Mr. Speaker, I want to thank my colleague, the gentlewoman from Florida (Ms. Ros-Lehtinen), who is chair of the Subcommittee on the Middle East and South Asia of the Committee on International Relations. I want to thank her for her good…
Mr. Speaker, I want to thank my colleague, the gentlewoman from Florida (Ms. Ros-Lehtinen), who is chair of the Subcommittee on the Middle East and South Asia of the Committee on International Relations. I want to thank her for her good work in the committee, and particularly her help with regard to this legislation and her willingness to be one of the original cosponsors and to help to promote this.
I also want to thank my colleague from Minnesota (Ms. McCollum). I thought that statement was eloquent, and I think she well stated what we are trying to do with this reauthorization, which is to continue a good program and also to expand it so that more countries can be eligible.
I rise today in very strong support of this legislation. It was introduced, along with my colleague and ranking member, the gentleman from California (Mr. Lantos), of the Committee on International Relations, by 32 of our colleagues to reauthorize this Tropical Forest Conservation Act through fiscal year 2007. This is a bipartisan and market-based conservation incentive program which helps to protect the world's most valuable tropical forests using the so-called debt-for- nature mechanisms.
H.R. 4654 was developed with the Bush administration, with the Nature Conservancy, World Wildlife Fund, Conservation International, and the Wildlife Conservation Society. The administration and these highly respected environmental organizations are to be commended for their good work on the Tropical Forest Conservation Act and on this legislation before us today.
This legislation comes out of a couple of Congresses ago, the 105th Congress, when I, along with my colleagues Lee Hamilton, mentioned earlier, and John Kasich, introduced legislation that established the Tropical Forest Conservation Act, or TFCA. It was overwhelmingly approved by the House, the Senate, and enacted in 1998. It was then reauthorized in 2001, until the end of this current year.
The TFCA is based on the previous Bush administration's Enterprise for the Americas Initiative, also known as EAI. That initiative allowed the President to restructure debt in exchange for certain conservation efforts in Latin America. We took that basic philosophy, broadened it, we expanded on it, and we now allow protection of threatened tropical forests worldwide.
A conservative estimate is that, because of the agreements that have been signed to date, 41 million acres of tropical forests are being protected. The United States has a significant national interest in this. Tropical forests provide a wide range of benefits. They harbor 50 to 90 percent of the Earth's terrestrial biodiversity. They act as ``carbon sinks,'' absorbing massive quantities of carbon dioxide from the atmosphere, thereby reducing so-called greenhouse gases. Therefore, the quality of the air we breathe here in this country is affected by the health of these dense forests.
They also regulate rainfall on which agriculture and coastal resources depend, and they are of great importance to regional and global climate. Furthermore, tropical forests are breeding grounds for new medicines. Twenty-five percent of prescription drugs come from tropical forests. The United States National Cancer Institute has identified over 3,000 plants that they believe are active against cancer. Seventy percent of them can be found in these tropical rain forests.
Regrettably, tropical forests are rapidly disappearing. It is now estimated that 30 million acres, an area larger than the State of Pennsylvania, or my State of Ohio, are now being lost each year. The heavy debt burden of many of these countries in the tropics is a contributing factor because they have to resort to exploitation of their natural resources, particularly the extraction of timber, oil, and precious metals, to be able to generate revenue to service their external debt. At the same time, these poorer governments tend to have fewer resources available to set aside and protect tropical forests.
The TFCA, which is part of the current Bush administration's global climate change policy, addresses these economic pressures by authorizing the President to allow eligible countries to engage in debt swaps, in buybacks, and in reduction and restructuring of debt in exchange for protecting threatened tropical forests on a sustained basis. So the program gets at some of the underlying causes for the disappearing tropical forests because it gets at some of the economic reasons some of the countries must exploit this resource.
The debt-for-nature mechanism in the TFCA has proven to be an effective market-oriented means to leverage scarce funds available for international
conservation. The host country places local currency in its tropical forest fund that typically exceeds the cost to the U.S. Government of the debt reduction agreement. So we are leveraging funds.
Furthermore, because these tropical forest funds have integrity, are broadly supported within the host country, we have found that conservation organizations are interested in placing their own money in these tropical forest funds, which of course produce additional leverage of the Federal conservation dollars that we are providing.
There have been eight TFCA agreements included to date: Bangladesh, El Salvador, Belize, Peru, the Philippines, Colombia, and actually two now with Panama. $49.3 million in Federal contributions have gone into these agreements and $6.3 million in private contributions from these conservation NGOs under these eight agreements. Through this we have generated $81.4 million in long-term income commitments for tropical forest conservation, so the leverage is out there and is working.
The second Panama deal actually was just signed last month. Under this agreement, the U.S. Government contributed $6.5 million to reduce debt, and the Nature Conservancy contributed $1.3 million in a second round of agreements now that will generate nearly $11 million for tropical conservation over the next 12 years.
This agreement with Panama, along with the previous one, now provides over $21 million in total funds available for conservation purposes. This is a great agreement that helps protect the biologically rich forest of Darien National Park.
Active deals are also being negotiated with Jamaica and Sri Lanka. Other countries that have expressed interest in the program and who have eligible debt include Guatemala, Ecuador, Paraguay, St. Vincent, Botswana, Costa Rica, the Dominican Republic, India, Indonesia, Brazil, and Kenya.
H.R. 4654 will improve and refine the Tropical Forest Conservation Act, as was discussed earlier, by better funding audits to ensure the program is operating as expected and as intended and by broadening the governments that can participate by allowing principal, not just interest, to be reduced and to be redirected into these conservation funds.
The bill does have an authorization here of $20 million in fiscal year 2005, which is included in the President's budget request.
Mr. Speaker, I would like to take a moment, if I could, to just thank all those who have gotten us to this point and worked so hard on this reauthorization bill. I want to thank those people like Bill Millan and Steve McCormick of the Nature Conservancy; Randy Snodgrass, Melissa Moye and Estrelitta Fitzhugh of the World Wildlife Fund; Kelly Keenan Aylward with the Wildlife Conservation Society; and Nicholas Lapham with Conservation International.
From the administration, I want to thank the Council on Environmental Quality; also Joel Kaplan and Robin Cleveland of OMB; Bill Schuerch and Katie Berg of the Treasury Department; Claudia McMurray, Stephanie Caswell and Teresa Hobgood of the State Department; Jim Hester with USAID; Scott Lampman and others.
In Congress, I want to be sure and thank Kristen Gilley and David Killon of the Committee on International Relations, minority and majority staff; and Mark Synnes of the House Legislative Counsel for helping us to draft the bill; and at CRS we got some great help from Pervaze Sheikh. For his excellent analysis of the program, I want to thank him. And, finally, I want to thank Tim Miller of my staff and Justin Louchheim, who have taken a personal interest in this and their commitment to it over the years.
Again, this is a good program, it is working well, and worthy of reauthorization. I urge all Members to support strongly this market- based approach that is working to conserve the world's most threatened tropical forest.