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EU FLEGTFLEGT Andand Vvoluntaryoluntary Partnershippartnership Agreementsagreements Potomacpotomac Meetingmeeting Febfeb 20082008 EUEU FLEGTFLEGT andand VVoluntaryoluntary PartnershipPartnership AgreementsAgreements PotomacPotomac MeetingMeeting FebFeb 20082008 EU Action Plan for Forest Law Enforcement, Governance and Trade WhatWhat isis FLEGT?FLEGT? EUEU ForestForest LawLaw EnforcementEnforcement GovernanceGovernance && TradeTrade ActionAction PlanPlan EUEU responseresponse toto problemsproblems ofof illegalillegal logginglogging andand associatedassociated trade.trade. OurOur planplan toto carrycarry forwardforward internationalinternational commitmentscommitments toto addressaddress illegalillegal logginglogging andand poorpoor forestforest governancegovernance UsesUses thethe powerpower andand interestinterest ofof EuropeanEuropean consumerconsumer marketsmarkets toto reinforcereinforce governancegovernance reformreform inin timbertimber producingproducing countriescountries EU Action Plan for Forest Law Enforcement, Governance and Trade TheThe EUEU FLEGTFLEGT ActionAction PlanPlan Measures to influence both demand and supply. Partnership agreements with producer countries that support: Governance reforms Measures to regulate the trade in timber Measures to improve confidence in legality of products Measures to increase demand for legally sourced timber: Public public procurement policies Private sector initiatives, eg Codes, tied contracts Financing and investment, eg lending, risk ratings Further legislative measures ? EU Action Plan for Forest Law Enforcement, Governance and Trade InitiativesInitiatives whichwhich influenceinfluence EUEU marketmarket Member State public procurement policies: UK, NL, DK, Fr, Germany, Bel all require verified legal forest products; some require certified SFM. More in development; GPP Communication mid 2008 will highlight timber Responsible purchasing codes of Member State trade federations: eg UK, NL, B, Ger, Fr, Spain, Dk Trade networks for legal products & business to business partnerships create awareness for FLEGT & demand for verified legal; also useful trade federation are trade roadshows: Cameroon, Gabon, Ghana, Congo, China, Indonesia, Malaysia, Brazil, Vietnam EU Action Plan for Forest Law Enforcement, Governance and Trade FLEGTFLEGT PartnershipsPartnerships (VPA):(VPA): binding agreement between the EU and Partner Country by which we undertake to work together to stop illegal logging and improve forest management will improve governance & include measures to build capacity, enhance transparency & measures to mitigate negative impacts on poor people will establish licensing for all exports to the EU based on legality verification. Legality = laws of partner country EU Customs will exclude timber with no FLEGT license EU Action Plan for Forest Law Enforcement, Governance and Trade FLEGTFLEGT PartnershipsPartnerships (2)(2) WillWill supportsupport effortsefforts toto improveimprove governancegovernance,, throughthrough measuresmeasures that:that: improveimprove control,control, thatthat tracktrack andand verifyverify thethe legalitylegality ofof timbertimber fromfrom forestforest toto portport betterbetter capturecapture revenuesrevenues andand rentsrents enhanceenhance transparencytransparency buildbuild capacitycapacity ofof govt,govt, civilcivil societysociety && privateprivate sectorsector supportsupport policypolicy andand legallegal reformreform securesecure andand improveimprove marketmarket shareshare EU Action Plan for Forest Law Enforcement, Governance and Trade CornerstoneCornerstone ofof thethe VPAVPA isis aa LegalityLegality AssuranceAssurance systemsystem FLEGTFLEGT licensinglicensing requiresrequires aa systemsystem thatthat defines legally-produced timber verifies compliance with legal definition traces products from forest to export licenses exports Independent monitoring of all components GuidanceGuidance isis nownow availableavailable onon principlesprinciples andand criteriacriteria toto guideguide developmentdevelopment ofof LegalityLegality AssuranceAssurance Systems.Systems. EU Action Plan for Forest Law Enforcement, Governance and Trade BuildingBuilding FLEGTFLEGT partnershipspartnerships A phased multistakeholder process ¾introduce the opportunities of the FLEGT; ¾focused debate and analysis of challenges/ opportunities; ¾a structured negotiation framework, ¾a legally binding agreement ¾Joint implementation of agreement: • develop systems & capacities of government, civil society, private sector • Then FLEGT licenced legal timber products will follow later allowing time for upgrade of systems for trade EU Action Plan for Forest Law Enforcement, Governance and Trade WhereWhere areare wewe withwith VPAVPA development?development? IntroductionIntroduction toto stakeholders:stakeholders: onon--goinggoing inin manymany countriescountries && ledled byby differentdifferent organisationsorganisations StructuredStructured consultationconsultation && analysisanalysis toto prepareprepare forfor negotiations:negotiations: ongoingongoing inin Liberia,Liberia, Gabon,Gabon, CentralCentral AfricaAfrica Republic,Republic, CongoCongo ((BrazzaBrazza)) :: allall likelylikely toto startstart negotiationsnegotiations inin 20082008 FormalFormal negotiationsnegotiations:: onon--goinggoing inin Malaysia,Malaysia, IndonesiaIndonesia,, GhanaGhana CamerounCameroun –– VPAsVPAs inin 2008.2008. EU Action Plan for Forest Law Enforcement, Governance and Trade InIn negotiationsnegotiations…….. NowNow deepdeep inin discussiondiscussion ofof legalitylegality definitiondefinition,, legalitylegality assuranceassurance systemssystems.. ItIt cancan bebe sensitivesensitive w/divergentw/divergent stakeholderstakeholder positionspositions HowHow toto handlehandle importedimported timbertimber inin LAS?LAS? UnsureUnsure ofof positivepositive incentivesincentives forfor VPA:VPA: marketmarket accessaccess andand demanddemand forfor verificationverification areare keykey PrinciplePrinciple ofof IndependentIndependent MonitorMonitor acceptedaccepted-- ButBut WhoWho?? whowho pays?pays? ConcernedConcerned wewe maymay increaseincrease costcost toto industryindustry whowho willwill stillstill competecompete withwith producersproducers fromfrom elsewhereelsewhere thatthat dondon’’tt applyapply similarsimilar rigourrigour HowHow toto introduceintroduce andand phasephase inin newnew systemssystems thatthat incorporateincorporate positivepositive incentivesincentives fromfrom mktmkt forfor frontfront runnersrunners?? EU Action Plan for Forest Law Enforcement, Governance and Trade IdeasIdeas arisingarising inin onon--goinggoing negotiationsnegotiations FLEGT verification systems may apply to all exports Better regulation of informal sector/domestic market Product scope could be broad & include all exports VPA negotiations are providing effective platform for stakeholder input to policy debate Strong stakeholder involvement in negotiations leading to shift in relations between state & non state actors Growth in COC & company based legality verification- more to build from Partners expect VPAs to enable greater uptake of sustainable forest management certification Standards developed in the VPAs may influence private sector & other consumer markets such as Japan, China,US EU Action Plan for Forest Law Enforcement, Governance and Trade BiggerBigger picturepicture ChinaChina EUEU collaboration:collaboration: SeptSept 20072007 WkshpWkshp positive,positive, resultedresulted inin commitmentcommitment toto workwork togethertogether onon illegalillegal logginglogging && developdevelop commoncommon approachapproach toto legalitylegality verificationverification systemssystems forfor imports,imports, moremore informationinformation exchange,exchange, fosterfoster businessbusiness toto businessbusiness linkslinks MinisterialMinisterial discussionsdiscussions plannedplanned inin 20082008 likelylikely toto raiseraise profile:profile: CentralCentral AmericaAmerica,, EastEast AsiaAsia,, EastEast AfricaAfrica LinksLinks toto REDDREDD && criticalcritical importanceimportance ofof goodgood governancegovernance FurtherFurther legislativelegislative measuresmeasures ………… EU Action Plan for Forest Law Enforcement, Governance and Trade FurtherFurther LegislativeLegislative MeasuresMeasures FLEGT Action plan acknowledges shortcomings of bilateral approach and asks us to explore other options Considered use of existing Member State &EC legislation (see Chatham house website)-limited scope New legislation? Public consultation in 2007 suggested strong interest in further measures Impact Study completed. It studied 5 scenarios: Ö More coverage through VPAs Ö Stronger private sector actions Ö Ban on imports of illegally harvested timber Ö Legislation placing on the market of illegally harvested timber. Sub- options: ¾ Prove illegality (like the Lacey Act amendment) ¾ Require only legal products on market (require legality certification) EU Action Plan for Forest Law Enforcement, Governance and Trade NextNext stepssteps furtherfurther measuresmeasures IASIAS providedprovided nono clearclear frontrunnerfrontrunner onon optionsoptions InternalInternal ECEC discussionsdiscussions areare onon--goinggoing toto prepareprepare ImpactImpact AssessmentAssessment && legislativelegislative proposalproposal CollegeCollege willwill decidedecide onon proposalproposal midmid 20082008 ThisThis isis thenthen presentedpresented toto CouncilCouncil ((MemberMember States)States) andand EuropeanEuropean ParliamentParliament forfor debatedebate ImpactImpact AssessAssess studystudy willwill bebe publishedpublished EU Action Plan
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