Created: 22/02/2011 Posted: 22/02 /
2011 ID: 61359
date: 21/04/2006 fifty and one past two p.m.
Ref: 06LIMA1534
Origin: Lima Embassy
Classification: UNCLASSIFIED / / FOR OFFICIAL USE ONLY
destination: 06LIMA2444 header: RR VZCZCXYZ0001 RUEHWEB 1534-1501
OF RUEHPE # 1111451 ZNR ZZH UUUUU R 211451Z FM LIMA April 6 AMEMBASSY A RUEHC / Secretary of State WASHDC RUEHBO 9925 INFO / BOGOTA 3287 AMEMBASSY RUEHBR / BRASILIA 6688 AMEMBASSY RUEHBU / BUENOS AIRES AMEMBASSY RUEHCV 2346 / 9334 RUEHLP AMEMBASSY CARACAS / QUITO AMEMBASSY PEACE RUEHSG April 0260 / SANTIAGO AMEMBASSY 0437 RUEHRC / USDA FAS WASHDC / / USD 1,440 RUCPDOC / DEPARTMENT OF COMMERCE WASHINGTON DC RUEATRS / DEPARTMENT OF THE TREASURY WASHDC
--------- -------- Header ends LIMA 001534
UNCLAS DEPARTMENT SIPDIS
WHA / Y, EPSC and OES / ENV Esth SHAFT ETC BRASILIA - J HISTORY FOR USAID, EGAT FTA USTR FOR Harmann B, Burr M COMMERCE OF CAMERON M USDA / AS / FAA / Bailley Y USDA / FAS / ITP / FSTSD / Brehm
SENSITIVE SIPDIS
EO 12958: N / A TAGS: Senven, ETRD, EINV, eaid, ECON, PGOV, SNAr, PE
THEME: TALA PROSPEROUS ILLEGAL IN PERU
REF: LIMA 2444
1. (SBU) SUMMARY: Peru exports leaf mahogany large majority in the world, most of it to the U.S. Much of it is likely that exports of illegal logging, in violation Peru's law and the CITES international convention against the trafficking of endangered species. The GOP, NGOs and industry registration Peruvian agree that illegal logging is a problem. Post has identified serious deficiencies in the Republican Party the regulatory capacity of INRENA to the police of the timber industry, formal and informal. The products of formal forest industry, concerned about legal challenges to the export of mahogany, seems interested in working to reduce illegal logging. Not on the exploration of options such as the application of OES-I Qoject funds from USAID and the realignment of the schedule. END SUMMARY.
DIRE SITUATION OF MAHOGANY
------------ 2. (U) Peru is now the largest exporter of large leaf mahogany, according to the report of the thQatest International Tropical Timber Organization (ITTO). Brazil reportedly no longer allows the legal export of broadleaf mahogany, and the Bolivian government to reduce export laws due to declining stocks. Legal Peruvian mahogany exports have declined steadily since, according to the 2005 report of the natural resources of the Republican Party of monitoring and implementing agency, INRENA. Since 2002, the agency estimate of mahogany illegally exported was 60,000 cubic meters per year. mahogany broadleaf remains an endangered species in Appendix II of the International Convention against Trafficking in Endangered Species (CITES). Selective extraction of high tree reproduction, slow reproduction rate of the wild mahogany, and the inability of the measure to develop healthy silviculturalists mahogany plantations have combined to cause a steady decline in stocks of mahogany.
PROBLEMS WITH BUYERS AND SELLERS OF MAHOGANY --------------------- 3. (U) Ten companies with INRENA permits account for more than 85 percent of exports of mahogany from Peru. The United States remains by far the largest importer of mahogany imports 88 percent of Peru's total 2005 exports of mahogany. Unofficial estimates indicate that 70-90 percent INRENA all mahogany exported in 2005 originated from illegal sources.
4. (SBU) of INRENA current verification process, implemented as a result of USAID support, is confirming that mahogany is not harvested from the trade concessions, but protected areas (where commercial logging is prohibited) and areas in indigenous territories different than those included in the register of approved plans, INRENA. INRENA must approve all plans to extract mahogany logging concessions legally commercial forestry, indigenous lands and agricultural lands remaining forests.
5. (UBS) from reliable sources INRENA and civil society groups report mahogany loggers exploiting indigenous communities by paying below market prices. The loggers also are involved in forced labor, according to the International Labour Organization (ILO). Besides wood, commercial extraction of forest residues of agricultural land is considered the most common system for laundering illegal timber. There is a long history of extraction of mahogany forest remnants and the origin of the timber cut is difficult to trace. PERU
GAMES TO END FEES ------------
6. (SBU) Although domestic political pressure against the measure, INRENA (supported SGA) established May 2005 in Peru export quota for mahogany in the first place. INRENA established the quota for 2005 at 23,621 meters cubic meters (m3). INRENA concluded that an export quota was the most cost-effective and scientifically defensible way to manage resources and meet the requirements of CITES after validation, with particular support from USAID, 52 concessions. The verification process showed that 60 percent of these awards presented serious infringements, including counterfeiting documents, logging outside concession boundaries and links to bribery. The other 40 percent showed that meet minimum management standards for Peru law, but still requires correction. None of the concessions tested showed a high level of management. As a result, INRENA set a quota of mahogany, suspended granting of new concessions and support requested by USAID, aimed at correcting the deficiencies identified.
7. (U) INRENA officials, said an official export quotas allow better control, while the methods have been developed to the farm of mahogany plantations or foster regeneration wild populations, and even a reliable surveillance system could be put in place. INRENA established a quota for 2006 at 23,239 m3. In March 2006, Peru exported 5698.57 m3, most of which has gone to the United States. (Note: Given the known problem with illegal logging, we were surprised that INRENA reduced fee of only 394 m3 by 2006. End Note.)
8. (SBU), INRENA share based on 2005 to 06 in several criteria. This included: historical exports, the requirements of legal exports are not detrimental in Appendix II of CITES and INRENA projections of commercial timber volume available for the season harvest. NGOs also considered INRENA and ITTO data on the continuous reduction of mahogany populations in Latin America. Universidad Nacional Agraria Commission (UNALM) is the CITES Scientific Authority for "Without prejudice" in Peru. The University has not been a census definitive or reliable monitoring system mahogany stocks; UNALM finally delivered on 3 April ESTHoff promised a preliminary census. UNALM report states that the population of Peru's mahogany has declined dramatically, from 768,220 trees (224 733 protected areas natural areas) to 304,630 trees (87,888 in natural protected areas areas.)
NOT FIND SUPPORT CITES AUTHORITIES ...
9. (SBU) In the last meeting of the international CITES in October 2005, INRENA presented a series of achievements that they claimed had been made in the fight against illegal cutting of mahogany. When the Commission commended CITIES Peru, gains in the management of forest resources and environmental governance, but also noted the fragility of these gains. Highlighting the challenges ahead, the Commission identified the "major powers" of an illegal cartel forest management, strengthening the links of the cartel of what he called the Cartel de Coca, and the ongoing crisis in institutional capacity. (Comment: Message not believe there is not one sign of illegal logging or a single cocaine cartel. Final comment.)
10. (SBU) At the meeting of CITES, the Republican Party cited as the embodiment computer system to track harvest mahogany, a system developed with funding from USAID. Reliable information indicates that the data has always been poorly introduced or modified later in field locations, allowing dealers to cut more wood than they are legally allowed. Post has been suspected of corruption for many months and he has informed the INRENA of these concerns. A few weeks ago, when the story appeared in the media, INRENA said he would address this situation. Nothing has changed so far.
11. (SBU) of INRENA in the last CITES meeting, announced it was re-structured to ensure greater "separation of powers" between the administration of INRENA, the monitoring of forest department (OSINFOR), and protective services areas and species. More than five months after the meeting, the new structure has not yet been implemented. Post now reason to believe that the gains of the Republican Party said last October were simply not true. (Comment: Ironically, the GOP has agreed to host in Lima next CITES meeting. GOP lead host agency, INRENA has asked USAID to support the financing. Peru is the lack of enforcement of CITES could become a problem. End Comment.)
NEXUS BETWEEN GROWTH AND DRUGS ILLEGAL LOGGING ------- ----------------------- 12. (SBU) The drug presence in the eastern slopes of the Andes puts even more pressure on populations of mahogany and cedar. Drug dealers with established networks of coca paste and opium latex movement appear to be involved in the transport of illegal timber, both for its profitability and its usefulness as a hiding. For example, Republican Party officials and developers familiar with mining exploration of mines in the northern border with Ecuador Econoff said in July that a local mayor has been involved in both illegal logging and poppy production.
13. (SBU) Police in the department of Loreto, said in June and September Econoff below to find packages of cocaine paste hidden in shipments of mahogany and cedar. Transport mahogany logs, or lumber stacked loads are so enormous, and the number of mailings so the police capture only a small fraction of the coca that they believe is transported from the Andes to Brazil downstream. DEA Lima Country Office - which actively assists enforcement of the Republican Party in the elimination of illicit drugs concealed in timber shipments, believed to be suspicious shipments are large. USAID
ANSWER ------- 14. (U) In line with its overall objective to help institutions of the Republican Party to take the initiative and become responsible for sustainable management of natural resources and biodiversity conservation, USAID continues to support transformational development interventions. USAID funds and INRENA adviser on issues related to sustainable natural resources management, management of protected areas, institutional strengthening capacity and the political and legal controls. USAID recently decided to suspend support for the registration software because of the credibility allegations of corruption and inaction in the face of INRENA situación.15. (U), USAID is implementing the most effective way of combating illegal logging, forest management through legal. USAID is working with INRENA to achieve international forest certification and chain of export timber, limiting participation in programs to which operators can certify USAID. Working with a small group of private dealers and 10 different indigenous communities, the goal is to certify some 200,000 hectares by December 2006. Initial results are promising, but the task is daunting.
PRIVATE SECTOR ESA QUESTION OF DISPUTES ----------------------- 16. (SBU) In late March and early April meeting with Environmental Econoff and USAID official, Peru's Exporters Association (ADEX) representatives expressed concern that false statements of fact in the copy of the Notice to Sue, written by non-governmental organizations Natural Resources Defense Council (NRDC) under the Endangered Species Act Species (ESA). During the meeting, representatives admitted that the problem ADEX was great, but there was a core group of exporters who want to "make this right." ADEX members are particularly concerned about the current timber shipments before leaving Peru to the U.S.
COLLABORATION WITH THE PRIVATE SECTOR ------------------ 17. (SBU) Although forested land in Peru accounts for more than 64 percent of its land area, forest accounts for only one percent of GDP. One of the most pressing problems identified in the achievement of forests and biodiversity and promote sustainable licit livelihoods is to promote international standards for certification and chain of custody. The forest products companies in Peru seems to want to change that. ADEX recently acknowledged in a public presentation on the problem of illegal logging, the opportunity to increase exports and GDP and some suggestions for the reform of the Republican Party's supervision of the forest products industry (Reftel). COMMENT: Much do ------------ 18. (SBU) of forest management in Peru has been a problem for years, and exports of mahogany legitimate for the important U.S. market are at risk. Peru not only risks violating CITES, but also the recently signed FTA with the United States, requiring Peru to meet its national and international obligations. If the Republican Party does not maintain its share in the face of continued illegal harvest is at risk of suspension of imports by the European Union, the destruction of an endangered species and a defeat for the rule of law. U.S. timber importers need to join the effort to invest in improving the system.
19. (U) The agreement between the U.S. and Peru free trade can provide an additional tool to move Peru along a path of compliance and conservation, the promotion of legitimate trade with the United States. Post will continue discussions with industry representatives about promote greater compliance with international industry standards. International Wood Products Association has also expressed interest in helping to ensure imports of U.S. laws. Registration and certification of exports, if properly funded, could fit into an online trading capacity building program for the implementation of U.S. trade agreement. Not on the implementation of OES-I of the project grant for this purpose.
20. (U) increase with the relevant embassy of the Republican Party authorities the need to maintain a credible approach for exports of mahogany and adhere to international forestry and chain of custody certification standards. USAID will continue working with INRENA, the private sector and indigenous peoples to ensure that INRENA acquires the capacity to be held properly accountable for the management and sustainable natural resources in Peru. Promoting responsible forestry sector development is the best alternative to illicit livelihoods that sustain many of today's forestry sector.
21. (U) This cable was co-written with the USAID Lima. Struble
CABLE END ========================== =================== ==
REF: LIMA 2444
1. (SBU) SUMMARY: Peru exports leaf mahogany large majority in the world, most of it to the U.S. Much of it is likely that exports of illegal logging, in violation Peru's law and the CITES international convention against the trafficking of endangered species. The GOP, NGOs and industry registration Peruvian agree that illegal logging is a problem. Post has identified serious deficiencies in the Republican Party the regulatory capacity of INRENA to the police of the timber industry, formal and informal. The products of formal forest industry, concerned about legal challenges to the export of mahogany, seems interested in working to reduce illegal logging. Not on the exploration of options such as the application of OES-I Qoject funds from USAID and the realignment of the schedule. END SUMMARY.
DIRE SITUATION OF MAHOGANY
------------ 2. (U) Peru is now the largest exporter of large leaf mahogany, according to the report of the thQatest International Tropical Timber Organization (ITTO). Brazil reportedly no longer allows the legal export of broadleaf mahogany, and the Bolivian government to reduce export laws due to declining stocks. Legal Peruvian mahogany exports have declined steadily since, according to the 2005 report of the natural resources of the Republican Party of monitoring and implementing agency, INRENA. Since 2002, the agency estimate of mahogany illegally exported was 60,000 cubic meters per year. mahogany broadleaf remains an endangered species in Appendix II of the International Convention against Trafficking in Endangered Species (CITES). Selective extraction of high tree reproduction, slow reproduction rate of the wild mahogany, and the inability of the measure to develop healthy silviculturalists mahogany plantations have combined to cause a steady decline in stocks of mahogany.
PROBLEMS WITH BUYERS AND SELLERS OF MAHOGANY --------------------- 3. (U) Ten companies with INRENA permits account for more than 85 percent of exports of mahogany from Peru. The United States remains by far the largest importer of mahogany imports 88 percent of Peru's total 2005 exports of mahogany. Unofficial estimates indicate that 70-90 percent INRENA all mahogany exported in 2005 originated from illegal sources.
4. (SBU) of INRENA current verification process, implemented as a result of USAID support, is confirming that mahogany is not harvested from the trade concessions, but protected areas (where commercial logging is prohibited) and areas in indigenous territories different than those included in the register of approved plans, INRENA. INRENA must approve all plans to extract mahogany logging concessions legally commercial forestry, indigenous lands and agricultural lands remaining forests.
5. (UBS) from reliable sources INRENA and civil society groups report mahogany loggers exploiting indigenous communities by paying below market prices. The loggers also are involved in forced labor, according to the International Labour Organization (ILO). Besides wood, commercial extraction of forest residues of agricultural land is considered the most common system for laundering illegal timber. There is a long history of extraction of mahogany forest remnants and the origin of the timber cut is difficult to trace. PERU
GAMES TO END FEES ------------
6. (SBU) Although domestic political pressure against the measure, INRENA (supported SGA) established May 2005 in Peru export quota for mahogany in the first place. INRENA established the quota for 2005 at 23,621 meters cubic meters (m3). INRENA concluded that an export quota was the most cost-effective and scientifically defensible way to manage resources and meet the requirements of CITES after validation, with particular support from USAID, 52 concessions. The verification process showed that 60 percent of these awards presented serious infringements, including counterfeiting documents, logging outside concession boundaries and links to bribery. The other 40 percent showed that meet minimum management standards for Peru law, but still requires correction. None of the concessions tested showed a high level of management. As a result, INRENA set a quota of mahogany, suspended granting of new concessions and support requested by USAID, aimed at correcting the deficiencies identified.
7. (U) INRENA officials, said an official export quotas allow better control, while the methods have been developed to the farm of mahogany plantations or foster regeneration wild populations, and even a reliable surveillance system could be put in place. INRENA established a quota for 2006 at 23,239 m3. In March 2006, Peru exported 5698.57 m3, most of which has gone to the United States. (Note: Given the known problem with illegal logging, we were surprised that INRENA reduced fee of only 394 m3 by 2006. End Note.)
8. (SBU), INRENA share based on 2005 to 06 in several criteria. This included: historical exports, the requirements of legal exports are not detrimental in Appendix II of CITES and INRENA projections of commercial timber volume available for the season harvest. NGOs also considered INRENA and ITTO data on the continuous reduction of mahogany populations in Latin America. Universidad Nacional Agraria Commission (UNALM) is the CITES Scientific Authority for "Without prejudice" in Peru. The University has not been a census definitive or reliable monitoring system mahogany stocks; UNALM finally delivered on 3 April ESTHoff promised a preliminary census. UNALM report states that the population of Peru's mahogany has declined dramatically, from 768,220 trees (224 733 protected areas natural areas) to 304,630 trees (87,888 in natural protected areas areas.)
NOT FIND SUPPORT CITES AUTHORITIES ...
9. (SBU) In the last meeting of the international CITES in October 2005, INRENA presented a series of achievements that they claimed had been made in the fight against illegal cutting of mahogany. When the Commission commended CITIES Peru, gains in the management of forest resources and environmental governance, but also noted the fragility of these gains. Highlighting the challenges ahead, the Commission identified the "major powers" of an illegal cartel forest management, strengthening the links of the cartel of what he called the Cartel de Coca, and the ongoing crisis in institutional capacity. (Comment: Message not believe there is not one sign of illegal logging or a single cocaine cartel. Final comment.)
10. (SBU) At the meeting of CITES, the Republican Party cited as the embodiment computer system to track harvest mahogany, a system developed with funding from USAID. Reliable information indicates that the data has always been poorly introduced or modified later in field locations, allowing dealers to cut more wood than they are legally allowed. Post has been suspected of corruption for many months and he has informed the INRENA of these concerns. A few weeks ago, when the story appeared in the media, INRENA said he would address this situation. Nothing has changed so far.
11. (SBU) of INRENA in the last CITES meeting, announced it was re-structured to ensure greater "separation of powers" between the administration of INRENA, the monitoring of forest department (OSINFOR), and protective services areas and species. More than five months after the meeting, the new structure has not yet been implemented. Post now reason to believe that the gains of the Republican Party said last October were simply not true. (Comment: Ironically, the GOP has agreed to host in Lima next CITES meeting. GOP lead host agency, INRENA has asked USAID to support the financing. Peru is the lack of enforcement of CITES could become a problem. End Comment.)
NEXUS BETWEEN GROWTH AND DRUGS ILLEGAL LOGGING ------- ----------------------- 12. (SBU) The drug presence in the eastern slopes of the Andes puts even more pressure on populations of mahogany and cedar. Drug dealers with established networks of coca paste and opium latex movement appear to be involved in the transport of illegal timber, both for its profitability and its usefulness as a hiding. For example, Republican Party officials and developers familiar with mining exploration of mines in the northern border with Ecuador Econoff said in July that a local mayor has been involved in both illegal logging and poppy production.
13. (SBU) Police in the department of Loreto, said in June and September Econoff below to find packages of cocaine paste hidden in shipments of mahogany and cedar. Transport mahogany logs, or lumber stacked loads are so enormous, and the number of mailings so the police capture only a small fraction of the coca that they believe is transported from the Andes to Brazil downstream. DEA Lima Country Office - which actively assists enforcement of the Republican Party in the elimination of illicit drugs concealed in timber shipments, believed to be suspicious shipments are large. USAID
ANSWER ------- 14. (U) In line with its overall objective to help institutions of the Republican Party to take the initiative and become responsible for sustainable management of natural resources and biodiversity conservation, USAID continues to support transformational development interventions. USAID funds and INRENA adviser on issues related to sustainable natural resources management, management of protected areas, institutional strengthening capacity and the political and legal controls. USAID recently decided to suspend support for the registration software because of the credibility allegations of corruption and inaction in the face of INRENA situación.15. (U), USAID is implementing the most effective way of combating illegal logging, forest management through legal. USAID is working with INRENA to achieve international forest certification and chain of export timber, limiting participation in programs to which operators can certify USAID. Working with a small group of private dealers and 10 different indigenous communities, the goal is to certify some 200,000 hectares by December 2006. Initial results are promising, but the task is daunting.
PRIVATE SECTOR ESA QUESTION OF DISPUTES ----------------------- 16. (SBU) In late March and early April meeting with Environmental Econoff and USAID official, Peru's Exporters Association (ADEX) representatives expressed concern that false statements of fact in the copy of the Notice to Sue, written by non-governmental organizations Natural Resources Defense Council (NRDC) under the Endangered Species Act Species (ESA). During the meeting, representatives admitted that the problem ADEX was great, but there was a core group of exporters who want to "make this right." ADEX members are particularly concerned about the current timber shipments before leaving Peru to the U.S.
COLLABORATION WITH THE PRIVATE SECTOR ------------------ 17. (SBU) Although forested land in Peru accounts for more than 64 percent of its land area, forest accounts for only one percent of GDP. One of the most pressing problems identified in the achievement of forests and biodiversity and promote sustainable licit livelihoods is to promote international standards for certification and chain of custody. The forest products companies in Peru seems to want to change that. ADEX recently acknowledged in a public presentation on the problem of illegal logging, the opportunity to increase exports and GDP and some suggestions for the reform of the Republican Party's supervision of the forest products industry (Reftel). COMMENT: Much do ------------ 18. (SBU) of forest management in Peru has been a problem for years, and exports of mahogany legitimate for the important U.S. market are at risk. Peru not only risks violating CITES, but also the recently signed FTA with the United States, requiring Peru to meet its national and international obligations. If the Republican Party does not maintain its share in the face of continued illegal harvest is at risk of suspension of imports by the European Union, the destruction of an endangered species and a defeat for the rule of law. U.S. timber importers need to join the effort to invest in improving the system.
19. (U) The agreement between the U.S. and Peru free trade can provide an additional tool to move Peru along a path of compliance and conservation, the promotion of legitimate trade with the United States. Post will continue discussions with industry representatives about promote greater compliance with international industry standards. International Wood Products Association has also expressed interest in helping to ensure imports of U.S. laws. Registration and certification of exports, if properly funded, could fit into an online trading capacity building program for the implementation of U.S. trade agreement. Not on the implementation of OES-I of the project grant for this purpose.
20. (U) increase with the relevant embassy of the Republican Party authorities the need to maintain a credible approach for exports of mahogany and adhere to international forestry and chain of custody certification standards. USAID will continue working with INRENA, the private sector and indigenous peoples to ensure that INRENA acquires the capacity to be held properly accountable for the management and sustainable natural resources in Peru. Promoting responsible forestry sector development is the best alternative to illicit livelihoods that sustain many of today's forestry sector.
21. (U) This cable was co-written with the USAID Lima. Struble
CABLE END ========================== =================== ==
Translation No official
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