ARGENTINE CONGRESS APPROVES TEMPORARY LOGGING

UNCLAS BUENOS AIRES 002301 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR OES/ETC JAN MCALPINE BRASILIA FOR HUB ANNE BRAGHETTA E.O. 12958: N/A TAGS: SENV EAGR ETRD AR SUBJECT: ARGENTINE CONGRESS APPROVES TEMPORARY LOGGING MORATORIUM ¶1. (U) This message is sensitive but unclassified, and not for Internet distribution. -------------- Summary -------------- ¶2. (SBU) Environmental law in Argentina took a significant step forward as both houses of the Argentine Congress passed a forestry law that will temporarily halt all logging of native forests. If the president promulgates the law, a moratorium on logging will be imposed for up to one year while provincial governments survey their forests to determine which areas warrant permanent protection. That the law is both strict and mandates cash payments to affected parties raises questions regarding Argentina's capacity to implement it and keep it from becoming a patronage vehicle. End Summary. -------------- A Pragmatic Bill -------------- ¶3. (U) Argentina moved to strengthen environmental protections in November, as both houses of the Argentine Congress passed the &Ley de Bosques,8 or Law of the Forest, which will temporarily put a stop to all logging of native forests. If President Nestor Kirchner or President-Elect Cristina Fernandez de Kirchner (who takes office December 10) promulgates the law, a moratorium on logging will be imposed for up to one year while provincial governments survey their forests to determine which areas warrant permanent protection. The law is supported by Environment Secretary Romina Picolotti, and observers believe a presidential signature is likely. Monica Gabay, an official in the Forestry Bureau of the Environment Secretariat, called the passage of the law &a good advance,8 but told EmbOff that &success will depend heavily on the implementation8 of the law. ¶4. (U) This version of the forestry law -- approved by Congress after almost two years of debate -- is notable for its attempt to balance the need for environmental protection with an understanding of the law,s likely economic consequences. Many of the native forests of particular interest are located in the economically struggling nothern region of the country. To overcome the concerns of northern legislators, the bill earmarks 0.3% of the national budget to provide compensation for the economic consequences of the logging ban. Thirty percent of the resultant 900 million Argentine pesos (approx. USD 300 million) will go directly to affected provincial governments, while the rest is slated for private businesses. -------------- Comment -------------- ¶5. (SBU) Congressional approval of the Law of the Forest represents a positive development for environmental conservation efforts in Argentina. The law was partly the result of a massive (for Argentina) grass-roots campaign; in October, Greenpeace and other environmentalist groups claimed to have collected a million signatures from supporters of the bill. This law looks great on paper, but the lack of a stable, coherent environmental institutional framework (i.e. proper administration/financial controls and enforcement) means it might end up being largely symbolic. The relatively large sums of money earmarked for affected parties also suggest that the law could be used as a patronage vehicle. Still, it is encouraging that Argentina is taking affirmative steps to protect its environment. KELLY