C I N T R A F O R
Special Paper Abstract
What Is Determining International Competitiveness in the Global Pulp and Paper Industry: Proceedings of Third International Pulp & Paper Symposium
Seattle. 13-14 September 1994. (365 pp) SP17 $25.00
For those familiar with the Pulp and Paper sector of the global economy, periodic business cycles and the resultant uncertainty are no strangers. Integration (of the sector) on a global scale has buffered a portion of this uncertainty and has facilitated trade exchange among fiber-rich producing regions and international markets (both mature and emerging) serving diverse fiber and paper product consumers.
The last half of the 1980's brought strengthening markets and economic recovery to an industry that had experienced a significant recession in the 1981-1984 period. After 1985, producer inventories declined as prices recovered significantly. However, by 1990 the strength of the recovery had slowed and reversed, with downward movement of prices and correspondingly buildup of producer inventories. While 1994 has again shown modest improvement, the sector continues to face serious market dislocations and production disruptions.
The 1990's have also brought to the forefront new and perplexing factors - many of which are beyond the immediate, direct influence of the sector in terms of internal strategic planning. Perhaps nowhere is the dynamic economic and social tension between industrial production and environmental protection more evident than for the global Pulp and Paper sector. As a major consumer of wood fiber, considerations impacting forest and land management sustainability are of immediate concern in terms of raw material availability, important considerations of air and water quality are closely linked to capital investments and productivity as individual nations strive to develop and implement national environmental policies striking a balance between responsible industrial development and strong national economies (on the one hand) and a sustainable national and global environment with the protection of significant non-marketed values such as biodiversity, ecosystems, wildlife and endangered species, and non-consumptive land and resource uses including recreation. At the same time, technology and capital investment is changing dynamically as an urgent response to both environmental policy and markets. Simultaneously, consumer and environmental interests are urging significant changes in product composition and consumption patterns. "Green Marketing", reflecting environmental values in concert with traditional consumer utility is reshaping thinking at both the industrial plant and the supermarket.
As a significant economic sector on both the local and global stage, the Pulp and Paper Sector is subject to the imperatives of economic efficiency and competition. Costs of implementing the environ-mental consciousness cannot be easily passed forward in global markets. Ignoring consumer preferences and market dynamics is a sure route to declining competitiveness. Increasing scarcity and competition for raw material and fiber (including recycling of paper and fiber products) compels a search for new sources and efficiencies.
Globally, the Pulp and Paper sector contributes to national income, employment and economic welfare through the consumption of paper products which represent a significant indicator of economic well-being. Competition among regions and nations is therefore assured as each individual sov-ereign nation seeks in its own way to strike the balance between economy and environment Yet the consequences transcend national boundaries - international competitiveness is surely impacted. In ad-dition to cyclic uncertainty, changing dynamics of competitiveness and comparative advantage result in "gainers" and "losers". An improvement in competitiveness on the part of one region or producer is almost certainly seen as a loss of competitiveness by others.
What are the key determinants shaping dynamic international competitiveness in the world's Pulp and Paper sector? The Center for International Trade in Forest Products (CINTRAFOR) at the University of Washington, Seattle, WA organized the third in a series of major international symposia to explore and discuss these issues in the context of the mid-1990's and into the next century. As part of the outreach and education mission of CINTRAFOR exploring major issues of the times impacting the use of forests globally, and the implications of changing markets and trade, is central to an enlightened and focused public policy agenda at all levels. Previous conferences on the Pulp and Paper sec-tor were organized by CINTRAFOR in 1987 and 1990. This Third International Pulp and Paper
Symposium has been organized under the theme: "What is Determining International Competitiveness in the Global Pulp and Paper Industry" (SP-17). This two day forum will explore international competitiveness within the context of the dynamics of environmental policies and regulations, raw material and technology, and consumer preferences and product performance in an era of "green markets." Some 35 distinguished international experts provide diverse perspectives and regional views on the emerging issues of international competitiveness. A panel of speakers offer views on the probable future for the Pulp and Paper sector in an increasingly global environment. While providing no firm findings or specific policy agenda, the substance the Symposium presentations as included in the Proceedings offer unique views that should be of immense interest to those within the pulp and paper sector, the environmental and consumer communities, and policy makers and regulators.