Routes of Extinction: An overview of illegal trade in Siamese rosewood from the Mekong region to China
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1 Routes of Extinction: An overview of illegal trade in Siamese rosewood from the Mekong region to China Tomasz Johnson Forest Campaigner Environmental Investigation Agency E: W:
2 Siamese rosewood D. cochinchinensis VIETNAM LAOS From nearly 50% of all Chinese imports were from the Mekong: (1.6 million m3 worth US$ 2.4 billion) THAILAND Siamese rosewood most desirable species All range states have restrictions on harvesting and export CAMBODIA Siamese rosewood range Source: CITES CoP16 Prop. 60 All range states have log export bans Only crime or opaque exemptions can now supply Mekong Hongmu logs to China.
3 The bloody business of extinction Firefights during enforcement in Thai national parks are common. 45 Cambodian loggers killed in 2012, Cambodian Interior Ministry reported 69 more killed in From 2009 to July 2013 over 40 DNP rangers were killed, and 49 officers injured 23 severely. Lao protected area bleeding rosewood Poaching threatens Thai park s World Heritage status
4 CITES to the rescue? March 2013: Siamese rosewood listed in CITES Appendix II Exports based on CITES export permits and determined to be: Of legal origin Not detrimental to the survival of the species Undercover investigations: Northern Vietnam & China: October & November 2013 Southern Laos & Central Vietnam: February 2014 Hong Kong / Shenzhen, China: March 2014 Aim: assess trade in Siamese rosewood in light of 2013 CITES Appendix II listing
5 LAOS: Laundering stolen timber Several Chinese firms operational in the city Pakse: 60% of D.coch smuggled from Thailand Main source is aggregated from loggers in Laos and Thailand Border enforcement variable and predictable Factories hired as fronts for export of raw materials D.coch (almost) commercially extinct in southern Laos, but not a problem demand for replacement means business as usual
6 LAOS: Military & patronage Military and other Gov auctions of seized rosewood provide overpriced quota materials to Chinese-run factories. Factories procure auctioned wood to build relations with government and enforcement agencies, and access official paperwork then used to launder five-times more illegal wood. Relative of Champasak Governor and Niece of Military Commander Chantone Lattanvong (right) earns $500 per ton from corruptly brokering auctioned timber to Chinese traders. EIA witnessed such a deal for Chinese firm Shanghai Hongxu International
7 VIETNAM: Criminal business as usual Vietnam plays major role laundering illegal D.coch from Thailand, Laos, & Cambodia on to China CITES enforcement stemming flow into China, but scant enforcement in to Vietnam Thousands of tonnes available on the open market Organised crime gangs facilitate smuggling over land border via Lang Son, Mong Cai (below right) Also increasing trade in semi-finished products to evade log export ban and CITES Traditional route of bulk trade is from seaports to Hong Kong Raw materials aggregated in Dong Ha for onward shipment business as usual 400 tonnes offered to EIA in one day
8 HONG KONG: The black box HK plays major role as gateway to Mainland China No restrictions on entry to Hong Kong as HK has not implemented CITES Switching of paperwork obscures nature and origins of cargoes prior to onward shipment HK Logistics firms guarantee entry of D.coch into Mainland China for US$ 2,200-2,500 per tonne Traders in Laos and Shenzhen admitted having containers stored in HK while awaiting entry into China Logistics agents providing fraudulent CITES documents (right)
9 Impacts of CITES Appendix II Listing Thailand: Enforcement undermined by smuggling into Laos Laos: Restrictions undermined by government auctions and weak border controls Vietnam: Siamese rosewood flooding in throughout late 2013 and early 2014; logistics agencies / gangsters successful at smuggling Hong Kong: No CITES implementing laws; gateway to Mainland China, paperwork switching
10 CHINA: Enforcement & New Species on the Block Border controls strictly imposed Series of busts in Guangzhou ports Ambivalence among trade: Large stockpiles within China Restrictions inflating prices Replacement species available Financial repression and vast liquidity stimulates bubbles - Hongmu viewed as an investment Government backing driving proliferation of processing and retail hubs Predicating a long-term industry on rare and shrinking resource base
11 Recommendations China to prohibit illegal timber imports Gov auctions of illegal wood to be stopped in Laos & Vietnam China s Hongmu sector to stop stimulating demand for illegal and endangered species All 33 Hongmu species to be listed on CITES App III if not already listed Annotation 5 to be amended/removed before the next CITES COP Hong Kong to institute and enforce CITES listings within its territory All future CITES permits issued to be justified by NDFs Laos and Vietnamese CITES MAs to investigate illegitimate permit issuance
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