what were the new opportunities opened in trading of forest products
Answers
Forest products trade and marketing
The forest products industry has vigorously opened up for global trade because the prevailing business model is built on capturing comparative advantages at the right cost. Many emerging countries possess valued forests, aspire for more processing industry and employment, and seek added value to their raw materials. International investors in the forest products industry are their willing allies but they want to ascertain predictable macroeconomic conditions, transparent fiscal incentives and abundant labour – and preferably the rule of law and a sustainable wood supply to start with. A dynamic domestic market is nowadays becoming an important factor in attracting foreign investments, and many emerging economies harbour bustling urban markets short of high-quality forest products.
Increasing trade in forest products has supported economic growth and eradication of poverty in a number of emerging countries. But trading out of poverty has proven difficult and it has led to further marginalization and events of misconduct in some countries. Safeguards must be firmly put in place to ensure that trade is based on legal and sustainable forest use, fair labour conditions and equitable sharing of benefits. Good governance is essential in setting the rules for sustainable production and trade.