Project Completion Report on Private Sector EU-FLEGT-VPA Acknowledgements Acronyms ______
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Project Completion Report on Private Sector EU-FLEGT-VPA Acknowledgements Acronyms ___________________________________________________________________________ _________________________________________________________________________ his project completion report is made possible through the following MFPMF executives, mem- Tbers and staff. Without their untiring efforts and team work, this project would not have been DFID Department for International Development (DFID)/UK possible to complete and produce the final project completion report. EFI European Forest Institute EU European Union Project Advisory Team: FAO Food and Agricultural Organization FLEGT Forest Law Enforcement Governance and Trade Dr. Sein Win President, MFPMF GDP Gross Domestic Product Dr. Myo Lwin EC, MFPMF GTF Global Timber Forum U Barber Cho Advisor, MFPMF MFPMF Myanmar Forest Products Merchants Federation U Zaw Win Advisor, MFPMF MOECAF Ministry of Environmental Conservation and Forestry U Kyaw Thu Chairman, Myanmar Rattan & Bamboo Entrepreneurs Association MTE Myanmar Timber Enterprise U Nyan Win Chairman, Wood-based Furniture Association NES National Export Strategy TLAS Timber Legality Assurance System VPA Voluntary Partnership Agreement Report Writing: Mr. Charles Pradhan National Project Coordinator U Maung Maung Thein Htaik Assistant Executive Officer, MFPMF Project Completion Report on Private Sector EU-FLEGT-VPA 1 2 Project Completion Report on Private Sector EU-FLEGT-VPA Table of Contents Executive Summary Chapter I: 1. Introduction 2. Myanmar and EU Forest Law Enforcement, Governance and Trade (FLEGT), Voluntary Partnership Agreement (VPA) Process 3. MFPMF Organizational Objectives and Involvement in FLEGT VPA 4. Project Objective 5. Project Implementation Methodology EXECUTIVE SUMMARY 6. Project Activities yanmar, a tropical country in Continental South East Asia, has a total land area of 261,228 square Chapter II: miles (676,577km2). Its length from south to north is about 2,090km and the maximum width 7. What is FLEGT ? from west to east is about 805 km. Myanmar is regarded as a land of diverse culture, traditions and 7.1 Meaning of FLEGT Mnatural resources and it is endowed with one of the largest forest cover in the region. According to FAO an- 7.2 Legal timber nual report 2001, 52.3% of the total land area was covered with forests. Although Myanmar has a rich forest 7.3 Timber legality assurance system, resource and long history of sustainable forest management, the forest depletion rate is becoming fast through 7.4 Control of the supply chain: Wood tracing systems and chain of custody legal and illegal logging process. At present based on the available information, Myanmar’s Forest area is about 7.5 Legality assurance systems: requirements for verification, 48% and 10% is the primary forest while other claims only 3.1% of the primary forest is left. (National Export 7.6 Voluntary Partnership Agreements (VPA) Strategy/Forestry Products Sector Strategy, 2015-2019). The Myanmar forest sector generates around 1% of 7.7 Guidelines for independent monitoring GDP with goods and services traded nationally and internationally. This sector also supports/creates employ- ment/jobs and livelihoods of 50-60% of the population. However, this sector has challenges and issues linking 8. What does Myanmar “Wood-Based Private Sector” understand about FLEGT? with illegal logging, sustainability in supply of raw materials, limited investment, human rights abuses, forest governance and corruption. Chapter III: 9. Overview of International Trade Requirements/Trends and FLEGT VPA Action Plan The Forest Law Enforcement, Governance and Trade (FLEGT) process represents a first response to the 10. Major issues and challenges of private sector in FLEGT VPA worldwide problem of illegal logging. Logging is considered “illegal” when timber is harvested, transport- 11. Private stakeholders mapping and communication strategy ed, processed, bought or sold in violation of national or international laws. It is challenging to give a precise 12. Role of private sector and position on FLEGT VPA process: figure for the volume of timber that is illegally logged in the world, but it is estimated that illegal extraction 13. MFPMF/ FLEGT VPA process linking with Forestry Sector National Export Strategy (NES) costs timber producing countries approximately US$10 to15 billion per year in lost revenue (FAO, 2014). According to Interpol, illegal logging constitutes 50 to 90 percent of the volume of forest activities in tropical Chapter IV: countries. Apart from these economic consequences, illegal logging also has negative effects in environmental 14. Recommendations of next steps on “Private Sector Engagement in the FLEGT VPA Process”. and social terms, particularly in the shape of the loss of biodiversity or the destruction and degradation of 15. Conclusion Remarks of Advisory Committee, MFPMF. ecosystems and the livelihoods of local forest-dependent people. In this context, the FLEGT VPA process is an Annexes: opportunity to deal with above mentioned issues. Based on Myanmar Government indication of its intention • Photos to pursue FLEGT VPA and Myanmar private sector involvement in FLEGT Task Force, MFPMF a Leading • Survey Forms Federation (more than 1600 members including forest products exporters) acknowledges that private sector • Checklist/KII Questionnaire is a key stakeholder in FLEGT VPA Process and its needs to be better organized, put forward proposals and Project Completion Report on Private Sector EU-FLEGT-VPA 3 4 Project Completion Report on Private Sector EU-FLEGT-VPA perspectives in this VPA process. In line with MFPMF organizational objectives and realization of private sector needs to participate in FLEGT VPA process, MFPMF has taken a challenge to plan and implement Chapter I: the project called “Identifying Needs to Improve Private Sector Engagement in the EU-FLEGT VPA Pro- 1. Introduction: cess”. The main objective of this project is to enhance better understand how all the different private sector operators interrelate, identify their specific issues and priorities to enable them to better collaborate and he FLEGT process represents a first response to the worldwide problem of illegal logging. Logging communicate more effectively to be able to address domestic and international requirements. The project is considered “illegal” when timber is harvested, transported, processed, bought or sold in viola- has taken a two pronged approach and method to plan and implement the project activities “Quantita- tion of national or international laws. It is challenging to give a precise figure for the volume of Ttimber that is illegally logged in the world, but it is estimated that illegal extraction costs timber produc- tive and Qualitative Investigative approach” and “Multi-Stakeholders Consultative Approach”. The findings clearly shows that 98% of the respondents think that the causes of Myanmar’s flood situation, and climate ing countries between US$10 billion and US$15 billion per year in lost revenue (FAO, 2014). According change are due to deforestation and forest degradation. 96% of the respondents think that deforestation to Interpol, illegal logging constitutes 50 to 90 percent of the volume of forest activities in tropical coun- and illegal logging are linked. 77% of the respondents claim that they get raw materials from MTE and 73% tries. Apart from these economic consequences, illegal logging also has negative effects in environmental of the respondents think that if they buy raw materials from MTE, it is legal. About 65% think that if we and social terms, particularly in the shape of the loss of biodiversity or the destruction and degradation do not buy from MTE, it is illegal. About 85% claim that if they get raw materials from MTE, they will not of ecosystems and the livelihoods of local forest-dependent people. Such illegal logging is also usually buy from illegal sources. About 46% respond claim that they know about Myanmar-EU FLEGT process. closely linked to poor governance. Lastly, the high demand for inexpensive wood on both domestic and Key findings include majority of the private sector stakeholders have low level of awareness and under- export markets contributes to illegality in the forest sector. In an effort to eliminate illegal logging and its standing on EU-Myanmar FLEGT VPA, stakeholders interpretation and understanding of “Legal Timber” associated trade, the European Union (EU), recognizing a shared responsibility with timber producing is limited and most of them think that buying raw materials from MTE is legal so that they believe they are countries in the trade in illegally sourced timber, EU adopted its FLEGT Action Plan in 2003, in recog- doing legal business. Majority of the stakeholders are unclear about the advantages and disadvantages of nition of the increasing public concern with the social, economic and environmental consequences of the FLEGT VPA, it is considered that majority of the private sector stakeholders do not have appropriate illegal logging and associated trade worldwide. A key element of the Action Plan is a proposal to establish access to information about FLEGT VPA process (Respective Language) and within the private sector, it Voluntary Partnership Agreements (VPA). is observed that for the common good cause, there is lack of culture of working together and team work approach to achieve the desired results. FLEGT VPAs are bilateral agreements between the EU and timber exporting countries, which aim to improve forest