Protection of Native Woods

On November 28, 2007, the Argentine Chamber of Deputies approved a law which sets minimum standards for the environmental protection of native woods (the “Native Woods Law”). The bill which was approved by the Senate on November 21, 2007, will come into effect after its ratification by the National Executive Branch.

The Native Woods Law, which is among the bills most heavily supported by different environmental NGOs in recent years, provides for the protection, preservation and control of the clearing of primary and secondary native woods. It also regulates their exploitation and use. According to this law whether a native wood belongs to the first or second category depends upon whether there has been human involvement in its formation.

According to the Native Woods Law, native woods are classified in three categories: red, yellow and green. While clearing of native woods of the red and yellow categories is forbidden, those in the yellow and green categories can be the object of sustainable use if they comply with a “Plan to Approve Change of Use of the Soil” to be approved by each province.

Every project concerning the clearing of trees or the sustainable use of native woods must be approved by the appropriate provincial agencies. To this end, the applicant must file an Environmental Impact Assessment Study and comply with the public hearing proceedings specified by the Environmental General Law.

According to the Native Woods Law, provinces will have one year to issue regulations on native woods within their territories and to classify them into the conservation categories in accordance with their environmental value and the environmental services that they offer. Provinces that do not accomplish these tasks will not be permitted to issue authorizations to clear native woods or to use them in any way.

The Native Woods Law, states that while the process of organization and classification of native woods takes place all governmental agencies will be prevented from granting authorizations for the clearing of trees or for any other use of native woods.

Infringements of this law will give rise to warnings, fines or the suspension or revocation of the authorization for the use of native woods. The setting up of a national registry of offenders is also contemplated.

The Native Woods Law, provides for the creation of a National Fund for the Enrichment and Conservation of Native Woods (the “Fund”). The main source of the Fund will be allocations from the national budget (no less than 0.3% of the total national budget) plus 2% of all amounts collected by the Federal State as export duties. As an incentive for compliance by the provinces, the law states that the Fund shall be distributed on an annual basis only among the provinces which have issued the corresponding regulations and have classified their native woods.

The main purpose of the Fund is to financially compensate the owners of the lands where the native woods are located. Payments will be determined on the basis of the size of the protected area and will be made on an annual basis.

Once the Native Woods Law comes into effect, the provinces will be entitled to pass their own laws providing for the protection and preservation of their native woods. However, the minimum standard of protection will be that specified by the Federal law.