Trade and Environmental Issues in Forest Production

This paper is an attempt to clarify some of the key issues on trade and environment in the forestry sector. The two main emerging issues in the international trade of forest products within Latin America and the Caribbean to be studied are: 1) implications of the removal of trade barriers for the economic contribution and sustainability of production of the forest sector; and 2) prospects for "green" markets and eco-labelling of forest products based on improved management and harvesting practices. Included in this working paper are a discussion of trends of trade of forest-based products and environmental impacts; environmental impacts of trade barriers and policies related to forest products; multilateral agreements influencing forest management; certification of forest management and eco-labelling of forest products. Lastly, the paper ends with policy recommendations and directions for the future.