BRAZIL'S FOREST CONCESSIONS BILL SIGNED INTO LAW,

UNCLAS BRASILIA 000492

SIPDIS

SIPDIS

PLEASE PASS TO OES/ETC SCASWELL
STATE TO USFS LMAYHEW
STATE TO USAID LAC/RSD EGAT DHESS

E.O. 12958: N/A
TAGS: SENV TBIO KSCA BR
SUBJECT: BRAZIL'S FOREST CONCESSIONS BILL SIGNED INTO LAW,
CONSIDERED A VICTORY FOR ENVIRONMENT MINISTER SILVA

REFS: A) 05 BRASILIA 2426, B) 05 BRASILIA 0265


1. Summary: After nearly 3 years of planning and political
maneuvering, Brazil signed into law its Public Forest Management
Bill (PL). Brazilian President Lula has publicly praised Environment
Minister Silva for this achievement. The law creates a Brazilian
Forest Service, sets up a National Forest Development Fund and puts
into effect an infrastructure for sustainable use of public lands
(including the use of concessions). (reftel A) The PL was passed by
the Brazilian Senate in January, via an agreement with opposition
parties which included the addition of three amendments. At that
time, many environmental experts feared that the amendments would
unduly politicize the bill, harming its effectiveness. However,
before signing the bill President Lula vetoed four articles,
including the Senate's three additions. These vetoes have incensed
Congress which has the power to re-evaluate and reincorporate the
vetoes articles, if it chooses. Until Congress takes action, the
bill will be implemented as signed into law by Lula. End Summary


2. The law aims to strengthen forest conservation (especially in the
Amazon) by decreasing land speculation, putting an end to fraudulent
property claims (grilagem) and creating a socially inclusive,
sustainable forest-based economy. The GoB estimates that
approximately 13 million hectares in the Amazon will be opened to
public use over the first 10 years of the plan. Minister Marina
Silva and President Lula predict that the lands along the BR-163
highway, an area synonymous with grilagem and made infamous through
the murder of Dorothy Stang, will be the first lands affected under
the law.


3. In terms of stemming grilagem, as all public lands will be held
by the federal government, illegal claims will no longer have value.
Furthermore, according to Paulo Adario of Greenpeace (one of the
new law's most vocal proponents) the government can now halt the
onslaught of agriculture by renting public lands to entities and
enterprises that will maintain forest cover. For Minister of the
Environment, Marina Silva, under the auspices of the new law "the
predatory logger will begin to act legally, turning into a forest
producer. Lula, addressing concerns that Brazil's forests will be
auctioned off to the highest bidder, reinforced the idea that the
government will retain title over the land stating, "in summary I
can say that this new law guarantees, for today and for the future,
that these public forests will continue to be forests and will
continue to be public." In an effort to bolster enforcement
efforts, 20% of concession's revenues will sustain the costs of the
new Brazilian Forest Service, while the remaining 80% will be
allotted to state authorities, municipal authorities and the
National Forest Development Fund (FNDF).


4. It is, however, Lula's four vetoes which remain the highlight of
the signing. The articles he vetoed curbed what many authorities
considered undue political interference in the law. The three most
important vetoes removed the necessity of congressional sanction for
the head of the Forest Service, an article which required
congressional approval for all concessions over 2500 hectares and
ministerial oversight, via a governing council, of the new Forest
Service. The law will now be published in the Official Registry, 45
days after which it can be implemented. That said, Congress can,
but is not required to, revisit the issue and has the power to
reincorporate the amendments via a joint session (Chamber and
Senate) of Congress. While this often takes years to accomplish,
this PL is surrounded by special circumstances.


5. A group of angry Senators has called on the President of the
Senate, Renan Calheiros, to convene a special session of Congress to
vote anew on the vetoed articles. They consider that the President
reneged on a political promise, circumventing the accord in the
Senate which brought the Bill to a vote.


6. Comment: The new law is almost unanimously regarded as a
constructive, positive step towards conservation. Despite Lula's
political gamble with the vetoes, the law will be implemented...with
or without the amendments. Therefore, there are a variety of
aspects to the new bill which open avenues for increased USG-GoB
cooperation, not the least of which includes the creation of the
Brazilian Forest Service and a variety of new public parks. Post
will continue to update as timelines for implementation and next
steps are clarified.

CHICOLA