BH837

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International Tropical Timber Agreement (1983)

Entry into Force: 1 April 1985, provisionally

The Parties to this Agreement,

Recalling the Declaration and the Programme of Action on the

Establishment of a New International Economic Order adopted by the

General Assembly,

Recalling resolutions 93 (IV) and 124 (V) on the Integrated Programme for

Commodities adopted by the United Nations Conference on Trade and

Development at its fourth and fifth sessions,

Recognizing the importance of, and the need for, proper and effective

conservation and development of tropical timber forests with a view to

ensuring their optimum utilization while maintaining the ecological

balance of the regions concerned and of the biosphere,

Recognizing the importance of tropical timber to the economies of

members, particularly to the exports of producing members and the supply

requirements of consuming members,

Desiring to establish a framework of international co-operation between

producing and consuming members in finding solutions to the problems

facing the tropical timber economy,

Have agreed as follows:

Chapter I

OBJECTIVES

Article 1

OBJECTIVES

With a view to achieving the relevant objectives adopted by the United

Nations Conference on Trade and Development in its resolutions 93 (IV)

and 124 (V) on the Integrated Programme for Commodities, for the benefit

of both producing and consuming members and bearing in mind the

sovereignty of producing members over their natural resources, the

objectives of the International Tropical Timber Agreement, 1983

(hereinafter referred to as "this Agreement") are:

(a) To provide an effective framework for cooperation and

consultation between tropical timber producing and consuming members with

regard to all relevant aspects of the tropical timber economy;

(b) To promote the expansion and diversification of international

trade in tropical timber and the improvement of structural conditions in

the tropical timber market, by taking into account, on the one hand, a

long-term increase in consumption and continuity of supplies, and, on the

other, prices which are remunerative to producers and equitable for

consumers, and the improvement of market access;

improving forest management and wood utilization;

(d) To improve market intelligence with a view to ensuring greater

transparency in the international tropical timber market;

(e) To encourage increased and further processing of tropical timber

in producing member countries with a view to promoting their

industrialization and thereby increasing their export earnings;

(f) To encourage members to support and develop industrial tropical

timber reforestation and forest management activities;

(g) To improve marketing and distribution of tropical timber exports

of producing members;

(h) To encourage the development of national policies aimed at

sustainable utilization and conservation of tropical forests and their

genetic resources, and at maintaining the ecological balance in the

regions concerned.

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 B 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

ESTABLISHMENT, HEADQUARTERS AND STRUCTURE

OF THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION

1. The International Tropical Timber Organization is hereby established

to administer the provisions and supervise the operation of this

Agreement.

2. The Organization shall function through the International Tropical

Timber Council established under article 6, the committees and other

subsidiary bodies referred to in article 24, and the Executive Director

and staff.

3. The Council shall, at its first session, decide on the location of the

headquarters of the Organization.

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 Economic 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, including

its own rules of procedure and the financial and staff regulations of the

Organization. Such financial regulations shall, infer alia, govern the

receipt and expenditure of funds under the Administrative and Special

Accounts. 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 decides 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

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

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 number 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 broadleaved forests as defined by the Food and

Agriculture Organization of the United Nations (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 number of votes it holds and

no member shall be entitled to divide its votes. A 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 producing members and a majority of consuming members,

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

producing members and a majority of consuming members, 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

CO-OPERATION AND CO-ORDINATION WITH OTHER ORGANIZATIONS

1. The Council shall make whatever arrangements are appropriate for

consultation or co-operation with the United Nations and its organs, such

as the United Nations Conference on Trade and Development (UNCTAD), the

United Nations Industrial Development Organization (UNIDO), the United

Nations Environment Programme (UNEP), the United Nations Development

Programme (UNDP) and the International Trade Centre UNCTAD/GATT (ITC),

and with the Food and Agriculture Organization of the United Nations

(FAO) and such other specialized agencies of the United Nations and

intergovernmental, governmental and non-governmental organizations as may

be appropriate.

2. The Organization shall, to the maximum extent possible, utilize the

facilities, services and expertise of existing intergovernmental,

governmental or nongovernmental 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 articles 14, 20 and 27 concerned with

tropical timber 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. At its first session, 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 tropical 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 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 Organization shall, as soon as possible after the entry into force

of this Agreement, seek to conclude with the Government of the country in

which the headquarters of the Organization is to be located (hereinafter

referred to as the "host Government") an agreement (hereinafter referred

to as the "Headquarters Agreement") relating to such status, privileges

and immunities of the Organization, of its Executive Director, its staff

and experts, and of representatives of members, as are necessary for the

purpose of discharging their functions.

3. Pending the conclusion of the Headquarters Agreement referred to in

paragraph 2 of this article, the Organization shall request the 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.

4. The Organization may also 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.

5. 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.

6. 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

Chapter VI

FINANCE

Article 18

FINANCIAL ACCOUNTS

1. There shall be established two accounts:

(a) The Administrative Account; and

(b) The Special Account.

2. The Executive Director shall be responsible for the administration of

these accounts and the Council shall make provision in its rules of

procedure therefor.

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 24 shall be

met 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 the first administrative budget shall become due on a

date to be decided by the Council at its first session. Contributions to

subsequent 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 its 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 and an interest charge shall be

levied on its late contribution at the central bank rate of the host

country until such time as it has paid in full its contribution, unless

the Council, by special vote, decides otherwise.

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 shall be:

(a) The Second Account of the Common Fund for Commodities, when it

becomes operational;

(b) Regional and international financial institutions; and

3. The resources of the Special Account shall be used only for approved

projects or for pre-project activities.

4. All expenditures under the Pre-Project SubAccount shall be reimbursed

from the Project SubAccount if projects are subsequently approved and

funded. If within six months of 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 projects shall be

brought into the Special Account. All expenditures incurred on such

projects, including remuneration and travel expenses of consultants and

experts, shall be charged to the Special 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 pre-project activities as well as for approved projects.

10. The Executive Director shall endeavour to seek, on such terms and

conditions as the Council may decide, adequate and assured finance for

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

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 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, including scientific and technical equipment or

personnel, to meet the requirements of approved projects.

Article 22

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 and of

the Special Account 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 23

PROJECTS

1. All project proposals shall be submitted to the Organization by

members and shall be examined by the relevant committee.

2. In order to achieve the objectives set out in article 1, the Council

shall examine all project proposals in the fields of research and

development market intelligence, further and increased processing in

developing producing member countries, and reforestation and forest

management, together with the recommendation submitted by the relevant

committee; such project proposals based on tropical timber as defined in

article 2, paragraph 1, may encompass tropical timber products other than

those listed in article 2, paragraph 1. This provision shall also apply,

where relevant, to the functions of the committees as set forth in

article 25.

3. On the basis of the criteria set out in paragraph 6 or paragraph 7 of

this article, the Council shall, by special vote, approve projects for

financing or sponsorship in accordance with article 20.

4. The Council shall, on a continuing basis, arrange for the

implementation of, and with a view to ensuring their effectiveness follow

up, approved projects.

5. Research and development projects should relate to at least one of the

following five areas:

(a) Wood utilization, including the utilization of lesser-known and

lesser-used species;

(b) Natural forest development;

(d) Harvesting, logging infrastructure, training of technical

personnel;

(e) Institutional framework, national planning.

6. Projects on research and development approved by the Council shall be

consistent with each of the following criteria:

(a) They should be related to the production and utilization of

industrial tropical timber;

(b) They should yield benefits to the tropical timber economy as a

whole and be relevant to producing as well as consuming members;

international tropical timber trade;

(d) They should offer reasonable prospects for positive economic

returns in relation to costs; and

(e) They shall make maximum use of existing research institutions

and, to the greatest extent possible, avoid duplication of efforts.

7. Projects in the fields of market intelligence further and increased

processing, and reforestation and forest management, should be consistent

with criterion (b) and, as far as possible, consistent with criteria (a),

(c), (d) and (e) as contained in paragraph 6 of this article.

8. The Council shall decide on the relative priorities of projects,

taking into account the interests and characteristics of each of the

producing regions. Initially, the Council shall give priority to research

and development project profiles as endorsed by the Sixth Preparatory

Meeting on Tropical Timber under the Integrated Programme for Commodities

and to such other projects as the Council may approve.

9. The Council may, by special vote, terminate its sponsorship of any

project.

Article 24

ESTABLISHMENT OF COMMITTEES

1. The following committees are hereby established as permanent

committees of the Organization:

(a) Committee on Economic Information and Market Intelligence;

(b) Committee on Reforestation and Forest Management; and

2. The Council may, by special vote, establish such other committees and

subsidiary bodies as it deems appropriate and necessary.

3. 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.

4. 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.

Article 25

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) Analyze the statistical data and specific indicators as

identified in annex C for the monitoring of international tropical timber

trade;

market, its current situation and short-term prospects on the basis of

the data mentioned in subparagraph (b) above and other relevant

information;

(d) Make recommendations to the Council on the need for, and nature

of, appropriate studies on tropical timber, including 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 tropical timber assigned to it by the Council;

(f) Assist in the provision of technical co-operation to producing

members to improve their relevant statistical services.

2. The Committee on Reforestation and Forest Management shall:

(a) Keep under regular review the support and assistance being

provided at a national and international level for reforestation and

forest management for the production of industrial tropical timber;

(b) Encourage the increase of technical assistance to national

programmes for reforestation and forest management;

financing for reforestation and forest management;

(d) Review regularly 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

and forest management;

(e) Facilitate transfer of knowledge in the field of reforestation

and forest management with the assistance of competent organizations;

(f) Co-ordinate and harmonize these activities for co-operation in

the field of reforestation and forest management with the relevant

activities pursued elsewhere, such as those under FAO, UNEP, the World

Bank, regional banks and other competent organizations.

3. The Committee on Forest Industry shall:

(a) Promote co-operation between producing and consuming members as

partners in the development of processing activities in producing member

countries, inter alia, in the following areas:

(i) Transfer of technology

(ii) 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;

(b) Promote exchange of information in order to facilitate structural

changes involved in increased and further processing in the interests of

both producing and consuming members;

consider problems and possible solutions to them in co-operation with the

competent organizations;

(d) Encourage the increase of technical assistance to national

programmes for the processing of tropical timber.

4. Research and development shall be a common function of the committees

established under article 24, paragraph 1.

5. In view of the close relationship between research and development,

reforestation and forest management, increased and further processing,

and market intelligence, each of the permanent committees, in addition to

carrying out the functions assigned to it above, shall, with regard to

project proposals referred to it, including those on research and

development in its area of competence:

(a) Consider and technically appraise and evaluate project proposals;

(b) In accordance with general guidelines established by the Council,

decide on and implement pre-project activities necessary for making

recommendations on project proposals to the Council;

article 20, paragraph 2;

(d) Follow up the implementation of projects and provide for the

collection and dissemination of the results of projects as widely as

possible for the benefit of all members;

(e) Make recommendations to the Council relating to projects;

(f) Carry out any other tasks related to projects assigned to it by

the Council.

6. In carrying out these common functions, each committee shall take into

account the need to strengthen the training of personnel in producing

member countries; to consider and propose modalities for organizing or

strengthening the research and development activities and capacities of

members, particularly producing members; and to promote the transfer of

research know-how and techniques among members, particularly among

producing members.

Chapter VIII

RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES

Article 26

RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES

When the Common Fund becomes operational, the Organization shall take

full advantage of the facilities of the Second Account of the Common Fund

according to the principles set out in the Agreement establishing the

Common Fund for Commodities.

Chapter IX

STATISTICS, STUDIES AND INFORMATION

Article 27

STATISTICS, STUDIES AND INFORMATION

1. The Council shall establish close relationships with appropriate

intergovernmental, governmental and non-governmental organizations, in

order to help ensure the availability of recent and reliable data and

information on all factors concerning tropical timber. The Organization,

in co-operation with such organizations, shall compile, collate and, as

necessary, publish such statistical information on production, supply,

trade, stocks, consumption and market prices of tropical timber, and on

related areas, as is necessary for the operation of this Agreement.

2. Members shall, to the fullest extent possible not inconsistent with

their national legislation, furnish, within a reasonable time, statistics

and information on tropical timber requested by the Council.

3. The Council shall arrange to have any necessary studies undertaken of

the trends and of short- and long-term problems of the world tropical

timber market.

4. The Council shall ensure that information furnished by members shall

not be used in such a manner as to prejudice the confidentiality of the

operations of persons or companies producing, processing or marketing

tropical timber.

Article 28

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 the world tropical timber

situation and exchange views on the outlook for, and other issues closely

related to, the world tropical timber economy, including ecological and

environmental aspects.

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 tropical

timber;

(b) Statistical data and specific indicators provided by members on

the areas listed in annex C; and

Council either directly or through the appropriate organizations in the

United Nations system and appropriate intergovernmental, governmental or

non-governmental organizations.

4. The results of the review shall be included in the reports of the

Council's deliberations.

Chapter X

MISCELLANEOUS

Article 29

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 30

GENERAL OBLIGATIONS OF MEMBERS

1. Members shall for the duration of this Agreement use their best

endeavours and co-operate to promote the attainment of its objectives and

to avoid any action contrary thereto.

2. Members undertake to accept as binding decisions of the Council under

the provisions of this Agreement and shall seek to refrain from

implementing measures which would have the effect of limiting or running

counter to them.

Article 31

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 i 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 32

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

paragraph 82 of the Substantial New Programme of Action for the 1980s for

the Least Developed Countries.

Chapter XI

FINAL PROVISIONS

Article 33

DEPOSITARY

The Secretary-General of the United Nations is hereby designated as the

depositary of this Agreement.

Article 34

SIGNATURE, RATIFICATION, ACCEPTANCE AND APPROVAL

1. This Agreement shall be open for signature at United Nations

Headquarters from 2 January 1984 until one month after the date of its

entry into force by Governments invited to the United Nations Conference

on Tropical Timber, 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 35

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 36

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 37, or, if it is already in force, at a specified

date.

Article 37

ENTRY INTO FORCE

1. This Agreement shall enter into force definitively on 1 October 1984

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 B to this

Agreement have signed this Agreement definitively or have ratified,

accepted or approved it or acceded thereto pursuant to article 34,

paragraph 2, or article 35.

2. If this Agreement has not entered into force definitively on 1 October

1984, 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 B to this Agreement,

have signed this Agreement definitively or have ratified, accepted or

approved it pursuant to article 34, paragraph 2, or have notified the

depositary under article 36 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 April 1985, 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 34, 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

36 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 Secretary-General of the United Nations shall convene the first

session of the Council as soon as possible after the entry into force of

this Agreement.

Article 38

AMENDMENTS

1. The Council may, by special vote, recommend an amendment of this

Agreement to the 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 85 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

85 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 39

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.

Article 40

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 41

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

38;

(b) Withdrawal from this Agreement under article 39; or

2. The Council shall retain any contribution paid to the Administrative

Account 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 42

DURATION, EXTENSION AND TERMINATION

1. This Agreement shall remain in force for a period of five years after

its entry into force unless the Council, by special vote, decides to

extend, renegotiate or terminate it in accordance with provisions of this

article.

2. The Council may, by special vote, decide to extend this Agreement for

not more than two periods of two years each.

3. If, before the expiry of the five-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 may 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 43

RESERVATIONS

Reservations may not be made with respect to any of 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 the eighteenth day of November, one thousand nine

hundred and eighty-three, the text of this Agreement in the Arabic

English, French, Russian and Spanish languages being equally authentic.

The authentic Chinese text of this Agreement shall be established by the

depositary and submitted for adoption to all signatories and States and

intergovernmental organizations which have acceded to this Agreement.

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 37

Bolivia 21

Brazil 130

Burma 31

Central African Republic 20

Colombia 23

Congo 20

Costa Rica 9

Dominican Republic 9

Ecuador 14

El Salvador 8

Gabon 21

Ghana 20

Guatemala 10

Haiti 8

Honduras 9

India 32

Indonesia 139

Ivory Coast 21

Liberia 20

Madagascar 20

Malaysia 126

Mexico 13

Nigeria 20

Panama 9

Papua New Guinea 24

Peru 25

Philippines 43

Sudan 20

Surinam 14

Thailand 19

Trinidad and Tobago 8

United Republic of Cameroon 20

United Republic of Tanzania 20

Venezuela 15

Viet Nam 18

Zaire 21

_____

TOTAL 1,000

* * * *

Annex B

List of consuming countries and allocation of votes for the purposes of

article 37

Argentina 14

Australia 20

Austria 12

Bulgaria 10

Canada 16

Chile 10

Egypt 11

European Economic Community (277)

Belgium/Luxembourg 21

Denmark 13

France 56

Germany, Federal Republic of 44

Greece 14

Ireland 12

Italy 41

Netherlands 35

United Kingdom of Great

Britain and Northern Ireland 41

Finland 10

Iraq 10

Israel 12

Japan 330

Jordan 10

Malta 10

New Zealand 10

Norway 11

Republic of Korea 56

Romania 10

Spain 24

Sweden 11

Switzerland 11

Turkey 10

Union of Soviet Socialist

Republics 14

United States of America 79

Yugoslavia 12

_____

TOTAL 1,000

* * * *

Annex C

Statistical Data and Specific Indicators Needed as Identified for the

Monitoring of International Tropical Timber Trade*

------------------------------------------------------------------------------

From producing members From consuming members

------------------------------------------------------------------------------

A. Basic monthly data Export volumes (values): Import volumes (values):

for regular monitoring by products, species, by products, species,

of major tropical destinations and other origin and other avail-

timber trade flows available relevant able relevant details

details

Average c.i.f. prices:

Average f.o.b. prices: for specific products

for specific products and and species represent-

species representative of ative of major trade

major trade flows flows

B. Specific supple- Periodic evaluation of Periodic evaluation of

mentary data and stocks at point of em- stocks at point of de-

indicators from barkation and, if pos- barkation and, if pos-

which short-term sible, at intermediate sible, at intermediate

supply-demand for stages. stages.

tropical wood can Forest industry product- Share of tropical timber

be derived ion (capacity) and indus- in total trade.

trial wood input/output. Exports and re-exports

Removals of industrial of wood products.

timber from forests. Building activity,

Freight rates. housing starts, mortgage

Export quotas - trade rates.

incentives Furniture production

Climatic obstacles -

natural catastrophes

C. Other relevant Changes in tariffs and End-use surveys in

specific information non-tariff obstacles major sectors using

tropical timber.

Changes in veneer

surface fashion.

Changes in tariffs and

non-tariff obstacles.

Trends in substitution

among wood and with

other wood products.

D. General economic Publicly available and relevant national and

indicators and in- international economic and financial indicators,

formation directly e.g., gross national product, exchange rates,

or indirectly interest rates, inflation rates, terms of trade.

affecting the inter- National and international policies and measures

national (tropical) affecting international tropical timber trade.

timber trade

_____________________________________________________________________________

* Annexed pursuant to consensus reached in the Executive Committee of the

Conference on 29 March 1983.