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The path to FLEGT VPA negotiations between EU and Thailand Alexander Hinrichs EFI Regional Advisor 15 March 2013 ©European Forest Institute EU Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan (2003) The 2001 East Asia Bali FLEG Declaration was a catalyst FLEGT Action Plan 2003: Towards SFM, good governance & transparency Mix of supply and demand sides activities: 1) New Legislation (EU Timber Regulation) 2) Bilateral Partnership Agreements (VPA) 3) Encouraging public procurement policies for legal and sustainable timber 4) Encouraging private sector initiatives Aim to eliminate trade in illegal timber in the EU 2 ©European Forest Institute Significant imports of tropical hardwoods (Myanmar, Laos, Malaysia) and (China) Domestic production: Rubber wood; Eucalyptus; Teak Exports to EU, US and Japan: US$ 840 million in 2009 Forest Product Imports and Exports by Value to/from Thailand Source: European Forestry Institute, as compiled by James Hewitt (2008). ©European Forest Institute ►How to react ? Negotiation of FLEGT Voluntary Partnership Agreements between the EU and timber-exporting country 2. Private sector initiatives (e.g. voluntary forest certification and legality verification) 3. Use other means of providing information on legality 1. ►Thailand has indicated interest in FLEGT VPA Government led, stakeholder based process to define, verify and document timber legality of all timber / all exports to the EU through a the establishment of a license system ©European Forest Institute FLEGT - goes beyond illegal logging Forest law enforcement governance and trade Important for all stakeholders Important for government agencies (rule of law, taxes, …) Key for civil society (decision-making, accountability, human rights, indigenous people, resource allocation) Important for private sector (access to markets, unfair competition) ©European Forest Institute FLEGT VPA process In country consensus building •Information dissemination •Stakeholders organize and create structure for discussion •Country debate and analysis on legality, tracking systems etc. Bilateral Negotiations •Negotiations with EC on VPA Annexes and Agreement text •Negotiations AMONG stakeholder groups in VPA producer country •Negotiations WITHIN stakeholder groups ©European Forest Institute Agreement Ratification •VPA initialed •VPA Signed and ratified in producer country and EU System Developmen t •Tracking systems improved/created •Licensing system created •Independent auditor selected •Joint implementation meetings Implementation •FLEGT Licenses issued • Indep Monitor functioning •timber controlled at EU borders Preparation for a FLEGT VPA in Thailand Consensus building (1) Information dissemination and awareness raising Capacity building support from EFI FLEGT Asia Baseline study (published in Thai and English) Meetings with RFD, parliamentarians, private sector and CSO stakeholders Dissemination of material at public meetings and trade fairs Regional and international training courses (all stakeholder groups) ©European Forest Institute Preparation for a FLEGT VPA in Thailand (2) Gap analysis / technical study on supply chain controls Study on controls of timber flows in Thailand (published) In collaboration with RFD (workshop in March 2012) Key findings: Strict laws and regulations to govern the growing, harvesting, transport and use of timber, but lack of control of some species, e.g. eucalypt, rubber and fruit trees Imports (large quantities!) lack evidence of legality at source Data on production incomplete (plantations) Complex domestic processing industry with limited use of CoC Efforts by RFD to promote certification, Certificate of Origins, national single customs windows, etc ©European Forest Institute Preparation for a FLEGT VPA in Thailand (3) Stakeholder mapping study and workshop (July 2012) Stakeholder grouped into: Forestry-related industry associations/federations Forestry-related private sector Government agencies Forest-planting groups/individuals and workers Civil society/NGOs involved in forest-related issues Parliament ©European Forest Institute Preparation for a FLEGT VPA in Thailand (4) Stakeholder concerns Loss of export earnings (SME) Increased administrative procedures and higher costs Insufficient capacity Increased risk of weak governance and “corruption” Recommendations Establish a platform for stakeholder involvement (functional network or working groups) Provide access to the process (role in negotiations) Reach out to more stakeholders ©European Forest Institute Preparation for a FLEGT VPA in Thailand (5) Further aspects of in-country consensus building Inter-departmental discussions (pro & cons, institutional aspects, parliamentary preparations) FLEGT Focal Point in RFD and National FLEGT negotiation committee, Parliamentary process (Standing Committee on Legal Affairs, Justice and Human Rights ) In parallel: Preparations for EU TR by Thai side Study on EU TR by Thai side, workshop on EU TR in July 2012 Private sector initiatives ©European Forest Institute The road ahead : Formal negotiations Negotiations with the EU Negotiations AMONG stakeholders in-country Negotiations WITHIN stakeholders groups ©European Forest Institute For more information, please consult http://ec.europa.eu/environment/forests/flegt.htm http://ec.europa.eu/environment/cites/home_en.htm http://ec.europa.eu/environment/forests/illegal_logging.htm Or contact us c/o Embassy of Finland 5th Floor, Wisma Chinese Chamber 258, Jalan Ampang 50450 Kuala Lumpur, Malaysia Telephone: +603-4251 1886 [email protected] ©European European Forest Institute © Forest Institute