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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 
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¶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. 
 
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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 
 
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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. 
 
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Conclusion 
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¶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. 
 
BRASILIA 00000663  003 OF 003 
 
 
 
CHICOLA