
1. The Council shall exercise all such powers and perform or
arrange for the performance of all such functions as are necessary to
carry out the provisions of this Agreement.
2. The Council shall, by special vote, adopt such rules and
regulations as are necessary to carry out the provisions of this
Agreement and as are consistent therewith, including its own rules of
procedure and the financial rules and staff regulations of the
Organization. Such financial rules shall, inter alia, govern the
receipt and expenditure of funds under the Administrative Account, the
Special Account and the Ball Partnership Fund. The Council may, in its
rules of procedure, provide for a procedure whereby it may, without
meeting, decide specific questions.
3. The Council shall keep such records as are required for the
performance of its functions under this Agreement.
Article 8
Chairman and Vice-Chairman of the Council
1. The Council shall elect for each calendar year a Chairman and
a Vice-Chairman, whose salaries shall not be paid by the Organization.
2. The Chairman and the Vice-Chairman shall be elected, one from
among the representatives of producing members and the other from
among the representatives of consuming members. These offices shall
alternate each year between the two categories of members, provided,
however, that this shall not prohibit the re-election of either or
both, under exceptional circumstances, by special vote of the Council.
3. In the temporary absence of the Chairman, the Vice-Chairman
shall act in his place. In the temporary absence of both the Chairman
and the Vice-Chairman, or in the absence of one or both of them for
the rest of the term for which they were elected, the Council may
elect new officers from among the representatives of the producing
members and / or from among the representatives of the consuming
members, as the case may be, on a temporary basis or for the rest of
the term for which the predecessor or predecessors were elected.
Article 9
Sessions of the Council
1. As a general rule, the Council shall hold at least one regular
session a year.
2. The Council shall meet in special session whenever it so
decider or at the request of:
(a) The Executive Director, in agreement with the Chairman of the
Council; or
(b) A majority of producing members or a majority of consuming
members; or
(c) Members holding at least 500 votes.
3. Sessions of the Council shall be held at the headquarters of
the Organization unless the Council, by special vote, decides
otherwise. If on the invitation of any member the Council meets
elsewhere than at the headquarters of the Organization, that member
shall pay the additional cost of holding the meeting away from
headquarters.
4. Notice of any sessions and the agenda for such sessions shall
be communicated to members by the Executive Director at least six
weeks in advance, except in cases of emergency, when notice shall be
communicated at least seven days in advance.
Article 10
Distribution of votes
1. The producing members shall together hold 1,000 votes and the
consuming members shall together hold 1,000 votes.
2. The votes of the producing members shall be distributed as
follows:
(a) Four hundred votes shall be distributed equally among the
three producing regions of Africa, Asia-Pacific and Latin America. The
votes thus allocated to each of these regions shall then be
distributed equally among the producing members of that region;
(b) Three hundred votes shall be distributed among the producing
members in accordance with their respective shares of the total
tropical forest resources of all producing members; and
(c) Three hundred votes shall be distributed among the producing
members in proportion to the average of the values of their respective
net exports of tropical timber during the most recent three-year
period for which definitive figures are available.
3. Notwithstanding the provisions of paragraph 2 of this article,
the total votes allocated to the producing members from the African
region, calculated in accordance with paragraph 2 of this article,
shall be distributed equally among all producing members from the
African region. If there are any remaining votes, each of these votes
shall be allocated to a producing member from the African region: the
first to the producing member which is allocated the highest member of
votes calculated in accordance with paragraph 2 of this article, the
second to the producing member which is allocated the second highest
number of votes, and so on until all the remaining votes have been
distributed.
4. For purposes of the calculation of the distribution of votes
under paragraph 2 (b) of this article, "tropical forest resources"
means productive closed broad-leaved forests as defined by the Food
and Agriculture Organization (FAO).
5. The votes of the consuming members shall be distributed as
follows: each consuming member shall have 10 initial votes: the
remaining votes shall be distributed among the consuming members in
proportion to the average volume of their respective net imports of
tropical timber during the three-year period commencing four calendar
years prior to the distribution of votes.
6. The Council shall distribute the votes for each financial year
at the beginning of its first session of that year in accordance with
the provisions of this article. Such distribution shall remain in
effect for the rest of that year, except as provided for in paragraph
7 of this article.
7. Whenever the membership of the Organization changes or when
any member has its voting rights suspended or restored under any
provision of this Agreement, the Council shall redistribute the votes
within the affected category or categories of members in accordance
with the provisions of this article. The Council shall, in that event,
decide when such redistribution shall become effective.
8. There shall be no fractional votes.
Article 11
Voting procedure of the Council
1. Each member shall be entitled to cast the member of votes it
holds and no member shall be entitled to divide its votes. А member
may, however, cast differently from such votes any votes which it is
authorized to cast under paragraph 2 of this article.
2. By written notification to the Chairman of the Council, any
producing member may authorize, under its own responsibility, any
other producing member, and any consuming member may authorize, under
its own responsibility, any other consuming member, to represent its
interests and to cast its votes at any meeting of the Council.
3. When abstaining, a member shall be deemed not to have cast its
votes.
Article 12
Decisions and recommendations of the Council
1. The Council shall endeavour to take all decisions and to make
all recommendations by consensus. If consensus cannot be reached, the
Council shall take all decisions and make all recommendations by a
simple distributed majority vote, unless this Agreement provides for a
special vote.
2. Where a member avails itself of the provisions of article 11,
paragraph 2, and its votes are cast at a meeting of the Council, such
member shall, for the purposes of paragraph 1 of this article, be
considered as present and voting.
Article 13
Quorum for the Council
1. The quorum for any meeting of the Council shall be the
presence of a majority of members of each category referred to in
article 4, provided that such members hold at least two thirds of the
total votes in their respective categories.
2. If there is no quorum in accordance with paragraph 1 of this
article on the day fixed for the meeting and on the following day, the
quorum on the subsequent days of the session shall be the presence of
a majority of members of each category referred to in article 4,
provided that such members hold a majority of the total votes in their
respective categories.
3. Representation in accordance with article 11, paragraph 2,
shall be considered as presence.
Article 14
Cooperation and coordination with other organizations
1. The Council shall make arrangements as appropriate for
consultations and cooperation with the United Nations and its organs,
including the United Nations Conference on Trade and Development
(UNCTAD) and the Commission on Sustainable Development (CSD),
intergovernmental organizations, including the General Agreement on
Tariffs and Trade (GATT) and the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES), and
non-qovernmental organizations.
2. The Organization shall, to the maximum extent possible,
utilize the facilities, services and expertise of existing
intergovernmental, governmental or non-governmental organizations, in
order to avoid duplication of efforts in achieving the objectives of
this Agreement and to enhance the complementarity and the efficiency
of their activities.
Article 15
Admission of observers
The Council may invite any non-member Government or any of the
organizations referred to in article 14, article 20 and article 29,
interested in the activities of the Organization to attend as
observers any of the meetings of the Council.
Article 16
Executive Director and staff
1. The Council shall, by special vote, appoint the Executive
Director.
2. The terms and conditions of appointment of the Executive
Director shall be determined by the Council.
3. The Executive Director shall be the chief administrative
officer of the Organization and shall be responsible to the Council
for the administration and operation of this Agreement in accordance
with decisions of the Council.
4. The Executive Director shall appoint the staff in accordance
with regulations to be established by the Council. The Council shall,
by special vote, decide the number of executive and professional staff
the Executive Director may appoint. Any changes in the number of
executive and professional staff shall be decided by the Council by
special vote. The staff shall be responsible to the Executive
Director.
5. Neither the Executive Director nor any member of the staff
shall have any financial interest in the timber industry or trade, or
associated commercial activities.
6. In the performance of their duties, the Executive Director and
staff shall not seek or receive instructions from any member or from
any authority external to the Organization. They shall refrain from
any action which might reflect adversely on their positions as
international officials ultimately responsible to the Council. Each
member shall respect the exclusively international character of the
responsibilities of the Executive Director and staff and shall not
seek to influence them in the discharge of their responsibilities.
Chapter V. PRIVILEGES AND IMMUNITIES
Article 17
Privileges and immunities
1. The Organization shall have legal personality. It shall in
particular have the capacity to contract, to acquire and dispose of
movable and immovable property, and to institute legal proceedings.
2. The status, privileges and immunities of the Organization, of
its Executive Director, its staff and experts, and of representatives
of members while in the territory of Japan shall continue to be
governed by the Headquarters Agreement between the Government of Japan
and the International Tropical Timber Organization signed at Tokyo on
27 February 1988, with such amendments as may be necessary for the
proper functioning of this Agreement.
3. The Organization may conclude, with one or more countries,
agreements to be approved by the Council relating to such capacity,
privileges and immunities as may be necessary for the proper
functioning of this Agreement.
4. If the headquarters of the Organization is moved to another
country, the member in question shall, as soon as possible, conclude
with the Organization a headquarters agreement to be approved by the
Council. Pending the conclusion of such an Agreement, the Organization
shall request the new host Government to grant, within the limits of
its national legislation, exemption from taxation on remuneration paid
by the Organization to its employees, and on the assets, income and
other property of the Organization.
5. The headquarters agreement shall be independent of this
Agreement. It shall, however, terminate:
(a) By agreement between the host Government and the
Organization;
(b) In the event of the headquarters of the Organization being
moved from the country of the host Government; or
(c) In the event of the Organization ceasing to exist.
Chapter VI. FINANCE
Article 18
Financial accounts
1. There shall be established:
(a) The Administrative Account;
(b) The Special Account;
(c) The Bali Partnership Fund; and
(d) Such other accounts as the Council shall deem appropriate and
necessary.
2. The Executive Director shall be responsible for the
administration of these accounts and the Council shall make provision
therefor in the financial rules of the Organization.
Article 19
Administrative Account
1. The expenses necessary for the administration of this
Agreement shall be brought into the Administrative Account and shall
be met by annual contributions paid by members in accordance with
their respective constitutional or institutional procedures and
assessed in accordance with paragraphs 3, 4 and 5 of this article.
2. The expenses of delegations to the Council, the committees and
any other subsidiary bodies of the Council referred to in article 26
shall be net by the members concerned. In cases where a member
requests special services from the Organization, the Council shall
require that member to pay the costs of such services.
3. Before the end of each financial year, the Council shall
approve the administrative budget of the Organization for the
following financial year and shall assess the contribution of each
member to that budget.
4. The contribution of each member to the administrative budget
for each financial year shall be in the proportion which the number of
its votes at the time the administrative budget for that financial
year is approved bears to the total votes of all the members. In
assessing contributions, the votes of each member shall be calculated
without regard to the suspension of any member`s voting rights or any
redistribution of votes resulting therefrom.
5. The initial contribution of any member joining the
Organization after the entry into force of this Agreement shall be
assessed by the Council on the basis of the number of votes to be held
by that member and the period remaining in the current financial year,
but the assessment made upon other members from the current financial
year shall not thereby be altered.
6. Contributions to administrative budgets shall become due on
the first day of each financial year. Contributions of members in
respect of the financial year in which they join the Organization
shall be due on the date on which they become members.
7. If a member has not paid if full contribution to the
administrative budget within four months after such contribution
becomes due in accordance with paragraph 6 of this article, the
Executive Director shall request that member to make payment as
quickly as possible. If that member has still not paid its
contribution within two months after such request, that member shall
be requested to state the reasons for its inability to make payment.
If at the expiry of seven months from the due date of contribution,
that member has still not paid its contribution, its voting rights
shall be suspended until such time as it has paid in full its
contribution, unless the Council, by special vote, decides otherwise.
If, on the contrary, a member has paid its full contribution to the
administrative budget within four months after such contribution
becomes due in accordance with paragraph 6 of this article, the
member`s contribution shall receive a discount as may be established
by the Council in the financial rules of the Organization.
8. A member whose rights have been suspended under paragraph 7 of
this article shall remain liable to pay its contribution.
Article 20
Special Account
1. There shall be established two sub-accounts under the Special
Account:
(a) The Pre-Project Sub-Account; and
(b) The Project Sub-Account.
2. The possible sources of finance for the Special Account may
be:
(a) The Common Fund for Commodities;
(b) Regional and international financial institutions; and
(c) Voluntary contributions.
3. The resources of the Special Account shall be used only for
approved pre-projects or projects.
4. All expenditures under the Pre-Project Sub-Account shall be
reimbursed from the Project Sub-Account if projects are subsequently
approved and funded. If within six months of the entry into force of
this Agreement the Council does not receive any funds for the
Pre-Project Sub-Account, it shall review the situation and take
appropriate action.
5. All receipts pertaining to specific identifiable pre-projects
or projects under the Special Account shall be brought into that
Account. All expenditures incurred on such pre-projects or projects,
including remuneration and travel expenses of consultants and experts,
shall be charged to the same Account.
6. The Council shall, by special vote, establish terms and
conditions on which it would, when and where appropriate, sponsor
projects for loan financing, where a member or members have
voluntarily assumed full obligations and responsibilities for such
loans. The Organization shall have no obligations for such loans.
7. The Council may nominate and sponsor any entity with the
consent of that entity, including a member or members, to receive
loans for the financing of approved projects and to undertake all the
obligations involved, except that the Organization shall reserve to
itself the right to monitor the use of resources and to follow up on
the implementation of projects so financed. However, the Organization
shall not be responsible for guarantees voluntarily provided by
individual members or other entities.
8. No member shall be responsible by reason of its membership in
the Organization for any liability arising from borrowing or lending
by any other member or entity in connection with projects.
9. In the event that voluntary unearmarked funds are offered to
the Organization, the Council may accept such funds. Such funds may be
utilized for approved pre-projects and projects.
10. The Executive Director shall endeavour to seek, on such terms
and conditions as the Council may decide, adequate and assured finance
for pre-projects and projects approved by the Council.
11. Contributions for specified approved projects shall be used
only for the projects for which they were originally intended, unless
otherwise decided by the Council in agreement with the contributor.
After the completion of a project, the Organization shall return to
each contributor for specific projects the balance of any funds
remaining pro rata to each contributor`s share in the total of the
contributions originally made available for financing that project,
unless otherwise agreed to by the contributor.
Article 21
The Bali Partnership Fund
1. A Fund for sustainable management of tropical timber-producing
forests is hereby established to assist producing members to make the
investments necessary to achieve the objective of article 1 (d) of
this Agreement.
2. The Fund shall be constituted by:
(a) Contributions from donor members;
(b) Fifty per cent of income earned as a result of activities
related to the Special Account;
(c) Resources from other private and public sources which the
Organization may accept consistent with its financial rules.
3. Resources of the Fund shall be allocated by the Council only
for pre-projects and projects for the purpose set out in paragraph 1
of this article and approved in accordance with article 25.
4. In allocating resources of the Fund, the Council shall take
into account:
(a) The special needs of members whose forestry sectors`
contribution to their economies is adversely affected by the
implementation of the strategy for achieving the exports of tropical
timber and timber products from sustainably managed sources by the
year 2000;
(b) The needs of members with significant forest areas who
establish conservation programmes in timber-producing forests.
5. The Council shall examine annually the adequacy of the
resources available to the Fund and endeavour to obtain additional
resources needed by producing members to achieve the purpose of the
Fund. The ability of members to implement the strategy referred to in
paragraph 4 (a) of this article will be Influenced by the availability
of resources.
6. The Council shall establish policies and financial rules for
the operation of the Fund, including rules covering the settlement of
accounts on termination or expiry of this Agreement.
Article 22
Forms of payment
1. Contributions to the Administrative Account shall be payable
in freely usable currencies and shall be exempt from foreign-exchange
restrictions.
2. Financial contributions to the Special Account and the Bali
Partnership Fund shall be payable in freely usable currencies and
shall be exempt from foreign-exchange restrictions.
3. The Council may also decide to accept other forms of
contributions to the Special Account or the Bali Partnership Fund,
including scientific and technical equipment or personnel, to meet the
requirements of approved projects.
Article 23
Audit and publication of accounts
1. The Council shall appoint independent auditors for the purpose
of auditing the accounts of the Organization.
2. Independently audited statements of the Administrative
Account, of the Special Account and of the Bali Partnership Fund shall
be made available to members as soon as possible after the close of
each financial year, but not later than six months after that date,
and be considered for approval by the Council at its next session, as
appropriate. A summary of the audited accounts and balance sheet shall
thereafter be published.
Chapter VII. OPERATIONAL ACTIVITIES
Article 24
Policy work of the Organization
In order to achieve the objectives set out in article 1, the
Organization shall undertake policy work and project activities in the
areas of Economic Information and Market Intelligence, Reforestation
and Forest Management and Forest Industry, in a balanced manner, to
the extent possible integrating policy work and project activities.
Article 25
Project activities of the Organization
1. Bearing in mind the needs of developing countries, members may
submit pre-project and project proposals to the Council in the fields
of research and development, market intelligence, further and
increased wood processing in producing member countries, and
reforestation and forest management. Pre-projects and projects should
contribute to the achievement of one or more of the objectives of this
Agreement.
2. The Council, in approving pre-projects and projects, shall
take into account:
(a) Their relevance to the objectives of this Agreement;
(b) Their environmental and social effects;
(c) The desirability of maintaining an appropriate geographical
balance;
(d) The interests and characteristics of each of the developing
producing regions;
(e) The desirability of equitable distribution of resources among
the fields referred to in paragraph 1 of this article;
(f) Their cost-effectiveness; and
(g) The need to avoid duplication of efforts.
3. The Council shall establish a schedule and procedure for
submitting, appraising, and prioritizing pre-projects and projects
seeking funding from the Organization, as well as for their
implementation, monitoring and evaluation. The Council shall decide on
the approval of pre-projects and projects for financing or sponsorship
in accordance with article 20 or article 21.
4. The Executive Director may suspend disbursement of the
Organization`s funds to a pre-project or project if they are being
used contrary to the project document or in cases of fraud, waste,
neglect or mismanagement. The Executive Director will provide to the
Council at its next session a report for its consideration. The
Council shall take appropriate action.
5. The Council may, by special vote, terminate its sponsorship of
any pre-project or project.
Article 26
Establishment of Committees
1. The following are hereby established as Committees of the
Organization:
(a) Committee on Economic Information and Market Intelligence;
(b) Committee on Reforestation and Forest Management;
(c) Committee on Forest Industry; and
(d) Committee on Finance and Administration.
2. The Council may, by special vote, establish such other
committees and subsidiary bodies as it deems appropriate and
necessary.
3. Participation in each of the committees shall be open to all
members. The rules of procedure of the committees shall be decided by
the Council.
4. The committees and subsidiary bodies referred to in paragraphs
1 and 2 of this article shall be responsible to, and work under the
general direction of, the Council. Meetings of the committees and
subsidiary bodies shall be convened by the Council.
Article 27
Functions of the Committees
1. The Committee on Economic Information and Market Intelligence
shall:
(a) Keep under review the availability and quality of statistics
and other information required by the Organization;
(b) Analyse the statistical data and specific indicators as
decided by the Council for the monitoring of international timber
trade;
(c) Keep under continuous review the international timber market,
its current situation and short-term prospects on the basis of the
data mentioned in subparagraph (b) above and other relevant
information, including information related to undocumented trade;
(d) Make recommendations to the Council on the need for, and
nature of, appropriate studies on tropical timber, including prices,
market elasticity, market substitutability, marketing of new products,
and long-term prospects of the international tropical timber market,
and monitor and review any studies commissioned by the Council;
(e) Carry out any other tasks related to the economic, technical
and statistical aspects of timber assigned to it by the Council;
(f) Assist in the provision of technical cooperation to
developing member countries to improve their relevant statistical
services.
2. The Committee on Reforestation and Forest Management shall:
(a) Promote cooperation between members as partners in
development of forest activities in member countries, inter alia, in
the following areas:
(i) Reforestation;
(ii) Rehabilitation;
(iii) Forest management;
(b) Encourage the increase of technical assistance and transfer
of technology in the fields of reforestation and forest management to
developing countries;
(c) Follow up ongoing activities in this field, and identify and
consider problems and possible solutions to them in cooperation with
the competent organizations;
(d) Review regularly the future needs of international trade in
industrial tropical timber and, on this basis, identify and consider
appropriate possible schemes and measures in the field of
reforestation, rehabilitation and forest management;
(e) Facilitate the transfer of knowledge in the field of
reforestation and forest management with the assistance of competent
organizations;
(f) Coordinate and harmonize these activities for cooperation in
the field of reforestation and forest management with relevant
activities pursued elsewhere, such as those under the auspices of the
Food and Agriculture Organization of the United Nations (FAO), the
United Nations Environment Programme (UNEP), the World Bank, the
United Nations Development Programme (UNDP), regional development
banks and other competent organizations.
3. The Committee on Forest Industry shall:
(a) Promote cooperation between member countries as partners in
the development of processing activities in producing member
countries, inter alia, in the following areas:
(i) Product development through transfer of technology;
(ii) Human resources development and training;
(iii) Standardization of nomenclature of tropical timber;
(iv) Harmonization of specifications of processed products;
(v) Encouragement of investment and joint ventures; and
(vi) Marketing, including the promotion of lesser known and
lesser used species;
(b) Promote the exchange of information in order to facilitate
structural changes involved in increased and further processing in the
interests of all member countries, in particular developing member
countries;
(c) Follow up ongoing activities in this field, and identify and
consider problems and possible solutions to them in cooperation with
the competent organizations;
(d) Encourage the increase of technical cooperation for the
processing of tropical timber for the benefit of producing member
countries.
4. In order to promote the policy and project work of the
Organization in a balanced manner, the Committee on Economic
Information and Market Intelligence, the Committee on Reforestation
and Forest Management and the Committee on Forest Industry shall each:
(a) Be responsible for ensuring the effective appraisal,
monitoring and evaluation of pre-projects and projects;
(b) Make recommendations to the Council relating to pre-projects
and projects;
(c) Follow up the implementation of pre-projects and projects and
provide for the collection and dissemination of their results as
widely as possible for the benefit of all members;
(d) Develop and advance policy ideas to the Council;
(e) Review regularly the results of project and policy work and
make recommendations to the Council on the future of the
Organization`s programme;
(f) Review regularly the strategies, criteria and priority areas
for programme development and project work contained in the
Organization`s Action Plan and recommend revisions to the Council;
(g) Take account of the need to strengthen capacity building and
human resource development in member countries;
(h) Carry out any other task related to the objectives of this
Agreement assigned to them by the Council.
5. Research and development shall be a common function of the
Committees referred to in paragraphs 1, 2, and 3 of this article.
6. The Committee on Finance and Administration shall:
(a) Examine and make recommendations to the Council regarding the
approval of the Organization`s administrative budget proposals and the
management operations of the Organization;
(b) Review the assets of the Organization to ensure prudent asset
management and that the Organization has sufficient reserves to carry
out its work;
(c) Examine and make recommendations to the Council on the
budgetary implications of the Organization`s annual work programme,
and the actions that might be taken to secure the resources needed to
implement it;
(d) Recommend to the Council the choice of independent auditors
and review the independent audited statements;
(e) Recommend to the Council any modifications it may judge
necessary to the Rules of Procedure or the Financial Rules;
(f) Review the Organization`s revenues and the extent to which
they constrain the work of the Secretariat.
Chapter VIII. RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES
Article 28
Relationship with the Common Fund for Commodities
The Organization shall take full advantage of the facilities of
the Common Fund for Commodities.
Chapter IX. STATISTICS, STUDIES AND INFORMATION
Article 29
Statistics, studies and information
1. The Council shall establish close relationships with relevant
intergovernmental, governmental and non-governmental organizations, in
order to help ensure the availability of recent reliable data and
information on the trade in tropical timber, as well as relevant
information on non-tropical timber and on the management of
timber-producing forests. As deemed necessary for the operation of
this Agreement, the Organization, in cooperation with such
organizations, shall compile, collate and, where relevant, publish
statistical information on production, supply, trade, stocks,
consumption and market prices of timber, the extent of timber
resources and the management of timber-producing forests.
2. Members shall, to the fullest extent possible not inconsistent
with their national legislation, furnish, within a reasonable time,
statistics and information on timber, its trade and the activities
aimed at achieving sustainable management of timber-producing forests
as well as other relevant information as requested by the Council. The
Council shall decide on the type of information to be provided under
this paragraph and on the format in which it is to be presented.
3. The Council shall arrange to have any relevant studies
undertaken of the trends and of short- and long-term problems of the
international timber markets and of the progress towards the
achievement of sustainable management of timber-producing forests.
Article 30
Annual report and review
1. The Council shall, within six months after the close of each
calendar year, publish an annual report on its activities and such
other information as it considers appropriate.
2. The Council shall annually review and assess:
(a) The international timber situation;
(b) Other factors, issues and developments considered relevant to
achieve the objectives of this Agreement.
3. The review shall be carried out in the light of:
(a) Information supplied by members in relation to national
production, trade, supply, stocks, consumption and prices of timber;
(b) Other statistical data and specific indicators provided by
members as requested by the Council;
(c) Information supplied by members on their progress towards the
sustainable management of their timber-producing forests;
(d) Such other relevant information as may be available to the
Council either directly or through the organizations in the United
Nations system and intergovernmental, governmental or non-governmental
organizations.
4. The Council shall promote the exchange of views among member
countries regarding:
(a) The status of sustainable management of timber-producing
forests and related matters in member countries;
(b) Resource flows and requirements in relation to objectives,
criteria and guidelines set by the Organization.
5. Upon request, the Council shall endeavour to enhance the
technical capacity of member countries, in particular developing
member countries, to obtain the data necessary for adequate
information-sharing, including the provision of resources for training
and facilities to members.
6. The results of the review shall be included in the reports of
the Council`s deliberations.
Chapter X. MISCELLANEOUS
Article 31
Complaints and disputes
Any complaint that a member has failed to fulfil its obligations
under this Agreement and any dispute concerning the interpretation or
application of this Agreement shall be referred to the Council for
decision. Decisions of the Council on these matters shall be final and
binding.
Article 32
General obligations of members
1. Members shall, for the duration of this Agreement, use their
best endeavours and cooperate to promote the attainment of its
objectives and to avoid any action contrary thereto.
2. Members undertake to accept and carry out the decisions of the
Council under the provisions of this Agreement and shall refrain from
implementing measures which would have the effect of limiting or
running counter to them.
Article 33
Relief from obligations
1. Where it is necessary on account of exceptional circumstances
or emergency or force majeure not expressly provided for in this
Agreement, the Council may, by special vote, relieve a member of an
obligation under this Agreement if it is satisfied by an explanation
from that member regarding the reasons why the obligation cannot be
met.
2. The Council, in granting relief to a member under paragraph 1
of this article, shall state explicitly the terms and conditions on
which, and the period for which, the member is relieved of such
obligation, and the reasons for which the relief is granted.
Article 34
Differential and remedial measures and special measures
1. Developing importing members whose interests are adversely
affected by measures taken under this Agreement may apply to the
Council for appropriate differential and remedial measures. The
Council shall consider taking appropriate measures in accordance with
section III, paragraphs 3 and 4, of resolution 93 (IV) of the United
Nations Conference on Trade and Development.
2. Members in the category of least developed countries as
defined by the United Nations may apply to the Council for special
measures in accordance with section III, paragraph 4, of resolution 93
(IV) and with paragraphs 56 and 57 of the Paris Declaration and
Programme of Action for the Least Developed Countries for the 1990s.
Article 35
Review
The Council shall review the scope of this Agreement four years
after its entry into force.
Article 36
Non-discrimination
Nothing in this Agreement authorizes the use of measures to
restrict or ban international trade in, and in particular as they
concern imports of and utilization of, timber and timber products.
Chapter XI. FINAL PROVISIONS
Article 37
Depositary
The Secretary-General of the United Nations is hereby designated
as the depositary of this Agreement.
Article 38
Signature, ratification, acceptance and approval
1. This Agreement shall be open for signature, at United Nations
Headquarters from 1 April 1994 until one month after the date of its
entry into force, by Governments invited to the United Nations
Conference for the Negotiation of a Successor Agreement to the
International Tropical Timber Agreement, 1983.
2. Any Government referred to in paragraph 1 of this article may:
(a) At the time of signing this Agreement, declare that by such
signature it expresses its consent to be bound by this Agreement
(definitive signature); or
(b) After signing this Agreement, ratify, accept or approve it by
the deposit of an instrument to that effect with the depositary.
Article 39
Accession
1. This Agreement shall be open for accession by the Governments
of all States upon conditions established by the Council, which shall
include a time-limit for the deposit of instruments of accession. The
Council may, however, grant extensions of time to Governments which
are unable to accede by the time-limit set in the conditions of
accession.
2. Accession shall be effected by the deposit of an instrument of
accession with the depositary.
Article 40
Notification of provisional application
A signatory Government which intends to ratify, accept or approve
this Agreement, or a Government for which the Council has established
conditions for accession but which has not yet been able to deposit
its instrument, may, at any time, notify the depositary that it will
apply this Agreement provisionally either when it enters into force in
accordance with article 41, or, if it is already in force, at a
specified date.
Article 41
Entry into force
1. This Agreement shall enter into force definitively on 1
February 1995 or on any date thereafter, if 12 Governments of
producing countries holding at least 55 per cent of the total votes as
set out in annex A to this Agreement, and 16 Governments of consuming
countries holding at least 70 per cent of the total votes as set out
in annex В to this Agreement have signed this Agreement definitively
or have ratified, accepted or approved it or acceded thereto pursuant
to article 38, paragraph 2, or article 39.
2. If this Agreement has not entered into force definitively on 1
February 1995, it shall enter into force provisionally on that date or
on any date within six months thereafter, if 10 Governments of
producing countries holding at least 50 per cent of the total votes as
set out in annex A to this Agreement, and 14 Governments of consuming
countries holding at least 65 per cent of the total votes as set out
in annex В to this Agreement have signed this Agreement definitively
or have ratified, accepted or approved it pursuant to article 38,
paragraph 2, or have notified the depositary under article 40 that
they will apply this Agreement provisionally.
3. If the requirements for entry into force under paragraph 1 or
paragraph 2 of this article have not been met on 1 September 1995, the
Secretary-General of the United Nations shall invite those Governments
which have signed this Agreement definitively or have ratified,
accepted or approved it pursuant to article 38, paragraph 2, or have
notified the depositary that they will apply this Agreement
provisionally, to meet at the earliest time practicable to decide
whether to put this Agreement into force provisionally or definitively
among themselves in whole or in part. Governments which decide to put
this Agreement into force provisionally among themselves may meet from
time to time to review the situation and decide whether this Agreement
shall enter into force definitively among themselves.
4. For any Government which has not notified the depositary under
article 40 that it will apply this Agreement provisionally and which
deposits its instrument of ratification, acceptance, approval or
accession after the entry into force of this Agreement, this Agreement
shall enter into force on the date of such deposit.
5. The Executive Director of the Organization shall convene the
Council as soon as possible after the entry into force of this
Agreement.
Article 42
Amendments
1. The Council may, by special vote, recommend an amendment of
this Agreement to members.
2. The Council shall fix a date by which members shall notify the
depositary of their acceptance of the amendment.
3. An amendment shall enter into force 90 days after the
depositary has received notifications of acceptance from members
constituting at least two thirds of the producing members and
accounting for at least 75 per cent of the votes of the producing
members, and from members constituting at least two thirds of the
consuming members and accounting for at least 75 per cent of the votes
of the consuming members.
4. After the depositary informs the Council that the requirements
for entry into force of the amendment have been met, and
notwithstanding the provisions of paragraph 2 of this article relating
to the date fixed by the Council, a member may still notify the
depositary of its acceptance of the amendment, provided that such
notification is made before the entry into force of the amendment.
5. Any member which has not notified its acceptance of an
amendment by the date on which such amendment enters into force shall
cease to be a party to this Agreement as from that date, unless such
member has satisfied the Council that its acceptance could not be
obtained in time owing to difficulties in completing its
constitutional or institutional procedures, and the Council decides to
extend for that member the period for acceptance of the amendment.
Such member shall not be bound by the amendment before it has notified
its acceptance thereof.
6. If the requirements for the entry into force of the amendment
have not been met by the date fixed by the Council in accordance with
paragraph 2 of this article, the amendment shall be considered
withdrawn.
Article 43
Withdrawal
1. A member may withdraw from this Agreement at any time after
the entry into force of this Agreement by giving written notice of
withdrawal to the depositary. That member shall simultaneously inform
the Council of the action it has taken.
2. Withdrawal shall become effective 90 days after the notice is
received by the depositary.
3. Financial obligations to the Organization incurred by a member
under this Agreement shall not be terminated by if withdrawal.
Article 44
Exclusion
If the Council decides that any member is in breach of its
obligations under this Agreement and decides further that such breach
significantly impairs the operation of this Agreement, it may, by
special vote, exclude that member from this Agreement. The Council
shall immediately so notify the depositary. Six months after the date
of the Council`s decision, that member shall cease to be a party to
this Agreement.
Article 45
Settlement of accounts with withdrawing or excluded
members or members unable to accept an amendment
1. The Council shall determine any settlement of accounts with a
member which ceases to be a party to this Agreement owing to:
(a) Non-acceptance of an amendment to this Agreement under
article 42;
(b) Withdrawal from this Agreement under article 43; or
(c) Exclusion from this Agreement under article 44.
2. The Council shall retain any contribution paid to the
Administrative Account, to the Special Account or to the Bali
Partnership Fund by a member which ceases to be a party to this
Agreement.
3. A member which has ceased to be a party to this Agreement
shall not be entitled to any share of the proceeds of liquidation or
the other assets of the Organization. Nor shall such member be liable
for payment of any part of the deficit, if any, of the Organization
upon termination of this Agreement.
Article 46
Duration, extension and termination
1. This Agreement shall remain in force for a period of four
years after its entry into force unless the Council, by special vote,
decides to extend, renegotiate or terminate it in accordance with the
provisions of this article.
2. The Council may, by special vote, decide to extend this
Agreement for two periods of three years each.
3. If, before the expiry of the four-year period referred to in
paragraph 1 of this article, or before the expiry of an extension
period referred to in paragraph 2 of this article, as the case ray be,
a new agreement to replace this Agreement has been negotiated but has
not yet entered into force either definitively or provisionally, the
Council may, by special vote, extend this Agreement until the
provisional or definitive entry into force of the new agreement.
4. If a new agreement is negotiated and enters into force during
any period of extension of this Agreement under paragraph 2 or
paragraph 3 of this article, this Agreement, as extended, shall
terminate upon the entry into force of the new agreement.
5. The Council may at any time, by special vote, decide to
terminate this Agreement with effect from such date as it may
determine.
6. Notwithstanding the termination of this Agreement, the Council
shall continue in being for a period not exceeding 18 months to carry
out the liquidation of the Organization, including the settlement of
accounts, and, subject to relevant decisions to be taken by special
vote, shall have during that period such powers and functions as may
be necessary for these purposes.
7. The Council shall notify the depositary of any decision taken
under this article.
Article 47
Reservations
Reservations may not be made with respect to any of the
provisions of this Agreement.
Article 48
Supplementary and transitional provisions
1. This Agreement shall be the successor to the International
Tropical Timber Agreement, 1983.
2. All acts by or on behalf of the Organization or any of its
organs under the International Tropical Timber Agreement, 1983, which
are in effect on the date of entry into force of this Agreement and
the terms of which do not provide for expiry on that date shall remain
in effect unless changed under the provisions of this Agreement.
In witness whereof the undersigned, being duly authorized
thereto, have affixed their signatures under this Agreement on the
dates indicated.
Done at Geneva, on twenty-six January, one thousand nine hundred
and ninety-four, the text of this Agreement in the Arabic, Chinese,
English, French, Russian and Spanish languages being equally
authentic.
(Follow the signatures)
Annex A
LIST OF PRODUCING COUNTRIES WITH TROPICAL
FOREST RESOURCES AND / OR NET EXPORTERS OF TROPICAL
TIMBER IN VOLUME TERMS, AND ALLOCATION OF VOTES
FOR THE PURPOSES OF ARTICLE 41
----------------------------------------------------------------------
| Bolivia | 21 |
|-------------------------------------------------------|------------|
| Brazil | 133 |
|-------------------------------------------------------|------------|
| Cameroon | 23 |
|-------------------------------------------------------|------------|
| Colombia | 24 |
|-------------------------------------------------------|------------|
| Congo | 23 |
|-------------------------------------------------------|------------|
| Costa Rica | 9 |
|-------------------------------------------------------|------------|
| Cote d`Ivoire | 23 |
|-------------------------------------------------------|------------|
| Dominican Republic | 9 |
|-------------------------------------------------------|------------|
| Ecuador | 14 |
|-------------------------------------------------------|------------|
| El Salvador | 9 |
|-------------------------------------------------------|------------|
| Equatorial Guinea | 23 |
|-------------------------------------------------------|------------|
| Gabon | 23 |
|-------------------------------------------------------|------------|
| Ghana | 23 |
|-------------------------------------------------------|------------|
| Guyana | 14 |
|-------------------------------------------------------|------------|
| Honduras | 9 |
|-------------------------------------------------------|------------|
| India | 34 |
|-------------------------------------------------------|------------|
| Indonesia | 170 |
|-------------------------------------------------------|------------|
| Liberia | 23 |
|-------------------------------------------------------|------------|
| Malaysia | 139 |
|-------------------------------------------------------|------------|
| Mexico | 14 |
|-------------------------------------------------------|------------|
| Myanmar | 33 |
|-------------------------------------------------------|------------|
| Panama | 10 |
|-------------------------------------------------------|------------|
| Papua New Guinea | 28 |
|-------------------------------------------------------|------------|
| Paraguay | 11 |
|-------------------------------------------------------|------------|
| Peru | 25 |
|-------------------------------------------------------|------------|
| Philippines | 25 |
|-------------------------------------------------------|------------|
| Tanzania, United Republic of | 23 |
|-------------------------------------------------------|------------|
| Thailand | 20 |
|-------------------------------------------------------|------------|
| Togo | 23 |
|-------------------------------------------------------|------------|
| Trinidad and Tobago | 9 |
|-------------------------------------------------------|------------|
| Venezuela | 10 |
|-------------------------------------------------------|------------|
| Zaire | 23 |
|-------------------------------------------------------|------------|
| Total | 1000 |
----------------------------------------------------------------------
Annex В
LIST OF CONSUMING COUNTRIES AND ALLOCATION
OF VOTES FOR THE PURPOSES OF ARTICLE 41
----------------------------------------------------------------------
| Afghanistan | 10 |
|-------------------------------------------------------|------------|
| Algeria | 13 |
|-------------------------------------------------------|------------|
| Australia | 18 |
|-------------------------------------------------------|------------|
| Austria | 11 |
|-------------------------------------------------------|------------|
| Bahrain | 11 |
|-------------------------------------------------------|------------|
| Bulgaria | 10 |
|-------------------------------------------------------|------------|
| Canada | 12 |
|-------------------------------------------------------|------------|
| Chile | 10 |
|-------------------------------------------------------|------------|
| China | 36 |
|-------------------------------------------------------|------------|
| Egypt | 14 |
|-------------------------------------------------------|------------|
| European Community | (302) |
|-------------------------------------------------------|------------|
| Belgium / Luxembourg | 26 |
|-------------------------------------------------------|------------|
| Denmark | 11 |
|-------------------------------------------------------|------------|
| France | 44 |
|-------------------------------------------------------|------------|
| Germany | 35 |
|-------------------------------------------------------|------------|
| Greece | 13 |
|-------------------------------------------------------|------------|
| Ireland | 13 |
|-------------------------------------------------------|------------|
| Italy | 35 |
|-------------------------------------------------------|------------|
| Netherlands | 40 |
|-------------------------------------------------------|------------|
| Portugal | 18 |
|-------------------------------------------------------|------------|
| Spain | 25 |
|-------------------------------------------------------|------------|
| United Kingdom | 42 |
|-------------------------------------------------------|------------|
| Finland | 10 |
|-------------------------------------------------------|------------|
| Japan | 320 |
|-------------------------------------------------------|------------|
| Nepal | 10 |
|-------------------------------------------------------|------------|
| New Zealand | 10 |
|-------------------------------------------------------|------------|
| Norway | 10 |
|-------------------------------------------------------|------------|
| Republic of Korea | 97 |
|-------------------------------------------------------|------------|
| Russian Federation | 13 |
|-------------------------------------------------------|------------|
| Slovakia | 11 |
|-------------------------------------------------------|------------|
| Sweden | 10 |
|-------------------------------------------------------|------------|
| Switzerland | 11 |
|-------------------------------------------------------|------------|
| United States of America | 51 |
|-------------------------------------------------------|------------|
| Total | 1000 |
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