overview of vpa negotiations and their challenges...overview of vpa negotiations and their...

EU Action Plan for Forest Law Enforcement, Governance and TradeEU Action Plan for Forest Law Enforcement, Governance and Trade

Overview of VPA negotiations Overview of VPA negotiations

and their challengesand their challenges

Philip Philip MikosMikos, European Commission Directorate , European Commission Directorate

General for DevelopmentGeneral for Development

Chatham House, January 2009Chatham House, January 2009


Update on VPA Update on VPA negotiationsnegotiations


Key Key elementselements of of VPAsVPAs�� Actions focus on reinforcing and improving forest regulationActions focus on reinforcing and improving forest regulation

�� Improve transparency and accountability through reporting Improve transparency and accountability through reporting and public access to informationand public access to information

�� Improve access to EU markets by providing reassurance of Improve access to EU markets by providing reassurance of legality and trade promotionlegality and trade promotion

�� In many In many VPAsVPAs, FLEGT systems will apply to all exports, not , FLEGT systems will apply to all exports, not just for EU & to wider product coverage than outlined in just for EU & to wider product coverage than outlined in FLEGT Regulation;FLEGT Regulation;

�� Legality definitions are broad, & cover environmental, social Legality definitions are broad, & cover environmental, social and economic laws linked to forest management and harvestand economic laws linked to forest management and harvest

�� Annexes of VPA: define legality, explain technical systems of Annexes of VPA: define legality, explain technical systems of verification and traceability & result from important verification and traceability & result from important negotiations between stakeholder interestsnegotiations between stakeholder interests


Structure of AgreementStructure of Agreement

�� Main Main texttext: 30 Articles : 30 Articles establishingestablishing principlesprinciples, structures, structures

�� AnnexAnnex 1: Product scope1: Product scope

�� AnnexAnnex 2: 2: LegalityLegality definitiondefinition

�� AnnexAnnex 3: EU 3: EU proceduresprocedures for for verificationverification

�� AnnexAnnex 4: FLEGT License4: FLEGT License

�� AnnexAnnex 5: Description 5: Description legalitylegality assurance assurance schemescheme

�� AnnexAnnex 6: Independent Monitoring6: Independent Monitoring

�� AnnexAnnex 7: 7: ImplementationImplementation ScheduleSchedule

�� AnnexAnnex 8: 8: AccompanyingAccompanying MeasuresMeasures

�� AnnexAnnex 9: LAS 9: LAS AssessmentAssessment CriteriaCriteria

�� AnnexAnnex 10: Information and 10: Information and reportingreporting


Features of VPA processesFeatures of VPA processes

�� Negotiations provide a platform to address Negotiations provide a platform to address difficult forest governance issues, to difficult forest governance issues, to clarifyclarifylegal framework & improve technical systems;legal framework & improve technical systems;

�� TimeTime--bound and outputbound and output--oriented stakeholder oriented stakeholder engagement: helps foster understanding engagement: helps foster understanding between stakeholders and helps define between stakeholders and helps define practical and strong reforms in the VPApractical and strong reforms in the VPA

�� Bilateral negotiation dynamic can help build Bilateral negotiation dynamic can help build country ownership for resultscountry ownership for results


Challenges in VPA Challenges in VPA negotiationsnegotiations

� Negotiations on sensitive and sovereign issues…

� Negotiations touch on markets, image, credibility but

FLEGT licenses still unknown

�� Fear of unfair competition with non FLEGT countriesFear of unfair competition with non FLEGT countries

� Negotiations on politically sensitive issues: can result

in strong internal opposition

� Negotiations on very technical subjects

�� Imported wood from 3rd countries & Seized woodImported wood from 3rd countries & Seized wood

�� Independent monitoringIndependent monitoring


Challenges in Challenges in VPAsVPAs: : LegalityLegality

Legality and verification of compliance: A sovereign issue

� There is no EU legal standard, but the partner country’s law

�� All All lawslaws are important but are important but wherewhere are the are the boundsbounds for for verificationverification of of compliancecompliance??

� Definitions should encompass env’tal and social elements, but securing forest tenure rights may be difficult

� The EU relies on stakeholders to identify confusion, gaps, mis-interpretations in the laws regulating timber

� We seek clarity -verifiable indicators of legal compliancewhere fuzzy may have their stakeholders too…

� Can spur a legal reform process, eg Ghana and Cameroon


Challenge: Challenge: StakeholderStakeholder involvementinvolvement

�� Essential to Essential to definedefine challenges & challenges & buildbuild support for support for resultingresulting VPA VPA

�� But But thisthis translates to a slow translates to a slow processprocess

�� Complex: identification of interests, representativeness, confliComplex: identification of interests, representativeness, conflicts cts between them, links to political structures, etcbetween them, links to political structures, etc

�� Who drives stakeholder process? Partner government? External Who drives stakeholder process? Partner government? External facilitator? International NGO? Donor? EC?facilitator? International NGO? Donor? EC?

�� No No blueprintblueprint: : WeWe seesee a a varietyvariety approachesapproaches dependingdepending on on contextcontextfromfrom a focus on information sharing, to a focus on information sharing, to technicaltechnical inputs, to inputs, to contributions on contributions on negotiationnegotiation teamsteams

�� StrongStrong stakeholderstakeholder involvementinvolvement in in negotiationsnegotiations maymay leadlead to shift to shift in relations in relations betweenbetween state & non state state & non state actorsactors and help and help buildbuildstrongstrong alliances in support of VPAalliances in support of VPA


Challenges in VPA negotiations: Challenges in VPA negotiations: timingtiming

� Too slow? Too fast?

� Context of wider changing political dynamic:

elections, champions, financial markets, new

issues (eg REDD)

� The VPA may set framework for new systems

that are not yet operational, requires building

system & independent assessment before

FLEGT licenses enter EU market


So slow and complex: why bother?So slow and complex: why bother?

�� Clearly complex and exciting processClearly complex and exciting process

�� Positive dynamic and a new framework for assistance that Positive dynamic and a new framework for assistance that draws many new actors into the forest governance fraydraws many new actors into the forest governance fray

�� Combination of trade and development perspective, though Combination of trade and development perspective, though challenging, more likely to produce lasting, sustainable result challenging, more likely to produce lasting, sustainable result

�� Creates an effective platform for stakeholders to negotiate Creates an effective platform for stakeholders to negotiate complex and difficult reforms in forest governance complex and difficult reforms in forest governance

�� BlanketBlanket consumer consumer measuresmeasures alonealone willwill not not addressaddress problemproblem

�� Ultimately: Improved forest management & governance; Ultimately: Improved forest management & governance; Increased forest benefits; Greater market access & securityIncreased forest benefits; Greater market access & security


So where are we?So where are we?


GhanaGhana

�� Concluded September 2008 Concluded September 2008

�� Ratification processes underway for both partiesRatification processes underway for both parties

�� VPA will be public as soon as process VPA will be public as soon as process compoletecompolete: : summaries available on EC Websitesummaries available on EC Website

�� Legality Assurance System will apply to all exports & Legality Assurance System will apply to all exports & products on domestic market products on domestic market –– requires major requires major upgrading of systems likely first FLEGT licensed upgrading of systems likely first FLEGT licensed timber reaching markets in late 2010timber reaching markets in late 2010

�� Includes actions to tackle drivers of illegality as well Includes actions to tackle drivers of illegality as well as legal reform process as legal reform process

�� Securing increased market access a major concernSecuring increased market access a major concern

�� Impact assessment: Ghana better off with VPA but Impact assessment: Ghana better off with VPA but alone not sufficient alone not sufficient –– part of wider reformspart of wider reforms


MalaysiaMalaysia

�� ComplexComplex processprocess involvesinvolves federalfederal & State & State

administrations & divergent administrations & divergent stakeholderstakeholder

interestsinterests

�� Independent Assessment of systems conducted Independent Assessment of systems conducted

late 2008 & results published; discussion late 2008 & results published; discussion

underway on needed system improvementsunderway on needed system improvements

�� Extensive internal consultations onExtensive internal consultations on--goinggoing

�� Conclusions: first Conclusions: first halfhalf 20092009


CameroonCameroon

�� Legality definition and systems designed completedLegality definition and systems designed completed

�� Legality Assurance System will to apply all exports & Legality Assurance System will to apply all exports & domestic trade; entails substantial upgrade of current domestic trade; entails substantial upgrade of current systems & will take two years to buildsystems & will take two years to build

�� RegionalRegional dynamicdynamic: : legalitylegality of of importedimported woodwood & & effective effective traceabilitytraceability in customs corridorin customs corridor

�� ImportedImported woodwood for for processingprocessing in in CameroonCameroon willwillrequirerequire evidenceevidence of of legalitylegality fromfrom country of country of harvestharvest ––strongstrong dynamicdynamic to to reinforcereinforce lawlaw enforcementenforcementregionallyregionally

�� Target conclusion : First Target conclusion : First halfhalf 20092009


IndonesiaIndonesia

�� Legality definition agreed between Legality definition agreed between

stakeholdersstakeholders

�� EC awaiting proposal on legality EC awaiting proposal on legality

verification system verification system

�� Questions on incentives for FLEGT; Questions on incentives for FLEGT;

industry sensitive to added costsindustry sensitive to added costs

�� REDD agenda competes? REDD agenda competes?

�� Target conclusion: unknownTarget conclusion: unknown


Congo (Congo (BrazzaBrazza))

�� MultistakeholderMultistakeholder secretariat, organised secretariat, organised stakeholder platforms; stakeholder platforms;

�� Legality definition and verification Legality definition and verification traceability system developed, now being traceability system developed, now being field tested; field tested;

�� System will apply to all exports and domestic System will apply to all exports and domestic product; product;

�� Independent Observer in place, Independent Independent Observer in place, Independent Audit Audit nownow underunder discussiondiscussion

�� Very proactive and dynamic processVery proactive and dynamic process

�� Target: March 2009Target: March 2009


OthersOthers

�� Liberia has asked to begin negotiations soon: Liberia has asked to begin negotiations soon:

national workshop next weeknational workshop next week

�� RCA, Gabon, Madagascar preparing to enter RCA, Gabon, Madagascar preparing to enter

negotiations in next few monthsnegotiations in next few months

�� Vietnam discussions have startedVietnam discussions have started

�� Sierra Leone, DRC, Ecuador, Sierra Leone, DRC, Ecuador, SolomonsSolomons + +

others expressing interestothers expressing interest


Challenges in 2009Challenges in 2009�� Keeping up with demand for Keeping up with demand for VPAsVPAs!!!!

�� Drawing to conclusion onDrawing to conclusion on--going negotiationsgoing negotiations

�� Implementation of VPA: sustained political support, new Implementation of VPA: sustained political support, new partnership structure between EU & VPA country & between partnership structure between EU & VPA country & between stakeholders stakeholders

�� Different challenge: in countries where EU trade not significanDifferent challenge: in countries where EU trade not significant & t & in countries that rely on imported raw materialin countries that rely on imported raw material

�� Sustaining political focus: FLEGT is getting “old”, competes forSustaining political focus: FLEGT is getting “old”, competes forpolitical attention with climate change/ REDDpolitical attention with climate change/ REDD

�� But false dichotomy: cannot address deforestation without FLEGTBut false dichotomy: cannot address deforestation without FLEGT

�� Convincing decisionConvincing decision--makers that the financial crisis is right time to makers that the financial crisis is right time to go forward with reforms and secure strong future for go forward with reforms and secure strong future for legallegal logging logging


Information & contactsInformation & contacts

Julia Falconer, John Bruneval, Mathieu Bousquet,

John Bazill, Flip van Helden, Giuliana Torta

Web based info on Europa

http://ec.europa.eu/development/Policies/9Interventionareas/Environment/forest

overview of vpa negotiations and their challenges...overview of vpa negotiations and their...

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